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![]() ![]() Exports The term export refers to send goods or services across national frontiers for the purpose of selling and realizing foreign exchange. A firm wishing to export must identify foreign market opportunities, avoid a host of unanticipated problems that are often associated with doing business in a foreign market, familiarize itself with the mechanics of export and import financing, learn where it can get financing and export credit insurance and how to deal with risks. The advantages of exporting are that, it avoids the often substantial costs of establishing manufacturing operations in the host country; it helps a firm achieve experience curve and location economies. But in the other hand, there are some disadvantages in exporting, exporting from the firm’s home base may not be appropriate of lower cost locations for manufacturing the product can be found abroad. High transportation costs can make exporting uneconomical. Another drawback is that tariff barriers can make exporting uneconomical. |
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