Export

One reason I would choose to export a product rather than remain strictly a domestic company is to increase the sales volume to a level where costs to produce an individual item is then lower, or economies of scale. Exporting a product does incur additional costs to the manufacturer, yet at the same time, an increase in sales increases the revenues gained by the manufacturer and help to offset the increased cost to produce one item. I plan to export wind turbines to China to help the government reach its goal of 50% use of renewable energy. Currently, very few manufacturers exist in China, where an export of the physical product allows China to meet and meet or exceed their energy goals. Then, as time goes along, although releasing industry specific technology is not normally the goal of an international company, I would encourage China to increase manufacturing facilities within the country, a cleaner environment is important not just to the Chinese, but to all people globally. China has an increasingly large population and because of the large consumption of coal and oil, Chinese as well as all people benefit from an increase in manufacturing of a technological investment of wind turbines. Finally, as I export my product to China, although the cost to ship across the ocean increases, the number of turbines that my manufacturing plant produces reduces the overall cost of an individual turbine.

Another reason that I would export is to increase product availability in a foreign market where the foreign market production is limited. Not only does this increase the sales of my company, but also allows me to enter into the foreign environment where I could then realize the potential for other products and increase the scope of my business.