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
SUMMARY

The global financial 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 with 2010, the EU-27 economy returned to its previous trend of progressively more integration with the international economy in terms of its level of credits and debits relative... (see full summary)

 
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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.

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