Definition Export promotion, also called export drive, may be defined as any policy by which government encourages producers of export goods to produce and export more in order to earn more foreign exchange. Measures were taken by the government towards export promotion:
- Reduction of export duties: Export can be promoted by reducing export duties.
- Subsidy for export-based industries:
The cost of producing export commodities by export based industries can be subsidized.
- Granting of tax incentives: Tax incentives can be given to export-based industries.
- Setting up of export promotion agencies: Export promotion agencies to encourage exporters can
be set up, e.g. export processing zone (EPZ) in Calabar.
- Retention of part of foreign exchange earned by exporters: Exporters should be allowed to retain part of the foreign exchange earned from exports.
- Infrastructural development: Infrastructural facilities like seaports, airports and communication should be developed so as to facilitate or promote exportation of goods.
- Reduction of freight rate: Freight rate on exports can be reduced to encourage exports.
- Granting of credit facilities: Credit facilities can be granted or offered to exporters in order to promote export.
- Devaluation of local currency: The local currency can be devalued to make export cheaper.
- Organizing international trade fairs: International trade fairs should be organized periodically in order to attract foreign importers.
general export promotion strategies that can work anywhere around the world
Export promotion strategies are measures and activities implemented by governments, organizations, and businesses to stimulate and facilitate international trade and increase the exports of goods and services. These strategies aim to enhance competitiveness, open new markets, and foster economic growth. Here are some common export promotion strategies:
- Market Research: Conduct comprehensive market research to identify potential export markets, target customers, and market trends. This helps businesses understand the demand, competition, and preferences of foreign markets.
- Trade Missions and Fairs: Participate in trade missions and exhibitions both domestically and internationally to showcase products and services. These events provide opportunities to network with potential buyers, distributors, and partners.
- Export Financing and Insurance: Provide financial support and insurance services to exporters to mitigate risks associated with international trade. This can include export credit insurance, working capital loans, and export guarantees.
- Export Training and Assistance: Offer training programs and workshops to educate businesses on export procedures, regulations, documentation, and international marketing. Government agencies and trade associations often provide such resources.
- Export Incentives and Subsidies: Governments may offer financial incentives, tax breaks, and subsidies to promote exports. These incentives can include export grants, duty drawbacks, tax exemptions, and subsidized export credits.
- Trade Agreements and Negotiations: Engage in negotiations and enter into trade agreements with other countries to reduce trade barriers, such as tariffs and quotas. Free trade agreements (FTAs) create favourable conditions for exports by eliminating or reducing trade barriers.
- Export Consortia and Alliances: Collaborate with other exporters in the same industry to form export consortia or alliances. These partnerships pool resources, share market intelligence and collectively address challenges in foreign markets.
- E-commerce and Digital Platforms: Leverage e-commerce platforms and digital marketing to reach global customers. Establish an online presence, optimize websites for international audiences, and utilize social media for promotion.
- Product Adaptation and Localization: Customize products or services to meet the specific needs and preferences of target markets. This may involve adapting packaging, branding, labelling, or even modifying the product itself.
- Government Support and Export Promotion Agencies: Seek assistance from government agencies and export promotion organizations that offer guidance, export promotion services, and support for market entry.
It\’s important to note that the selection and effectiveness of export promotion strategies may vary depending on the industry, target market, and specific business objectives. It\’s recommended for businesses to conduct a thorough analysis and develop a tailored export promotion plan that aligns with their goals and resources.
- factors affecting the expansion of industries
- mineral resources and the mining industries
- demand and supply
- types of demand curve and used
- advertising industry
- factors of production
- joint stock company
- RINDER PESTS
148. NEWCASTLE DISEASE
149. BACTERIA DISEASES
153. FUNGAL DISEASES