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Essay On Export Barriers

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Today many manufacturing firms are faced with problems of entering in to international markets like demand insufficiency, financial trouble, the lack of marketing organization, standards, goods and services with reasonable prices and quality which provide competitive advantage on foreign markets, low capacity, adaptation problem of market entry, law and politic problems, diversity of customer's choice and habit, bureaucracy (Özlem Özkanli et’al (2006).The problems to export are related to a lack of capital (capital is important to build and to maintain international market relations) as well as a lack of human resources: most of the time the manager himself is in charge of export activities. The lack of managers with international experience and foreign language skills is also very important (Özlem Özkanli et’al (2006).

A firm’s export performance is affected, directly or indirectly, by numerous strategic factors, …show more content…

He proposed 20 barriers in the field of exporting; existence of keen competition abroad, inability to offer satisfactory prices, deteriorating of economic conditions abroad, lack of government assistance, limited information to locate and analyze foreign markets, high political risk or instability abroad, perception of high business risks and costs abroad, shortage of working capital, high tariff and non-tariff barriers, inadequate transportation and infrastructural facilities, restrictions imposed by rules and regulations, different customer habits and attitudes, difficulty in locating and obtaining representation, unfavorable foreign exchange rates, different product standards and specifications, inadequate and untrained staff, unfamiliarity of foreign business practice, different cultural traits and language abroad, difficulty in handling documentation and procedures and inability to offer technical after sales

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