Advantages and disadvantages of Export & Import Business

Every business has Advantages and Disadvantages. If you want to start a new business, first you have to know the Advantages and disadvantages of that business. Many people will consider only about advantages. But consider about disadvantages is very important than consider about advantages. There is no business without Disadvantages. Here I am going to tell you Advantages and disadvantages of Export and Import Business

Advantages (Benefits) of Export

  1. Through export, you can establish your business worldwide.
  2. It increases sales, income, market share, and profit.
  3. No GST (Goods and Service Tax) on exported goods in India.
  4. Export business generates employment opportunities.
  5. Enrich domestic competitiveness.
  6. It develops communication between two countries.
  7. Regulation of income is possible through importing qualified goods.
  8. Enhancing economic status of the country.
  9. If the importer is satisfied with our products, then you can get more orders from them.
  10. Don’t need to sell the products to many people.
  11. No need to market your products.
  12. You may get the opportunities to visit many countries.
  13. People who are doing business in small level can expand their business through exporting.

Disadvantages (Challenges) of Export

  1. Need basic investment to start export business.
  2. Finding the importer from abroad is difficult and also it will take more time.
  3. Obtaining license and documents for export is difficult.
  4. Sometimes you need to wait for payments.
  5. You must have English knowledge.
  6. Transportation cost may be high on some occasions.
  7. If you export the product without getting the settlement, your importer may cheat you.
  8. You may lose your profit because of seasonal fluctuations.
  9. When you export through the agent you have to give some money to him.
  10. You can gain only a small profit through low value-added exports

Advantages (Benefits) of Import

  1. You can import the goods at very low cost from other countries and sell them with more profit.
  2. We can get some materials (which can’t be produced by us) only in some parts of the world. Through import, you can get those materials very easily.
  3. You can get the best quality products.
  4. Tax concession is also available for some specified goods.
  5. Best way to adopt the culture of other countries.
  6. We can bring best technologies to our country through Import.
  7. You may get the opportunities to go to other countries.
  8. When you import high-quality products with low price, you can sell them with the high price for more profit. It increases your profit margin.
  9. Imports make Employment opportunities.
  10. Government supports the import to develop the Trade Relation.

Disadvantages (Challenges) of Import

  1. Unemployment will increase. If everything will be imported from other countries, the people who live in India won’t have any job opportunities.
  2. Local manufacturers will lose their business orders.
  3. Need to pay GST (Goods and Service Tax) on imported goods.
  4. We can’t return the damage and poor quality goods easily.
  5. Reducing the income of our country. Because we are investing all money in other countries.
  6. If you import the goods through a middleman (an agent), you need to pay for him.
  7. Obtaining license and documents for import is difficult.
  8. Importing from abroad will destroy the Domestic Industry.
  9. Importing reduces the economic growth of the country.
  10. You may import the product without quality.
  11. The exporter can’t return the imported items for any cost.
  12. If you can’t sell all imported items, it may lead to heavy loss.

Many people start Import and export business without knowing the advantages and disadvantages. I hope by reading this post you have got the knowledge of advantages and disadvantages of Import & Export.

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