MBA Marketing - A Study on Potential of Export Market

 MBA Marketing - A Study on Potential of Export Market


Abstract

Its area and population may be small but its economic impact is enormous. Petroleum and gas are the mainstays of Qatar's economy, which is open and free. This makes it susceptible to economic shocks on international markets. As a risk mitigation strategy, we evaluate the potential of exporting to new markets. We developed a measure of export market concentration using cross-sectional time series data from 2004 to 2013 and estimated the determinants of trade using a gravity model. A moderate concentration of companies exists in the gas sector, whereas there is an extreme concentration in the crude oil sector.

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Introduction

Approximately US$ 200 billion worth of goods and services were produced in Qatar in 2013. Most consumer goods and services are imported into this relatively small country, which has an open macroeconomy. Qatar's economy is also heavily reliant on one major industry - the energy sector. A result of this was that the oil and gas sector accounted for nearly 58 percent of the country's 2012 GDP and more than 90 percent of exports (Qatar Central Bank, 2013). Macroeconomic dependence on a single primary sector is a peculiarity of most Gulf economies (Cain and Al-Badri, 1989). One of the benefits of diversifying one's economy is the ability to generate more stable export revenues than one that is heavily dependent on one major sector (Samen, 2010).

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Conclusion

This is due to Qatar's dependence on international trade, which includes a large amount of imported goods for domestic consumption. Results and data reveal that large amounts of oil and gas are shipped to a few large countries in Asia, despite the fact that Qatari oil and gas products have more than one hundred destinations. To begin, we measured the extent of export market concentration; to determine the level of Qatar's oil and gas exports to trading partners; and finally, we identified potential markets for export market diversification as a mitigation strategy.

For More Details About MBA Marketing - A Study on Potential of Export Market
Please Visit Our Website


Or call us +91 9481545735

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