Most countries do not produce all the goods that they need. Therefore, in the economic world, every country has to depend on imports. In the same way, other countries need the particular country in terms of goods production. Therefore, there is global interdependence of firms all over the world. However, the export market is a tricky one. This brings up the need for an export promoting agency in any country. These agencies function to improve the activities of a firm in the global world. This essay is fundamentally about the export promoting agency of China.
Key Programs that are Helpful to the Exporting Firms
From electronics to other products, China is a producer of a variety of goods and products. However, the market in China is not sufficient for these goods. For this reason, there is a need to export goods and services to other nations. The export promoting agency in this nation has several programs that are instrumental in the exporting activities and services available in the whole region. The first program is financial support. From the export promoting agency website, it is well explained. The agency offers financial support to the local firms. This requires government support and intervention (Assenza 2010). The export business is extremely competitive. For this reason, the small local firms need support, in order to keep up with this kind of competition. The best way to increase and enhance their efficiency is offering financial support. This is what the exporting agency of China does to promote their local producers.
The other program that the agency engages in is the making of travel arrangements. For some investors who might be willing to import the products of China, they have to travel to the country and get first hand information. It is the work of these export promoting agencies to ensure that the travelling expenses and guidance is offered to the potential importers. This is an essential tool when it comes to the exporting potential of the country. In addition to this, the export promoting agency also offers warehousing and packaging services. This is mainly for the goods that nee storage in the market. The local firms may not be in a position to store their goods as a result of lack of space. In such occurrences, it is the work of these export promoting agencies to make sure that these goods are efficiently stored (Kerr 2011).
This is not all that the agency provides. The list of the programs that this agency undertakes is endless. The other undertaking that the agency engages in is the inspection and quality control. People might think that this only functions to ensure that the importing parties receive quality products. It also functions to prove to the international world that they produce quality goods and services. This increases the preference of consumers with regard to their goods. The other program that has been indicated in the website is free sourcing. This is whereby these firms negotiate on behalf of the exporters (Roy 2012). Therefore, they are able to reach fair prices that reward the exporters fairly. This also ensures that they negotiate for more suitable terms and conditions. Therefore, the local firms are able to thrive in the market for a longer time. These are just a few of the programs and services that the agency engages in to promote export. However, they are the main ones and the most fundamental.
Most Helpful Programs to the Firms
Of all the programs mentioned above, the financial part is the most helpful one to the local firms. This is because it acts as subsidization to these firms. This is because the biggest factor that contributes to the downfall of firms is the lack of funds. This leads to the existence of small businesses that do not have any competitive qualities in the global market. However, the offering of financial support ensures that such firms do not suffer the same fate. They are able to increase their competitive value in this global market and out do other bigger competing firms.
The other most valuable program that can be most helpful to the local firms is the free sourcing. This is where the question of experience comes in. The export promoting agency has extensive experience in dealing with firms that are existent in the market. They are in light of matters that may not be known to many other bodies. However, the exporting firms may not match the qualities of this export promoting agency (Sargent 2012). Therefore, the conduction of the deals by the agency is one of the most vital tools that the agency can offer to the local firms. In this conduction, the firms do not just sit back and wait for the agency to conduct business for them. In the process, they also learn the most suitable ways in which business activities should be carried out in the international world. This increases their efficiency for a long time to come.
In the market today, most of thae products seem to have been made in China. The essay above proves that this does not just happen out of the blues. There is a body that is responsible for the marketing. This is the export promoting agency. This agency ensures that China remains competitive and competent in the global market. It achieves this through programs that they put into place, to help promote the exporting potential of the local firms. This acts as an example to other countries that have not flourished as well in the corporate world.