Saturday, October 5, 2019

Develop an Export Strategy for an Organisation Essay - 1

Develop an Export Strategy for an Organisation - Essay Example India will therefore be expected to be familiar with the operations of the international trade which will help it to export its products effectively. The export strategy therefore proposed for the board of directors is dependent on the factors that will be brought out from the knowledge of the international trade (In Nafziger & In Paterson, 2014). International trade involves the exchange of products and services across the country boundaries. International trade consists of imports, which are the products that come into the country, and exports which are the products that the country sells to other countries. International trade is regulated by customs that regulate the oversight and taxation of the countries involved. International trade is laid on a theoretical foundation that includes mercantilism which tried to impose more exports than imports, referring this as a positive trade balance, neomercantilism which like the former, tries to meet a positive trade balance, absolute advantage over competitors which is based on the ability of a nation to produce effectively by using less resources. Another foundation is comparative advantage where a nation is encouraged to take part in exportation of a product which it is best suited to produce compared to its competitors, and endowment of factors which increases the comparative a dvantage thus enabling a nation to export products that it has a high factor endowment, therefore attaining higher sales level of the product and at the same time spreading its production cost, and importing the products which it has a low factor endowment in order to acquire them from countries that are suited to produce them. The complexity of the international market is based on the need for international transportation from one country to another. It involves the physical transportation

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.