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(OECD, 2008, 2013). To address these needs many governments provide financial support including
export loans or export insurance.
Across OECD countries, export credits represent a common measure to assists firms to internationalise
(OECD, 2013). Box 2.6 illustrates the case of an export loan programme in Canada, which addresses the
need of working capital by exporting SMEs.
Export credit guarantees are also used widely, to ensure exporters against the risk of foreign customers’
defaults. In Finland, for instance, Finnvera, the state-owned enterprise that provides financial services for
the start, growth and internationalization of Finnish enterprises (especially SMEs), issues export credit
guarantees that cover different types of risks. These may be related to the buyer or borrower (commercial
risks), as well as to the buyer’s or borrower’s country (political risks). The guarantee can be granted for
individual export transactions or for continuous deliveries, it can be used for export transactions with a
short-term or a medium/long-term credit period, and the cover percentage is normally 75-90 %.
Box 2.6 Market Xpansion Loan in Canada
Market Xpansion Loan is offered by the Business Development Bank of Canada (BDC) to help a
firm to expand its domestic market or explore foreign markets, by providing working capital support.
Market Xpansion Loan provides up to $100,000 and can be used to:
Participate in prospecting initiatives like trade shows overseas
Develop export and/or e-commerce plans
Advance SR&ED (Scientific Research & Experimental Development) refunds to
replenish working capital, or cover SR&ED consulting costs
Conduct product development and R&D
Purchase additional inventory for export
A company can apply to have any repaid portion of the loan of $10,000 or more re-advanced to
the company. This option is unique to the Market Xpansion Loan solution. It gives firms the flexibility
to borrow more money when they need it.
Source: OECD (2013).
2.6.
The role and effectiveness of Trade Promotion Organisations (TPOs)
Trade Promotion Organisations (TPOs) have been commonly established across advanced and developing
economies, as the catalyst organisations to promote trade and local businesses’ participation to
international markets. In many cases, TPOs are viewed as “one-stop-shop” for all exporters’ needs
(EUAG, 2011).
Across OECD countries, TPOs generally:
have a network of offices in many foreign countries for collecting local market information and
supporting firms undertaking business in the local market,
have a network of regional offices in the home country to provide information to domestic firms,
implement policy measures to promote export and investment in foreign countries, and
implement policy measures to attract FDI from foreign countries.
The policy measures implemented by many TPOs are useful for reducing the internal and external
barriers SMEs face in globalisation. In concrete terms, they do:
collect and supply information about overseas markets,