Managing International Trade: Challenges and Strategies

This report discusses the challenges and strategies involved in managing international trade for business expansion. It covers topics such as foreign laws and regulations, international accounting, cost calculation and global pricing strategy, universal payment methods, currency rates, communication difficulties, and political risks.

MANAGING
INTERNATIONAL
TRADE

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Background of the company........................................................................................................1
Critically analysis of the international trade issues that effect the business decision .................4
Recommendations for the remove of challenges.........................................................................7
Implementation of the plan .........................................................................................................8
CONCLUSIONS .............................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Managing international trade means exchange of goods and services across the
international borders or the territories for the need or want of the goods and services. Trade
represent means significant share of the Gross domestic product in the international trade which
is existed in the economic, social and political importance which is rise in the given centuries. It
is the complex process for carry out the domestic trade, it included various factors between many
nations for complete the factors like currency, government policies and judicial laws for
influence the market trade. In this there is the facilitation of the growth in the international trade
is specify for publish the statistics on international trade (Bodeau-Livinec and Giorgetti, 2018).
This report is based on the company name Airdri Ltd, it is the group which is founded in 1974 by
the business partner Peter Phillips and Peter Allen for both experienced and entrepreneurial
engineers. At the time of the advancement they manufacture the hand drying machines which is
generally used in the wash rooms. In this report there is the description of the international trade
which is used by the company for the expansion and growth. There is the explanation of the
problems also which is faced by the organizations.
MAIN BODY
Background of the company
Airdri Ltd is the manufacturing company which is operating in the three continents for
developing the new technologies that help in keep the hand dryer for the elevator door detection
and speech systems in the ahead of the competition. There is the proper track record for the
creative thinking which is very difficult for finding the connection between the hand dryers for
the elevator doors. It is the British company which is encompasses of two company which is
specialise in the design and manufacture of the hand dryer in the infrared technology that unites
in the bedfellows for the operations director. There is the use of the detection units for the body
and wheelchair. Alirdri has been existence for over 40 years which is founded in 1974 which is
used by electrical and mechanical engineers for identified the gap in the hand drying market for
highly reliable and for efficient hand dryers. In the market they look for the new technologies
for making the automated sensor technology. They launch the new look website in January 2014
which is designed for the customers and distributors (Ghosh, Jha and Sharma, 2020). They also
develop the development programme for unveiled at ISSA interclean Amsterdam in May 2014.
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there is the celebration of the celebratory event for making customers and distributors during the
Interclean Amsterdam. In the ongoing investment for the research and development which is led
by the new management of the Airdri new managing director Bruce Phillips for the strong
engineering background.
They offer various deign according to the need or demands of the customers for meeting
the strategic partners for sustaining the high usage or quiet, contemporary dryer is very
compliment for the stylish washroom facilities. There is inclusion of the ranges which included
Elite, an Ultra slim, wall mounted high performance for the modern washrooms. They appoint
the skilled team which held responsible for the infra red detection systems. It is committed to the
on going growth for both the businesses. In simple terms they want to expand their business in
the Mali which is the landlocked country in the West Africa, it is the eight largest country in the
Africa which help in just cover the area of the 1240,000 square kilometres, the population
strength in this city is 19.1 million. In this there is the population was estimated under the age of
25. With over the 40 years experience for the design and manufacture of the Warm air hand
dryers for reliability and reduced the energy consumption for the sound levels which become the
synonymous features for the brand. There are four products in the Airdri Product range which
have been awarded for the UK Noise Abatement Society's Quiet Mark, for the reduction in the
noise in the mind of the customer. They offer the various products for the designed user and
comfort which is based on the low energy consumption, longevity and reduced noise and ease of
the services. Their range is based on the custom made for the requirements of the strategic
partners. It is the hair dryer which is very comfortable in every environment. They want to
expand their business in international markets for increasing the base of the market and increase
the revenue of the company and their image in the minds of the customers. There are various
types of products is manufactured by the company for different use which is use for the different
washrooms like Airdri classic+Mkll, Airdri Quad, Airdri Quartz, these all product dry the hand
in less than 15 seconds suitable for the traffic areas, in this they offer the service very fast and
easy in just three minutes for the lifespan of the six times other than the fast dry hand dryers
(Grosse and Meyer, E., 2019).
