Question 4
MD international being an export oriented company; they are bound to face innumerable challenges in course of transacting business. From the sourcing of the products, to the actual delivery to clients, there are many business hurdles some that can be handled from within and some that need the assistance of the government or some other external influence to solve. The main market that MD Corporation engages is the Caribbean countries, which pose some unique challenges to trade owing to their economic health, political structures and many other factors.
The government assists MD and indeed any other exporting company in varying ways such as follows.
The United States has access to a lot of information concerning foreign market structures and condition through its many agencies abroad, by making these resources available to MD international; they are able to conduct customized research with regard to the products they hold thus translating to better business.
- Support for U.S. exhibitors in selected overseas and domestic trade shows to attract qualified business partners.
Trade shows are meant to offer exposure to businesses on their products to prospective buyers and partners. The United States through its agencies organizes these fairs in the target markets in order to showcase US products. By participating in government sponsored fairs and shows, MD is able to access a huge portion of new markets through these platforms. Participating in government-sponsored fairs also lends the company credibility.
- Individualized counseling and advocacy
The government offers individualized counseling to firms on matters of foreign trade and influences policies affecting trade. By offering counseling to export firms such as MD, they are able offer insights on good export practices and insights on the target market. By influencing policy, the government is able to set policies favorable to exporting companies such as tax exemption for companies operating in certain competitive fields or even below certain annual turnovers.
- Training programs on subjects such as export documentation, export controls, and the basics of exporting.
- Foreign laws associated with exporting
The government being the custodian of the law, is able to advice companies on what the law is both at the United States and abroad as well. by staying informed on applicable laws on the business MD international is able to conduct business without run ins with law enforcement officers on issues such as customs for instance.
The government by helping firms such as MD in their export endeavors is making an excellent use of the taxpayers money as these companies earn the country a lot of foreign exchange which is in turn healthy for the general economic health of the country.
References
Cook, T. A., Alston, R., & Raia, K. (2012). Mastering import & export management. New York: American Management Association.
