Research on the effects of transportation costs on foreing trade

This research discusses the difficulties that foreign trading companies has to bear while incurring international transportation costs. The purpose of this research is to outline the effects of transportation costs in global trade.The research involves 50 companies. These companies are experts in their field in the quality of service they provide and most of them have been established during 1976 ? 2000. During these years, our country was amongst those who were proceeding fast in industrialisation and open to global markets.From the results of the research, transportation costs in general increased the price of the goods ranging between 5-10%, and it is evident that this price increase has made it difficult for selling the product. In todays competitive market, even a small increase in price decreases the demand for the product. Therefore, in order to be competitive in the global market, companies have to find ways to minimise their transportation costs. The only way to achieve this is to find the cheapest transportation type. In order to accomplish this, first step is to develop railways, and in coast regions where railways are not possible, there should be ports to replace them, this way, effects of high transportation costs through highways would be minimised.