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 in 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 >
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 >
Advantages from building dams include delivering more water and energy to local populations, expanding surrounding riparian habitats and controlling floods, while disadvantages include harm to the plants and animals in local environments, decrease in natural diversity and structural instability of the nearby riverbed and riverbanks. Dam construction directly influences the surrounding environment, and impacts economies and societies too. Proponents support dam building on the basis that dams, large and small, bring jobs and revenue into local economies, and help societies modernize and develop greater complexity.Full Answer >
Advantages of nationalizing commercial banks in India include ensuring that all citizens are able to access funds, and improved regulation of how money is used by borrowers; a significant disadvantage of nationalization is reduced competition, meaning less incentive for the bank to modify services and rates. Proponents of a nationalized bank believe that because the bank is mandated to serve its citizens, it is more inclined to service the disadvantaged, such as low-income earners and remote communities.Full Answer >