BENEFITS
1. Grow your business
This will
probably be much easier than when people try to expand the market place.
2. Diversity risk
The idea that a
business relies on one market and directs all it resources into a single
currency and it could be more risky.
3. Better margins
Price pressure
could be less and it could also reduce market fluctuations.
4. Earlier payments
This reduces
payment risk and may help with working capital.
5. Less competition
There are fewer competitors, this task is made easier.
By making the product or service available to worldwide buyers, you instantly
create another life line for the business by being in less competition and it
increases the possibility of standing out.
RISKS
1. Don’t spend enough time to define the risks of
international trade
The question is: What are the reasons people want to
sell or buy from overseas? It is crucial that they have a clear understanding
of what international trade involves.
2. Don’t understand the local legal framework
It is dangerous because people need to assume the laws
in other countries. When they do something legal, the first time can save them
a lot of time and money.
3. Don’t communicate effectively the business partner
Relationships have to be worked. There are some
problems between business and friendship.
4. Don’t spend enough time with potential business
partners
Business people need to develop some very good
partners, especially in long distant relationships.