Airdri wants to expand their business in the Mali which is the international market and is
there is the less industry is open there which help the company in making the strategy for the
business plan at the local operations, it is important for making the strategy for making the
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location strategy for the global growth. In the international market expansion there is the ready to
go plan for become the selected market to see the opportunities in the enormous amounts of
money for the lack of planning.
 Partner up during the international market expansion- in the high performing
international business for the making the strong partnerships. By developing the team
members in the target market for the biggest factors for the future success. They develop
the relationship with the success for match the competitor in the china. Airdri wants to
make the expansion for there manufacture products in the Mali for surpassed the peers in
the local market place.
 International market expansion takes time- in the conducted survey there is the 1100
executive of the mid size and 2000 small business across the country for developed the
73% in new markets. For drive the new business it is the long term investment which is
require for the positive Return on Investment. In Context to Airdri, they slowly slowly
expand their business in other international market because it requires more investment
for expanding their business in the Mali. It require more time for the growth and help in
see the rewards for the revenue (Hmielowski, 2018).
 Test the target market- In the new market they first test the market that it is suitable for
their manufacturing or not which is based on the resources and capital for testing the
market for international growth which include the method as the Foreign Subsidiary
service for the leagl establishment for setting the foreign subsidiary. In context to Airdri,
they develop their relations with the new customers and wholesalers for increase the
revenue or service to the new customers. There is the inclusion of the large commitment
also.
 Tap into the New talent pool- it means international market expansion for the allowing
of the customers to hire he new talent for make the new opportunities at the next level.
They develop their business into new area, so they have to follow the competitive
advantage strategy for gaining the new access to the new customers. There is the help of
the global consultant for work in other 185 countries for finalize the business strategy for
the start-up operations quickly. In context to Airdri, they expand their market with the
appointment of the local salesperson in that city for spending the budget on the
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advertising for the promotion for gain access to new customers (Iqbal, M. and
Matulevičius, R., 2020).
 Going global which help in solve the local problems- In the global company they
performing the standard in the current market for expansion of the business globally, they
allow them to take stale product for sell into new and excited market, for making
expansion in the domestic economy, for slower the business growth domestically. In,
context to Airdri, they expand their market by solving all local problems which is too
risky and it also effect the business growth slow for the exposure in the international
market.
Critically analysis of the international trade issues that effect the business decision
In the expansion of the business in the international trade there are various decisions are
taken for the political, economic and environmental issues for becoming the remit of the
international business leaders for making the changes in the large scale. There next generation of
the global business leaders is embracing the opportunities and challenges of the international
business. It helps in making expansing the business for boosting the profits for conducting the
global scale for making the international scale. There are 11 challenges that is faced by Airdri
when they expand their business in the Mali (Kandulu, Thorburn, Biggs and Verburg, 2018).
 International company structure- their main aim is to focus on competitive firm
globally for effect the structure of the organization for the location of the team. In these
company there is the central headquarter is also there for the officer and representatives
on the ground for coordinating the time zones for understand the culture of the targets. In
context to Airdri, it has effective multinational business structure for making organized
into continental groups it is the international brand for increase the number for the
nationality and level of expertise which is depend on the industry, product and size of the
business.
 Foreign laws and regulations- In getting the company structure, there is the
understanding of the local laws and regulations that help in governing the target market
for trending the laws through the trading laws, navigating legal requirements is the
important tool for the international business. There are potential tariffs and the legal costs
for entering the new markets. In Context to Airdri, there is the requirement of the
employment and labour requirements for the promotion of the business in the large run
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for investing the knowledgable and experienced corporate counsel which is invaluable. In
engaging the international business. Company was forced to pay 3000 as fine if they
break the rules and regulations in Mali (Klauser, 2018).
 International accounting- The next challenge is international business which is consist
of the tax compliance which is more crucial, for present the challenge for the
multinational business which is needed of the corporation tax, there is the requirement of
different tax systems, rates and compliance requirements fir the multinational
organization challenges. It is the accounting strategy which is used for keeping the
revenue maximizing for impact the tax liability for not paying double tax unnecessarily.
In Context to Airdri, they face the issue of the tax efficiency for getting common
consolidated corporate tax base for limit the tax liability for the business friendly.
