Kindly help me with the following case study!(please refer your answers
to your knowledge about import, policies, procedures and guidelines you
can use when preparing the following, remember the company is a flower
company stick to it)you can insert your answers next to the questions.
Case Study
Your company processes and sells cut flowers. The marketing manager has
had discussions with companies in the USA and the Far East who are
interested in buying these products. You have to prepare a presentation
to the sales department about international trade. Use the following to
prepare for the presentation.
Question 1
Explain the benefits of the trade to this particular company and its
product, under the following topics?
- Extending product life cycle
- Diversification of markets
- Seasonal advantages, use examples to explain your answer
- Foreign exchange earnings
Exposure to new technologies and innovations leading to product/ service
and range improvement
Question 2
As far as this company is concerned, explain the differences between the
domestic and international trade using the topics below, explain?
- Currency
- Legal issues
- Packaging of goods
Question 3
Discus the general implication of trading with different countries for
the above mentioned company and its product under the following topics?
- Socio - political system
- Infrastructure (physical and service)
- Religion, culture and language
- Geographical position
Question 4
Discus the risks for the company in becoming involved in the
international trade using the topics below?
- Goods in transit risk - give at least 3 examples of transit risks
- Incorrect documentation/ information resulting in delay, non payment.
Discus the implications if the information on transport documents are
incorrect
- Buyer non-payment risk
- Supplier performance risk. Discus at lest 3 risks for the importer
Question 5
Explain the following terms relating to international trade
- Contract for pre carriage
- Contract for main carriage
- The marine insurance contract
- Contract of documentary credit
- the forward exchange contract