Countries and Companies; Export Approach

1. Export Approach

One of the most important paths to success in today's highly competitive world is export. In today's understanding of trade, there are different interpretations of the concept of export; these interpretations are sometimes adopted by countries and sometimes by companies within that country. Companies trade through export or import by entering into agreements with other companies or countries, thereby generating an inflow of money to the selling company and the country in which it is located.

1.2 Exports by Company

Companies look at how much demand there is for their products among consumers. If we consider a very well-known supermarket chain in a country, and if 20 packets of crisps are delivered to that store from the exporting country for one week, it is possible to analyse how many of the 20 packets of crisps were purchased within one week, how many days it took, or how much demand there is. Therefore, the company in the exporting country can increase its orders accordingly.

Export by companies refers to the system carried out through commercial activities between two companies or based on bulk orders. Some companies focus on products that are not available in foreign countries or on products that could emerge with new, different ideas in order to be able to export. Here, the entrepreneurial factor, which is one of the factors of production, is utilised. Entrepreneurs present their ideas to the company, and it is a priority for the company to decide to produce this product and to be able to advertise and market it. Consumers in foreign countries feel the maximum benefit that the product will provide them and feel the need to purchase that product. This system is a balance; the company completes new orders with the foreign currency it receives in return through exports and again exports to a different country. The benefit to countries is that it contributes to the economy, but if a country imports more products than it exports, its economy is on a bad path. The more companies produce and sell to the international market, the better their exports are.

1.2.1 What are the Benefits or Risks of Exporting for a Company?

• 1. To increase sales and profits.
• 2. To gain share in world markets.
• 3. To reduce dependence on domestic customers.
• 4. To create employment.
• 5. To get to know experts.
• 6. To gain competitiveness.
• 7. To keep sales transactions below the estimated level.
• 8. Estimated increase in competition level.
• 9. Restriction of income return from the target country.
• 10. Market fluctuations damaging profit.
• 11. The exported product not being accepted in the foreign market.
• 12. Non-payment.
• 13. Contract disputes being taken to court.

Within a country, certain major companies export more than expected. This is also true for Türkiye.

Merchants, although unable to export as much as companies, can still make sales abroad. This opportunity is provided by the state, and individuals with merchant status are compensated by the state while conducting their commercial activities.

1.3 Exports by Country

Türkiye's total exports in 2018 and 2019 were 168 billion dollars in 2018 and approximately 171.5 billion dollars in 2019.

Exports by country are carried out through public companies and cooperatives. This enables companies to export within their own commercial activities. Countries offer opportunities to their companies, and when companies realise these opportunities in accordance with the law, they provide foreign currency to the country. The same system applies to traders, but traders tend to engage in smaller-scale exports rather than large-scale exports. For countries, the export system appears to be a profit system.