 Cost calculation and global pricing strategy- In cost calculation there is the necessary
fir setting the price of the product which is the main challenges for making consideration
for the strategy. There is the consideration of the costs is remain for becoming
competitive which is essential for making profits, cost of production, labour, marketing
and distribution. There is the issue of the come down of the price for the chosen position
of the brand which help in penetrate the new market due to the local competitor, cost of
labour and production cost which remain cheaper. Their main task is to reflect its brand
and boost their sales among the target consumers. In Context to Airdri, they try to
sourced the cheap labour and cost of production which help in expansion of their business
by reducing the cost by various techniques. There is the use of the many strategies for
deciding the right price.
 Universal payment methods- In the international e- commerce websites there is the
selling of the goods and services which is affordable for the business and consumers.
There are different methods that is used in the market for the unavailable abroad. In
determining the acceptable payment methods for central consideration for the business to
trade internationally. In context to Airdri, there is the requirement of the local payment
which is the good option for the large international business. Due to the risk of
fluctuating value there is the lack of fees is the one reasons of this challenges (Loney,
2017).
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 Currency rates- there is the another issues in the exchange of the currency rates for
setting and payment of the changing international business problems for forecasting the
profit which is very difficult for the unpredictable levels. There are major fluctuations
which impact the business expenses and profit for incurring the smaller margin for pay
suppliers and production costs in the same currency for making the forward contract for
the future sales. They protect the sales from risk which is useful for unstable currency. In
context to Airdri, there is the use of the forward contract for making the advance in the
future sales, there is the use of the huge international business opportunity for finding
reliable, fast and cost effective shipment and distribution methods for maintaining the
destination of the shipments which effect the limiting factor for the selling.
 Communication difficulties and cultural differences- there is the use of the good
communication in the effective international business strategy for create a real challenge.
There is the use of the good communication skills for checking the verbal and non verbal
for break the business deals. There is the communication problems is mainly there in
international business. In Context to Airdri, cultural differences is there to influence the
demand of product or service, there is the need of the quality translations for ensuring the
brand names which is they want to open in the foreign market (Oosterwijk and Hulsink,
2020).
 Political risks- There is the risk for the international business is used for the uncertainty
and instability for expand the global business for establish the markets for the global
businesses for the risk assessment of the economical and political risks, there is the well
defined challenges is growing towards economic nationalism for making the global
political landscape hard for the international business. In Context to Airdri, they have to
monitor the political developments for the mitigating of the political risks for doing the
business abroad.
 Supply chain complexity and risk of the labour exploitation- it means sourcing of the
products and services from the overseas, it helps in managing the length and complexity
of the suppliers for increasing the international business for forced labour and worker
exploitation. There is increase in the raise awareness for managing the businesses which
is used for the local and international business for implemented the developing the
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supporting ethical. In Airdri, they focus on the growing concern to maintain the risk in
the international business for the labour and worker exploitation.
 Worldwide environmental issues- In the environmental risks and effects of the climate
changes for better understood the sustainability for the major global corporations. There
is use of the environmental issues for the business development. For expanding the
business overseas for the production methods for give the impact to the local
environment through the waste and pollution. In Context to Airdri, they follow the
establish environment for attract the new, forward thinking for the circular economy in
the changing production methods and consumer behaviour for establishing of the more
sustainable future for the society as whole.
 Intellectual property theft and counterfeiting- this issue is related to the Chinese
product for different parties for counterfeiting numerous brands and products. For the
expansion of the business for making profit for making unlawfully profit fir increase the
incentive for the initial research and development. In Context to Airdri, there is the
growing awareness for taking the actions for the intellectual property and for the working
of their business there is the use of the research and development to develop and improve
their products (Price and Nunn, 2016).
Recommendations for the remove of challenges
Due to the many challenges faced by the company while doing international trade there is
the requirement of the some points which is best suitable for the issues.
 Company can see the currency rates regularly for the investment in other country because
each country have different values of currency.
 There is the requirement for making improvement in the communication skills which is
the main task for every business because there is no interpersonal skills than you are not
able to expand their business in the international markets.
 There is the requirement for making changes in the structure of the organization which is
very essential because in International market there is the requirement for changes that
help In attraction to the customers.
 There is the working is done according to the environment structure which is very
difficult to implement but there is the requirement of the environment analysis
(Prompatanapak and Lopetcharat, 2020).
