Reflection on the Exporting, Importing and Counter trade

By: Sophia P. Magdayao

Improving Export Performance A major obstruction to exports is the absence of basic

information of the open doors. There are numerous business opportunities, but since they are spread in
various nations base by culture, dialect, separation and time, it is in some cases hard to assess those.
Recognizing export circumstances is made significantly more intricate by the way that 192 nations
broadly contrasting society make the world out of potential openings.

International business and exporting have a lot in common because they both entail doing
business with other countries. Exporting, on the other hand, is less wide than the phrase
international business because it solely refers to the act of selling a company's goods to
other markets, or exports. Exporting can be accomplished by simply exporting domestically
manufactured goods to foreign countries without the need for a specific division or
manufacturer in that country. Market size and earnings can grow and improve as a result of
this approach. Furthermore, due to the complexity of exporting, most large firms are more
motivated to engage in exporting than smaller firms. Exporting companies must be able to
discover market prospects, manage foreign exchange risk, handle import and export
financing, and, of course, comprehend the difficulties of conducting business in a foreign
market. In general, exporting can be both beneficial and risky; companies that engage in
exporting should be well-versed in how the process works in order to be successful in this
industry.

Importing, on the other hand, is the opposite of exporting because it entails the
purchase of goods and/or services from other countries. When a Filipino vendor sells a
product in an American market, it is referred to be an export in the Philippines, but as an
import in the United States. Importing, like exporting, has advantages and disadvantages,
which is why the government should know how to manage both exports and imports in their
country to avoid market instability. Importing is advantageous because it helps countries to
obtain products and services that they do not have or when supply is insufficient.  Importing,
on the contrary, might reduce the size of the market for domestic enterprises, resulting in
cheaper pricing and increased competitiveness.

We also have countertrade, which is a modern kind of a barter system that involves a
variety of barter-like agreements that facilitate the trade of products and services for other
products and services when they cannot be traded for money. Countertrade is appealing
because it allows a company to fund an export deal when other options are unavailable, and
it also provides a competitive advantage over a company that refuses to enter a
countertrade arrangement. The disadvantages include the exchange of useless or low-
quality commodities, as well as the requirement for companies to build an in-house trading
department to manage countertrade operations. The government of a country to which a
company is exporting goods or services may demand countertrade agreements. To
summarize, these three have one thing in common: they all carry positive and negative
consequences. As a result, firms should be able to assess both the costs and benefits of
these practices before engaging in them so that they can benefit from them. In order to
attain higher growth and profit in the long run, managers and those responsible with
governance should adopt proper and efficient strategic planning and implementation.