Question

Ch.16/17 Principles of International Business

1. Describe how you gain trust with your export partner when exporting a product? What controls can be put in place to mitigate risk and build trust?

Answer 1

The below explain on gaining trust with export partner when exporting a product:

Customer oriented: Customer is the key success for any business and the same applies to international business too. Hence the customer needs has to be identified and met with differentiated high quality products/Services.

Quality: Quality acts as a great tool to build trust while exporting and hence any organization has to emphasize on improve their quality for their product and services. Tools can be used to measure the current level of quality and suggestions can be made to improve the same.

Price: The third factor to gain trust would be providing reasonable prices for exporting a product. High cost would end up the exporter going to competitors or any other country.

Continuous improvements: In order to stay and compete in the challenging export market any organization has to focus on innovations and improvements to keep the products updated and fresh in the market.

The following controls can be put in place to mitigate risk and build trust:

Training: Special Training needs to be provided to staffs who handle export departments on how to handle customers in a global environment.

Policies: Organization has to frame policies especially for export business right from entering international business to exit and should emphasize the employees to follow the same in order to avoid any grievances.

Resources: In order to avoid demand shortage the resources and the way of handling them effectively should be put in place to avoid delays in exporting products.

Equipment: Modern equipment is necessary to be a head of competitors in the international market.

Systemized: Manual work takes much time and reduces efficiency and hence systemized work needs to be built in to avoid risk and build trust.