The global economy has given us the opportunity for shipping products or to sell services. Those are e-commerce, overnight shipping, and having cordial relations with potential customers. However, there are so many disadvantages related to international trade. Follow the article and gain your knowledge.
International shipping customs and duties:
One of the major disadvantages of international trade is charging extra fees. Most of the countries charge extra shipping charges. It seems to be a loss for the customers. They have to pay such amounts. However, the government has determined the duties differently. But the shopping strictly depends upon the products and their weights. Moreover, the item description sometimes affects the fees. However, larger shipments might not be cost-effective. The customer has to invest their money.
Another important disadvantage is language barriers. However, you can hire translators but still, it creates problems. Nowadays many people use translation tools. Even using those seems to be a problem. English is the international language. But many countries don’t know English properly. Hence, it creates problems in international trade. Moreover, if you hire any translator then you have to pay him or her. Without getting proper payment they will not be able to do your job. Customers are the main sufferers.
Cultural differences are one of the major drawbacks of international trade. This is the thing that is never documented. We are illustrating it with some examples. The word ” yes” means an agreement in some countries. However, in some eastern countries, the word “yes” means that they are understanding what you want to convey. It creates problems. So, miscommunication occurs.
Returning of products:
Returning products is another major disadvantage of international trade. All International trade will not be satisfied with the company’s products. So, the return policy should be there. The customer had already purchased the product with a high shipping charge. Now, if they return the product then again they have to invest an additional amount for it. So, companies should think about some better return policies.
Intellectual property theft:
When the product becomes highly popular then there is a chance of increasing competitors. Several competitors will come and copy the original product. We are further illustrating or with more examples. If the price of one dress is $80. Then some competitors will come and copy the idea of the product. They will use cheap and inferior qualities. After that, they will send it to the customers. The price of the duplicate dress will be hardly $20. But they will charge more and earn their money. So, this is one of the most major drawbacks of international trade.
We have given you some ideas regarding the drawbacks of international trade. However, we cannot ignore these disadvantages. We have to handle types of circumstances.