International Business Assignment (Soluton)
Added on 2021-04-16
11 Pages2768 Words168 Views
|
|
|
International BusinessContemporary issues affecting international trade logistics20183/23/2018
International Business 1Contemporary issues affecting international trade logisticsInternational logistics refer to as the process of planning, implementing and controlling the movement of storage foods and services and the relevant information from the point of origin to a point of consumption that might be located in various countries. International trade is the exchange of the goods and services across the border. Countries specialize in the products and services products and import their products in other company (Wild, Wild and Han, 2014). On the other hand, the logistics are all about managing the activities along with the supply chain from procuring materials to delivery of final goods that can fulfill the needs of the customers. Therefore, logistics and the transport management is a key enabler of the international trade.In simple words, it can be said that without logistics and transport management the companies and countries will not be able to get involved in the international trade. In the year 2014, about a third portion of all the goods and services produced were traded internationally (Oxford Brookes business school, 2018). International trade is the effective driver that contributes to increase the living standard of the developing world. Though, this is the fact that the current international trade logistics operations are assumed to be unsustainable. This unsustainability of the operationscreates the impact on the international trade. Moreover, there are numerous contemporary issues which might affect the international trade logistics.The successful international trade logistics leads to a rise in the international competition among the business as the growth of the companies depends on the expansion of the business into new markets. Though, managing logistics along with the supply chain makes the international trade difficult for companies. Moreover, the new product from the unfamiliar markets leads to the complexity of the export and import logistics (Fernie & Sparks, 2014). Along with this, it leads
International Business 2to the on-time delivery as a challenge. On-time delivery of the product is essential for the companies who are relying on the logistics. Therefore, they deal with those logistics managers who can assure the on-time delivery of the products. Moreover, it is suggested to the companies to open their manufacturing outlets at the major places in which they are performing main operations (Savage, Fransman & Jenkins, 2013). In addition, the complexity of the sourcing options and evolving trade regulation together affect the balance of compliance and also makes the decision daunting for the most experiences logisticteams. Apart from this, there are numerous challenges which might affect the international trade. Some of them are: -Higher international shipping volumes lead to the exposure to trade regulations violations: - The changes in the trade regulations take place on a frequent basis which affects the balancing of the compliance. Considering the business needs, the change in the trade regulations is a challenge for the logistics management. Due to this, most of the companies find themselves not prepared for the operations in the international market. Moreover, the companies also find it a threat of huge penalties due to non-compliance with regulations. In these challenges, the compliance departments of the company play a vital role in managing the logistics of international trade (Damco, 2014). If the company has strong compliance at the single location it doesn't reflect that the company is able to meet the logistic compliance at other locations as well. If there are gaps in the custom skills of the company at other locations that means they have to adopt automated solutions and enlists the support of the logistics and supply chain management experts. This is the only way through which the company will be able to safeguard it from compliance.
International Business 3Breakdowns in cross-burden shipments: - In the today's business world most of the businessesprovide diverse product line to fulfill the demands of the consumers in various countries. The companies perform international trade with diverse goods from other countries. At the time of international trading, the companies have to face the trade regulations irrespective of the flow of goods (import/export). If there is any single mistake in the compliance (missing license and regionally applicable requirements) then the supply will stop and this prevents crossing border (Yu, 2011). Therefore, it is recommended to the company to ensure that they are meeting each and every requirement. Inconsistent trade practice can increase compliance issues: - There are different operating procedures available for the different activities such as acquisition, mergers, expansion and other. Due to this strict adherence, companies might fall rapidly on prey to dispersed trade practices and leads to inconsistency in the logistics and supply of goods (Gereffi, Frederick & Gereffi, 2010).It is suggested to the company to be consistency for the international trade practice because this inconsistency makes the company away from the legal obligations that are essential for the international trade logistics.Inability to keep a pace with the modern customs technology: - There is rapid growth in the use of technology to achieve the objective and needs of the customers. Electronic systems are exchanging the older customs processes because automation has become an importance for trade authorities in the today’s generation. The emergence of technology forced the companies to bringthe changes in their traditional process and they are forced to adopt the new one. Though, most of the companies have implemented the use of technologies while performing the international trade logistics (Tseng, Wu & Nguyen, 2011). But there are not able to keep a pace with the modern customs technology due to the introduction of advanced technology with the change in
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents