Blades

In: Business and Management

Submitted By fathmaziza
Words 656
Pages 3
1) The advantages that Blades can gain by exporting to foreign countries are:

* Increased sales and profits

Selling goods and services to a market the company never had before boost sales and increases revenues. Additional foreign sales over the long term, once export development costs have been covered, increase overall profitability.

* Gain global market shares

By going international, companies will participate in the global market and gain a piece of the huge international marketplace.

* Lower Per Unit Costs

Capturing an additional foreign market will usually expand production to meet foreign demand. Increased production can often lower per unit costs and lead to a more efficient use of existing capacities.

* Potential for company expansion

Companies who venture into the export business usually have to have a presence or representation in the foreign market. This might require additional personnel and thus lead to expansion.

* Sell excess production capacity

Companies who have excess production for any reason can probably sell their products in a foreign market and not be forced to give deep discounts or even dispose of their excess production.

* Product life cycle expansion

Many products go through various cycles namely introduction, growth and maturity before declining signifying the end of their usefulness in a specific market. Once product reaches its mature stage in a given market, it can be introduced to a different market where it will be perceived as new.

The advantages for Blades can gain from importing to foreign country are: Importing allows countries to achieve higher standards of living by obtaining products and resources that cannot be obtained domestically. By purchasing components at the low cost in Thai, it will reduce production cost that Blades spend, rather than make it in…...

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