1. In single markets, many products are very seasonal, for reasons of climate (example: umbrellas), religion (example: gifts) or economics (people may only be able to afford some things once a year). Sales to export markets will often fill in the seasonal ‘troughs’ in demand, so that factories can be kept busy all the year through and cash flow problems can be eased.
2. Businessmen often believe that exports will be unprofitable because goods will have to be sold at lower prices. This is not always the case, but even if it is so, the higher volume will often mean a lower cost per unit of production yielding overall greater profits.
3. If a company is exposed to new ideas from other markets, and if its products have to compete without any protection in the world markets, the experience will improve every aspect of the company’s operations.
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4. In many countries, only those companies which export are allowed foreign exchange to buy imported machinery, and they are given preference in the allocation of license to build new premises or to import raw materials.
5. Opportunity to expand the market share.
6. Increase production if capacity is underutilized in the domestic market.
7. Decrease dependence on domestic sales or compensate for stagnating the domestic market.
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8. Diffuse domestic competition by expanding into less competitive foreign markets.
9. Follow domestic leaders into foreign markets to reduce foreign market research costs.
10. Competition in international markets stimulates the exporters to adapt their products to the needs of the market, leading to an improvement in their level of technological know-how.
11. From a personal point of view, it is more challenging, more interesting and more enjoyable to travel and work in the international business environment rather than to be ‘stuck’ in the often narrow and unstimulating activities of a well-known home market.
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