Question

While on a trip to South Africa, Erin was impressed with colorful woven outdoor placemats, floor mats, chair cushions, and umbrellas that local artisans were weaving. Upon returning to the U.S., she was confident that U.S. consumers would be as intrigued by these accessories as she was. Erin decided to explore the possibility of starting an importing business to bring these products to the U.S. Which of the following statements seems to be good advice for Erin?A. Learn from others who import goods from abroad, and particularly from Africa.B. Make certain that you have twice the cash necessary to make your first purchases.C. Before performing a feasibility study, form your legal business status.D. Since most import businesses are also export businesses, find a U.S. product South Africans would be willing to buy.

Answer 1

The correct answer is A. Learn from others who import goods from abroad, and particularly from Africa.

Step-by-step explanation:

The entrepreneur who wants to know how to open an importer needs to be aware of the difficulties and challenges imposed by this market. There are many advantages when entering this medium, such as good profit margins, but the entrepreneur who wishes to venture into this area must have some skills.

First of all, it is necessary to know the market very well, as there are many risks, especially for those who are not accustomed to the sector. Logistic planning must also be very well elaborated. Execute scenario simulations and define economic import batches.

Another important advice is to have a professional in the area of foreign trade, who will help with the study of possibilities and other bureaucratic difficulties. The business plan must bring detailed market information, in addition to discovering possible technical barriers, or entry and exit.