Managing International Trade

This report analyzes the challenges and opportunities of managing international trade in the context of Dacia Duster's expansion into Bulgaria. It explores trade agreements, tariffs, and foreign direct investments, and discusses the impact of these factors on the company's business operations.

Managing international trade

ABSTRACT
The report has analysed varied aspects of company, Dacia Duster which is one of the
best automotive company in global platform where varied scale innovative products and
services are widely expanding. For its international expansion into Bulgaria, analysis is
further expanding towards new parameters, and also heading focus on international trade
rules. From the finding it is examined that there are three types of trade issues which includes
Trade agreement, tariff and FDI. It is examined that the country has a strong political stability
and low skilled labor. Further, company may successfully imposed the tax rate and there is a
free trade between the countries that helps to increase the competition and establish thee
brand image.

TABLE OF CONTENT
ABSTRACT..........................................................................................................................................2
INTRODUCTION.................................................................................................................................4
Background of the country................................................................................................................5
Background of company....................................................................................................................5
Present three trade issues for Dacia Duster......................................................................................6
RECOMMENDATIONS.....................................................................................................................12
CONCLUSION...................................................................................................................................13
REFERNECS......................................................................................................................................14

INTRODUCTION
Managing international trade evolves varied scale competencies functionally, where
in today’s global business world businesses are widely heading towards international trade
effectively with high scale innovation and modernised infrastructure. International trade
comes with various opportunities and varied aspects of challenges, which can be analysed
with varied determinants functionally operating among key fundamentals in business
parameters. For this report, Dacia has been taken from the automobile industry where
company produces wide range of cars, best innovative vehicles which has been also
expanding towards various new international countries. The report will be discussing in detail
about various aspects evolving within company business operations, new technology
innovations done within brand which has lead to fundamental growth. Further, study will
also research on expansion within China while bringing international expansion where China
is one of the most developing competitive economies within global parameters. The report
would further head on focus towards analysis of various trade key issues, where models and
concepts will be used for in depth focus towards varied issues within international trade.
Background of the country
Bulgaria is nation with diverse terrain encompassing Black sea coastline,
mountainous interiors and beautiful competent scale performance where economy has been
competently growing. The economy of Bulgaria functions on principles of free market,
having large private sector and smaller public one company where country is an
industrialised upper middle income country. For international business expansion , Bulgaria
is one of the most competent scope for bringing on new raised up functional goals
formulation towards bringing new rise as for strategic diversity within business arenas. The
country also brings forward varied range of efficacy targets for keeping up informative
strength, higher customers preferences synchronised in market and also for strengthening new
rise profoundly. International business standards also bring on specific scale functional
expansion among new corporate work goals parameters, where Bulgaria economy is
evolving towards specific scale arenas for best leveraged scenarios profoundly (Endres,
Huesig and Pesch, 2021). Country opens up huge scale business functional opportunities with
growing industry levels and specific consumer demands, the economy is widely expanding
towards high scale competent scenarios.

Background of company
Dacia, is one of the best car manufacturer that takes its name from historical region of
Romania where the country solds various cars to French Car manufacturer. Dacia Duster is
compact crossover SUV produced and marketed by Frenc company Renault and Romanian
subsidiary since 2010. Dacia Duster was presented at Frankfurt motor show, received
important changes in front of varied working aspects, for leveraging scale competent
innovation and wider scale investments. The brand automobiles are known for bringing on
best competent scale performance rise, effective diversity services as per larger scale
competitive horizons (Gupta, Ivanov and Choi, 2021). Dacia Duster stood out in the
automotive sector for its unconventional spirit, where the world is becoming fast pacing
competitive with advanced technology standards. Dacia has been known for focusing in
providing wide range of innovative automobile cars and families, with high quality
innovative standards.
The iconic products have contributed to Dacia success story where the brand is
present in 44 countries and has more than 7 million customers. The company is also known
for bringing on wide range of automobile cars, and innovative business designs within
international business operatives towards where there are varied scales fundamental growth
focused on. Dacia designs offers based on what is important for varied range of target
customers, being able to count for varied customers preferences over time. The designs at
Dacia Duster are robust and simple, revealing premium qualities of vehicles with spacious
and practical modernised designs. Models are equipped with proven, reliable and best
affordable technologies which further generate best functional innovation with serene
modernised infrastructure (Di Vaio and et.al, 2021).
Present three trade issues for Dacia Duster
International trade within global parameters comes with various challenges which have
strong impact on company business scenarios, wider scale functional domains and to bring on
competent fundamental rise. Dacia Duster for bringing on specific international expansion in
Bulgaria, has to focus on various issues, areas which are at present affected and also varied new
aspects which are affected. International trade businesses barriers and issues must be strategically
identified, further worked on with competent diversity domains for further keeping up large scale
vivid functional goals.
Trade agreement

