In each country, the way to do business are differences, but the main point they need to import and export their product to be interrelationship. The import and export product can make business grow up or go down because they have either advantages and disadvantages. Here are the disadvantages below:
Disadvantages of import and export:
- The main disadvantage is that import complete with local industries, thus often resulting in a decrease in profits for the local businesses. In several cases, such as cheap textile imports the local industries and result in large scale job losses and company closures as the local businesses can no longer make a profit.
- In relation to location economics, a film may not always be located in the best region for that specific area and is therefore restricted to the cost disadvantages of the current location
- The film is further depended on the fluctuation of transportation costs. High transportation cost can make in uneconomical to get involved in the export of certain good.
- Related to point B is the fact that exposure to a foreign market will likely involve government regulation. One of them there can be the availability of trade barriers such as tariffs and quotas or other hidden barriers.
- Will have to work with an agent which is not necessary loyal to one brand (product). This limited control over the marketing activities or other values beef activities will take expose the full potential of a certain market.