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To take the plunge and go global with your product or service. How do you begin?

In todays increasingly globalised world, exporting is crucial for a business' growth and competitiveness. Export business is exciting, adventurous, and financially rewarding but at the same it is full of challenges, risks and complexities.

Global business means that your services or products are not bound by the geographic location of your business.
Small and medium sized businesses (SMEs) which are new or early exporters often rush to find an overseas buyer but fails to address the key issues.

Companies go international for different reasons, some reactive (or defensive) and some proactive (or aggressive). The threat of their own decreased competitiveness. companies such as IBM and Digital Equipment are plowing profits back into operations overseas. Europe is now attracting much new investment capital because of both the European Union (EU) and the opening of extensive new markets in Eastern Europe.

Exporting: is the marketing and direct sale of domestically-produced goods in another country. Joint venture:A legal entity formed between two or more parties to undertake an economic activity together. Franchise: is a license to market a company's goods or services: business which has been granted a license.

Without commitment, resources and capability no business can turn itself into a high export achiever. Many Indian SMEs enter into export business but most of them back to square one due to lack of proper strategy and preparation. Export should be planned keeping in mind long term growth strategies.

Small and medium sized businesses (SMEs) which are new or early exporters often rush out the door to find an overseas buyer but fails to address the key issues that must be addressed if they want to be successful exporters.

Businesses which aspire to gain ground in the global market need to follow a logical and planned approach to export development. key factors for export success, such as management and company commitment to export, some lasting competitive strength for the company and internal capabilities to support exporting.

Globalisation strategies involves expanding internationally e.g. by developing manufacturing or distribution/sales facilities in other countries

1. Political risk:instability could result in defaults on payments, confiscation of property, exchange transfer blockages, etc. 2. Legal risk: difference in law may have impact in such areas as taxation, currency dealings, property rights, employment practices, etc. 3. Credit related risk:To overcome payment related risks, an exporter needs good understanding of different payment methods in international trade. Choose a payment method which provides you with some security.

4. Internet frauds: Like in any other place, the Internet is not free from scammers and frauds. It is not only individuals who are targets for a variety of illegal schemes but also small as well as large business organizations. 5. Quarantine compliance: (especially the European countries). Before sending a shipment, ensure that your products are allowed to be exported to the destination country. Besides the above mentioned risks, there may be some tariff barriers which exporters often have to face. For example, many governments impose high import taxes on certain products to discourages a foreign company's market entry and to provides some competitive edge to the local providers.

1. Copyrights: Copyright acts protect a creator from having his creation (literary work, musical work, )copied or exploited by someone without the creator's permission. 2. Patents: Patents allow the inventor of an invention to exert monopoly of the invention and thus to fetch adequate commercial value for a period of 20 years. 3. Trade marks: In simple term, a trade mark (or brand name) is nothing but a visual symbol or sign such as signature, name, device, label, numerals, etc. 4. Trade secrets or know hows: Trade Secrets or Know Hows are confidential information which may be commercially or technically valuable, and therefore, they need protection.

Shipping is one of the elements of utmost importance in export business. To meet customer expectations, exporter must ensure reliability of the delivery of products on time, in good condition and at proper destination. New exporter often fall into the trap of not insuring their goods and take a major risk by doing so.

It is therefore very important for exporters to develop an international perspective and plan carefully before keeping their first step into the world of exports.