Perspectives on International Trade and Finance Assignment - 1

Perspectives on International Trade and Finance - Assignment Example Examples of countries that Nike Inc. imports the products from include those in parts of Asia and Taiwan. These products are imported to the United States after which further processing is carried out before exporting them to international markets. These processes involve strategies and marketing processes worth researching. This paper discuses import and export strategies of Nike Inc. that has made it successful in its business gaining fame as a leading multinational company in the world. Table of Contents Executive summary 2 Introduction 4 Import and export strategies 4 Labor specialization 5 Global competitive rivalry 5 Diversification of operating risks 5 Trademarks and patents 6 Product’s Market Potential 6 Brand image and reputation 7 Consumer preference in receiving country 7 Technical innovation 8 Evaluation, promotion and product authenticity with consumers 8 Compliance to the code of demeanor, native laws and ethics 9 Concentration of retail market share 9 Tax laws a nd unexpected Tax liabilities 9 Conclusion 10 Perspectives on international trade and finance Introduction International trade consists of exporting and imports. ... This paper mainly borrows the ideas of import and export strategies form Nike Inc. of the United States of America. Import and export strategies Domestic producers in a foreign country produce goods for export. The export of these goods normally involves permission from custom authorities in the producing country as well as the consuming country. There are many import and export strategies having differing level of risks and legal requirements. In order to get an insight into these strategies it is worthwhile discussing import and export processes. Import processes are of two types. These include: Trade and consumer goods and services Intermediate services and goods that form part of the consumer’s source chain. There exist three categories of importers: Those who seek for a product to import then later sell the same product. Importers who source for products at cheaper prices â€Å"Importers using external sourcing as part of their supply chain† (Zampetti, 2006). Labor specialization It is worth noting that importing products has advantages such as labor specialization which makes export to and import from countries efficient than manufacturing all products within a country. â€Å"A good example is Nike Inc. that buys shoes form foreign companies in Asia, Taiwan, Korea and China† (United States, 2007). Nike Inc. does so because companies in the aforementioned countries have the ability to manufacture shoes that are of high quality at low cost than they can do as Nike Inc. Global competitive rivalry Companies all over the world always compete for market superiority. â€Å"This competition spurs companies and industries to import goods of higher quality at a lower cost for purposes of