Feb 03, 2020 - 05:34 AM
Thanks for your question. It's really important and I'd like to answer it for every one's benefit.
Struggles faced by Exporters in International Trade:
International Trading has many aspects to consider as an exporter. Knowledge like awareness of local norms in your country and the norms of exporting countries is very essential. Here are a few problems faced by the people:
1. Logistics and Geography:
One of the major challenges faced by exporters is the distance. Longer the distance complex the transportations get. For instance, if the goods need to travel to a number of countries to reach the final destination, exporters are required to have knowledge of the norms of those countries as well. This will help to avoid problems and shipping delays. It is better to invest in insurances to protect the products. Again, do check if the insurance company is covering all the countries from which the goods will pass and destination country as well. These factors will reflect in the cost incurred.
2. Mode of payment:
Every country has a different fiscal system, its better be aware and to have a proper understanding of international forms for payment to avoid a certain unwanted situation, take the help of an accountant or someone with knowledge of international trade and its payment methods. Keep in mind that the exchange rates fluctuate on a daily basis while making payment. It is advisable to do business with a trusted importer. Use go4WorldBusiness.com to find trusted and genuine importers and exporters.
3. Legal Norms:
Legal norms are one of the most important aspects of international trading. It also implies the safety system of a particular country that considered to trade with. Be well informed regarding government laws for goods safety. To avoid trouble like obtaining certain licenses and permits overseas hire a good lawyer specialized in international trading can help you overcome such situations. So countries have a complex bureaucratic system that requires a variety of document certificates.
Language barriers can be a real issue when trading internationally. If the importer doesn’t speak the same language things might be lost in the translation. Hiring a translator will save a lot of struggle when it comes to communication problems. And it is an investment worth making because no one needs misunderstandings when there’s a lot of money involved.
5. Finding the right importer:
Finding the right and trusted importer is one of the biggest challenges. Do a background check of the importer to avoid possible local scams. Here, at go4WorldBusiness.com we do a basic verification check before making the lead live. You can also take the help of the third-party verification company who'll check for the credibility o the importer.
5. Custom and culture:
While exporting always consider the culture and tradition of the country. For example in some countries certain types of clothing are not allowed, certain products are against their cultural belief, so do your research on the traditions.
Struggles faced by Importers in International Trade:
1.Sourcing International Exporter:
While sourcing international exporter, make sure you do a thorough background check to avoid scams. Take the help of an international trade manager for secure trading. go4WorldBusiness.com does initial verification of the suppliers.
There are challenges like the negotiation of pricing with the oversee traders. Due to many external reasons like the language barrier, cultural difference, etc, it is advisable to be equipped with aid to tackle such situations.
3. Quality control:
It is not possible to be there to oversee the production of the good, quality may differ from the expectations. Either, deal with a trusted exporter or hire an agency to manage the pre-production process - factory inspection, prototype evaluations - to ensure that your product meets your expectations.
Be aware of adversities that may arise while transporting the goods, rather have insurance done. Tie up with agencies to help to overcome these logistic troubles. 5. Custom Duties:
The custom duties vary from product to product from country to country and are subject to change as per countries's financial decisions. So do your research be futuristic and avoid such twists. These were a few major problems faced by exporters and importers, but this is a small list. Problems can be many but just because of the challenges does hesitate to go for international trading. Always remember "Obstacles don't have to stop you. If you run into a wall, don't turn around and give up. Figure out how to climb it, go through it, or work around it." - Michael Jordan I hope I answered your question. Thanks, go4WorldBusiness Team