The advantages of using an export strategy to build a customer base in foreign markets include the potential of achieving a best-cost advantage over foreign-based rivals, lower distribution costs than rivals with plants scattered across many countries, and increased ability to build and protect profit sanctuaries in foreign countries. requiring comparatively little capital to begin selling in foreign markets (because a company can use a portion of its existing production capacity to make goods for export and also perhaps contract with foreign wholesalers experienced in importing to handle the entire distribution and marketing function in their countries or regions of the world). good ability to accommodate the tastes and preferences of buyers in different countries, low risk of failure, the potential for achieving a low-cost advantage over rivals, and good protection from the risks of fluctuating exchange rates. not having to compete head-to-head against strong competitors based in foreign countries, increased ability to protect the company's domestic profit sanctuary from attack by foreign rivals, and lower capital requirements. reduced vulnerability to fluctuating exchange rates, increased ability to avoid the expenses associated with employing localized multicountry strategies, and greater flexibility in employing a think local/act global approach to competing against foreign-based rivals