Motivations for Export
Different people/firms/companies have different motivating factors which enable them to get into international trade. However, the most common motivators can be classified into Proactive and Reactive:
Proactive
- Better profits
- Innovations
- Technological edge
- Tax incentives
- Managerial initiative
- Scale economies
- Information advantage
Reactive
- Domestic market saturation
- Competitive pressures
- Poor domestic response
- Excess capacity
- Production overruns
- Easy access to customers and ports