Exporting
According to Tielmann Victor (2010), exporting is the most traditional and well established form of
operating in foreign markets. It is characterized by the transportation of
finished goods from one country to another. For example sugar produced at
Kilombero (MTIBWA) is transported to Kenya.
Advantages of exporting are;
- Manufacturing is domestic based thus; it is less risky than overseas base.
- Gives an opportunity to learn overseas markets before investing in bricks and mortar
- Reduces the potential risks of operating overseas.
Disadvantages are;
- · High transportation cost.
- · Unpredictability of trade barriers.
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