Reference no: EM133299515
Case: Globalization has enabled world communities to merge, enjoy and share resources. With this in mind, companies must realize that great opportunities lie overseas and not fall prey to the exporting myths. Benefits of exportation include low risk, increased market opportunities, new growth, cultural exchange, and so much more.
Following the US Department of Commerce and its export statistics, as mentioned in the description, small businesses are more often than not heavily involved in exporting their products. Why is it that small companies wish to sell overseas? Why not focus on the local market and build a brand? Won't they be spreading their profit margins thin? As a matter of fact, it is the opposite. When a company goes overseas, they diversify earnings and no longer rely on the stability of one market. Additionally, creating hype around a brand has little to do with local consumption and instead deals with target consumption. Buying into this principle and building strategies to implement and advance this opportunity translates to sustained growth and community development both in the local and overseas markets.
It is important to note that the exportation process has its fair share of cons. After all, these are the reasons that hold several companies back from pursuing overseas opportunities. Among these are language barriers, complex paperwork/agreements, product management considering culture, financial risk, etc. However, as with FDI's, being adept with the given marketplace and researching product feasibility is critical in ensuring smooth operations. What is true is that companies must keep proactive in upscaling the business, and exporting their products is one of the more solid and distinct ways of doing so. The benefits outweigh the negatives, and with proper exportation research and the right team, a business can expand onto the world stage, generate more profit, and create a more prominent brand.
Do you agree with the above statement why or why not?