LEARNING TO EXPORT – EXCHANGE RESULT
LEARNING TO EXPORT – EXCHANGE RESULT
An export results from some factors, depending on the dependence of countries or commercial interests, which are the result of Exchange, Need and Competition.
In this text, we will talk about the Exchange Result.
Learning to Export – Exchange Result
It is when two or more Countries or two or more Companies negotiate the exchange of products or services, according to their interests, where an import is linked to the realization of an export, as compensation. This initiative is normally the responsibility of the countries, which through their intermediation can benefit a region. However, it can also be carried out by trading companies or by Commercial and Industrial Associations in each country.
Example: Company A needs to import a machine and its region produces clothing. Company B, from another country, produces machines. Then Company A negotiates with Company B, proposing to import the machine from Company B as long as Company B also imports clothingd from the region, or from its own manufacture, as the case may be.
This Exchange Result initiative is very easy and advantageous for Countries or Business Associations because it is objective, controllable and delimited, which also allows understanding by governments and, eventually, can even obtain tax benefits for company operations.
The Exchange Result becomes a necessity because foreign transactions result from the fact that productive resources, both quantitatively and qualitatively, are unevenly distributed between countries, which makes it practically impossible for a country to produce everything it needs or what they consume, in the quantity and quality they need, depending on limiting factors, such as: Technology, Ecology, Geography and Economy.
Learning to Export – Exchange Result
For all the reasons presented above, the Exchange Result is one of the best initiatives to start an Export program, as it reaches localized sectors of the economy.
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