INTERNATIONAL TRADE ASSIGNMENT

International Trade Assignment

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International Trade Assignment

Introduction

International trade has turned as one of the most significant matters in local as well as international politics in recent decades. Although an increasing number of studies in the past have shown that trade has been a salient issue among empires, states, and cities for centuries, it has become such a critical contemporary issue because countries' economies are now, more than ever, open to trade flows. Globalization, outsourcing, multinational corporations and industrialization are the main factors that have potential to affect the system of international trade. (DeVault, 1996; p. 19- 33) The mechanism of international trade has no such different and principles same that are used in the domestic trade, because the fundamental behavior and motivation of different groups does not change in the trade system. Each and every country uses the phenomenon of international trade for its own benefits, in order to uplift the socioeconomic condition of the country. International trade may create the domination of any country in import/export sector, which is the main disadvantage of the international trade. International trade is often divided in two main parts, imports and exports, as both parts are extremely broad and required immense discussion. (DeVault, 1996; p. 19- 33)

This study would prepare an export strategy for ECCO (a leading shoe manufacturer) for Russia and would create a board paper for the board of directors recommending export strategy that will help the company to establish its roots in Russia.

Recommended Export Strategy

Why and How ECCO Should Engage In International Trade?

The answer to the question why companies engage in international trade is remarkably clear, i.e. for profitability. When any business capture a large share of its home market than it plans to move towards international trade (in particular export) in order to increase its profitability and business. The second part of the question how companies engage in international trade is not as easy as why they engage. The method that most of the companies employee to engage themselves in international trade, may vary, depend upon the products a business want to sell. (Iversen, and Cusack, 2000; p. 313-49)

As ECCO is a leading shoe brand, they may found it suitable to appoint their representative in Russia first to find them a buyer, this will minimize the element of risk associated with the international trade and will maximize the chances of generating more profit from the Russian region. On the other hand, this approach will help ECCO to project a favorable image of their brand in Russia, by selling their products through already established and reputed buyers. Approaches used by firms to adhere/avoid/bypass instruments of trade protection or to benefit from trade promotion and investment tools (at national, regional and global levels)

Trade protection refers to the economic policy of any country/state which defines the limit of trades between states. However, companies often discover ways to use trade protection policies in their favor either by adhering to the policies or avoiding them. As this paper aims to present ...