LEARNING TO EXPORT – NEED
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 Need.
Learning to Export – Need
When a Company or a Country needs a product or a service, due to the absolute inexistence of this product or service in its market or because the production of this product in its market is not enough to meet the internal demand. And this applies not only to agricultural or mineral products, but can also apply to products with innovative or differentiated technology. Note that here we are talking about necessity, not competitiveness.
Example: Country A needs to import soy, as it is not yet self-sufficient. So, Country A, depending on the need, reduces the import tax on this product to facilitate imports, and with this, opens the market for soybean exporters from other countries.
PRODUCTIVE RESOURCES AND LIMITING FACTORS
Foreign transactions stem from the fact that productive resources, both quantitatively and qualitatively, are unevenly distributed among countries.
It is practically impossible for a country to produce everything it needs or consumes, in the quantity and quality it needs, due to limiting factors, such as:
3.2.1 Technological
Not all countries have the technological capacity to produce or execute products and services that require knowledge, research and resources.
3.2.2 Ecological
Many countries have environmental limitations to plant, produce or execute products and services, which forces them to seek these products and services abroad.
3.2.3 Physical Space
Some countries do not have physical space (land) for extensive crops, or facilities that require geographic resources, and for this reason, they need to acquire or execute these products and services in other countries.
3.2.4 Economic-Financial
The lack of economic-financial resources, or the high internal financial cost, makes some countries seek products and services abroad, linked to financing or credits.
Learning to Export – Need
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