Lower costs: By expanding international beyond the domestic Caribbean market, sales will increase and therefore production levels will also increase.All these factors can positively affect the profit margins of a firm. Some rare products (such as certain specialty foods) may also be able to command a higher price in an overseas market particularly in a market where the consumer is relatively affluent and willing to pay a premium price for a premium product. Generally speaking, internationalcustomers in larger markets are likely to place much larger orders than a local buyer. Higher Profits: No company would export unless it intends to make a profit.With an expanded market, exporting can pave the way for increased sales and expansion. However, exporting to Brazil for example expands that producer’s potential market to close toĢ00 million people. For instance, a producer in Trinidad and Tobago has access to a market of just over 1.5 million people. Given the small size of most Caribbean markets, exporting allows a firm to expand its market beyond the scope of a limited and increasingly saturated national market. Increased Sales: Exporting is one way of increasing your sales potential.Increased Competitiveness: Exporting can allow you to gain exposure to new ideas, management practices, marketing techniques, and ways of competing which can help you to better position your business both within the Caribbean and overseas markets to increase competitiveness.In this sense, despite the challenges and risks associated with exporting, it also offers numerous benefits which are not likely to be achieved by remaining domiciled in the local market. However, with the increasing opening of Caribbean economies to goods and services produced abroad, competition in the domestic market will continue to increase and survival might very well depend on an ability to compete both domestically and internationally. You may think that your product is already doing well in the domestic market and therefore, there is no need to expand to new markets.
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