Problems in the Export Process

At present globalized world, the strong Export sector is a key policy objective of successive governments of Sri Lanka, and they have adopted many strategies to achieve that objective because it is a vital role in promoting economic growth in each and every economy. However, Export sector performance in Sri Lanka has not been reached to the expected level.

If we analyse about what factors have caused such a situation, we can identify the different types of problems in the Export process.

Internal Issues

  • Internal Export issues are the issues associated with organizational resources, capabilities, and organizational approach to the exports.

1. Information issues.

  • Insufficient knowledge about overseas markets.
  • Lack of knowledge to initiate the Export and market competition.
  • Lack of understanding of payment procedure of Exports.
  • Difficulty in making customer contacts and gaining access to data.

2. Functional Issues.

  • Lack of prior Export experience.
  • Lack of production capacity for Exports.
  • Lack of new technology related to the Export process.

3. Financial Issues.

  • High cost of capital to finance Exports.
  • Lack of financial sources to finance Exports.

4. Marketing Issues.

  • Difficulty in meeting Export product quality.
  • Difficulty in making innovations and less diversification of export products.
  • Lack of competitive prices to customers in the foreign markets.
  • High insurance cost.
  • High transportation cost.
  • Unavailability of warehousing facilities.

External Issues

  • External issues are the issues coming from the outside an organization that will impact to the Export process.

1. Procedural Issues.

  • Complexity of export documentation requirements.
  • Inadequate communication with overseas customers.
  • Slow collection of payments from abroad.

2. Government Issues.

  • Lack of government incentives and inadequate institutional support.

3. Economic Issues.

  • Poor and deteriorating economic condition.
  • Currency fluctuations.
  • Political instability.

4. Political and legal issues.

  • Strict rules and regulations.
  • High tariff and non -tariff barriers.

5. Socio Cultural Issues.

  • Language differences.
  • Education and religion differences.
  • Differences between ethics and values.

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