Why Get Involved In Export?

The Importance of Export To Economic Development

Intibuca Tours

Export Is Your Key To Gaining Foreign Exchange

Export Development is on the lips of important people in every country. From the USA where the Export Now program exhorts Americans to export to countries like Japan and Holland that depend upon export for survival.

Why is export so important? And why should you begin today in this m program to learn how to export?

What Is Export?

Export is usually defined as shipping goods from one area to another within a country and as shipping goods from one country to another. Export is also defined by MOTILES as the offering of services that bring in financial resources from other countries. So any activity that relates to the gaining of foreign exchange through activities in your country if the money comes from foreign nationals or tourists.

Why Does Export Drive Development?

Why does export drive economic development? If in your are you have raw materials such as trees, the value to the local people might vary. The lowest value would be for firewood. Just about everyone uses it. Because it is so heavy and must be cheap because the people are poor, it is low in value. If its value were artificially increased by the government, more and more trees would be cut, so more wood would be on the market. With more wood at the higher price, the wood would be a harder sell. So some people would lower the price so they could sell it. That would drive the price down. Within a poor community which is what you have in many countries, a commodity like firewood has a low price.

What Are The Effect of Marketing In-Country

Let us make lumber from the trees. Each item has higher cost and value. The people are still poor. Very few people can afford to buy the lumber. Because there are only a few customers, the sellers need to get more money for each piece of lumber. The price remains high. Few people can buy. The equipment to make lumber is expensive. Very old. And often out of repair. And the small local market will not enable anyone to spend money overseas to buy equipment. Most people build their houses out of mud brick or adobe.

So let us make higher value items out of the lumber. We can make birdhouses, plant containers, wall hangings, plant holders, small pieces of furniture, The products have even higher value. But the people are still poor. When you earn 30 coronels per day, you cannot afford to buy a beautiful decorated hand-crafted item that sells for 60 coronels.

Everything is different if we go to export markets.

If the average person in Arboleña make 30 coronels per day, how much could he spend on the above?

But supposed you found a market where people make 3000 coronels per day. And there were millions of these buyers. People who don't have the kinds of products you can produce in Arboleña You could sell your products for 3000 coronels if it were high quality enough. And you could sell to millions. 

You could hire many workers at 30 coronels per day to make these products. And once you see there is market demand, you can purchase the expensive equipment. When you have more workers making money in your community, more products such as food and clothing will be purchased.

New people come to the community to open businesses. New kinds of businesses occur. And soon there is much demand for workers. Wages go up to the workers. Even More money available in the community. But the workers become more skilled and are able to make better products or more per day. You get more money. The community has more money coming in. More taxes are paid into the government so more schools and other services can be provided.

Export is lucrative because of higher standards of living in other countries. People earn more and can pay more for what they want. A key factor is the larger populations of people who earn higher salaries. That enables the marketplace to be very large and thus you can sell millions of unit instead of merely tens or thousands.

When You Develop Exports For Your Products

That is how export drives development

In every country in the southern hemisphere, export development is a priority. Export brings in foreign exchange, lowers the balance of payment, increases quality of life and raises the G