International Business
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What are the primary advantages of exporting? What are the major pitfalls of exporting? In your estimation should more companies enter into the export business? Why?
What are the major problems associated with collaborative arrangements between international companies? What are possible solutions to these problems in investing in other countries? Do you feel foreign investment is a prudent move for most companies wishing to expand their business? Why?
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Solution Summary
The response addresses the queries posted in 926 words with references.
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The response addresses the queries posted in 926 words with references.
//Export plays a vital role for the business operating at a domestic level. While writing this paper, we will focus on the advantages, disadvantages and the reasons for the company entering into the export business. The problems and possible solutions of the collaborative arrangements for international companies will be explained in the coming part of the paper. Finally, light will be shed on the importance of foreign investment for the companies expanding their business//
Exporting is considered to be an important factor, as it helps in providing employment to the people, provide small firms with new growth and opportunities and also open doors for new market by recurring additional profits. There are many primary advantages of exporting. The first advantage is that it helps in increasing the sales of the firm. With the help of exporting, the firm can earn money from other sources otherwise the money could only be generated out from the local market. The second advantage is that it helps in increasing the profits of the firm because there are a huge number of international customers as compared to domestic buyers who take order in smaller quantity instead of by the pallet. The third advantage is that exporting helps the business to diversify itself in the market. When the company faces tough time, they do not have to depend on the domestic market, which affects the growth of the business (The Various Benefits of Exporting, 2010).
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Education
- MBA (IP), International Center for Internationa Business
- BBA, University of Rajasthan
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