Simple economic theory suggests that if goods can be produced that are compliant with appropriate standards and quality and competitively priced then they will find a market. However, theory fails to recognize that buyers, especially in export markets, are risk averse. They will stick with existing suppliers to avoid the risk of changing and pay a price premium to avoid the risk.
A Trade Corridor approach used by the TRTA II programme is a device to overcome this resistance to change; it attempts, over an extended period, to build trust and respect between buyers and sellers developing trust for mutually beneficial and sustainable trade. Within this framework, specific interventions have been designed with the assistance of experts under the
EU funded TRTA II programme implemented by UNIDO. The activities are sector-dependent but include advertisements or articles in appropriate trade journals, attendance at trade shows/exhibitions, the preparation of publicity/awareness-raising materials, etc. In addition, TRTA II facilitates contact through government channels using our embassies in those markets to identify what kind of support could be offered as part of an overall promotional strategy. For example, potential buyers/importing clusters might react more favorably to a ‘diplomatic’ invitation to attend a promotional event than to a ‘standard’ trade approach/event.
The capacity of support agencies like TDAP, PHDEC and PITAD to manage trade delegations at trade shows needs to be enhanced. In this regard, A Guide to Selecting a Trade Show or Exhibition and A Guide to Attending a Trade Show or Exhibition have been produced to assist exporters/ export development agencies.
Cllick here for Trade Time – Vol 3; Issue 2