International Business Finance Essay Example | Topics and Well Written Essays - 1000 words - 1

International Business Finance - Essay Example If you have an existing business that creates a tangible product, exporting is the most common method. Start-up costs and risks are limited, and profits maybe realized early on. For some this may be the beginning a new venture, the other choices are options that may reduce some of the start-up risks. There are two basic ways to export: directly or indirectly. Direct Exporting In direct exporting, your company finds a foreign buyer and then makes all arrangements for shipping your products overseas. This method requires a lot of footwork and infrastructure, and entails more risk, but the potential profit rewards are often higher. If you choose to export directly, you have several options: Sales Representatives or Agents are essentially, the employees that are hired as foreign-based representatives or "agents" who work on a commission basis to locate buyers for your product, the same that is done domestically. Distributors will strike a deal with a foreign distributor, who purchases me rchandise from the organisation and resells it with a mark-up. The distributor maintains inventory and provides after-sales service to the buyer. Indirect Exporting An organisation uses an export intermediary to perform most of the details of the export arrangement. Many small businesses choose this option, at least at the outset. There are several types of export intermediaries: Commissioned agents are brokers who link your product or service with specific foreign buyers, allowing the primary company to fulfil the order, handle packing, shipping, and export documentation. Export Management Companies (EMCs) and Export Trading Companies (ETCs) are companies that operate in the country where the goods export. EMCs generally represent your product to promote it to other prospective overseas purchasers, while ETCs usually work according to demand, finding a need and sourcing your product for foreign buyers. Both types of companies usually take care of all aspects of the export transacti on (including conducting market research, promoting your product overseas, accessing proper distribution channels, and locating foreign distributors), making them a viable option for smaller companies that lack the time and expertise to break into international markets on their own. EMCs and ETCs usually operate on a commission basis, although some work on a retainer basis and some take title to the goods they sell, making a profit on the mark-up. Importing and exporting, on any scale, from a tiny home office or from the World Trade Centre. It is not required to have a license from the United States government in order to do international trade, but the country with which company does business may require a license. There are several issues needed in an international business plan (Rajan, 1998). Discuss the different types of risk that impact on an organisation trading on an international basis. Political risk arises from the possibility that a host government will take actions harm ful to foreign investors or that political turmoil will endanger investments. Political risk are particularly acute in developing countries, where unstable or ideologically motivated governments may attempt to block return of profits by foreign investors or even seize their assets from the host country. An example is Venezuela. President Chavez at the time at a desire to broaden the country's socialist revolution in Venezuela and issued a

Environmental Implications and the Potential of Biotechnology Essay

Environmental Implications and the Potential of Biotechnology - Essay Example This essay stresses that several definitions exist for biotechnology, one of the more general and appealing definitions is â€Å"the use of living organisms, cells or cellular components for the production of compounds or precise genetic improvement of living things for the benefit of man†. Biotechnology has assumed a certain prominence in the relatively recent past despite having been practiced for thousands of years. Progress in biotechnology was enabled as a result of the twentieth century advances in physics, chemistry, engineering, computer application, and information technology and it was these advances that resulted in the evolution of modern biotechnology. Rapidly increasing food prices which have made it difficult for the poor to afford food and a growing awareness of environmental problems that have been caused by a predominate use of fossil fuels have made advances in biotechnology. This report makes a conclusion that governments and international agencies must act to find ways in which biotechnology can be used to solve the urgent problems of the poor from all around the world. It makes sense to try to produce more food locally so that the local poor can maintain at least some quality of life. Increasing fuel prices cannot justify massive flows of agricultural products around the world and it is important to try not to waste precious resources. Thus, the benefits of biotechnology should be made available to the poor on affordable terms.