What are some reasons why a small business would decide to export goods to another country?

  

Please help me finish this homework. No plagiarize.1The text discussed several different ways to enter the international marketplace. Exporting is one of the first ways many companies venture into foreign lands. What are some of the reasons asmallcompany would decide to export goods to another country? What are some of the potential pitfalls that might occur and how could these challenges be overcome?(about 300 words)2 respose two of them what in the file named respond. 150 words each one
1 Jessica: Small companies usually find the process rather intimidating. However,
small businesses can benefit greatly from breaking into the international market. The
international market is much larger than their domestic market which would increase
sales and profits by a huge amount.
Some issues businesses face when they decide to export goods to another country are
things such as different business practices, language, culture, legal systems, and currency.
The lack of understanding these things could lead to failure and possibly bankruptcy. So a
business needs to understand all these factors of the country they plan to export to as to
avoid any issues and capitalize on their business venture. Some other common problems
businesses face would be doing a poor market analysis, having a poor understanding of
the competitive conditions in the foreign market, not customizing their product to the
foreigners tastes, unsuccessful distribution channels, poor marketing, and problems
securing financing. These issues can be overcome by using an export managing company.
Another option is getting help from the U.S. Department of Commerce, particularly the
International Trade Administration or the U.S. Commercial Service. They can provide
things such as: distributor infomation, information of marketability, the competition,
comparative prices, distribution channels and names of potential sales representatives.
Respond:
2
Mary: There are many pros of small companies exporting goods to another
country. Some of the reasons include: market growth, economies of scale, extending
product life cycle, and competition (Hannaher, 2010). Small businesses exporting to
other countries can increase their profits and sales considering the fact that a vast
majority of consumers are outside of the United States, as well as per unit costs
decreasing as a company expands to other countries (Hannaher, 2010). Products can
also continue to create revenue internationally if demand falls in the United States for
a product (Hannaher, 2010). By entering into an international or global market, a
small company can grow their business (Rasel, 2014). A small business might be able
to generate more employment opportunities by expanding internationally. Some cons
of small companies exporting goods to another country include: possible legal
problems, language barriers, differences in culture, and the issue of dumping (Rasel,
2014). There are bound to be language barriers and differences in culture when one
decides to expand internationally. The small business looking to export could train the
individuals who will go to the other country on the countrys language, customs,
traditions, and practices to avoid these barriers from occurring. Also, countries differ
when it comes to laws and regulations and that could pose a threat to the small
business unless they are up-to-date with the laws in the other country and research the
different types of laws and regulations (Rasel, 2014).
References:
Hannaher, D. (2010, March 8). Seven reasons why small businesses should export.
Retrieved July 05, 2016,
from http://www.cobizmag.com/Articles/Seven-reasons-why-small-businesses-shoul
d-export/
Rasel. (2014, January 19). Advantages and Disadvantages of International Business.
Retrieved July 05, 2016,
from http://bankofinfo.com/advantages-and-disadvantages-of-international-business/
Respond:

some legal challenges for a small business. However, these challenges can be overcome by thorough research on the legal systems of the foreign country and seeking professional guidance from the U.S Department of Commerce.

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Introduction:
Expanding a small business into the international marketplace can be a daunting task for many. However, it can bring numerous benefits such as market growth, increase in profits, and the extension of the product life cycle. One of the primary ways to enter the international marketplace is through exporting. Exporting allows small businesses to venture into foreign lands and reach a much larger market than their domestic market. In this text, we will discuss the reasons for a small business to export goods to another country and the possible challenges that come with it.

Description:
Exporting goods to another country can be beneficial for small businesses in several ways. It allows them to expand their market and increase their profits by entering a much larger market than their domestic market. However, exporting also comes with several potential pitfalls, including language barriers, differences in culture, and legal issues. These challenges can be overcome by conducting thorough research on the foreign market’s legal systems, seeking professional guidance from the U.S Department of Commerce, and training individuals who will go to the foreign country on the country’s language, customs, traditions, and practices. In the following responses, two experts will discuss the pros and cons of small businesses exporting goods to another country.

Objectives:
1. To understand the benefits and challenges of exporting goods for small companies
2. To identify potential pitfalls faced by small businesses when exporting goods to foreign countries
3. To learn strategies for overcoming challenges and successfully exporting goods

Learning Outcomes:
1. Gain knowledge about how exporting can increase profits and sales for small companies by tapping into larger markets
2. Understand the potential language barriers, cultural differences, and legal problems that small businesses may face when exporting goods
3. Develop skills for conducting effective market analysis and customizing products to meet the foreign market’s demands
4. Learn about resources such as export managing companies and the U.S. Department of Commerce that can help small businesses overcome challenges and succeed in exporting goods.

Solution 1:
Exporting is a popular method for small companies to enter the international marketplace. When a small business exports goods to another country, they can benefit from market growth, economies of scale, and extending the product life cycle. A small business can increase its profits through exporting since a majority of consumers are outside of the United States. However, there are also potential pitfalls that small businesses should be aware of, such as different business practices, language barriers, cultural differences, legal systems, and currency exchange rates. To overcome these challenges, small businesses should seek help from an export managing company or the U.S. Department of Commerce. The International Trade Administration or the U.S. Commercial Service can provide distributor information, marketability data, competition analysis, comparative pricing, distribution channels, and names of potential sales representatives. By understanding these factors, small businesses can avoid issues and capitalize on their business venture.

Solution 2:
Exporting goods to other countries can provide many benefits for small companies, including market growth, economies of scale, and competition. It can also create employment opportunities and generate revenue in foreign markets when there is a decline in demand in the domestic market. However, small businesses should be aware of potential challenges such as legal problems, language barriers, cultural differences, and dumping. To overcome these challenges, they can train employees in the customs, traditions, and practices of the foreign country they are exporting to. A small business can also seek legal advice to avoid any legal issues that may arise. If they encounter cultural barriers or issues with the language, they can hire a translator or interpreter to communicate effectively. To avoid dumping, small companies can set fair prices and ensure that their products comply with foreign regulations. By understanding these potential pitfalls and implementing proactive solutions, small businesses can successfully export goods to foreign countries and grow their business on a global scale.

Suggested Resources/Books:
1. “Exporting: The Definitive Guide to Selling Abroad Profitably” by Laurel Delaney
2. “International Trade For Small Business: A Beginner’s Guide to Exporting and Importing” by John Spiers
3. “Exporting Made Easy: How to Get Started” by Karen Lobdell

Similar Asked Questions:
1. What are the benefits of exporting for small businesses?
2. What are some common challenges small businesses face in the international market?
3. How can small businesses overcome language barriers and cultural differences when exporting goods?
4. What steps should small businesses take to conduct a successful market analysis before exporting goods?
5. How can the U.S. Department of Commerce assist small businesses with their exporting endeavors?

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