It is exist between two and more countries who are agree on the terms and conditions that
support them trade with each other. The main purpose is to reduce barrier of exports and enhance
the rule of law between the partners’ countries. Therefore, a trade agreement between Bulgaria and
other countries will be consider an opportunity for Dacia Duster because there is a free trade
agreement performed between countries (Kyurova, 2017). As per Comprehensive Economic and
Trade agreement (CETA) there is a free movement off foods across the borders of Bulgaria. As a
result, the supply chain of the company will be managed easily and this in turn assists to increase the
efficiency as well as quality of a products. Moreover as per the creation of Central European Free
Trade Agreement (CEFTA) in 1993 and currently, it comprise Bulgaria, Romania, Hungary and make
sure that all the countries put their contribution towards the cooperate closely in economic field.
Through such agreement, government ensures the rapid development of free trade in Central
Europe across whole continent. In this, Bulgaria become a part of an agreement within 1996
whereas Romania become a part in 1993.
With the help of such agreement, Dacia Duster is able to establish a unit within a country
without any extra pay and there will be a free trade perform between countries. However, there
may be other issues faces by the companies while operating within other countries such that lack of
appropriate financial techniques and institution. In Bulgaria, there is issue of lack of infrastructure
and this in turn cause negative impact upon the business performance, nevertheless it has a strong
political stability and a strong defense against external economic shocks (Dinev, 2018). This support
the company to perform the best and serve best variety of products to customers as well. In the
context of Dacia Duster, within Romania, a subsidy is provided for domestic producer which is in low
form of loans that helps to increase the competition. Therefore, it is analyzed that offering subsidies
to such companies will promote them to increase the overall operations and offer the best variety of
products as well.
Figure 1: Applied or faced ad valorem tariff
As per the above table, it is reflected that the international trade between Romania and
Bulgaria is increases. Also, this expansion has reduced the impact off total world trade such that
around two third trade flows are barely affected. This in turn results that the Europe Agreement
have prepared for accession and also changes the trade patterns (Terziev, Madanski and Georgiev,

2017). Bulgaria mainly export the products within different countries especially to the automotive
parts and that is why, it can be stated that establishing the new company within Bulgaria is much
better because of strong political situation that support a company to run its operations effectively.
Further, subsidy also assist the company to expand the exports and compete against their rivalries.
Though Dacia is focusing upon innovation and that is why, it is looking to introduce the car which do
not have any negative impact upon environment, which is possible due to having free trade
agreement between countries. Thus, it can be understood that Dacia has to imperatively head on
competent focus on wider scale international expansion with best usage of trade agreements.
Further, there is also scope for strengthening new range of competent efficacy paradigms towards
international marketing domains, along with international trade agreements which build on effective
rise towards commercial scenarios. Trade agreements welcome new investments by companies,
where automobile industry also comes on with varied scope functionally for higher turnover goals.
This can be understood by heading on focus towards leveraging specific competent scope, strategic
planning as per economic and political working scenarios. Dacia Duster will be able to leverage new
scope and best competent innovation, by analyzing new aspects in trade agreements and to further
leverage new scale resources in structured format (Top 5 International Business Risks of 2020
and How to Mitigate Them
, 2020).
Tariff
It is a duty which is imposed by the government of a country upon the trade commodity.
Thus, it is applicable for both exports and imports and this is varies by the country to country. In
order to expand a business in Bulgaria, there are two types of tariff which can be imposed which is
ad valorem tax that is a specific percentage of a value of item (Tsiantikoudis and et.al., 2019). Next
is, specific tariff i.e. a tax charged upon a set of fee per number of items upon their weight. From last
three years the tariff rate upon Bulgaria is decreases such that it was 1.69% in 2018 which means
that 0.1% decreases from 2017. Moreover, in 2017, it was 1.79% and which was decreases by 0.17%
from 2016.
In the context of Dacia Duster who wants to expand a business in Bulgaria which means
company have to pay VAT which is varied from 10 to 20% . Further a custom duty is also imposed
upon the vehicles. International trade brings on companies have to bring on strategic diversity
within business can be understood to be widely crucial for gaining effective expansion as per new
business regulations. International trade brings on companies have to bring on strategic
diversity within business can be understood to be widely crucial for gaining effective
expansion as per new business regulations (Carter, Kosmo and Kaufmann,

