Blog Amelia Herlambang: November 2013

Export

The term export means shipping the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export. Exports are one of the oldest forms of economic transfer, and occur on a large scale between nations that have fewer restrictions on trade, such as tariffs or subsidies. In International Trade, "exports" refers to selling goods and services produced in the home country to other markets.

Investopedia explains 'Export' that most of the largest companies operating in advanced economies will derive a substantial portion of their annual revenues from exports to other countries. The ability to export goods helps an economy to grow by selling more overall goods and services. One of the core functions of diplomacy and foreign policy within governments is to foster economic trade in ways that benefit both parties involved.

Methods of export include a product or good or information being mailed, hand-delivered, shipped by air, shipped by vessel, uploaded to an internet site, or downloaded from an internet site. Exports also include the distribution of information that can be sent in the form of an email, an email attachment, a fax or can be shared during a telephone conversation.

Beyond increased sales, exporting can also deliver a range of other direct and indirect benefits such as:

1. Economies of scale - exporting can leverage your unique product and service by increasing your customer base, resulting in economies of scale. Exporting can also level out seasonal fluctuations in product demand to let you use your capacity more efficiently.

2. Productivity - exporting can expose your business to new ideas, technologies and business processes and provide opportunities to improve your knowledge and increase your competitiveness.

3. Innovation - exposure to more competition, new technologies and processes, different customer requirements and cultural environments can all help boost productivity, skills and innovation.

Disadvantage of Export:

1. Hire staff to launch the export expansion

2. Subordinate short-term profits to long-term gains

3. Modify your product or packaging

4. Develop new promotional material

5. Prolonged payments

6. Acquire additional financing

7. Product alteration to fit the market demand

8. Added administrative cost

9. Increased marketing expenses and materials

10. Obtain various required export licenses

Conclusition :

I think if exports don’t make a profit then there is nothing that will perform the activity. Exporters produce goods and services and then sell to the export market in a way of course this brings in terms of financial gain, the profits from sales abroad. Than it gains from the export activity :
1. Can expand the Indonesian market, this is one way to market their products abroad Indonesia.
2. Increased foreign exchange, thereby, increasing the country's wealth because it is one source of foreign exchange revenues.
3. Expanding employment, the extent of the market for Indonesian products, production activities in the country will increase. The more labor is needed so that the job is getting wider.
But I think the export must be limited because our own country natural resource is our. If there is a great thing and we export it we will get financial lose from our own natural resource because the country that we export our natural resource will make it to be better thing. They will export it to our country again with very high price. That mean we must limit export so our people can make thing like that but with an acceptable price.

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