Deck 14: Export and Import

Question 1

List the three challenges that SpinCent overcame in developing its export activity. Describe and evaluate the processes it followed to overcome each challenge.

Answer 1

Case synopsis:
Sp-nCe-t is a small exporter of research and industrial centrifuges in P country. The organization was successful a detached exporter. The US economy downfall gave the opportunity for the organization to focus on universal markets. The As-a market turned out to be a prime focus for the organization. Administration looked to increase long-term beneficial relationships with distribution network in the region. The organization spend time in region to recognize the market potential, rivalry, cost focuses, and power recruiting a sales force. The organization found that exporting to the region offered more opportunities than risks. They now have a constant flow of business in a foreign country, encountering minimal effort/high-remunerate attempt. The association pushes effective arrangements and guarantee to objectives.
The challenges that Sp-nCe-t overcame in developing its export strategy:
Sp-nCe-t was skeptical about the worldwide accomplishment, as serving customers in domestic market kept them busy, and felt that they lacked in both financial resources and management talent.
Moreover, they feared about direct rivalry with experienced exporters from G and J countries. The struggle in US economy and market trends forced them to concentrate on the domestic market and exploit possible efficiency or extend forcefully into export. While demand for their goods was diminishing, economically developed industries signaled opportunities, which Sp-nCe-t then started pursuing.
When the decision to export was ready, the Spi-Ce-t focused on long-term growth. Hence, to overcome the challenges, it is significant to focus on trustworthy and competent distributors , using the services of "US Commercial Services Export Assistance Center" in P city.

Question 2

Do you think most international trade might eventually take place through websites like Alibaba.com? How might that influence your interest in importing and exporting?

Answer 2

Case synopsis:
Al.com is a webpage that encourages worldwide transactions among importers and exporters. These electronic exchanging venues have changed procedure of importing and trading and opened up incredible opportunities especially, for smaller enterprises.
"International trade eventually takes place through given web sites"
X thinks that international trade eventually occurs through Al.com websites. This is because of utilization of growing sites and subsequent raise in trade between "small and medium-sized enterprise". In addition, the electronic commerce has made cross border trade much easier, also moderately low cost compared with alternative web sites. However, they focus on small and medium-sized enterprise, as they are unsuitable for luxury market that requires the highly skilled labor.
Small and medium-sized enterprise creates independent exporting strategies. Importing and exporting ascend with powerful-tools such as "company's-disposal". Hence, the brand recognition of importers reducing necessitate for the given website and influencing the X's interest in importing-and-exporting.

Question 3

Identify a product you would like to import. Visit www.alibaba.com, go to the advanced search field, and enter it. Select required criteria and click on "Search." Review the list of companies that qualify. Find a suitable seller. Analyze this process for ease, usefulness, and potential value.

Answer 3

Case synopsis:
Al.com is a webpage that encourages worldwide transactions among importers and exporters. These electronic exchanging venues have changed procedure of importing and trading and opened up incredible opportunities especially, for smaller enterprises.
Identifying the products that X would like to import:
X preferred to import the bags, shoes, and accessories product in Al.com
The following are list of companies that qualified for given product in Al.com:
•G nature care bags
•N enterprises
•Oriental exports
•K export company
•LU merchandise company
According to the requirement, X has chosen the suitable seller. The Al.com allowed X to access the webpage in friendly way. When X searched the particular product in the website, it displayed the possible options to make user-friendly website. For example, X search for leather bags the search-engines will recommend various models as well as with different size of bags. This process is very easy, useful, and has great potential value. It takes few seconds to locate a list of potential suppliers.
The approaching method is done easily by using the templates and drop-down-menus that assist to regulate requests. The websites shows several number of suppliers details, those details were useful while choosing the suitable seller. If the suppliers react to these requests in a quick manner, then process has enormous potential-value. Urge to contact several suppliers to find possible terms are considered as the disadvantage in Al.com.

Question 4

Identify and describe three benefits and three costs of using websites like Alibaba to export and import.

Question 5

Visit www.alibaba.com, www.trade-india.com, and www.europages.com. Compare and contrast these Web sites from the view of the seller to the buyer.

Question 6

Provide three recommendations that you would offer a SME, based on the opportunities and constraints of electronic websites like Alibaba, as it considers engaging exporting or importing.

Question 7

How transparent do sites like Alibaba.com make import-export transactions? To what degree would you worry about fraud? What safeguards would you seek?