Exporting Challenges While the advantages of exporting by far outweigh the disadvantages, small and medium size enterprises especially face some challenges when venturing in the international marketplace. Advantages of Exporting: One of the major advantages of export is the ownership advantage which is specific to the firms’ international experience, asset and ability of the exporter to either develop the differentiated product or low cost product with in the values chain (Hertner and Jones, 2007). In many African countries, goods are rarely consumed locally, and foreign exports represent the primary use of the products, such as cacao. Disadvantages of Import Erosion of Domestic Market: If all companies start importing their goods, the demand for domestic goods will go very low and eventually, it would stop. There are some advantages and disadvantages of international trade for both the export and import. Disadvantages of Exports Country Risk and Currency Risk. When middlemen are disinclined towards accepting all the risks of export trade. Exporting also introduces diversity in the local market. Extra Costs. Foreign Exchange Risk: There may be a sudden change in the currency exchange rate which may cause a loss for the business during import. It will also help to create new products with qualityand variety of designs, … The advantages of export include job creation, additional opportunity for business growth in international markets, and distributed risk. In this article we will discuss about the advantages and disadvantages of direct and indirect exporting. 19 Evidence 10 Advantages and Disadvantages of Importing and Exporting in to Colombia - Free download as PDF File (.pdf), Text File (.txt) or read online for free. It is one of the simplest routes of entering into the global trade and import and export generate huge employment opportunities. Also, improving and perfecting production lines inthe direction of industrialization, automatization and modernization will helpbusinesses reduce costs. With the trend of globalization and economic integration, the exporters-importers have a chance to absorb scientific and technological achievements and advanced management methods from developed countries, which will bring great benefits for their exporting business. 19 Evidence 10 Advantages and Disadvantages of Importing and Exporting in to Colombia The biggest disadvantage of exporting is that apart from normal risk there is two additional risks associated with exports that are country risk and currency risk.


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