Non-Oil Export Development Strategies

Economic Articles: Non-Oil Export Development Strategies

Author:  Mohammad Ebrahim Goharian

Author:  Jafar Ainkian

Letter of the Chamber of Commerce »September 2000 – No. 389 (Page 14)

‌Economic‌ Articles‌ Non-oil Export Development Strategies

Mohammad Ebrahim Goharian and Jafar Ainkian

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Performance figures for the first two months of this year show the unfortunate fact that after the relative recovery of crude-oil prices in international markets, the issue of non-oil exports has been severely affected and evidence of a thirty-three percent declines. Unfortunately, this approach comes at a time when the government seems to be focusing on increasing non-oil exports.

The article is a re-examination of the importance of the issue of exports and by proposing various solutions; attempts have been made to examine the practical possibilities of export development. Scientific methods were used in sales management.

Improve exports, expand exports of other petroleum products, a model for exports, promote a culture of competitive production, introduce exemplary and superior exporters, pursue export goals, and expand specialized training for the export development process.

There is no doubt that exports should be recognized as the engine of development and the economy of the country and, regardless of any other issue, should be defined as a basic base in the country’s economy. To mobilize the private sector, to create organizations, to devise a new plan in education, research, and development, and to make the fundamental change as a lofty goal in their agenda.

With the hope that this article can be a reminder to those who are somehow involved in export policies in the country so that we can all see the real prosperity and development of non-oil exports in various dimensions.

Designing, researching, and compiling the literature of oil-free economy in order to provide theoretical support and intellectual foundation to explain the practical and feasible solutions, with the aim of getting rid of the one-product economy system based on the export of fossil fuels.

Chamber of Commerce Letter » September 2000 – No. 389 (Page 15)

(See page) Development of political, economic, and cultural relations with the countries of the world: There is no doubt that achieving a dynamic economy based on the proper circulation of goods and services is supported by sound monetary and fiscal policies and policies, and ultimately economic prosperity. It will not be possible through the export of goods and services, except by relying on and explaining an efficient foreign policy based on a defined national interest and the principle of mutual respect.

Development of External Trade Strategy: If the trade policies explained by the government are based solely on the interests, tastes, and demands of the people inside the country, then the possibility of competition in international inter-market markets is reduced. It must have a national and transnational perspective so that the goods produced as well as the services provided meet both domestic and competitive needs in global markets.

Membership in the World Trade Organization (WTO): Membership in the WTO facilitates coordination with international trade policies, especially in the field of accurate pricing of goods and services. There are countries like Iran, which means that the lower the cost of factors of production, the more appropriate environment for the development of exports emerges.

Promoting the culture of export in the society: It has been a long time since the production and service society in our country has become accustomed to the culture of consumption and the pattern of import substitution, and it is all-encompassing.

Compulsory education: It is obvious that the success of export strategies is directly related to the learning of findings already experienced by successful exporters at the international level and the application of the experience gained over many years and at various stages, in different forms and at different stages. Compulsory education of individuals who are somehow related to exports will increase the overall quality of exports and ultimately lead to export development.

The establishment of the National Export Organization of Iran, in order to direct and coordinate between small and large exporting units, as well as to support them in relation to possible problems and difficulties in each of the stages of export of goods and services and to establish a relationship and coordination with others. Relevant organizations such as the Ministry of Commerce, the Central Bank and Commercial Banks, Customs and the Standard Organization, etc.

Changes in time and structure in the field of international trade will necessitate a review of export laws and regulations.

The establishment of Export Information Bank, in order to create the necessary database and cover the information required by exporters, which will have the following benefits:

1) Avoiding the waste of time and capital of exporters.

2) Timely information to exporters by creating and maintaining business opportunities.

3) The direction and direction of the producers, by identifying the needs and types of demands, international markets.

4) Exchange of information between exporters. Establishment and development of export management companies, in order to optimize the export process and use the latest scientific methods obtained in sales management and generalize it among exporters.

Development of export service centers in all provinces of the country: Since exporters are geographically scattered in all parts of the country, it is necessary to develop centers that provide services to exporters throughout these areas to facilitate access to all exporters. And thus, Use all potential and actual facilities in the country.