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Implementation of the plan
For the purpose of implementing above mentioned recommendation, following action
plan can be applied by Airdri:
 Stage 1: Evaluation of required outcome: In this stage, actions which are required to be
taken for enhancing operations of Airdri in context implementation of international
trading in Mali is listed and prioritized. Such outcomes can be extracted from
recommendations that are provided for elimination of challenges that is faced by an
organization. Evaluation of requirements or tasks that is to be performed helps company
in prioritising activities in an effective way which increases efficiency of activities
undertaken by business and improves chances of its success and sustainability in longer
run (Purves and Rose, chumann, 2017).
 Stage 2: Allocation of responsibilities: After determination of activities or tasks that is to
be performed by business, further, roles and responsibilities of members of company is
decided in accordance to their skills and capabilities. Such as, effective training programs
can be set for improving expertise of business personnels so that capabilities of staff
members can be enhanced for managing intentional operations which should be managed
by person which pertains high level of interpersonal skills.
 Stage 3: Determination of tasks required: In this stage, step by step planning is conducted
for tasks that is to be performed for achieving outcomes that are required in business.
Hence, actions that is to be performed by working staff of Airdri is noted and analysed in
an adequate manner for the purpose of achieving goals. Here, goal or objective of Airdri
is to expand its trade in Mani. Hence, firm should conducted environmental analysis of
country, evaluate its economical situation, train its staff for improving its interpersonal
skills and effectively conduct market research for gaining sustainability. Apart from this,
value of currency of targeted country is to be determined and its trend is studied.
 Stage 4: Establishment of budgets: This stage plays a crucial role as in this stage financial
requirement of objective is identified. Hence, proper planning should be conducted
regarding fund allocation for gaining high profitability and reducing expenses of Airdri
(Sun, Lin and Higham, 2020).
 Stage 5: Setting up of tracking sheet for monitoring progress of project: Tracking sheet
will be prepared for identifying progress of business by comparing actual result with
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estimated results. It helps management of Airdri in evaluation and elimination of
loopholes for efficiency enhancement. In this tracking sheet, green will showcase actions
completed, yellow refers to actions in plan and red shows risk factor (Tamagno, 2018).
CONCLUSIONS
From the above report it has been concluded that managing international trade is very
important for managing the business in the international market for increase their growth and
make their brand name loyal to every customer. There is the analysis of the market for increase
the growth of the company in increase of the profit which is used for the effectively working of
the organization. This report is based on the background of the company and description of the
challenges that is faced during the international trade. There is the requirement of the
recommendations for the implementation of the plan successfully.
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REFERENCES
Books and journals
Bodeau-Livinec, P. and Giorgetti, C., 2018. Note by the Editor-in-Chief and Managing
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Ghosh, P., Jha, A. and Sharma, R. R. K., 2020. Managing carbon footprint for a sustainable
supply chain: a systematic literature review.Modern Supply Chain Research and
Applications.
Grosse, R. and Meyer, K. E., 2019. Conceptual Approaches to Managing in Emerging Markets.
InThe Oxford Handbook of Management in Emerging Market(p. 35). Oxford University
Press.
Hmielowski, T., 2018. Managing agroecosystem trade‐offs.CSA News. 63(3). pp.4-6.
Iqbal, M. and Matulevičius, R., 2020, June. Managing Security Risks in Post-Trade Matching
and Confirmation using CorDapp. InInternational Baltic Conference on Databases and
Information Systems(pp. 325-339). Springer, Cham.
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environmental trade-offs of managing nitrogen in Australian sugarcane systems taking
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O Oosterwijk, A. and Hulsink, W., 2020. Some Strings Attached-Managing Trade-offs with
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Price, S. and Nunn, A., 2016. Managing neo-liberalisation through the Sustainable Development
Agenda: the EU-ACP trade relationship and world market expansion.Third World
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Prompatanapak, A. and Lopetcharat, K., 2020. Managing changes and risk in seafood supply
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Purves, D. and Rose, S., MANAGING MONEY and EXPECTATIONS.
Schumann, F. R., 2017. Managing Multiple Source Markets. InChanging Trends in Japan's
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Sun, Y. Y., Lin, P. C. and Higham, J., 2020. Managing tourism emissions through optimizing the
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