International Trade: Entering Markets for Medical Instruments

This report provides a comprehensive analysis of international trade, focusing on market entry strategies, particularly for a Texas-based startup aiming to introduce optical, medical, and surgical instruments into the Indian market. It delves into the key risk factors associated with entering the Indian market, including high tariffs, protectionist policies, price sensitivity, infrastructure inadequacies, local content requirements, and the power of states. The report further examines the implications of trade tariffs, especially concerning medical equipment and supplies, highlighting the impact of U.S.-China trade relations and their effect on the supply chain. It also explores the implications of trade policies on BRICS countries, emphasizing the diverse economic structures and market dynamics. The report concludes with recommendations for companies entering the Indian market, stressing the importance of understanding the local context, building relationships, and developing effective marketing strategies to gain a competitive advantage. The analysis underscores the importance of adapting to the unique challenges and opportunities presented by international trade, particularly in emerging markets.

1
Running Heading: INTERNATIONAL TRADE
International Trade: Entering Markets
[Student’s Name]
[Institute’s Name]
[Date]

2
Running Heading: INTERNATIONAL TRADE
Table of Contents
Introduction………………………………………………………………………………………3
Key Risk Factors…………………………………………………………………………………4
Implications of trade tariff……………………………………………………………………….5
Implications are different imposed on BRIC countries………………………………………….6
Conclusion………………………………………………………………………………………6
References………………………………………………………………………………………7

3
Running Heading: INTERNATIONAL TRADE
International Trade: Entering Markets
Introduction
Emerging countries practiced higher growth and a lower increase in the new time. This is
due to the influence of change in developed domestic monetary marketplaces on export mandate.
In particular, the enactment of the alleged BRICS Brazil, Russia, India, and China has improved.
India is only of the biggest customer marketplaces in the realm, with a population of intermediate
class customers predictable to grasp 200 million in 2020 and 2030, 475 million. The report
provides a foreign market entry strategy for a Texas-based startup that manufactures optical,
medical, and surgical instruments in the Indian market. To enter the Indian market, business
executives need to know the latest set of risks, complexities, and practical rules. The study also
examines the key risk factors for US trade tariff entry and its implications in India and other
BRICS countries. As a result, the BRICS countries are developing rapidly under a future trade
policy framework.
The value of a foreign direct investment in the United States in India was $16.7 billion in
2019, a strong upsurge from the preceding time. India's direct investment in the US is through
professional, scientific, and technological services, but it also includes warehousing and
manufacturing. In 2019, US FDI in India was worth $46 billion, but US investment arrives in the
country from a third country terminus. The significant seven months of 2020 saw huge
announcements by US multinationals such as Google, Facebook, and Amazon to invest tens of
billions of dollars. US companies directly employ 1.3 million Indians and support an estimated 6
million jobs nationwide. American companies are the most prominent foreign investors and
managers in India (Fernandes, 2013).

4
Running Heading: INTERNATIONAL TRADE
In India, healthcare is provided by both the public sector and the private sector. Private
sector participation in healthcare is growing faster than government investment. There are no
limitations to external direct investment in healthcare facilities. In addition to nuclear drugs,
medical equipment is permitted to be imported below the "open general" sort of import
guidelines (Trade and Health: Towards Building a National Strategy., 2015). The customs duty
on imported products depends on the classification of the product. For some devices, the
responsibility has been reduced from 25% to 5%. Lower duties apply to products classified as
"life-saving equipment" to encourage hospitals to import modern equipment. Price, excellence,
and after-sales provision support are essential factors in purchasing medical equipment. There is
a regular letter of payment for imports. The government's procurement decisions follow the
tendering process and waste time, while in private hospitals, the process is faster (Fernandes,
2013).
Key risk factors
High Tariffs and Protectionist Policies
U.S. investors and exporters face non-transparent and frequently arbitrary regulatory and
tariff rules. Some U.S. possessions and facilities have limited admittance to the marketplace.
Price Sensitivity
Even earlier, the economic downturn and the epidemic, Indian corporations and
consumers were sensitive to extreme prices. US companies will have to assess whether they can
vend at the price that the Indian will pay or will be paid and may modify their sales model
accordingly (Ulrich, 2014).
Infrastructure

5
Running Heading: INTERNATIONAL TRADE
Inadequately constructed roads, railways, ports, education, power grids, airports, and
telecommunications infrastructure are significant hurdles as the country struggles for sustainable
economic growth.
Local Content Requirements
Under the 2020 procurement regulations of the Government of India, global buyers are
barred from purchasing approximately $ 26.6 million, and the value of Indian value-added
content is set as a priority for government tenders under this amount. Also, Indian state
administration tenders have localization necessities that US corporations will have to comply
with.
Power of States
India's 28 federations and eight central regions generally have more supremacy than their
US complements. American companies face different trade and economic situations crosswise
India and will need a regional approach to prosper. As a federal organization, most power and
policymaking in India is decentralized, with variances at the national level in terms of political
leadership, governance standards, guidelines, taxes, labor relations, and education.
Implications of trade tariff
Due to China's part as a foremost U.S. and global dealer of medical expedients, active
pharmaceutical ingredients and antibiotics, the supply of medical aid to the United States
declined due to a decline in exports from China. Though some experts and manufacturing groups
have piercing to tariffs that hinder U.S. importations of medical and health products, a sharp rise

