Purchase Solution

Import and Export Countertrade

Not what you're looking for?

Ask Custom Question

Please see attached document for full details and requirements.

Import and Export / Countertrade.
Read Closing Case: Exporting and Growth for Small Business at the end of chapter 15 and write a 3-4 page paper in APA format with a detailed analysis that answers the following questions:
â?¢ What are the main benefits of exporting for companies like Morgan and Wadia?
â?¢ What would be the outlook for a company like Morgan Motors if it neither exported nor imported?
â?¢ What impediments to exporting success do companies such as Morgan and Wadia face? What steps can these companies take to improve their probability of succeeding in export markets?
â?¢ Is it legitimate for local and national government agencies to use taxpayer money to help small companies export?

Morgan Motors is one of the iconic small businesses of the United Kingdom. The company has been making its classic sports cars since the 1909. Today some 150 employees build up to 700 cars a year, each of which sells for $40,000 to $100,000. However, Morgan's niche is so small that it could not survive if it did not export. Today some 70 percent of its production is shipped overseas, primarily to the United States and Europe. Moreover, the modern Morgan car, although looking every bit the British sports car, contains major components that are imported from foreign manufacturers, such as engines from BMW and components for ABS breaking systems from Bosch.
Morgan is not alone. Many other small businesses have found that exports can drive growth. Another success story is Wadia, a Michigan-based manufacturer of high-end premium-priced compact disc players for audiophiles. Wadia, with annual sales of $8 million, makes approximately 70 to 80 percent of its sales overseas. Around 35 to 35 percent of sales come from Asia, with both Japan and China accounting for as much as 15 per- cent of sales volume in any one year. Like Morgan, Wadia's high-end product is so specialized that it could not survive on sales in its home country alone.
Exporting, however, is not easy, particularly for smaller enterprises like Morgan and Wadia. Many succeed only after tapping into help from government export agencies and export financing institutions. Con- sider Malden Mills, the United States manufacturer of Polartech®, a high-technology textile material used in premium-priced outdoor wear, with annual revenues in the $50 million range. Facing limited growth opportunities in the United States, Malden Mills contracted with the South Carolina Export Consortium, a state agency, to perform an international market analysis to determine the sales potential of its portfolio of high-tech fabrics. Malden Mills used the consortium's research to identify new opportunities for its materials, forecast future demand trends, and secure a $20 million working capital loan guarantee from the U.S. Exportâ?"Import Bank (which was later raised to $35 million). The resulting expansion in export sales to France, Korea, and the United Kingdom allowed Malden Mills to better utilize its capacity and to continue to make textile products in the United States, despite the fact that the industry as a whole has been in rapid decline due to globalization and the rise of low-cost manufacturers in developing nations. Today over half of Malden Mills' sales are due to exports.31

Attachments
Purchase this Solution
Solution Summary

Import and Export Countertrade is discussed very comprehensively in this explanation..

Solution Preview

â?¢ What are the main benefits of exporting for companies like Morgan and Wadia?
The main benefit of exporting for companies like Morgan and Wadia is that they are able to continue manufacturing even when the local demand is declining. In fact Morgan and Wadia is able to grow because of the exports. In spite of declining domestic demand, Morgan and Wadia do not have to fire employees or operate at less than full capacity. These are the major benefits of exporting for Morgan and Wadia.
â?¢ What would be the outlook for a company like Morgan Motors if it neither exported nor imported?
The outlook for a company like Morgan Motors would be ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
Recent Feedback
  • "I read your comments, and thank you for this feedback. Do I need to find other studies that applied this methodology Ive used? That's where I'm stuck at."
  • "Thank you kindly sir. "
  • "Excellent and well explained. --Thank you kindly. "
  • "Awesome notes. I appreciate you."
  • "I have the follow-up project and I will assign that to you very soon. "
Purchase this Solution
Free BrainMass Quizzes
Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Operations Management

This quiz tests a student's knowledge about Operations Management

Introduction to Finance

This quiz test introductory finance topics.

View More Free Quizzes
Related BrainMass Solutions

  • Countertrade

    235176 Countertrade in INT Business Write a 3-page paper, in APA format, on the role of Government in Export/Import Environment and Countertrade. Answer the following questions with detailed examples: a. What is Countertrade?

  • Counter-Trade Economic Principles

    Countertrade, Import or Export Strategy. Retrieved from http://www.economywatch.com/international-trade/export-import-countertrade-finance-and-strategy.html McVey, T. B. (1981).

  • Partnership for Economic Growth and Opportunity in Africa

    What is your opinion of trade between the United States and China? What do you think about the growing trade deficit between the United States and China? 4. What are the 20 keys to a successful import-export business?

  • Developed countries protection from problem countertrade

    129135 Developed countries protection from problem countertrade Developed country partners in countertrade contracts have had problems with quality and timely delivery of goods from the developing country partners.

  • Multinational Market Strategies

    For example, Tokyo will set numerical levels with low tariff rates for imports of pork and orange juice from Mexico, and special import quotas for Mexican beef, chicken and orange, Japanese officials said.

  • Financial Markets

    The export should be make through a letter of credit. On the other hand in case of imports, the central bank should collect the payment from the importer in local currency and credit the foreign country's central bank account in hard currency.

  • strategic use of counter trade schemes as a marketing weapon to generate export revenue

    490758 Counter trade schemes as a marketing weapon to generate export revenue How might a company make strategic use of countertrade schemes as a marketing weapon to generate export revenue?

  • Emerging market

    In the further part of the paper we will discuss the primary export and import of the host country. The fact and figures are being supported by some online sources.// Export and import of a country determines the status of its economy.

  • Calculating income terms of trade

    292887 IMF International Monetary Fund data indicate that, with 2000 = 100.0, Japan's export price index in 2006 was 95.3, its import price index in 2006 was 127.2, its export quantity index in 2006 was 142.4, and its import quantity index in 2006 was

View More Related Solutions