What are some reasons for importing? What are some problems?
Importing of various products is usually based on some compelling reasons, which helps in balancing the supply chain. Importing helps in meeting the demands of the customers for specific goods are not available within the borders of a given country. Many suppliers of various products opt to import, which allow sourcing of non-existence products in their target market. Another reason for importing products is to allow suppliers enjoy the low cost of importing products as compared to their production costs. In most cases, imported products have better quality as compared to local products because the importers select only top quality products for the importation.
Notably, importing products come with some problems. The sourcing of products from oversea suppliers is a risky and challenging task because it requires the help of professional personnel to handle the sourcing process, which increase the cost. Importing is risky because some suppliers may seem genuine but are scammers. Pricing is another problem in importing because the negotiation involves more than just phone calls. Some problems related to pricing may arise due to language barriers and cultural differences, which make the importing process difficult. Quality control issues may arise from importing products especially when the importer is not there in person to verify the quality of the products. Importing is usually accompanied by custom fees and transportation cost, which may make the products expensive.
List the opportunities available in exporting
Exporting open many opportunities to the exporters in the outside markets. Through exporting, suppliers get access to additional customers outside their country boundaries to advance their businesses. Exporting breaks the common barrier of limited potential profits of a business operating within boundaries of a given country. The suppliers of various products can diversify outside market opportunities especially when the domestic market starts to falter because they can have potential markets for their products. Exporting allow suppliers to expand the lifecycle of products that are saturated in the domestic market. Through importing, the products saturated in the domestic market are introduced to new markets in various parts of the world.
Importing may open opportunities for possible financial assistance of suppliers from international organizations and U.S government. Exporters are recognized internationally and their operations open opportunities for loan guarantee in many financial institutions. Another opportunity that comes with importing is the chance to explore various markets outside the borders and the likeliness to learn new trends or innovative products. Suppliers get the opportunity to interact with people from diverse backgrounds especially when they take their products in person to the outside markets, which is a boost for diversity and cultural tolerance.
Describe some risks and problems involved in exporting
Exporting is usually associated with various risks and problems, which suppliers have to handle in the routine operations. One of the risks of exporting is dynamics of logistics. Exporters may not be sure of the departure and arrival of the shipment is right and at the target destination. In addition, handlers of the shipments may not take timely responsibility, which can compromise the quality o f the products, especially perishable once. There is risk of inexperience with various distribution and border control laws including custom clearance and compliance regulations. Suppliers in the export operations face financial risk regarding the exchange rates of currencies. Export operations usually face problems with payment methods because some countries may not have or accept certain modes of payments. The arising difficulty with the payment method may be because some nations do not share one fiscal system with that of the supplier. Some problems related to pricing may arise due to language barriers and cultural differences, which make the exporting process difficult to the suppliers.