6
Running Heading: INTERNATIONAL TRADE
in demand has led to a drop in supply additionally nationalization and stock to China. Turns on
view to be an effective driver.
Although there are no worldwide agreed strategies and values for categorizing these goods, US
imports of medications, medicinal apparatus and goods and allied provisions supply
approximately .7 20.7 billion (or 9.2% of US imports). US official data (Figure 1 and Table 1)
according to CRS calculations.
Fig. 1. U.S. Imports of Medical Equipment, Pharmaceuticals, Goods, and Materials in 2019
As the U.S. Intensifies its exertions to curb the extent of COVID-19, the shortage of
pharmaceutical products and PPE from China has led to a shortage of medical aid. Minnesota-
based 3M, for example, the massive manufacturer of N95 breathing, expressed the New York
Times which entirely the masks industrial at its Shanghai plant were vended to encounter China's
national petition. Former mask producers, for instance Canada's Medicom, say the Chinese
administration has not until now sanctioned them to trade PPE-3. China's Ministry of Commerce

7
Running Heading: INTERNATIONAL TRADE
has claimed that it is not banning the export of medical equipment, 40 but this statement will not
apply to the current situation as all of China's domestic production is controlled by the
government and is ready for domestic use.
Table 1. In 2019, U.S Imports from China
HTS
Number
Depiction Cost (US)$ Stake
of U.S.
Imports
30 Pharmacological Products 1,560,469,274 1.2
3001.90 Heparin and Its Salts 189,703,230 43.1
3005.90 Gauze , Medical Wadding, Bandages, and Analogous
Objects
314,187,928 49.8
3002.11 Malaria Investigative Test Sets 914,555 57.7
9018 Medical Devices, Appliances 1,700,270 6.2
9018.20 Ultraviolet Apparatus 11,518,493 14.6
9018.31 Syringes (Comprising Measures and Equipment) 106,008,902 14.4
2941 Antibiotics 307,137,836 35.9
2941.10 Penicillin and Products 59,397,093 51.8
2941.20 Streptomycin’s and Products 4,453,931 30.1
The widespread of U.S. liberalization costs at Chinese possessions throughout the COVID-19
epidemic might extra uncover the U.S. bargain to China's additional manufacturing potential at a
time of economic recession in United States. Companies of china can also seize market share and
take a unique step in the US market by softening the market condition the U.S. reduces FDA and
other product guarantee (Meinen, Schulte, Cigna, & Steinhoff, 2019).
Table.2 Share of U.S. Weights (%) and Value in 2019
HTS Numeral Depiction U.S. Imports
Value from
China (US)$
Total U.S.
Imports value
(US)$
In Total U.S.
Imports share of
China (%)
9004.90.0000* Protective Goggles 919,198,348 503,787,243 54.8
6307.90.6090 Medicinal
Protecting Dress
11,110,786 5,995.502 46.7
3926.90.9910 Laboratory Ware 485,245,133 86,823,074 17.9

8
Running Heading: INTERNATIONAL TRADE
3401.19.0000 Organic Surface
Active and Soap
Goods
164,744,333 106,402.484 64.8
4015.19.0550 Sterile and Nitrile
Gloves
1,363 ,838 200,326,159 14.7
Implications are different imposed on BRIC countries.
In evaluating the catastrophe's influence, the situation is significant towards memo that the
BRICS Alliance stayed not founded on monetary resemblances. There are four inventive BRICS
may not be much dissimilar. Though, this divides them into two subsections. China and India are
quiet farmer economies with comparatively closed, state-controlled, and formal capital markets.
However, the other two, Russia and Brazil, are still mainly natural resource-based economies,
with a mixed state. Open to foreign trade and financial flows. Private sector control of capital
markets. The former group has guided exchange rates higher in China than in India, while the
latter is more flexible (Arrive & Feng, 2018).
Conclusion
This research shows that a company entering the Indian market should consider the
following aspects: India's emerging market with a populace of 1.29 billion, and 350 million
medium class and diverse Indian values, radical system, economy, Technical and legal schemes.
Make connections and use the entry mode to match the right local partner according to the
business model. They were improving potential excellent marketing plans to identify potential
competitors and gain a competitive advantage over competitors. From the simulated results, we
can see that increasing the openness of the BRICS countries will increase their economic status
and social welfare and exports, especially for China and Russia. However, a unified movement,
such as reducing tariffs and a reduction in agricultural subsidies, would lead to unbalanced
growth, meaning that there are some differences between the BRICS countries.

9
Running Heading: INTERNATIONAL TRADE
Works Cited
Arrive, & Feng. (2018). Corporate social responsibility disclosure: Evidence from BRICS nations.
Corporate Social Responsibility and Environmental Management.
Fernandes. (2013). A Case Study Approach On Indian Companies And Global Companies Entry In Foreign
Markets–An Analysis Of Glocalization Strategies. 30-39.
Pohit ; Sanjib. (2019). The US-China Trade War Impact on India and its Policy Choices.
Trade and Health: Towards Building a National Strategy. (2015). World Health Organization.
Ulrich, B. :. (2014). Market entry strategies into the BRIC countries–a comparison of Danish family and
non-family businesses. International Journal of Globalisation and Small Business, 15-36.
Bojnec, Š., Fertő, I., & Fogarasi, J. (2014). Quality of institutions and the BRIC countries agro-food
exports. China Agricultural Economic Review.
Meinen, P., Schulte, P., Cigna, S., & Steinhoff, N. (2019). The impact of US tariffs against China on US
imports: Evidence for trade diversion?.