1. High Profit Potential – Depending on the product, you can make a substantial profit from trading goods between countries.
2. Wide Variety of Products – You will have access to a wide range of products from all over the world that would otherwise not be available.
3. Access to New Markets – You can open up new markets for yourself and expand your business opportunities.
4. Lower Costs – You can save money by sourcing goods from countries that have lower production costs than your own country, allowing you to sell them at a cheaper price.
1. High Risk – International trade involves a great deal of risk due to factors such as changing regulations, currency fluctuations, and political instability.
2. Shifting Demand – The demand for some products may vary depending on the economic conditions in different countries.
3. Logistics & Delivery – You need to ensure that all orders are delivered in a timely manner and to the correct destination.
4. Language Barriers – You may need to hire a translator or learn other languages in order to effectively communicate with suppliers and customers around the world.
5. Regulations & Compliance – You must comply with all relevant laws and regulations, both domestically and internationally. This can be a time consuming process that requires a lot of research.
6. Capital Requirements – Starting an import/export business requires a large amount of capital to finance the initial investments and operations.