International Trade and Export

Abstract

The aim of the present study is to examine the foundations and principles of international trade and export. The research method is descriptive-analytical and uses library resources. Exporting causes economic growth by increasing the skilled labor force and technology in the domestic market. Therefore, exporting is considered as a tool for economies of scale that lead to improved efficiency and productivity in the long run. Since the success of a company in exporting can be evaluated by its export performance, identifying the factors affecting exports in order to increase export performance is more important than ever. Given the importance of this issue, exports and international relations have always had a special place for countries. However, achieving a high level of performance in the field of exports is a major challenge due to reasons such as physical route, cultural differences between independent business partners and different competitive situations. Exporting will lead to product and market development and, as a result, profitability for firms. Exporting may help a firm to achieve the effects of the experience curve and economic position in its home country. Ownership advantages include the firm’s assets, international experience, and the ability to develop low-cost or differentiated products. Locational advantages of a particular market are a combination of costs, market potential, and investment risk. Internationalization advantages are the advantages of maintaining core competencies within the firm and building them into the value chain rather than licensing, outsourcing, or selling them.