An enterprise which decides to go into exports and to accept orders from abroad will first engage in

an exploration of the opportunities which its products have in the markets to which it wishes to export. The exporter may have in-house experts or he may consult other marketing experts. He may visit the overseas markets himself or send out representatives. He may receive direct inquiries from importing enterprises abroad. He may also have been contacted by overseas customers who have read his advertisements in the home or overseas press or may have obtained his address by other means.

However, it is very rare that an exporter can sell his products directly to his remote overseas customers. It is impossible for the exporter to go to every country to find out whether his products can sell in a particular market. Therefore, market research is useful both for the newly established trading companies to open business relations with overseas customers, and for the established exporters who have regular customers to expand their business.

First of all, the exporter should use trade statistics published by most countries to narrow down the scope of his research. Important information sources include: the national trade statistics which indicate the number of wholesalers, retailers and other kinds of marketing intermediaries(classified information according to the type of products) , trade journals and directories and international organizations such as International Chamber of Commerce, and China Council for the Promotion of International Trade.

After carefully considering the above information sources, the exporter will find out what countries are now importing his type of products and from what sources. He can judge the amount of business and the rate of growth or decline. Then he may choose a number of target markets.

Secondly, the exporter must bear in mind the cultural and social backgrounds of his target market, such as language, religion and local people's aesthetical viewpoints, etc. Since all these elements influence people's consumption pattems, a deep understanding of them will help the exporter to predict the changes and follow the new market trend.

Thirdly, the exporter must know the relevant government policies: What kinds of products are limited or restricted in import activities？ Are they restricted because of shortage of foreign currency, tendency to protect national industries or sanitation demand？ What kind of goods does the government levy high tax against？

Fourthly, geography may influence profoundly on the distribution of goods and the development of sales channel in a country. Temperature, altitude and humidity extremes may affect the proper functioning of some equipments. Products which function well in temperate zones do not always perform well in tropical areas. With regard to products like timber, food and paper, the amount of water absorption in transit can be very influential.

Finally, the exporter must take into account the political risk-whether there are military clashed, distribution systems-whether seaports, railroads and roads are available. Moreover, the exporter must know the local legal system since no single, uniform international commercial law governing exporting transactions exists.

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