Exporting is far more costly than most companies envisage.
The marketing component is extremely expensive as most of the costs are incurred
in the intended target market. Packaging and transportation costs are also
expensive. The cost of production could also be higher as in some instances
additional staff may have to be employed in order to meet the greater number
of orders received. Larger quantities of raw materials would have to be purchased
to meet the increased demand and this could serious effect cash flow.