Consultant Report: International Trade Strategies for Catdom Customs

This consultant report focuses on international trade for Catdom, an underdeveloped country seeking global business expansion. The report examines trade through seaports and airports, offering recommendations for globalization and improved transport facilities. It explores international trade dynamics, Catdom's business environment, and the advantages of seaport and air freight. The report also discusses globalization strategies, including mercantilism, neo-mercantilism, and comparative advantages, along with contemporary methods like the mobility of production factors and global production networks. Furthermore, it delves into models of innovation, trade costs, trade facilitation, and integration processes, offering insights into transactional efficiency and production system improvements. The report aims to provide Catdom's General Director of Customs with innovative and modern strategies to control international cargo and boost economic growth. The report is available on Desklib, a platform providing AI-based study tools and past assignments.

CONSULTANT REPORT -
PRINCIPLES OF CARGO CONTROL

CONTENTS
CONTENTS...................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
International trade........................................................................................................................1
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
International trading can be determined as a method of exchanging products and services
with different countries to increase economic conditions. Trade is possible when companies in
their host country is able to attain huge profit. Present report is focused on Catdom which is an
under-developed country, who wants to expand business at global level and bring improvements
in their transport facilities. General Director of Catdom customs use seaport and airport for
import-export of products and services. Report will explain business through ocean and air
transport medium. Further, it includes recommendation to country for business globalization and
trading with other country. Lastly it also includes contemporary or innovative methods for
improving business growth.
MAIN BODY
International trade
International trade is the exchange process of capital, products and services across
country borders. Generally, nations represent a certain shares of gross domestic products. This
type of trading provides rise to world economy, in which prices or supply and demand make
impact on global events (Sakyi, Villaverde, & Bonuedi, 2017). Global business gives customers
and countries opportunities to expose products and services which are not available in their
countries. Usually it is easy for the companies to export their goods to international market like
food, clothes, oil, wine currencies and instruments. On the other hand, services include banking,
tourism, transport, consulting are also traded. A product which is sold to global market is an
export and all the products that are bought to a country is import of goods. Import and export are
accounted for country's current account in the payment balance. If a country can't produce goods
it can obtain this by trading with another country, this is known as specialization in international
market.
Catdom and its business environment- Catdom has one international sea and air port for
international trading. It shares a land border with Bulldogia, which is a landlocked country.
Generally, exports and import of cargo is done through Catdom road transport and sea or air
medium (Beverelli, Neumueller, & Teh, 2015). The government of cited country prefer to
increase its global trade. In order to achieve this, it focuses on improving international business
facilities. As per the given case scenario, General Director of Catdom Customs want to reduce
the amount of red tape which is related to import export and transit cargo. It is wise decision
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taken by government that Customs provide innovative and modern ideas to control international
cargo.
Trading through Seaport
Because of size or volume, there are various types of cargoes that can't be or is
economically unable to move by other modes of transport other than through sea. It is less costly
method of shipping products, but the negative factor is long delivery time. Size of goods and its
weight may be a challenge for air mode but it is helpful through water medium. Catdom
Government will like this transit way because it is not expensive and can send large volume of
products. Sea freight is extensively used for import- export of bulk commodities like soya,
maize, coal etc. or liquid products such as crude oil, petroleum (Zaki, 2017). It is also a preferred
medium of transport for the movement of high weightage cargo products like minerals, metals,
iron coils etc. Trading through shipping does not have much impact on environment. There are
different type of benefits, some of them are as follows:-
 Best for wide range products- This mode is good for those high range products which
takes long delivery time. General Director of Catdom customs like to use seaport for this
kind goods and services.
 Economical- Seaport is a less expensive transport medium which reduces the
government cost and increases country’s GDP.
Trading through Air
Air freight is a challenging mode of transport for Catdom’s government. To meet the
demand for growth, airport cargo traffic is forecasted to grow a 4.1% on average per year.
Automotive and retail industry of country utilize this freight to accomplish 'just-in-time'
inventory (Kirton, & Trebilcock, 2017). One of the disadvantage is that it is one of the most
expensive transport mode because of its speed and fuel which is used.
Benefits of air mode
Quick transit- Through air mode, Catdom government easily can import and export their
products or services which make their international trading relations strong.
Level of security of cargo- It is more beneficial for Catdom international trading that its cargo
will be safe when these are continuously shifted. Airport authority is responsible for any loss is
occurs.
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France generally use seaport mode for international trading, which reduces its
transportation cost. Catdom Government can follow transportation through air for heavy
products and can increase their economy as the products will reach customers in minimum time.
Air mode is another option for government for those kinds of goods which have to deliver in less
time.
