Export Maine Lobster

Prospects, issues, and procedures for exporting

The reasons you or any company would consider exporting are many and varied, the first being increased sales and profit. A company can boost sales and increase revenues by selling goods and services to a market they had not previously had. Once export startup costs are paid, the new revenue from foreign markets can substantially increase overall profitability. Exporting can serve as a catalyst for growth and lead to expansion for your company. “Ninety-five percent of the world's consumers live outside of the United States, so if a U.S. business is only selling domestically; it is reaching just a small share of potential customers.” (Export.gov). By participating in the global market you can tap into a share of the immense international marketplace for your company.

Another reason to consider entering the export business would be to enhance competitiveness in your current markets. By exporting and selling your products and services in foreign markets you can expand your knowledge of new technologies, marketing techniques, and your competitors’ strategies to improve your overall competitiveness in any market. Being known as an international company gives you a bigger and more impressive presence and enhances your company’s reputation.

Another consideration may be diversification. Selling to multiple markets would allow your company to diversify your business and spread your risk. Business cycles, regulation changes and seasonal fluctuations in the market differ from country to country and these differences can be used to hedge one sector’s competitive advantage against a downturn in another.

The increased economy of scale is also seen as an advantage of entering the export business. Foreign sales can result in larger production and cost discounts for the increased need for raw materials. Foreign sales can be helpful for companies when they need to dispose of excess production. Exporting your products can serve to...