New Horizons in International Business series
Edited by Masaaki Kotabe and Preet S. Aulakh
Chapter 7: National Export Promotion: A Statement of Issues, Changes, and Opportunities
7. National export promotion: a statement of issues, changes, and opportunities Michael R. Czinkota INTRODUCTION Exports represent one of many market expansion alternatives. The fact that the new customers do not live in the next town or next province, but rather in another country, however, has motivated governments to devise policy instruments designed to encourage exports. This chapter will address the rationale for such government involvement in the market place. After summarizing the key export promotion approaches developed by governments during the second half of last century, an analysis of the changes in rules, requirements, and activities of governmental export promotion will be offered. The chapter concludes by presenting thoughts on why and how export promotion should be restructured in the new millennium. WHAT MAKES EXPORTS SPECIAL? For much of recorded history, governments have treated international trade as a special dimension of economic activity. Early on, imports received most attention. In particular during times when imports represented the rapacious capabilities of a nation, their accumulation, and thus contribution to ‘national’ wealth were prized. Later on, ‘exchange’ became the more acceptable form of wealth accumulation, which increased the importance of voluntary exports. Work by Smith (1776) and Ricardo (1819) subsequently offered theoretical insights into absolute and comparative advantage, which helped to identify export industries whose activities would be of particular beneﬁt to a nation and its citizens. In more recent times, the special status of exports has continued. From a governmental perspective, exports are seen as special because they can...
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