Navigating Export Markets- Challenges, Pitfalls, and Rewards

Navigating Export Markets- Challenges, Pitfalls, and Rewards

The export market fueled by globalization has become a tremendous section of the world’s general economic activity. Fortunately, the new projections suggest an increase in the value of a dollar across different countries’ borders. The fast-growing international business has opened doors for developing countries like Uganda to large economies such as China and Russia. However, there are still challenges faced by these developing countries in identifying the market in an environment with large economies (Inui et al., 2016). note that entering an export market requires proper planning, capital, market awareness, product quality and quantity, and competitive pricing. Poor management and lack of opportunity and challenges realize it is impossible to identify with the export market, especially in this competitive market trends globally.

The pitfalls in export market identification include unfavorable trade terms in competing for market prices with large economies. As a result of poor infrastructure and production methods, developing countries cannot match the prices in developed countries with significant economies of scale. Another pitfall is the intensive import methods, particularly in industrialization; developing countries fail to meet the elitist requirement for consumption (Inui et al., 2016). The increasing trend of this elitist consumption has contributed immensely to the balance of payment problem in sustaining the export market, especially in developing countries.

However, there are numerous rewards and benefits of identifying export markets. To mention just a few, identification of export markets opens rooms to accessing new customers. Companies with saturated market share enjoy the benefits of economies of scale, thus growing stronger and more competitive. Another advantage is export market identification helps diversify business risks. This means the potential failure in one flow of product is boosted by another. With these diversifications, countries that set up their firms in different countries are turn down negative economic, market perspective, and political drawbacks (Inui et al., 2016). Therefore understanding the benefits, pitfalls, and challenges in the export market helps countries smooth entry into competitive new markets and become profitable.

References

Inui, T., Ito, K., & Miyakawa, D. (2016). Export Experience, Product Differentiation, and Firm Survival in Export Markets. The Japanese Economic Review, 68(2), 217-231. https://doi.org/10.1111/

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Navigating Export Markets- Challenges, Pitfalls, and Rewards

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