❖ Transportation costs

In order for a company to successfully enter a new market, it is necessary to have a

comprehensive market entrance plan. The development of a market entry strategy can
assist organisations in identifying potential barriers to market access and in developing
solid route-to-market strategies. As a result, corporations are teaming with firms such as
Infiniti Research in order to benefit from their expertise in providing market entry
strategies.

❖ Documentation fees (licenses and permits)

It is also possible to enter a foreign market through licencing, which has a lower level of
risk. Contrary to contract manufacturing, it is typically for a longer period of time and
entails additional responsibility for the local manufacturer. In many ways, licences and
franchising are the same thing; but, in the case of franchising, the franchising
organisation is more directly involved in the formulation and control of the marketing
programme.

❖ Exporting costs

When it comes to doing business in international markets, exporting is the most

traditional and well-established method. All will be OK if the company achieves first
success in its exporting endeavours rapidly, but the chances of failure are significant in
the early phases. When it comes to exporting, the "learning effect" is typically fairly
swift. The goal is to learn how to reduce the risks associated with market entry and
commitment throughout the early phases of development.

❖ Advertising and marketing costs

Advertising helps to differentiate products and can encourage generic market entry,
which would otherwise be discouraged due to intense Bertrand rivalry if there was no
differentiation. Over-investment in advertising, on the other hand, can inhibit generic
market entry under specific conditions and diminish welfare when compared to
accommodating market entry, according to the literature.
 ❖ Taxes and international charges

Taxes and other assessments are collected at the moment of customs clearance in the
foreign port, together with the tariff. Tariffs and taxes increase the cost of your product
to a foreign buyer and may have a negative impact on your ability to compete on the
international market. Knowing the final cost to your buyer can help you determine how
much to charge for your product in that market.

❖ Labor costs

Many people believe that these charges are the most significant costs a firm will incur,
and that they are a critical aspect in almost any corporation. This is owing to the fact
that staff turnover is one of the most significant factors contributing to a company's
failure. It is in the best interest of any business owner to keep unit labour expenses and
inflation to a bare minimum so that profits can be maximised.

❖ Cargo insurance

According to the policy, freight insurance, also known as cargo insurance, can assist
protect against this type of damage by covering a variety of modes of transportation,
ranging from ocean freight to trucking to air freight, depending on the policy. You should
consider purchasing freight insurance if you are sending products that are of significant
value. This will ensure that your goods are protected during the shipment process.