Entering a Foreign Market Through Exports: A Rough Draft of Final Paper

Entering a Foreign Market Through Exports: A Rough Draft of Final Paper

Entering a Foreign Market Through Exports: A Rough Draft of Final Paper

Many considerations have to be made as organizations seek to go international. While seeking to expand trade operations in new markets, considerations have to be made in regards to issues such as the international trade policies governing the target market, the culture and the ease of penetration of the product set to be introduced in the targeted market. This task has demonstrated the feasibility of India as a possible market for the introduction of hand-held radar speed gun, a device used to measure the speed of moving objects which are being produced by High-Tech Tools, Inc which is a country based in Otay Mesa, California. The attractiveness of this market is informed by India’s investment in technology and the need to improve its transport infrastructural aspects.

Entering a Foreign Market Through Exports

The global supply chain plays an important role in ensuring that the products produced by one country can be delivered to an international target market. Global supply chain is also important since it ensures that manufacturers and industry operators can manage the costs used in the production and distribution of products down the supply chain to the international target market (David, 2021). Exporting products to international markets is however dictated by the existing policies that govern international business operations. The purpose of this task is to explore the export business framework for an organization seeking to export high-tech products in the Indian market.

Benefits of Exporting Hi-Tech Equipment to the Target Country

India is one of the notable countries that have made notable strides when it comes to using technology. Report by Mukherjee and Mondal (2009) indicates that India is ranked third most attractive destination when it comes to technological investment. Modern India has also reported intensive investments in technology which means that any technological investment in this country is a welcome idea. Therefore, one of the benefits of exporting the Hi-Tech equipment in India is the readiness of the market and the interest with which the target market will take the technological investment (Shkvarya et al.,2016). India as a country is well connected in terms of technological infrastructure such as internet connectivity, the road and rail network among others. Consequently, the Indian market is very attractive for the investment of other infrastructural aspects like the hand-held radar speed gun, a device used to measure the speed of moving objects. With the developed transport network and the rail network, the Hi-Tech equipment will come in handy in addressing the technological challenges faced by the Indian market. Furthermore, the suggested technology can be used in improving cricket, baseball and other games that act as the main sports adopted in India.

The benefits of introducing the new product to the Indian market can as well be explained in terms of international trade theories. One such theory is the product life cycle. India will continually depend on the road transport despite the improved rail and air transport mechanisms. The new technology is set to stay in the Indian market for the longest time possible. Besides, there have been notable accidents and other incidents that make the new technology a necessary tool in the Indian market. The length of time the new technology will be introduced and subsequently stay in the market can be regarded as long enough to dictate the economic viability of the proposed technology. The other theory is the Porter’s National Competitive Advantage Theory contends that since India already has an extensive investment in the technology sector, there is a basis for advancing the country’s technology infrastructure. Bringing forth the supposed rail system is an opportunity for the country to advance in its transport-based infrastructure.

Deficiencies in utilities which may Affect International trade Logistics

Although India is a friendly country that creates a good environment for international trade, there are notable deficiencies or issues that can easily affect the international trade logistics. India has maintained trade policies that are geared towards encouraging local production as well as the reliance on in-house technological aspects in different areas of the economy. The export incentives are geared towards encouraging local businesses to make exports rather than to encourage importation from other countries (David, 2021). Although the policies are not specifically targeted at technological areas such as the High-Tech Tools being produced in the US as indicated in this case study, chances are that such a technological idea can as well be developed by local manufacturers hence hindering the importation of the High-Tech tools. The policy that encourages the production and subsequent exportation of local products places significant barrier to the exportation framework developed by the US-based company.

Conclusion

Despite the likely deficiencies in the utilities and other aspects that can hinder exportation in the Indian market, this market remains the most attractive one as far as exporting the hand-held radar speed gun, a device used to measure the speed of moving objects and other Hi-Tech facilities produced by the US company. India is an attractive market because it already has a significant investment in technology and the existing barriers are manageable. Furthermore, India and the US already enjoys a cordial business relationship and as such, an investment in this market will result in significant level of success.

Entering a Foreign Market Through Exports: A Rough Draft of Final Paper