Export Assistance
Guides to Exporting
Export Glossary
Export Acronyms
Export Documentation
Proforma Invoice
Commercial Invoice
Packing Lists
Insurance Forms
Customs Documents
Document Completion Guide
Export Marketing
What is involved in export Marketing?
Export Marketing Channels
Using Export Agents
Finding Export Agents
The Role of Trade Fairs
Finding Trade Fairs
Create your own e-Marketing Campaign
Website internationalisation
Export portals
Embassies and Consulates
ETO Systems
Dealing with Export Environments
Trade Agreements
Export Tools
Export Readiness Checker
Export Checklists
Export Business Planner
Export SWOT Analyser
Country Risk Evaluator
Product map
Currency Converter
Export Documentation
Document Completion Guide
Export Software & Technology solutions
Export e-Newsletter
Export Law
Laws affecting Exports
Maritime Insurance
Exchange Control
SA Export Regulations
Trade/Maritime Lawyers
ITC Services
Export Tools
Export Assistance
Trade Advisors

You are here: Step 1: Considering exporting > The various environments you will encounter abroad > The economic environment > Disposable income  
Disposable income

For consumer goods, perhaps the most important factor influencing the per capita (or 'per head') demand for a product in a given country is the real disposable income per capita. 'Real income' means the monetary value of income adjusted for inflation. 'Disposable income' nets out tax liabilities from the gross income of individuals. Presumably, the higher the per capita income in a particular market, the greater the demand for (and the higher the price that can be charged for) goods and services in that region. It is interesting to note how eating habits change in response to rising incomes. The basic trend in a country with rising incomes is towards increasing consumption of packaged, convenience foods which save time for the housewife and add variety to menus.

While the existing level of per capita income gives an indication of the current size of a potential market, the potential growth prospects for that market should also be interesting (see Chapter 3). After all, it will take some time to formulate and implement plans to enter a market. Furthermore, given the often substantial costs of commencing international operations of the company's involvement in international business should be considered a long-term commitment.

A variety of publications provide estimates of current income levels in different countries and regions, e.g. the United Nations' Statistical Yearbook, and The Economist. There is, however, a growing tendency for published income statistics to understate true per capita income levels. This is due to the widespread phenomenon of unreported economic transactions - even in industrialised countries. In many cases, the existence of this so-called 'underground economy' is motivated by the incentive to avoid paying taxes, while in developing countries, an efficient mechanism for the collection and processing of national income statistics often does not exist.

Top of page

Step 1: more information

Step 1: Considering exporting
      The various benefits of exporting
      The various drawbacks to exporting
      The difference between domestic and export marketing
      The various environments you may encounter
            The sociocultural environment
            The legal environment
            The economic environment
                  Gross Domestic Product (GDP)
                  Disposable income
                  Demographic factors
                  Competitive and complementary products
                  Industrialised vs developing countries
                  Degree of government intervention
                  Trading blocs
                  International trade agreements
            The political environment
            The technological environment
            The physical environment
      The various barriers you may face

Click where you want to go

Custom Search
More information on Step 1
Learning to export... The export process in 21 easy steps
Step 1: Considering exporting
Step 2:Current business viability
Step 3:Export readiness
Step 4:Broad mission statement and initial budget
Step 5:Confirming management's commitment to exports
Step 6: Undertaking an initial SWOT analysis of the firm
Step 7:Selecting and researching potential countries abroad
Step 8: Preparing and implementing your export plan
Step 9: Obtaining financing for your exports
Step 10: Managing your export risk
Step 11: Promoting the firm and its products abroad
Step 12: Negotiating and quoting in exports
Step 13: Revising your export costings and price
Step 14: Obtaining the export order
Step 15: Producing the goods
Step 16: Handling the export logistics
Step 17: Export documentation
Step 18: Providing follow-up support
Step 19: Getting paid
Step 20: Reviewing and improving the export process
Step 21: Export Management
Export Reference
HS Codes
SIC Codes
Country Codes
Airline Codes
Airport Codes
Port Codes
Telephone Codes
Export control
Electricity Voltages
Transportation Types
Container Types
Hazardous Cargo Symbols
International Trade Agreements
Country Info
International Trade Organisations
Export Documentation
Export Opportunities
Export portals
International Trade Fairs
Country Info
Country Help
International Trade Statistics
Sources of International Statistics
UNCTAD Statistics

Our sister sites:


Trade Training




- Copyright: Cornelius Bothma -

Disclaimer | Privacy Policy