Introduction of the chapter.

Direct and indirect exporting represent the most basic method of internationalisation for enterprises, enabling them to sell their existing goods or services in foreign markets.  The focus of this chapter will be to explain what direct and indirect exporting is, so that the Internationalisation Service Officer will be equipped with the requisite knowledge to guide the SME as he/she commences the exporting process.  The fundamentals involved in creating a company’s export plan will also be outlined including the relevant customs’ requirements as well as legal, financial, transportation and marketing factors. Information regarding the implementation of foreign trade activities within the company and the evaluation of export activities including their impact on the enterprise activity will also be provided.

Foreign trade activity is an important part of the development process of the enterprise because it shapes the multi-faceted functioning of the company. It extends the sales of products or services on new markets prolonging the life cycle of the product/service, reducing production costs and increasing profits.  Furthermore, companies who decide to get involved in export activities benefit from an enhanced professional image in domestic and international markets. It is also worth mentioning the reduced influence of market changes on the enterprise, as having the opportunity to sell its products/services in various markets can result in minimising any losses relating to the decrease in demand for goods in other markets. In addition to the financial benefits of exporting, the SME also acquires increased experience and knowledge about customers, markets and products, which may prove to be key in gaining a competitive advantage for the company on the domestic market.