As exporting organisations do not usually have a physical presence within the country, they may be seen as bad for the country because they are taking money out of their economy and not putting anything back in which the people of that country benefit from. The final drawback of exporting is the high transport cost which can also make the company highly uneconomical, this may lead to the failure of the company as it cannot compete with local competition due to these costs which have to be added on to the final price of the products in order to make profits.
A good example of an export company is AIRCOM which won an award in 2001 recognising the businesses achievements in the south east of England. AIRCOM International won the award for the "best exporting business 2001" (Source - http://www.aircom.co.uk/corporate/awards).
Another mode of entering a foreign market is licensing. Instead of selling products or services directly to customers overseas, some small companies enter foreign markets by licensing businesses in other nations to use their patents, trademarks, copyrights, technology, processes, or products. In return for licensing such assets, the small company collects royalties from the sales of its foreign licenses. Licensing is a relatively simple way for business to extend their assets into global markets. Small companies tend to license their assets in order to enter foreign markets as they are less risky compared to some large companies which decide to use foreign direct investment which requires massive amounts of investment and can hold very high risks. This is mainly because small companies tend not to have the money available to complete the massive investment and can also not afford to loose the money that was originally invested if the project fails.
Licensing mainly holds advantages for small companies as it allows them to enter foreign markets quickly, easily, and with virtually no capital investment.