2017).International trade within global parameters comes with various challenges which have
strong impact on company business scenarios, wider scale functional domains and to bring on
competent fundamental rise. Dacia Duster for bringing on specific international expansion in
Bulgaria, has to focus on various issues, areas which are at present affected and also varied
new aspects which are affected. International trade businesses barriers and issues must be
strategically identified, further worked on with competent diversity domains for further
keeping up large scale vivid functional goals. International trade increases number of goods
that domestic customers can choose from, decreases cost o goods through increasing
competition and domestic industries to ship products based on specific country standards
effective expansion (Limani, Hajrizi and Stapleton, 2019).
Tariff or taxes imposed on imports have been analysed as one of the main aspect key
trade issue, where it creates positive benefit within domestic sectors. Dacia Duster has to
head on specific focus towards tariff where it is important to recognize owed imports paid by
domestic consumers, impose directly on foreign country exports. Tariff is specific type of tax
that a governing body places imposes in goods and services entering pr laving country, when
government of country forms tariff programs.
Additional costs saddled upon affected items discourages imports, which in turn
impacts balance of trade where Dacia Duster has to evolve on for bringing stronger rise on
international business standards. With Bulgaria economy still on developing surge, there is
productive surge towards keeping up wider scale functional targets, on which tariff structure
also brings on wide range of fluctuating changes in business arenas. The tariff international
business market domains, has specific competent strategies where divergence functional
attributes are essential for analysis, to imperatively bring on rise for scaling up competent
scenarios. Tariff raises prices of imports, where these impact consumers in countries applying
tariff in form of varied costlier products.
While trading partners need to further retaliate with their own tariff, which raises
costs of international business for exporting industries. This further heads on profound focus
towards competent scope towards keeping up larger scale functional expansion with
productive targets, higher target customer’s expansion. Tariff discourages effective long term
expansion in product quality standards, where it also gives rise to wars among nations
functionally and also for stringent scale innovations. Tariff works for increasing price of
imports, here to keep up towards new range of divergence towards affirmative scope for vivid

range of competent scope (Bilovodska, Kholostenko and Volokitenko, 2021).The
international business expansion also comes up with vivid determinants of technical diversity
paradigms, where tariff implementation will enable new scale performance growth
imperatively. This also can be further understood to be also connected towards strategic
efficacy, which will also keep up informative diversity and for keeping up determinants
diversity to strongly also further expand. This further keeps up specific scale towards keeping
up effective rise among stringent growth factored on for where there is affirmative growth
rise.
Foreign Direct Investments (FDI)
It is an investment made by the firm when it wants to invest within another country.
Thus, FDI takes place when investor establishes its business operations in foreign country
and also acquire assets of foreign country as well. So, it can be stated that investor has an
ability to control entire activities within investment country. In the context of Dacia Duster, it
has an opportunity to expand the business in Bulgaria because the production is completely
depend upon the auto imports from the country. For FDI, Greenfield investments and
acquisition are two types where Greenfield investment is establishment of new production
and acquisition is merging with existing firm. From these, Dacia Duster will use acquisition
because it helps to get strong brand loyalty, trademark, and distribution & production
systems, also considered as less risky to acquire those assets.
……identified that if a country opted FDI so Dacia Duster must consider location –
specific strategy in which company should identify the location which is full of resources,
skilled labor. Bulgaria has a fastest growing automotive sector because of having strong
engineering skills and low cost production. Also having enough resources pertaining to
automotive sector also provide an opportunity for Dacia Duster.

Figure 2: Development of FDI in Bulgaria and other region
The above table reflected that the Bulgaria has the highest increase stock which
means that companies are attracted towards more FDI due to privatization and Restructuring
in Central and Eastern Europe.
Figure 3: Ease of doing business
The above table reflected that the ranking of Bulgaria is advances by 39 places and
this is due to lower taxes which mean decrease in social contributions and simpler payment
method for taxes. Further, through better legislation on contracts and improved insolvency
process also help to improve the ranking of countries regarding FDI (Development and
importance in Romania,2020). On the other side, there are some situation where companies
failed to acquire other company due to reduction in time and capital required to open a
company and fluctuation in legislation.
It has been analyzed that in large firms, FDI is a good option but due to not having
access of financial resources within host country the performance got affected. For that,
companies invest amount in order to provide accurate training to their employees so that they
are able to implement its unit at different areas. In every year, Dacia Duster increases the
number of employees with an aim to provide job opportunities to different employees.