Letter of the Chamber of Commerce »September 2000 – No. 389 (Page 16)

Develop and encourage foreign and domestic investment: Since exports are on the other side of the coin of production, therefore, increasing production facilities actually means empowering the export sector, and on the other hand, the production cycle is driven only by investment. Investors are investing in this sector, which means increasing exports. In this way, encouraging foreign investors should not be neglected.

Accelerate privatization: Everyone agrees that governments have never been successful exporters. In other words, the experience of developed countries shows that the first step towards improving their export potential is to adopt sound privatization policies. The successful exporter of Southeast Asia ‌well testifies to the above.

Reconstruction and modernization of worn-out export industries: In order to make the best use of all export facilities, it is absolutely necessary to re-examine the export facilities, especially those industries that have been out of operation for any reason.

Development of export of industry, agriculture, and export of technical and engineering services: Development of export of technical and engineering services has become especially important in recent years so that it has a significant share of the export market. Providing services such as tourism, banking, consulting, transport, communications, and advertising have now taken on a special and decisive position.

Therefore, it is necessary to double the cost of providing this type of service in our country, especially in the field of engineering services due to gaining experience in the period of holy defense and the post-war construction period (refer to the picture on the page) with a look expertly review the comparative advantages available in this field.

Preparation of a list of goods that can be exported: If a list of goods that can be exported is prepared and prepared. As a result, producers who want to export their goods will be able to determine the type of products and thus reduce their costs, focus, and optimize their activities on this basis.

Mechanization of the country’s customs and ports can improve the process of loading and delivering goods.

Understanding the target market through scientific-applied research: Undoubtedly, mobilizing the existing facilities for export development will not be possible without a correct understanding of the target market. Be done.

Full knowledge of competitors, in order to recognize the strengths and weaknesses of competitors and thus eliminate the weaknesses in goods and services that are produced and offered for export. Will be accompanied.

Branding for Export Commodities: In recent years, special attention has been paid to the issue of trademark design. Today, even the subject of a trademark is considered an intangible asset. This requires extensive marketing and research by professionals.

Letter of the Chamber of Commerce » September 2000 – No. 389 (Page 17)

On-time delivery of goods to the buyer: One of the issues that cause the exporter of goods and services to be delivered on time or done on time of services. International and domestic confrontation is of particular importance.

Training of specialized and experienced managers of export, marketing, and sales: Today, due to the variety and multiplicity of goods and services produced, as well as the presence of small and large competitors, it is necessary for exporters to use the professional power of experienced experts. Encourage and persuade exporters by awarding export prizes and subsidies. Use export subsidies to help exporters deal with problems.

Reducing government interference in exports: Experience has shown that in most cases, government intervention has been accompanied by increasing exporters’ problems. So, as one of the principles of a free economy, the role of the government should be only a supervisory role, to facilitate the export process for exporters by formulating efficient laws and regulations.

Encourage exporters to trade and receive goods through documentary credit: Because many exporters in our country use non-credit methods to receive goods or services that are exported, it is necessary to avoid problems due to non-existence. Payment or problems such as buyer or consumer fault on the goods; exporters use the method of validation of documents, which to a large extent ensures timely payment and the establishment of a customary framework such as a commercial contract.

It will not be possible to mobilize the existing facilities for the development of exports without proper knowledge of the target market.

Development of specialized export exhibitions inside and outside the country: The exhibition is the best place to get to know the suppliers and consumers of goods and services. It means recognizing new markets.

Reducing the multiplicity of exchange rates: The existence of different exchange rates has a bad effect on different economic and commercial sectors, and the export sector is no exception. Offer better competitive prices to consumers.

Formulation of appropriate fiscal, monetary, and exchange rate policies: This section is the responsibility of the government to adopt efficient fiscal and monetary and exchange rate policies in accordance with market conditions, to alleviate the existing bottlenecks and obstacles in the export of goods and services.

Development of trade in free zones: Free zones are the best place for the import of commercial goods due to the lack of customs tariffs. Many of the applicants for goods in the free trade zones also easily meet their needs from the market. If the export goods are produced in the free zone itself, they will undoubtedly have a more competitive finished price.

RE-EXPORT: As mentioned in the discussion on the need to determine the relative advantage of exporting goods and services, existing constraints in the country, such as the lack of packaging technology, may exacerbate exporters.

