Question

One of your friends plans to return to the family alfalfa farm in central California after college and has an idea to export a compressed form of alfalfa (alfalfa pellets) to be used as high-quality animal feed. Your friend knows that you are studying international business and has asked you for guidance. Prepare a summary for your friend of the issues that need to be considered.

Answer 1

Issues that need to be considered for exporting in international Arena are as follows-

A. there has to be a consideration of first and foremost the exchange rate of various different countries in which the goods are to be exported.

B. there has to be a consideration of the demand pattern along with inflation pattern of those Global countries

C. consideration should also be laid upon monetary policy of other countries because monetary policy will be considering the rate of the changes of the interest

D. The uniformity of the rules and regulation and stability of political governance is another factor which should be considered

E. the risk exposure and the hedging should also be considered before exporting into other countries

F. The political awareness and resistance to the businesses in those countries should also be considered along with the foreign transactions rules

G. The taxation rules of the country are also important in order to derive the appropriate amount of profit.