What are the Problems Faced by Exporters?

Problems Faced by Exporters
•        Distance involved in exporting is usually greater than in the home trade
•        Language difference requires communications with overseas traders to be carefully translated
•        Cultural differences and local requirements, e.g. aesthetics, religious.
•        Different countries may have different technical specifications for goods sold in their country e.g. voltage in USA is usually low (110v-115v).
•        Tariffs are considerable obstacle to trade and can only be avoided by not exporting to those countries, which impose them
•        Customs regulations differ and they have to be obeyed and create more work for the export
•        Documentation is much more complicated in exporting
•        Differences in currencies poses an additional problem, because the exporter uses a different currency from his customer. Currency must therefore be exchanged in the foreign exchange market
•        The risks are greater in exporting and this adds complications for the exporter e.g. the need of insurance.

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