Reaction Paper

        Based on International selling that I've read, business community nowadays focused more on the development of exporting products rather than importing to other countries and I agreed on that. As it was already said, it is necessary for the economic survival of the business community. The exportation must exceed the importation to have a favourable balance of trade. To achieve this, a company must reduce expenditure on imported foreign goods and sell more goods and services overseas to increase foreign revenue. Total exports must pay for total imports, so if a country’s exports fall then imports should also fall, unless the deficiency in exports can be made good in the ways specified. We now appreciate the importance to a country of keeping up its volume of exports. Different organization and unions was also considered to the international selling that we are talking about too. Like European Union whose initial objective of the treaty was to remove all restrictions on the free movement of goods and services and individuals within the EU by removing taxation differentials, frontier controls and other forms of restriction. It also said that the concept of a single market is no longer a future scenario but a reality. Companies that have failed to plan for the changes that the single market has brought, and will continue to bring, find themselves faced with increased competition for which they are ill-prepared.

        The increased in exports of goods and services is now the priority of the business community. Businesses here in the Philippines suffered many losses because of the importing of products from other countries. Example is the importation of our basic need which is rice. It’s like that just yesterday we are one of the exporters but look at now, we are importing from other countries just to supply the needs of our Filipinos citizen. The national economic prosperity depends on selling overseas is not without relevance to individual companies. There are reasons why companies benefit from selling overseas. Factors concerned with selling overseas. The first one is because of the non-availability of the product. It benefited to you if you are the one who’s exporting that particular product to other countries but if you are the importer, it will just be a burden for you. Next is because of the international differences in competitive costs. In here, it is said that you will gain if each exports products in which costs of production are comparatively lower and imports products in which costs of production are comparatively higher. The more productive country would still benefit from specialisation in those goods it produces best, and should then import those goods it is comparatively less good at producing. Lastly is the product differentiation. Differentiation for me is an asset that can be used to take advantage to my competitor. Selling overseas is a cultural as well as an economic phenomenon and it is to the area of cultural influences in overseas markets that we now turn.

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