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The various drawbacks of exporting
Of course, there are also potential pitfalls
in exporting and it is important for prospective exporters
to know what these are. They include the following:
- Management may need to devote a considerable amount
of time to the start-up procedures and decisions involved
in exporting
- Key personnel or other critical resources may have
to be diverted from domestic responsibilities to help with
the company's export activities
- Additional plant facilities may be needed to cope
with increased sales through exports
- Catalogues, brochures and other sales promotion
material, as well as packaging and labelling, may need
to be translated into a foreign language
- The product may need to be modified to meet foreign
market criteria
- Credit terms may need to be extended because of
competition, local custom or transit time
- Exporting, although rewarding, is generally an expensive
activity and will require additional financial resources
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