The benefit of export that can be achieved through exporting are:
- Promote business growth
- Exploit technology and expertise
- Enhance competitiveness
- Increased Sales and Profits. Selling goods and services to a market the company never had before, it boosts sales and increases revenues. Additional foreign sales over the long term, once export development costs have been covered, increase overall profitability.
- Gain Global Market Shares. By going international companies will participate in the global market and gain a piece of their share from the huge international marketplace.
- Diversification. Selling to multiple markets allows companies to diversify their business and spread their risk. Companies will not be tied to the changes of the business cycle of domestic market or of one specific country.
- Lower Per Unit Costs. Capturing an additional foreign market will usually expand production to meet foreign demand. Increased production can often lower per unit costs and lead to greater use of existing capacities.
- Compensate for Seasonal Demands. Companies whose products or services are only used at certain seasons domestically may be able to sell their products or services in foreign markets during different seasons.
- Create Potential for Company Expansion. Companies who venture into the exporting business usually have to have a presence or representation in the foreign market. This might require additional personnel and thus lead to expansion.
- Sell Excess Production Capacity. Companies who have excess production for any reason can probably sell their products in a foreign market and not be forced to give deep discounts or even dispose of their excess production. The Lack of export
- Greater business complexity
- Pressure on resources
- Increased costs & financial exposure. I think Exporting offers the potential to accelerate the growth of your business by diversifying into new markets overseas rather than just serving the domestic market. While there are extra costs involved in managing an export business, you still have the opportunity to increase your profitability through a higher volume of sales and may even be able to achieve higher margins in some foreign markets than you can in the domestic market. Other benefits of exporting include expanded sales and customer networks, exposure to new ideas, technology and global sourcing . sources : http://toolkit.smallbiz.nsw.gov.au/part/2/6/28
