Explain why exporting is often more advantageous for SMEs
than large MNEs. Provide an example of an SME that has seen significant growth
since exporting.
Chapter 14
Exporting and Countertrade
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International Business: The New Realities, Global
Edition, 3e (Cavusgil)
Cavusgil, 3edition, Exporting and Countertrade,
Exporting, Countertrade, Chapter14
Answer: SME exporters have certain advantages that differentiate them from larger and more experienced firms. SMEs have the flexibility to rapidly adapt to foreign market opportunities. SMEs also enjoy faster decision-making and implementation of new operating methods, as well as the ability to customize products to foreign buyers, with greater ease and smaller production runs. SME managers often have an entrepreneurial spirit, high-growth aspirations, and a strong determination to succeed.
ReplyDeleteFor example, E.J. Ajax is a small manufacturer of complex metal stampings (three-dimensional parts for assembling cars, appliances, and machinery). Looking to expand its export sales, the firm established relationships with distributors in Mexico, China, and Saudi Arabia.