Is Mexico the Land of Opportunity for Kia Motors? RBP020L067A

This report provides an analysis of Kia Motors' international trade activities, specifically focusing on its business operations and expansion into Mexico. The study begins with an introduction to the context of managing international trade, emphasizing the evaluation of competitive advantages and the impact of policies. It then delves into the background of both Mexico and Kia Motors, highlighting Mexico's economic and social challenges, as well as Kia's global presence. Key trade issues such as foreign direct investment and tariff barriers are examined in the context of Kia's expansion plans. The report uses literature to support the discussion. The conclusion summarizes the challenges and opportunities faced by Kia Motors in the international market, emphasizing the need for strategic adaptation to local conditions and regulations. The report references several academic sources to support its findings.

Managing international trade

Table of index
• Managing international trade1
• INTRODUCTION3
• BACKGROUND OF THE COUNTRY3
• BACKGROUND OF THE COMPANY3
• KEY TRADE ISSUES4
• CONCLUSION5
• REFERENCE5

INTRODUCTION
• Managing international trade refers to evaluating competitive advantage, legal structure of an
organization, impact of different policies on working of the company.
• It is all about managing international market by identifying foreign policy, political and legal
environment, rules and regulations that are applied in international market. Kia motors is a public
company which was founded in 1944.
• Its headquarter is in South Korea and it serves all over the world. It provides automobiles
commercial vehicles.

BACKGROUND OF THE COUNTRY
• In the given study Kia motors want to do its business in a developing country,
managers face many difficulties and problems while doing trade in international
market. They want to do business in Mexico but they face many challenges.
• Mexico faces several social structure problems such as, poverty, corruption and
violence, so it was difficult for managers of Kia motors to handle the situation and
do business their. Most of the people think that Mexico is a poor country, but its
GDP is good. Mexico is one of the fastest growing company and having very
young population.
• People of Mexico are working hard and they are trying that they can give their best
by improving their performance. An organization faces challenges everywhere,
whether doing business in same country of doing trade in international market.

KEY TRADE ISSUES
• There are many issues that are face by an organization while
trading in international market. If a company want to expand its
business they have to make plans or strategies according to the
situation.
• They have to make policies and procedures according to country
and their situation. There are various issues that can be faced by
companies while expanding their business in international
market. Some trade issues that ae faced by managers of kia
motors when expanding their business in Mexico, because they
are not having any idea about how to deal with the situation, it
was new for them but managers were having trust on their
employees.
• They make good quality products which were in demand and
provide it to customers at low prices.

To be con.....
• Foreign direct investment refers to an investment that is made by an organization in one country
into business interest which is situated in different country.
• It is required when an investor establishes business operations or when a company want to open a
branch to do business. In given case managers of kia motors want to expand business by opening a
branch in Mexico, so they have to face this problem. Managers should make arrangements for
foreign direct investment.
• There are three types of FDI such as, horizontal, vertical and conglomerate foreign direct
investment. Managers of the organization should make proper plans so that they can run their
business in international market smoothly and this will help company in generating more revenue.

CONCLUSION
• As per the report has been covered study of Kia Motors. it can be concluded that, doing business in
international market is not easy. Managers had to take necessary steps for expanding their business
in international market and generate revenue.
• In the report, it has been discussed that challenges and problems that are faced by managers of Kia
motors while expanding.
• They have to make changes in policies and procedures to do business in Mexico.
• Analysis of trade issues such as, foreign direct investment, tariff barriers and many other which has
been described
•

REFERENCE
• Santos-Paulino, A. U., 2017. Estimating the impact of trade specialization and trade policy on
poverty in developing countries. The Journal of International Trade & Economic
Development. 26(6). pp.693-711.
• Srinivasan, T.N., 2019. Developing countries and the multilateral trading system: From GATT to
the Uruguay Round and the future. Routledge.
• Temiz Dinç, D., and et.al ., 2017. The impact of foreign trade issues on economic growth in some
developing countries including Iran and Turkey. Journal of Transnational Management. 22(3).
pp.171-202.
• Wiedmann, T. and Lenzen, M., 2018. Environmental and social footprints of international
trade. Nature Geoscience. 11(5). pp.314-321.