In this case, it is suggested that by using the comparative advantage of the third country, the export product be improved in quality and thus increase the strength of export competition.

Review of Export-Import Laws and Regulations: Although new regulations can help facilitate the process of exporters, many existing laws also need to be amended and revised. It doubles the need to review the rules. Undoubtedly, following the example of countries that have been successful in export development is one of the advanced ways of exporting. It is the tigers of Asia. Of course, it should be noted that the choice of experts must be with special delicacy, accuracy, and obsession to remove such missions from the status of administrative ceremonies.

Chamber of Commerce Letter » September 2000 – No. 389 (Page 18)

Non-change of laws and regulations in the short term and stabilization of laws for at least 5 years: One of the problems that afflict the economy and trade sector, including exports, is the issue of instability of the laws. Bankruptcy has driven many domestic and foreign investors out of the country’s business. Therefore, it is necessary for the government’s will to enforce the laws to be quite serious and practical so that exporters also have a sufficient margin of safety. Establishment of appropriate financial, banking, and insurance facilities by the government: Export is a process that will never reach its destination without proper coverage by the relevant bodies and organizations. The existence of an efficient banking system and the provision of necessary financial credits, as well as the necessary insurance coverage, in order to create a suitable security margin for exporters, are necessary and unavoidable.

Assigning export currency to exporters, in order to encourage exporters to be more active and to assist them in using the returned currency of exports to develop their productive activities and to supply the required raw materials.

Elimination of foreign exchange contracts for at least five years: Most exporters believe that the existence of foreign exchange contracts has discouraged exporters and reduced their desire to increase export activity. Facilitate the activities of exporters.

Conducting Scientific Research in Target Markets: Today, what plays a very important role in exports is the issue of accurate and complete knowledge of the market, and this cannot be achieved except by applying scientific research in the target markets where the exporter intends to export goods and services. Those are the markets.

Mechanization of the country’s customs and ports: As mentioned in the case of timely delivery of goods, what gives the exporter of international goods and services international credit is the strict observance of the time of delivery of the goods. One of the important factors that delay the export and delivery of goods in countries is the waste of time in the country’s customs, ports, and terminals. Mechanization of the country’s customs and ports can prevent a large amount of wasted time in loading and finally delivering goods.

Provision of special facilities to exporters by the country’s customs: In addition to the benefits mentioned in the previous case, the provision of special facilities for the purpose of export development by the country’s customs will reduce costs and ultimately make international markets more competitive.

Proper and modern port facilities: The existence of proper port facilities reduces the waste of time and eases of loading export goods and on the other hand, causes the least damage to the goods and, in general, can increase the volume and quantity of exports.

Convenient transportation facilities and terminals (air, land, and sea): The existence of appropriate terminals in each country means speed in delivery of goods to its owners, i.e. buyers, and, on the other hand, encourages applicants to meet the needs of consumers with the above facilities will be.

Improving the quality of export goods: Undoubtedly, international markets are the place of supply of various goods with high and different qualities. In this field, it is certainly a successful exporter that can offer the highest and best quality. Proper packaging according to international standards: Today, packaging plays a key role in the field of export goods. Proper packaging not only protects the health of export goods, especially food, but also the use of appropriate colors and designs will attract customers.

Coordination and cooperation of all organizations involved in the export sector: In general, export development is something that requires national mobilization using all governmental and non-governmental facilities: In this regard, what is most important is to create coordination and cooperation between all organizations. In some ways, they relate to the subject of exports.

Exporters’ participation in decision-making: If exporters are involved in decision-making when it comes to exporting micro and macro policies and policies related to exports, then the problems and experiences that exporters face in carrying out the export process are practically addressed. Their solution is presented in the form of decisions made.

Increase production to reduce production costs in order to compete with foreign competitors: As production increases, using scientific methods and modern technology, as a result, production costs and ultimately the finished price of manufactured goods decreased. As a result, goods are sent to international markets at a more competitive and competitive price. In this way, it is possible for exporters to survive in the market.

Develop the structure of the Supreme Export Council: The Supreme Export Council, as the highest decision-making body in the matter of exports, can only carry out its strategic and strategic plan well if it has a strong and orderly structure. It will be useful and timely to develop exports.

Imported Article.