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Export Paper Research
BASM530
Components
• Demand in destination market
• Competitive advantage of exporting country/firm
• Trade costs
• Marketing issues
Demand in destination market
• Economic growth: Countries that are growing rapidly will buy more of everything.– Economic development: As countries get richer (higher
income per capita) they will consume relatively more luxury goods
• Sector growth: Has consumption of goods in the relevant product sector been growing? Has the sector that uses this product as an input been growing?
Demand in destination market
• Potential demand: You might be able to benchmark against another country. If consumption of a goods per capita is low relative to an international standard (cars, fast food, wine, etc.), then demand may be expected to grow.
• Import growth • Complementary goods: Some goods require
complementary goods (e.g., cars need roads). Be sure that the complementary goods are in place.
Competitive advantage
• Factor abundance: Are factors abundant that are used intensively in production of the good?
• Industry/firm growth• Export performance: Have exports of the product
been growing?– Is the country a net exporter of the good?
– Revealed comparative advantage
Trade costs
• Tariffs
• Shipping costs
• Exchange rates: Volatile? Trending?
Marketing issues
• Product: Will the product need to be adapted? Will the firm focus on particular varieties?
• Promotion: Are there trade fairs/exhibitions?
• Distribution: Will you market through a local retailer/distributor?
Sources of information
• Lots of links under “Country Research” and “More info” on course webpage
• What follows are some particular useful ones
Demand• Business Source Complete: search by using
keywords “datamonitor”, industry name, and country name
• International market research reports from Industry Canada
• Market Reports from Canada’s Department of Foreign Affairs and International Trade (DFAIT)
• Global Market Information Database: Very detailed product information
• Earthtrends: Useful but a bit out-of-date• World Development Indicators: Detailed country
information
Trade/tariff data
• Canada/US: Use Strategis
• Other countries: Use Commodity trade
• Lots of links to tariff schedules
• Freight costs: may be able to get quotes from shipping companies
Exchange rates
• World Development Indicators has historical information for almost 200 countries
• My colleague Werner Antweiler maintains a website with current (as well as some historical data).
Have fun and good luck!