Your administration costs may rise as you may have to deal with export regulations when trading outside the European Union. You will be managing more remote relationships, sometimes thousands of miles away. In overseas markets, you may lose some of the control that you are used to at home.

What are the potential advantages of export promotion?

Export promotion leads to expansion of goods for the foreign market. These goods earn foreign exchange that can be used to facilitate development. Export promotion industries have a wide market for their produce for both domestic and foreign markets. They are therefore able to produce for a greater capacity.

What are the advantages of export marketing?

Exporting offers plenty of benefits and opportunities, including:

• Access to more consumers and businesses.
• Diversifying market opportunities so that even if the domestic economy begins to falter, you may still have other growing markets for your goods and services.
• Expanding the lifecycle of mature products.

What is the need for export promotion?

The main goal of the export promotion is to prepare the “potential” industries for competition with the foreign rivals. So the industries at their childhood must be protected for a while.

What is one of the disadvantages of direct exporting?

One of the disadvantage of direct exporting is that it involves lot of formalities. The process of documentation, shipping, financing, collection etc., require greater managerial ability on the part of the exporter.

What are the benefits of an export promotion industry?

What are the advantages and disadvantages of exporting?

Exporting is an international business activity, where one exports products to overseas countries, to get greater profits than possible on the local market. It is the main means to boost the country’s economy and create a fiscal surplus.

How is export promotion different from import substitution?

In contrast, an outward-looking strategy emphasises participation in international trade by encouraging the allocation of resources in export-oriented industries without price distortions. It does not use policy measures to shift production arbitrarily between serving the home market and foreign markets.

What are the advantages of export oriented industrialization?

However, in policy circles export promotion or export oriented industrialization (EOI) is seen more often as an alternative development strategy to import substitution industrialization (ISI). There are two main interpretations about the advantages of export promotion.