The Basic Challenge in EU Countries Promotion Strategy in Exporting Commercial Services

• Author: Octavian Liviu Olaru - Livia Irina Olaru
• Position: Professor, PhD, 'Nicolae Titulescu' University, Bucharest, Faculty of Economic Sciences Bucharest, Romania - PhD, Christian University 'Dimitrie Cantemir', International Economic Relations Faculty, Bucharest, Romania
• Pages: 551-557

Performance and Risks in the European Economy

551

The Basic Challenge in EU Countries

Promotion Strategy in Exporting Commercial Services

Octavian-Liviu Olaru

1

, Livia –Irina Olaru

2

Abstract: The global f inancial and economic crisis which started in 2007 had a considerable impact on

the international exchange of goods and services and on the intensity of global financial flows and

business activity. Starting w ith 2010, the EU-27 economy returne d to its previous trend of progressively

more integration with the international economy i n terms of its level of credits and debits relative t o

gross domestic product (GDP), having experienced a reversal in 2009. The average value of EU-27 trade

flows of goods corresponded to 11.6 % of GDP in 2 010, up from 9.8 % the previous year. The level of

trade integration of services rose to 4.0 % of GDP in 2010, up from 3.9 % in 2008 and 3.8 % in 2009.

The basic challenge in EU countries promotion strategy in exporting a commercial service is to convince

a foreigner to try a service that does not exist yet. The foreigners have to b elieve that the service will be

of good qua lity and will meet their needs. Usually the foreigner forms that belief based on

recommendations, referrals, or somehow seeing the service provider in action. There are also several

roles that trade promotion activities can play in building that belief or credibility. A national TPO needs

to find or reinforce some special quality that its country has so that when potential customers hear about

a service supplier from this country, their first response is, “Oh yes, I’ ve heard good things about

services from your country.”

Keywords: EU-27; commercial services; foreign trade promotion; TPO; efficiency.

1. Introduction

The importance of international trade is widely recognized not only by the business sector, but also by

governments. Governments all over the world have reviewed and streamlined their trade policies

during the last decade. Economic reform programmes have improved the overall policy framework

and created a more favorable environment in many countries.

In spite of this considerable resource endowment of trade promotion programmes, these programmes

need to be selective in terms of products, functions and/or markets. An equal distribution of trade

promotion resources over all products, functions and markets would obviously not make sense, as

resources would be spread to thinly to reach anywhere a critical mass.

In spite of this considerable resource endowment of trade promotion programmes, these programmes

need to be selective in terms of products, functions and/or markets. An equal distribution of trade

promotion resources over all products, functions and markets would obviously not make sense, as

resources would be spread to thinly to reach anywhere a critical mass.

In the context of globalization and increased competitiveness in the world market in general, and in

Central and Eastern European countries, in particular, structural adjustment programmes and trade

policy reforms are preconditions for economic growth and healthy trade performance. However,

1

Professor, PhD, “Nicolae Titulescu” University, Buchares t, Faculty of Economic Sciences Buc harest, Romania, Address:

185 Calea Vacaresti, Sector 4, Bucharest, 040051 Romania, Tel.: + 4 021.330.89.58, Fax: +4021.330.86.06, Corresponding

author: livolaru@yahoo.com.

2

PhD, Christian University „Dimitrie Cantemir”, International Economic Relations Faculty, Bucharest, Romania, Address:

Splaiul Unirii no. 176, sector 4, Bucharest, Tel: +4(021)330.79.00, email: livia_irina@yahoo.com.