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Exports Promotion
A strategy for promoting economic development in less developed countries. This
involves running an open economy, relying on foreign markets to allow export-led
growth.

Its policies reflect the interest of national governments to stimulate exports.

(Subsidies, tax exceptions and special credit lines)

To encourage exports, government assists small businesses in a variety of ways with the
goal of helping to increase the sales of products that are currently available for
exporting. Is related to commercial activities to identify and attract potential
consumers/customers in foreign markets.

Exports Promotion is typically carried out by a Trade Promotion Organization (TPO)

A TPO’s role is to encourage, promote and develop trade with other countries but also can
conduct trade missions and trade shows (fairs).

TPO: Public Organization, encouraged by governments (Intermediaries between the

companies and government institutions) Promote trade.

Categories of Trade Support Institutions (TSIs)

Buscar Ejemplos!!!

General:
 TPOs: Trade Promotion Organizations
 Ministries (interest in export development)
 Chambers of Commerce and Industry
 Economic Development Agencies and Regional Economic Groupings (with export
focus)

Sector Specific:
 Exporters Associations
 Trade Associations
 Sector-Based (industry and services)

Function Specific:
 Export Credit and Financing Bodies
 Standard and Quality Agencies
 Training Institutions
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TPO: Stakeholders and Roles

Government: Establish policies, regulations, and trade agreements that affect

international trade. They often support TPOs financially and through regulatory
frameworks to promote exports and attract foreign investment. Governments also
provide resources and infrastructure to facilitate trade, such as ports, customs
procedures, and trade missions.

SMEs (Small and Medium Enterprises) : TPOs provide support and resources to SMEs
to help them navigate export markets, access trade financing, comply with regulations,
and participate in trade fairs and exhibitions.

Other TSIs: These include chambers of commerce, industry associations, export

promotion councils, and trade development agencies. TSIs complement the efforts of
TPOs by providing specialized services such as trade information, trade finance, export
training, quality certification, and trade facilitation services.

International Business and Investors: Seek opportunities in foreign markets to expand

their operations, access resources, and diversify their customer base. TPOs assist them
by providing market insights, investment incentives, matchmaking services, and guidance
on regulatory compliance. International businesses and investors often collaborate with
TPOs to identify potential markets, establish local partnerships, and navigate cultural and
legal differences in foreign markets. Their investments and trade activities contribute to
economic growth and job creation in host countries.

New Treds, New Roles…

Change Trend New Roles

Global Value Chains:
International Production
Sharing, where production
is broken into activities and
tasks carried out in
different countries.
Slower Growth in developed
economies
Higher growth in trade in
services
From export promotion to Market Diversification
internationalization
From Traditional Markets FDI Attraction
to emerging and developing
Need for cooperation and Regulatory information and
collaboration Government support.
and Small and Medium
Enterprises.
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TPOs are adapting to changes in the global trade environment by embracing digitalization,
focusing on SMEs, promoting innovation and sustainability, fostering regional integration,
and leveraging data analytics to support exporters in accessing new markets and seizing
international trade opportunities.

When considering “Market Attractiveness” a company would probably consider the

following:
 Size of the total market: This indicates the current and future demand for your
product or service, as well as the level of competition and saturation.
 Volume and proportion of imports: Provides insights into competition from
foreign suppliers and the market's reliance on imported goods.
 Competition: Shows the strengths and weaknesses of current and potential rivals,
as well as the barriers and threats to entry or growth. Frameworks such as
Porter's five forces, SWOT analysis, or competitive matrix can be used to assess
the intensity and dynamics of competition in your market.
 Import Barriers and Regulations: Including tariffs and non-tariff barriers,
impact the ease of market entry and operational costs. Favorable regulations can
facilitate entry, while barriers may hinder access and increase costs.

Logistic Hubs
Storage and distribution centers in duty-free zones (zona franca) of tax warehouses in
the main global markets, which allow for product storage with the beste possible range
capacity and geographical display.
 Enables the products to be where the demand is: it decreases delivery time,
speeds up and reduces costs of sample deliveries and avoids stock shortages.
 Improves business controls abroad, avoiding distributor intermediation which
raises the price of the products.
 Postpones payment of goods nationalization until the purchase transaction is
completed.

Trade Map
Offers online access to the world’s biggest database and introduces indicators regarding
export performance, international demand, alternative markets and the role of
competitors.

Market Access Maps

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Class Questions:
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