Exporting is becoming increasingly popular especially for small businesses because of modern communication, transportation technologies, and gradual decline in trade barriers. It is a fact that each of the business decisions involves taking a risk; this is an unavoidable factor in running a business Gowthorpe, Firms that do not export often lose out on significant opportunities for growth and cost reduction Pope, As said before, exporting is one of the methods to enter foreign markets and it has become a growing trend for companies which are large and small.
A corporation can select from several strategic options the most appropriate method for it to use in entering a foreign market. India has potential for significantly increasing the exports of many products if appropriate measures are taken. Inadequate Information about Exchange Rates While you are going to deal with the international buyers and sellers, it is important that you understand the exchange rules of the particular country.
Here is your essay on Exporting! Consequently, they tend to encounter a number of unforeseen problems Daniels, et al In a truly globalised environment, the exports will also be very much global; the sourcing of finance, materials and managerial inputs will be global, based on purely business considerations.
Exporting represents the least commitment on the part of the firm entering a foreign market. Of course, this approach has a potential downside — Managers at factories located far from export customers may not be responsive to customer needs and wants.
Taking care of the way payments are made is very crucial to the success of an import-export company. There are six methods of entering a foreign market; exporting, licensing, franchising, joint ventures, turnkey projects, and wholly owned subsidiaries. With economic liberalization an environment for globalization of Indian exports has been emerging.
You need to ensure that both parties are secure during the transaction. Not Considering the Payment Method If you have both agreed to the deal and now is the time for payment, have you planned what is going to be the payment mode?
Exporting, of course, is one of the important ways of globalization. And remember that it will do nothing but get you into trouble in the long-run, if not immediately. A corporation can grow internally or it can grow externally. But, as mentioned above it is important to choose right agents or distributors and treat them.
According to Agarwal et al,exporting allows significant management operational control but does not provide as much as marketing control, because the exporter is farther from the final consumer and often must deal with independent distributors abroad that control many of the marketing functions.
Studies have shown that while many large firms tend to be proactive about seeking opportunities for profitable exporting, systematically scanning foreign markets to see where the opportunities lie, many medium-sized and small firms are very reactive Cavusgil, Nowadays, growth usually has international implications.
Always make sure to ensure your goods properly before they leave for your Ports of Destination. While most companies would try to save more by avoiding the premiums for insurance companies charge on goods to be exported. According to Campbell et al,it is the transfer of goods services across national borders from the home production facilities.There are many reasons for exporting and importing.
For example, country exports goods if it is one of the world's few suppliers, if it produces the merchandise at a lower cost than the other countries, or if its goods are in demand because of its outstanding quality.4/4(4).
Know about the top common pitfalls of import-export industry and how you can avoid them to enjoy a bright future while ensuring client satisfaction.
6 Common Pitfalls with Importing & Exporting and How to Avoid Them; 6 Common Pitfalls with Importing & Exporting and How to Avoid Them. Essay Questions (p. ) Why do many neophyte exporters have problems when first trying to do business abroad?
What are the common pitfalls of neophyte exporters?
Neophyte exporters tend to underestimate the time and expertise needed to cultivate business in foreign countries. Few realize the amount of management.
Exporting, Advantages and disadvantages of exporting, Common Pitfalls of Exporting Essay by dcc, B, February download word file, 4 pages download word file, 4 pages 2 votes5/5(2). Check Out Our Pitfalls of Exporting Essay A pitfall is an unexpected, unforeseen or surprising difficulty.
A pitfall in exporting means an. Common pitfalls include poor market analysis, a poor understanding of competitive conditions in the foreign market, a failure to customize the product offering to the needs of foreign customers, lack of an effective distribution program, a poorly executed promotional campaign in the foreign market, and problems securing financing.Download