Page 19 - Export and Trade

International Trade

purchase of larger volumes of raw materials, parts and ‡ ([SORLW DQ LQQRYDWLYH HGJH: Through your exposure
components, resulting in a further reduction of the per to new ideas, technology and processes from meeting
unit production cost. new markets, you may have developed a new product or
‡ 8SJUDGLQJ SODQW DQG HTXLSPHQW Is it time to service. This can help your business develop innovative
upgrade your plant and equipment but you cannot products and services and so provide the platform and
embark on this without increased turnover? Export stability the business needs to grow.
business will provide the volumes you require to justify ‡ 6WDII OR\DOW\ DQG VWDELOLW\ Through successful
upgrading plant and equipment. This in itself may also exporting you can engender increased enthusiasm, loyalty
help reduce the unit cost of production. and commitment amongst your staff. This will contribute
‡ 0DUNHW HQWU\ You may wish to launch a new product to a more stable work force and higher productivity.
but the domestic market is not large enough on its own to ‡ 6PDOO EXVLQHVVHV 60(V FDQ EH VXFFHVVIXO
launch it. However, by factoring in additional export sales, exporters: It is a popular misconception that only large
entry onto the domestic market may become feasible. companies can succeed overseas. Indeed, many SMEs
‡ 0DQDJH EXVLQHVV F\FOH ULVNV The traditional business have found that their competitive advantage lies in some
cycles in New Zealand caused by our high exposure to form of technological or creative advantage – through
commodity price variations may create instability for Kiwi innovation and ingenuity; “we do things differently
your local business. Exporting will provide a broader KHUH´ 5HÀHFWLQJ DQ DGDSWLYH .LZL DWWLWXGH PDQ\ 60(V
base of activities, providing better stability. have ‘unique’ or ‘niche-type’ products or services. When

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NZ Export & Trade Handbook 2018 17