Exporting, Advantages and disadvantages of exporting, Common Pitfalls of Exporting

Companies that do business in expanding industries must grow to survive. move growth means increasing sales, and a chance to collect advantage of the experience curve to reduce the per- building block cost of products sold, thereby increasing profits (Wheelen et al, 2000).

A corporation can grow internally or it can grow externally. Nowadays, growth usually has planetary implications. A corporation can select from several strategical options the most appropriate method for it to use in entree a foreign market. at that place are six methods of enter a foreign market; exporting, licensing, franchising, joint ventures, turnkey projects, and only owned subsidiaries. Exporting is becoming increasingly popular in particular for small businesses because of modern communication, transportation technologies, and gradual decline in trade barriers.

The international market is normally so frequently larger than the firms domestic market that exporting is nearly everlastingly a way to increase the revenue and profit root of a company. By expanding the size of the market, exporting can enable a firm to achieve economies of scale, thereby lowering its unit cost ( pitcher, 2006). Firms that do not export often drop off out on significant opportunities for growth and cost decline (Pope, 2002).

Exporting is sending goods and services from one country to another (Daniels, et al 2006).



According to Campbell (et al, 2002), it is the transfer of goods (services) across national borders from the home drudgery facilities.

As said before, exporting is one of the methods to enter foreign markets and it has expire a growing trend for companies which are large and small. There are many specific goals by doing this, but the main reason is to guarantee the long-term sustained growth for their business. merely like other methods to enter foreign markets, it has advantages and disadvantages. According to Johnson (et al, 2005) and Hill (2006), these can...

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