International Trade Law Assignment #1

Q1 – What are ten examples of questions an organization looking to launch a new international trade
initiative should ask itself?

Ans: Ten example of questions are:

1- Does exporting fit into company’s overall marketing objectives with top management strongly
supporting export?
2- Has company conducted market research using all sources secondary (government statistics,
industry data, internet etc.) and primary (surveys etc.)?
3- Will your company give its foreign representatives and customers the same attention and level
of service given to domestic representatives and customers?
4- Does your company have sufficient production capacity that can be committed to export market
over the long term?
5- Does the company have a staff member who can handle export documentation?
6- Is company well established domestically and financially stable and management ready to
accept a payback of three years or more on exporting?
7- Is company aware of how currency exchange rate fluctuations can affect company sales and
profits?
8- Does your company have a liability insurance and / or a plan to deal with worst case situations
where the firm causes injury or loss to stake holders in the foreign jurisdiction where the
company is engaged in business?
9- Does your company have contacts in the markets being considered?
10- Do you use the web to stay up-to-date on trends in your industry, customer buying trends and
competitive intelligence?

Q2- What are the important factors in “Assessing Current State “of your organization?

Ans. State of Organization can be assessed by four different factors:

1. Human resources: under this an organization has a managing team which hires qualified people

and train them. Along with it, develops exporting plan and fulfil all the requirement to meet the

plan.

2. Financial resources: It defines a strong cash flow to support marketing products in overseas

market and provide enough information on open accounts, letter of credit and mechanism of

export payment.

3. Production Resources: This means that the organization is prepared for increasing capacity and

ensuring that it has adequate amount of raw material from the supplier side. Also, it is ready to

make any changes in manufacturing if demand increases or decreases.

4. Logistics Resources: An Organization has knowledge to ships the goods and deliver it abroad. It

has resources to train or hire new staff members for the shipping.