Introduction to Barriers, Motivators & Challenges of export/import Contents:- Motivation and barriers
Motivation & Barriers
Example: – There are ABC wood ltd. Company in new Zealand and that company wants to sell their product in India. It does market research and it invest some amount of money on market research after this market research they find that their product is not suitable for selling in India and they decide that they will not sell their product in India and money which is incurred for market research that is sunk cost.
Example: – Ram is an exporter now he export the wood in India only but in future he is planning to export wood in Australia and he wants expand his business. So he will export wood in two countries, one is old market for him and another is new market for him. So he can earn more profit by selling his product into two countries.
Example: – There are two exporters. One is in New Zealand and one is in Australia. New Zealand exporters has their own tactics to doing business in New Zealand but he wants to enter into Australian market and for this New Zealand exporter should be adopt new techniques of business from exporter who is in Australia and New Zealand exporter can improve his performance for business by adopting new techniques .
Example: – ABD ltd. Company in New Zealand. That company exports their product in many countries like: – Japan, Australia, India etc. If India refuses for importing goods from ABC ltd. Company which located in New Zealand then ABC ltd. Company have other choices for export their product. They can export their product in Australia and Japan. ABC ltd. Company cannot fail because they have many choices for export.
Example: – There are so many departmental stores in the market. They buy goods from the local wholesaler or export the good from the exporter who is in other state or countries. Exporter should have contact with that owner of departmental stores and knowledge of the market that means he knows that the demand of the product in the market.
Example: – We are assuming that there are two countries Australia and New Zealand which export/import the goods from each other because of free trade agreement. When they will export or import the goods from each other, no duties will be charged on it. They can easily export or import the goods from each other and it is beneficial for both the countries to do business.
Some bodies of New Zealand existing in India that helping business. These bodies give information about business. Example :- When a local business man plan to expand the business in other country he would need assistance to develop knowledge about the market customers, competitors and local helper of that nation over which he can be benefited by the list of bodies present in that country for this help.
Example :- We are assuming that In India congress government are ruling at this time. Leaders of that party organize various programs in which they say that all business should start from India only and all outside importers should maximum exports from India. Main agenda of this government programs are to do business in India only. MOTIVATORS
Example:- Cadbury company make various types of chocolates and advertise it in different ways for promoting the product. Firstly they attracted youngsters and children’s and then they attracted old peoples by various advertisement and they replaced all sweets by chocolate on occasions like Diwali etc. From all these they enhanced the demand of chocolate and attract more customers towards the Cadbury chocolate and it also increase growth.
Example:- Let’s assume ABC limited company sold $1000 of widgets last year and made of profit of $500 widget. Technology is changing rapidly and company ABC limited has the brightest mind in the industry to take an advantage of this technology. It also expects to be the first. Company on the industry to implement the technology which roughly halves certain product expenses. This analyst estimate that company ABC limited has another say $480 of earning potential.
Increase stability means more profit and more sales and it also creates the right environment for the balance of payments and it creates certainity and confidence and this enhance investment in busines Example:
Example:- If importer as a whole import hundred quantity of product and forty of which are from one exporter and that exporter holds forty percent market share and other exporter holds sixty percent.
Example:- We are assuming that there are large number of population in New Zealand , so that demand of particular product will be more and it enhance the sales and profit also. BARRIERS
Example:- In export or import business we requires various types of documents for the export and import of goods, like bill of lading , insurances , airway bill certificate of inspection etc. and when we export or import the goods from the other country there are so many restrictions on particular product like bullets, cigarettes, alcohol, etc. It affects the business and it is red tape for the business.
Example:- when a businessman exports or imports the goods they pay some taxes on particular product. Like specific duty, Ad valoren duty, revenue tariff, custom quota, multi-lateral quota etc. These taxes create a barrier for the export or import of goods.
Example:– If we export or import the goods from the other country and political condition are bad or war is going on at the time of export and import or weather is not good so it creates problem in the exporting and importing of goods from the overseas and it is barrier for the business.
Example:– When a businessman do export and import business and government do not provide the incentives for the business like rewards for the increasing business.
Example: – there are two businessmen in two different countries one is in New Zealand and other is in Australia. Businessman who is in New Zealand export the goods to Australia and he pay the taxes and he show the documents related to the goods which he export to the Australia to the cross border security which is in Australia.
Example: – We are assuming that exporter who is in USA, he exports the goods to the importer who is in Japan, they final the deal and everything like price of the product at the time of dealing price of the dollar is sixty and Japanese importer ready to buy goods on that price after sometime price of the currency decrease and exporter may bears losses in the exporting of goods and it is barrier for the business
Example: – The governments have to seek re-election every few years and every government makes the different rules and regulations for the business in the every few years or after the elections. It is hard for the businessman to adopt the different rules and regulations because of changing government. And it is barrier for the export and import business.
Example;– We are assuming that exporter from India and importer from China and importer imports some products from India ,both countries have their own languages, the both may not understand languages of each other, so language problem may create barriers in business.
Example:– When a importer imports some goods from exporter and he says to make a payment of goods which he imported from exporter
Example:– When a buyer buy the goods from seller and he pay amount of money after the due date, so it creates problem or barrier in business for expand the business.
Example:– When a exporter or businessmen plan to start the business or expand the business in another country he would need assistance to develop knowledge about the market, customer and competitors. Helping bodies are not present in that country for his help, so it creates barrier in the business.
Example: – EU common agriculture policy, banana wars, Argentina food tariff, escalated tariff, anti-dumping tariff, and illegal subsidies. All these examples of protectionism are barrier in business. References:-
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