There are many benefits of exporting some of them are listed below:
- A Rise in Sales and profits
Exporting can help in increasing sales especially when your business is well established locally. Small firms and startups firstly need to establish themselves in the local market or you can say within your own country. when you are well established in the local market then you can strive for the international market. Also, once you have entered into global markets so the orders will also be big and margins on the product will be higher as there are many items which might not give you good profit margins locally but internationally it does! Also increased sales and increased profits leads to change in the position of your company in the market.
2. Helps in dealing with risks
When you export only locally or in the same region then risks increases as the market keeps fluctuating and if you don’t have a backup to deal with these fluctuations then it can lead to losses. In order to remain at a safe place, Exporting Internationally can help reduce the risk of these fluctuations. Supposedly if you are exporting in Australia, UK, Canada at a single time, then you have three different markets working at one point. So even if the market goes down in the UK, you can bear the loss of that from other places.
3. Seasonal Ups and Downs remain in control
In a country like India, where we experience summer, winter, rain, spring, autumn all in one year, we get to experience a variety of seasonal goods too. If we compare India with other countries like Canada where most of the time winter remain in the season, then our country can export products which are available to us in the particular season and we can follow this pattern with many other countries. This will help in proper and stable sales. Also, helps in reducing risks as well.
Benefits of importing are also variously listed below:
- Helps in Developing
Developing countries always needs the help of developed countries. Importing is a way which can help developing countries to develop. Many times developing countries don’t have efficient machinery to work with or the cost of importing the machinery is more reasonable than creating the machinery locally. Today many traders believe in importing large quantities of products in order to get down to best prices and overall machinery.
2. New Variety New Life
Let’s see a really popular example from recent events. You all must have heard of Miniso which is a brand of Japan and is expanding at a really fast rate in India. With 11 outlets for every 1000 people in India, it is offering a wide range of products and variety to people. Due to advancement in transportation and communication companies can connect to each other digitally and very easily. Importing not just helps in bringing variety but helps in the expansion of the market as well.
3. Builds leadership in the market.
“First come first served”. Any company which introduces new products in the market becomes the leader of that product in the market. Not only will you become leaders but you become unique as imported products are often those products which are never seen or heard by others living in the same country. It takes maximum to maximum 3-4 days for imported products to reach the destined place but if you try to manufacture the same product it will take a much longer period to create the same product.
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