Advantages of exporting include increased sales, gaining global market shares, diversification, lower cost per unit and expansion within the company. Disadvantages include extra costs, the possibility of needing to change products, payment collection complications and difficulties in getting reliable market information.Know More
One advantage of selling overseas is the possibility of increased sales because the company's target market is larger. In addition, by widening its market scope and reaching out to a wider customer base, a business can deal in international market shares as well as national ones. By selling to multiple countries, a business spreads its risk and is not tied to the seasonal or economic fluctuations of a single marketplace. Finally, a company must hire more people to handle overseas operations and order more product to sell to international markets. This means that the size of the company will expand, and it can order more units and cut production costs.
Although there are many benefits of exporting goods, there are also disadvantages. In setting up an international branch, a company may face costs in making promotional materials, traveling and handling administrative tasks. Companies that expand overseas may have to modify their products to make sure that safety codes and import restrictions are met. It is also more complicated to collect payments abroad, and it may be hard to get reliable market information on foreign countries in order to make good business decisions.Learn more about Economics
Supporters of central banking argue that it provides stability to the economy and allows the government to influence important aspects of the economy. However, central banking detractors argue that central banking unnecessarily expands the size and influence of government and leaves the economy more susceptible to corruption.Full Answer >
Protectionism can promote the growth of burgeoning industries in developing countries, but it also leads to overall higher prices and reduced innovation. Government officials often implement measures of protectionism to assist the interests that keep them in office or to grow the public treasury. In general, all members of the global market benefit more from free-trade policies than from protectionism.Full Answer >
Monopolies are often better-equipped to serve the public interest and compete internationally. They also have advantages in research and development and economies of scale. The primary problem with a monopoly is that it gives one company control and power of the marketing, which may lead to high customer costs.Full Answer >
Advantages of clearcutting include the ability to manage forests economically, the creation of sunny spaces for sun-loving plant species, and the development of forage habitats for deer, elk and wildlife. Disadvantages include the disruption of existing ecosystems, the unsightly appearance and increased risk of erosion.Full Answer >