Globalization and international trade in Catdom
In global economy, no country is self-sufficient in context of flows of products,
manpower and information. Every nation is involved at various levels in trading to sell goods, to
acquire that it lacks and to be more qualitative in economic sectors than in trades with partners
(Ravenhill, 2017). Director General of Catdom Customs can focus on few factors which improve
their global trading with other countries.
Mercantilism- It is a trading system, where Catdom can impose a positive trade balance like
exports than imports with various countries to increase GDP and reduce other costs. This process
was introduced during colonial era and generally usable by charter organizations for monopoly
on trade. Mercantilism represents antithesis of free trade since business relations are controllable
and aligned to benefits to other nation partner.
Neo-mercantilism- It is a policy regime that encourages exports, discourages imports, etc. It
established a positive business relation to accomplish economic development objectives. Catdom
government through this easily can improve their economic condition (Cornelissen, 2017).
Export oriented strategies can be considered as a process of neo-mercantilism if country’s
government want to establish an incentive and subsidy system.
Comparative advantages- If Catdom has absolute advantages over large array of economic
sectors. Then to increase international trade, government has the highest comparative advantages
and import products in those countries who has less comparative advantages.
Globalization trading can't function without other country’s support. The main aim of
Catdom government is to increase their GDP with international trading and reduces cost of
import export. Through comparative advantages, they can easily accomplish goals.
Contemporary global trade system
International trade both in terms of values and tonnage has been growing business in
global economy. Inter and intra trade is making places across country’s jurisdictions is counted
as international business (Jaffee, 2014).
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Three major steps are discussed below which provide contemporary methods to Catdom
government for global business-
Immobile factors of production- Earlier international trade that prevailed until 1970 where
factors of production. Prior to End of World War I, global business was mainly framed by
colonial relations but was unregulated. There was limited level of mobility of raw materials,
spare parts and products. After war, international trading became regulated with limitation to
foreign ownership. Director General can distribute their goods and services through seaport and
deal with other developed countries. Germany with the help of water transport mode increased
their global business and reduced risk of products loss during this movement (Chimni, 2017). It
is less expensive way to exchange goods for under-developed country like Catdom. Government
can manage their risk by using ocean for import-export.
Mobility of production factors- The legal and physical culture where international business was
taking lead to the best realization of the comparative advantages of particular country. Foreign
direct investment, towards new producing regions as multinational corporations has changed into
global level. Director General can invest their currency where they can easily move and import
their products and services. This method reduces the risk of money which might get sink at
wrong place (Kastner, Schaffartzik, & Krausmann, 2014). It includes factors like Begging of
1980, mobility of production, capital became possible. If government make a study about trading
countries, then it can not only increase opportunity of growth but can also minimize possibility
of loss.
Global production network- There is a growth in international trading and so Director General
can include wide variety of services. Their treads are well established and now they want to shift
to geographical and functional integration of production, export and consumption at global
manufacturing networks. Placing of right products and services in relevant country reduces its
overall risk.
The volume of exchanging products and services between countries is drastically
growing for generation of wealth by purposed economic growth chances in new regions and by
reducing costs of large manufacturing goods.
Models of Innovation
The model of innovation was introduced by Grossman and Helpman in the year 1991,
which analyses the importance of invention on growth. This assumes that returns to scale is
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possible. Under the assumption, for increasing returns of capital when other features of this
model are unchanged (Nayak, 2016). Analysis represent that assumption of constant return is
unbelievable. When results are realistic, then economy of the country get influenced. Director
General can use innovation model to get better return on their investment amount. A good return
is sign of country’s growth. It motivates business to expand its businesses in other countries or
improve economic condition.
Trade cost and facilitation
Facilitation of trade involves ways through which procedures managing the international
shifting of products can be improved by different facilities. For regulating authority, business
facilitation improves their effectiveness as well as minimizes the risk of custom duty. It depends
on reduction of general costs of trade which mention transaction, tariff, transport and cost of
time.
Catdom’s trading cost are derived by two sources-
Separation factors
These are generally those factors which separate two business partners like distance, cost
of transportation, movement time etc. Catdom international business face separation because of
these factors (Wu, 2018). To reduce this kind of business loses government make their focus on
other factors which is good for country GDP. Catdom uses right mode of transport for products
according to delivery time or weight.
Country specific factors
These kinds of factors are related to country’s origin or destination of trade. It generally
involves customs producers, overall performance of country’s transport and logistic sector and
what is their role in economy (Ravenhill, 2017). Catdom’s low economy, lack of road
transportation emphasis on use of other mediums for import and export of goods and services.
Government of country make efforts to provide well, transit facility like other developed nation,
France. Government believe that through this mode country saving movement time or cost which
make impact on GDP.
The quality, cost and efficiency of services influence not only the business environment
but also overall costs linked with global trade of products.
