Surely you have heard about its advantages, but do you know the disadvantages of international trade? Knowing the weak points of this area is essential to delve into it and be aware of what it will be the near future of international trade and its challenges to overcome.
Continuing reading this blog is a good option to inform yourself, but it is still better that you sign up for the International Trade Course of Formation, endorsed by the Spanish Association of Foreign Trade Professionals (ACOCEX).
Acquire the necessary knowledge to work in one of the engines of the Spanish economy. Did you know that, through its exports, Spain has invoiced 319,731 million euros between January and October 2022? These government data reflect the power of the foreign market and its opportunities.
The disadvantages of international trade, did you know them?
In a context in which globalization and digitization mark the strategies of large companies in the market, and with figures as outstanding in exports as the one mentioned above, one question should be asked: Does international trade have any disadvantages?
No matter how well a system or methodology works, it is always going to have certain complications. Nothing is perfect! The same goes for international trade. Which a priori may seem all advantages, it also entails certain complexities that make these transactions also show weaknesses in certain points. Keep reading and discover the details!
Export costs
As you well suppose, moving material beyond the Spanish borders has a higher cost to do it within the national territory. Once you know where to send the shipment, you must hire professionals who move the merchandise to the destination so that it reaches a safe port. In the latter case, finding the most affordable option is not always possible.
Investment in logistics, another of the disadvantages of international trade
Another of the disadvantages of international trade is closely related to the previous point, and is related to logistics. The chain used by a certain company to move a merchandise it is much more intricate if you have to cover more distance. For this reason, the investment in this area will be greater in the case of executing operations that imply an important path to carry out.
Complications that may arise from the language
Although today the exact number of languages spoken throughout the world is not known, it is estimated that the number is around 7,000. With a number like this, it’s not surprising that languages can be a factor that can work against you.
Will I have to handle many languages? Calm down, don’t panic. English is the vehicular language in international trade, so mastering it is more than enough to make you understand.
In Formation We are aware of the importance and transversality of this language, for this reason, the International Trade Course has a e-learning module complementary. An eminently practical section that will help you learn and use English in the workplace.
Even so, no matter how much a company has a person specialized in business abroad and who is fluent in English perfectly, there may be times when not speaking the local language can lead to misunderstandings.
Although English is the vehicular language, local languages are also used in international trade and can cause some misunderstandings
Given this context, many companies resort to translators to be able to manage in certain countries. An excellent option if the company does not want to lose anything, but which, at the same time, increases costs.
Need to adapt to the legislation of each country
Another of the disadvantages of international trade is the importance of complying with the legislation in force in the country to which the company makes the shipment in each movement. Not all territories on the planet are governed by the same laws and, for this reason, it is sometimes necessary to pay for licenses, certificates or permits that can cause a cost overruns.
As a specialist in international trade, you must be proficient in this field and know seize the opportunitiess wherever they exist, as well as informing about the risks that certain operations may entail.
Adapting to the laws of each country can lead to extra costs for the company that exports its products and services
A slower return on investment
Finally, to end this blog on the disadvantages of international trade, we want to refer to what matters most to a company, whatever its size: its economic benefits.
In this type of business, reaping the fruits requires more time and it is subject to factors that cannot be controlled, such as the price of certain products in the territory or the situation in which it is found at a cultural, social and political level.
As you have seen, most of the difficulties that international trade has to face are related to the chain that allows a product to reach its destination. On top of these drawbacks, the multiple advantages of the sector stand out, making it a heavyweight in the world economy.
Become an expert in international trade!
Enjoy professional outings of international trade studies with the higher course of Formation. An opportunity to train at the hands of professionals in the sector with a methodology endorsed by the Spanish Association of Foreign Trade Professionals.
Take advantage of important advantages such as:
- Access to the online learning community of Digital.
- Service practices to start making yourself known and make your resume gain weight.
- module English so that you develop in the vehicular language of international trade.
- access to a employment exchange managed by randstad.
And this is only the beginning! We provide the platform and you provide the raw material to export the best talent to the world of work. Do not wait any longer to jump into the job that you have been wanting for so long. Find out and start classes!