what are some challenges that the Exporter of goods and services will face in International trade ? 10 point?

Question

10 point for the right answer
please put it in point form for both exporters of goods
and services .

Answer 1

There are several challanges an exporter faces:

1. First you have to find international customers for your products or services. To do this you must have some understanding of the foreign market you wish to penetrate including whether or not they have a need for what you offer, their is competition in that market, any special requirements that market may have (different technical specs; different cultural issues), and the best way to sell into that market (directly vs. through an agent vs. licensing technology or service).

2. Once you've found customers, you must make sure you understand the regulations and restrictions for exporting from your country and importing into your customer's country. The U.S. prohibits exports to certain countries and requires an export license of certain types of products to other countries. The country of import may have restrictions on imports of your particular product or service.

3. You must properly price your product. There are many factors that you must consider when pricing your product for export including the marketing, packaging, transportation, insurance and other costs you incur to send your goods to the foreign market. Of course, you also have to consider the price of your competitors' products.

4. How are you going to get paid? The best term of sale for you is prepaid; the best term of sale for your customer is for you to bill them. Banks offer letters of credit that can guarantee payment, but this process is complicated and can cost a lot of money if you don't follow the procedures correctly.

5. How are you going to provide service, support and the potential for returns in this foreign market? These post-sales issues are often ones that companies don't consider before exporting.

These are just some of the issues you must consider. That's not to say, however, that you shouldn't export. Lots of companies are successfully navigating these hurdles and enjoying great success as exporters. In fact, 67% of U.S. exporters are small companies - those companies with less than 20 employees.

Good luck.

Answer 2

The biggest challenge is getting your money. Buyers try all sorts of tricks to delay or avoid payment. Ask for a an irrevocable, transferable letter of credit confirmed by the U.S. advising bank. the letter of credit should give you ample time to ship the merchandise.