Below given are few factors of trade facilitation in current decades-
Integration process
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It is the process of economic blocks and decreased tariffs at international level by
agreements and promotion of business as regulatory regimes that were harmonized. The
transactional capacity is facilitated with development of transportation networks in Catdom.
Government of Catdom reduce custom duty tax to increase integration. China is a salient
example of far-reaching effects of setting of certain economic zones operating under different
regulatory regime.
Production system
It is more flexible and embedded system which is effectively productive in managing
geographical networking inputs that favours the exchange of products and services. Information
technology is considered to be other facility for transport improvement (Kirton, & Trebilcock,
2017). Catdom can improve their transportation services for import and export of goods.
Manufacturing system of Germany use newest technology and place products to trading
countries. Government of Catdom can adopt their production system or technology for supply of
production.
Transactional efficiency
Financial sector also plays important role in global trading like providing investment
capital and credit for international business transactions. This is particularly important for
international trade transactions and take number of weeks due to long distance (Zaki, 2017). To
reduce such kind of challenges and increase GDP, Catdom’s government provide financial
facilities at low interest rates for international business. For eg: France provide great financial
services for improved international trading. Germany made strong relations with other countries
by applying different methods like SAFE framework, single window, risk management etc.
These all techniques generally used by those country which have interest to grow their business
at large scale.
Global trade flows
Global business generally reflects strategies like multinational positioning their
producing assets by large scale organizations to lower costs and generate new opportunities.
Catdom can follow the structure of global trade flows and increase their economic conditions
(Beverelli, Neumueller, & Teh, 2015). This government wants to expand their business in
several countries by providing new facilities for transportation for movement of goods and
services and build international business relationships with developed nations like China, France,
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United Kingdom etc. A large share of facilities provides innovative ideas and methods to growth
of economy of Catdom. General Director of Customs try to reduce risk of products and services
during transit. The best thing is that they use relevant cargo transport mode according to goods
weight and delivery time. Seaport is a better option for delivery of crude oil, heavy machine,
commodity and airport is better for those products which have to be delivered on time (Sakyi,
Villaverde, & Bonuedi, 2017). Country control custom cargo and minimize business risk.
During movement, the government tried to use friendly medium. Environment safety is also a
major responsibility for countries. France, United States, Japan are few names who constantly
dealing with cargo and created a strong bonding with neighbouring countries.
CONCLUSION
From the report, it is concluded that Catdom want to make international trade and to
increase their annual GDP. For growth of a country, government use different transport mode,
which are important to control cargo. Global business facility, globalization in trade,
contemporary trading system, etc. are few ways to increase international trading. Catdom made
efforts to reduce business risks when goods are shifted and to improve business relations with
nearest countries.
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REFERENCES
Books and Journals
Beverelli, C., Neumueller, S., & Teh, R. (2015). Export diversification effects of the wto trade
facilitation agreement. World Development, 76, 293-310.
Chimni, B. S. (2017). International institutions today: an imperial global state in the making.
In Globalization and International Organizations (pp. 41-78). Routledge.
Cornelissen, S. (2017). The global tourism system: Governance, development and lessons from
South Africa. Routledge.
Jaffee, D. (2014). Brewing justice: Fair trade coffee, sustainability, and survival. Univ of
California Press.
Kastner, T., Schaffartzik, A., & Krausmann, F. (2014). Cropland area embodied in international
trade: Contradictory results from different approaches. Ecological Economics, 104, 140-
144.
Kirton, J. J., & Trebilcock, M. J. (2017). Hard choices, soft law: Voluntary standards in global
trade, environment and social governance. Routledge.
Nayak, N. R. (2016). Landlocked and Transit Developing Countries: Nepal’s Transit Route
Negotiations with India. Strategic Analysis, 40(2), 101-121.
Ravenhill, J. (2017). Global political economy. Oxford University Press.
Sakyi, D., Villaverde, J., & Bonuedi, I. (2017). The effects of trade and trade facilitation on
economic growth in Africa. African Development Review, 29(2), 350-361.
Wu, J. (2018). A Preliminary Discussion of Some Important Discoveries Regarding Seaport
Sites for Porcelain Shipping in the Jin Dynasty. Humanities, 7(2), 41.
Zaki, C. (2017). Making International Trade Easier: A Survey of the Trade Facilitation
Effects. Review of Economics and Political Science, 415(5301), 1-46.
Online
Transportation type of cargo. (2016). [Online]. Assessed through:
<https://freighthub.com/en/blog/modes-transportation-explained-best/>.
Trading method of developing country. (2016). [Online]. Assessed through:
<https://chemonics.com/6-ways-to-make-free-trade-work-for-developing-countries/>.
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