I (Meaning and importance of Exports) Unit Structure

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(g) 
Entry in overseas markets 
 
The exporter then makes necessary arrangements to enter 
in the overseas markets. He may appoint the required sales people, 
and intermediaries. He should complete all other formalities 
regarding the entry in overseas markets. He would then produce 
the goods as per the requirements of overseas buyers. 
(h) 
Follow-up 
The exporter should undertake a review of the performance 
in the overseas markets. Such review would enable the exporter to 
know which markets are performing well, and which one are not. 
He would then find out the reasons for the same, and if there are 
problem, he would try to resolve such problems, or exit from such 
markets that do not provide good potential. 
5.4 FACTORS 
INFLUENCING 
SELECTION 
OF 
FOREIGN MARKETS 
The exporter must consider certain factors to select the 
appropriate foreign markets. The factors that influence the selection 
of foreign markets include the following: 
(a) 
Competition 
The exporter must consider the degree of competition in the 
overseas markets. Nowadays, due to globalization, there is high 
degree of competition in the overseas markets. In the ultimate 
analysis the price factor is very important. The selling price as 
related to competition and quality is a very important factor. It is not 
only the existing competition but the potential new competition has 
also to be assessed properly. 
(b) 
Demand 
One has to determine the demand of the product in the 
foreign market. Based on the present demand and the suppliers 
already there, whether one more competitors would be able to get a 
reasonable market share is the crucial point to be decided. The 
perceived durability how long will be the demand persists, and 
whether there are any patent laws or public laws of the country 
present or imminent has also to be looked in to.