DISADVANTAGE OF IMPORT AND EXPORT

DISADVANTAGE OF IMPORT AND EXPORT

In each country, the ways to do business are differences, but the main point they need to import and export their product, to be interrelationship. The import and export product can make business grow up or go down because they have either advantage or disadvantage. Here are the disadvantages below:

Disadvantage of import and export:

           + Import: The main disadvantage is that import compete with local industries, thus often resulting in a decrease in profits for the local businesses. In severs cases, such as cheap textile imports the local industries and result in large scale job losses and company closures as the local businesses can no longer make a profit.

           + Export:

           -In relation to location economics, a firm may not always be located in the best region for that specific area and is therefore restricted to the cost disadvantage of the current location.

           The firm is further depended on the fluctuation of transportation costs. High transportation cost can make in uneconomical to get involved in the export of certain good.

           -Related to point B is the fact that exposure to a foreign market will likely involve government regulation. One of there can be the availability of trade barriers.

           -Will have to work with an agent which is not necessary loyal to one bran (product). This limited control over the marketing activities or other values beef activities will toke expose the full potential of a certain market.

In my conclusion, both advantages and disadvantages always come together, but we still do when the advantages are much more than disadvantages.