Discuss the benefits exporting offers to small businesses.docx - Discuss the benefits exporting offers to small businesses Given these benefits why

Discuss the benefits exporting offers to small businesses.docx

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Discuss the benefits exporting offers to small businesses. Given these benefits, why don't more small firms sell in international markets?
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Unformatted text preview: generates high supply of the product. As the motive of any business is to earn maximum profit increase in demands and supplies earn maximum profit. Though, exporting have benefits to small business t hey don’t sell their products in international markets because of the following reasons: Lack of knowledge about international market For the supply of products in international market proper information and knowledge about it is required which is not possible for some small firms or business. Due to lack of information, education small business are unable to operate globally. Finding information about some international market is quite difficult task to be done. Government policies Due to lack of effective law and government policies, small business are unable to generate in international market. In the context of Nepal governmental policies are unstable which creates unfavorable situation for small business to have their products exported. Cultural differences Cultural difference plays a vital role for downfall of any business gone international. Before exporting any goods it is necessary to understand the local cultural influences in order to run business effectively. Different countries have different cultural references so according to local consumer’s preference products should be exported. Low production capacity Small business produce their products comparatively less in order to large companies which make their competition in global market very low. Thus, as long as the production is not increased small business promotion in international market will not be possible. Exporting causes high demand of goods so if business cannot fulfill the demand business may collapse. Hence, these were the benefits exporting offers to small business and the reasons small business do not sell their products in international markets. References Nickels, McHugh, J., & McHugh, S. (2012). Understanding Business (10th ed.). New York, London: The McGraw-Hill Companies. ....
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