Currency fluctuations can be rather frustrating along with political or economic instability in the country you are doing business with. Suppliers may change, or you may be unable to supply. There can be transport delays or damage to goods in transit. Mistakes can be made including: waiting until after a competing company has fully saturated local markets before thinking of entering, waiting until the world comes to you rather than proactively developing foreign markets, and lack of experience combined with attempting to export alone.Įxporting and importing and the risks and challengesĮxporting and importing does have some draw backs like Not being in the market to see who your competition is gives local businesses the chance to swoop in. In return, the EMC charges a fee or commission for its services.Įven with so many ways for a company to receive help and guidelines to exporting and importing. The EMC handles the necessary documentation, finds buyers for the export, and takes title of the goods for direct export. Another option is an export management company (EMC) which is an independent company that performs the duties that a firm’s own export department would execute. Often, distributors represent many companies, selling products, providing customer service, and receiving payments. The internet has also provided a more efficient way for foreign companies to find local distributors and enter into commercial transactions.ĭistributors are export intermediaries who represent the company in the foreign market. Companies can buy from and sell into a foreign country either through a local distributor or through their own salespeople. These are good strategies for small to midsize companies that are unable to make large financial investments in international markets. Importing is also known as global sourcing.Įxporting, Importing, and the business opportunityĮxporting and importing are low-cost, low-risk strategies for entering a foreign market. Importing is the buying goods and services from foreign sources and bringing them back into the home country. Exporting is the sale of products and services in foreign countries that are sourced or made in the home country.
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