Advantages and Disadvantages of International Trade
There is no doubt about the fact that every business hopes and makes efforts to spread its wings and expand the profit margins. Marketing and distributing your range of products in international markets is certainly a good idea. This will not only you to make your presence felt across the world, but also to keep competitive in the global market and leverage the untapped market segments where you can extent your business and make money.
Import from India or anywhere in the world requires a business to have a very strong network of channel partners like logistics companies, marketing firms, warehouses, suppliers, wholesalers, distributors, retailers, etc. However, all businesses cannot provide to manage a proper channel smoothly. In such a case, finding a great deal with a global or international trading company with prior experience, becomes need of an hour. Such a global trading program cannot only help you source your import export needs but also conduct a hassle free global trade without doing much.
Certainly, you may get great import exports business opportunities, but before forming any import export business plans, you must know the merits and demerits of the international trade –
1) Increases domestic competitiveness – importing or exporting your products enhances your competitiveness in domestic markets. If you are able to get imported products at same or lower prices than those you get from domestic markets and vice versa, then certainly you will earn profits that will enhance your competence level.
2) Rise in sales and profits -if you are able to export from India or importing high or same quality products at a better profit margin then it is likely that your sales levels will rise and with this, your profits.
# Demerits –
1) Long-term course of action – exports from India or other fruitful import export business opportunities require a lot of time to be converted consequently a business must be patient to progressively unprotected to their desired goals. Also, it needs huge investment of time for a business to develop strategic partnerships with the different parties in the channel.
2) additional licensing and other regulations, taxes, etc. – import export business plans must only be formed after understating licensing, taxes and other related regulations of the country in which you plan to target your audience.
Staring a global trading business is not an easy task, it require both time and money. However, with Uniglobe finding fruitful import export business opportunities becomes much simpler and easier.