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Barriers to Export in Emerging Markets: An Empirical Study of Mexican Exporters
Unformatted Document Text:  instability of the target markets, corruption in Brazil, corruption in the target markets, lack of acceptance of Brazilian products in the target market due to negative country-of-origin image, and lack of knowledge of government export assistance. In studies of Central American countries, Dominguez and Segueira (1991 & 1993), Clark (1995), and Aulakh and Kotable (2000) reported the following barrier-type problems: inability to compete on the basis of price, lack of competitive advantages and differentiation, inferior quality, negative country-of-origin image (COE), inappropriate government incentives, exchange rate fluctuations (similar to unfavorable exchange rates from Leonidou’s list), and lack of customer and service orientation. Two studies conducted in South Africa provide additional insight into the barriers experienced by emerging economies (Burgess & Oldenboom, 1997; Viviers & Kroon, 1996). The country-specific barriers identified are: geographic distance (thus cost disadvantages) to developed markets, difficulty meeting delivery schedules, a lack of continuity in orders, low worker productivity, labor unrest and social discontent, slow progress in liberalizing the economy, and an inward-looking culture due to years of protectionism. Katsikeas and Morgan (1994) and Kastikeas, Piercy, and Ionnidis (1995) examined “problems” encountered by Greek exporters. The country-specific problems (interpreted as barriers) include: poor quality in export packaging, meeting importer’s expectations of quality and design, poor organization of the export department, lack of available experts as consultants, ineffective national export promotion, red tape in Greek public institutions, and currency devaluations. Karafakioglu (1986) found that Turkish exporters confronted a wide-range of export barriers including: excessive export bureaucracy, difficulties competing with high-tech products from INs, outdated manufacturing plants with limited capacity, inability to compete due to high costs, insufficient product quality, expensive imports needed for production. In a study conducted on the Island of Cyprus, Leonidou (1994) found that the major country-specific barriers to export were: inability to offer competitive prices, lack of government incentives, lack of production capacity, and lack of competent export personnel. Das (1994) identified the country-specific “problems” in India as: ineffective government assistance and change in policies, lack of trained marketers, lack of capacity for export given increasing domestic demand, lack of competitiveness on price and quality dimensions, and inferior market positions (country-of-origin disadvantage). LDC (lesser developed country) related export barriers in Pakistan (Mohy-ud-Din & Javed, 1997) included: inferior quality, the lack of education and productivity of workers, high cost of capital for modernization of assets, currency fluctuations, and capricious changes in export policy, incentives and tax laws. Raymond & et al. (2001) noted that in South Korea, exporters experienced cost related problems stemming from currency fluctuations and inflation. 5

Authors: Johnson, Robyn. and Duhamel, Francois.
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instability of the target markets, corruption in Brazil, corruption in the target markets, lack of acceptance of Brazilian 
products  in the  target  market  due  to  negative  country-of-origin  image,   and lack   of knowledge   of  government   export 
assistance. In studies of Central American countries, Dominguez and Segueira (1991 & 1993), Clark (1995), and Aulakh 
and  Kotable  (2000)  reported  the  following barrier-type  problems:  inability  to compete  on  the  basis  of  price,  lack  of 
competitive   advantages   and   differentiation,   inferior   quality,   negative   country-of-origin   image   (COE),   inappropriate 
government incentives, exchange rate fluctuations (similar to unfavorable exchange rates from Leonidou’s list), and lack of 
customer and service orientation. 
Two studies conducted in South Africa provide additional insight into the barriers experienced by emerging economies 
(Burgess & Oldenboom, 1997; Viviers & Kroon, 1996).  The country-specific barriers identified are: geographic distance 
(thus cost disadvantages) to developed markets, difficulty meeting delivery schedules, a lack of continuity in orders, low 
worker productivity, labor unrest and social discontent, slow progress in liberalizing the economy, and an inward-looking 
culture due to years of protectionism.
Katsikeas and Morgan (1994) and Kastikeas, Piercy, and Ionnidis (1995) examined “problems” encountered by Greek 
exporters.   The   country-specific   problems   (interpreted   as   barriers)   include:   poor   quality   in   export   packaging,   meeting 
importer’s expectations of quality and design, poor organization of the export department, lack of available experts as 
consultants,   ineffective   national   export   promotion,   red   tape   in   Greek   public   institutions,   and   currency   devaluations. 
Karafakioglu (1986) found that Turkish exporters confronted a wide-range of export barriers including: excessive export 
bureaucracy, difficulties competing with high-tech products from INs, outdated manufacturing plants with limited capacity, 
inability to compete due to high costs, insufficient product quality, expensive imports needed for production.  In a study 
conducted on the Island of Cyprus, Leonidou (1994) found that the major country-specific barriers to export were: inability 
to offer competitive prices, lack of government incentives, lack of production capacity, and lack of competent export 
personnel. Das (1994) identified the country-specific “problems” in India as: ineffective government assistance and change 
in policies, lack of trained marketers, lack of capacity for export given increasing domestic demand, lack of competitiveness 
on price and quality dimensions, and inferior market positions (country-of-origin disadvantage). LDC (lesser developed 
country) related export barriers in Pakistan (Mohy-ud-Din & Javed, 1997) included: inferior quality, the lack of education 
and productivity of workers, high cost of capital for modernization of assets, currency fluctuations, and capricious changes 
in export policy, incentives and tax laws. Raymond & et al. (2001) noted that in South Korea, exporters experienced cost 
related problems stemming from currency fluctuations and inflation.  
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