Exporting

• What is exporting?

  Selling domestically produced products to foreign customers
• What are the advantages of exporting?

  • Low investment
  • Relatively quick to implement
  • Maintains production control in home country
  • Avoids high costs of setting up foreign facilities
• What are the disadvantages of exporting?

  • Exposed to protectionism and exchange rate risk
  • Less customer insight and local market presence
  • High shipping and logistical costs, especially for perishable or bulky goods
• When is exporting most suitable?

  • Businesses testing a new market
  • Markets where trade barriers are low
  • High profit margin products
• When is exporting not suitable?

  • Perishable products
  • Countries with high protectionism