Therefore, it can be stated that FDI has a direct effect upon employment because jobs are
created in order to increase the brand image of the company at foreign countries. Currently,
there are ranges of units established globally and that is why, FDI has an effect in increasing
competition in a national market. Thus, Bulgaria has good infrastructure and equipment that
helps quoted company to establish successfully. For example, Alucom was established in
1973 that provide metal for cars and complied with technology in order to provide material
for heat treatment as well as coating and assembly (Automotive parts manufacturing in
Bulgaria,2020). This all support the firm to establish the brand image at Bulgaria and offer
the best products to their customers as well. Moreover, the labor legislation are also favoring
labor and this helps to get skilled labor force that aid to successfully implement brand.
FDI 2017 2018 2019
FDI inward flow (million
USD)
1829 1214 1223
FDI stock (million USD) 50960 50382 51856
Number of Greenfield
investment
75 104 110
Value of Greenfield
investment (Million USD)
1946 2926 2220
In accordance with the above table, it is exhibit that most off the companies uses
Greenfield investment because the number of investment is increases from 2017 which means
that parent company starts its own venture in a foreign country with new operations facilities
from scratch. Thus, the report by World Bank 2020 shows that Bulgaria ranked 61st out of
190 economies, nevertheless it losing two positions as compared to 2019 (Foreign direct
investment in Bulgaria,2020). Moreover, the country also has a high level of transparency in
its transaction over the other countries and that is why,Dacia Duster has an good opportunity
to invest within such country because of growth.
However, there are some drawback of FDI associated with host countries such that
Bulgaria is completely such that corruption, unpredictability of regulatory as well as
legislative framework. Moreover, the judicial system of the country is also slow and
intellectual property rights are always not enforced. There is a fixed company taxation rate
within a country i.e. 10% and most of the people has limited income and that is why, they

might not invest upon car as well. That is why, the import of car is highly done instead of
selling within a country.
RECOMMENDATIONS
Further, Dacia Duster to operatively expand on strong range of international business
trade has to head on stronger focus towards stronger offerings, higher quality structure unique
offerings and wider scale market opportunities. It can be understood that supply chain
logistics and international law compliance can be understood to be widely essential for
expansion of varied business strategies (Appleyard and Chesbrough, 2017). Dacia Duster has
further scope to leverage larger scale functional key paradigms, evolve on competent
innovation as per stringent demands and also head towards keeping up best quality structure
diversity. International law compliance and strategic partnerships should be also further
based on varied scale performance rise, where Bulgaria economy is competitively expanding.
This also calls for strategic partnerships and informative usage of various resources which
further keeps up functional growth.
The brand has been also excelling towards keeping up affirmative standards as per
international business quality parameters, where there is scope for keeping up wider scale
competent productivity. This further also brings on scope for using best trained employees,
confident commercial business acumen with best determined paradigms which brings on
larger revenue rise. Dacia Duster also has to reinvent and use best international trade aspects
for commercial benchmarks, where automobile industry has varied opportunities to be traded
on.
This also fundamentally brings on specific focus on varied range of operational
innovation, higher investments pooled in towards potential work benchmarks and to yield
towards functional growth factors. It can be also analysed that company further brings on
dynamic competencies towards keeping up leveraged scope for wider scale diversity and
untapped scenarios. This can be also analysed that international trade functionally can be
synchronised by bringing best rise towards functional economic growth, best resources
planning and also to further expand on commercial business scenarios. Dacia has also scope
to bring best diversity standards in innovation, larger functional affirmative parameters for
potential expansion towards technical domains which also heads on towards best standard
growth (Akter, Wamba and Childe, 2016).

CONCLUSION
From the above analysed aspects within report it can be concluded that business
international trade is widely growing as one of the most specific competent scale parameters
for wider diverse marketing standards. The report has concluded Dacia Duster company as
one of the best automobile company within global paradigms, where there is wide scale
competent innovation coming on within further scale diversified factors. Duster company
business strategies have been also promoting to international business trade factors, where
Bulgaria company further fuelled up wider scale diversity. Further report concluded key trade
issues and challenges within inner for further higher range of effective scaled up
competencies. This has been also concluded within detailed in depth towards bringing on
effective rise for wider technical best expansion, where trade agreements, tariff and FDI are
some of the most essential aspects. Challenges within international trade barriers will be
further synchronised by heading towards further affirmative working horizons, strategic
investments .
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