Choose a Kuwaiti company that produces a product (not a service, but a physical product) and that wants to export this product to (a country of) the European Union.
Write an essay in which you discuss the issues below. The essay should count up to 5 pages of text (i.e., excl graphs, tables and references). Lettertype: Times roman 12. Line distance 1. Please make sure you provide appropriate (APA style) references to literature that you use.
Choose a Kuwaiti company that produces a product (not a service, but a physical product) and that wants to export this product to (a country of) the European Union. The future EU client(s) will be invoiced in euros. Assume also that the EU customer will be granted a customer credit of two months by the Kuwaiti exporter.
Profile the company with specific reference to why you believe it is geared to exploit the EU target market.
Comment on the competitive (comparative) advantage you believe the proposed export product would enjoy in the EU market. Does this correspond with the advantage in the domestic market? Is the advantage sustainable over time?
3. Analyse the external environment the focal firm may face in the country to be entered.
4. Determine the attractiveness of the market in terms of market size and growth.
5. Determine the attractiveness of the market in terms of cultural dimensions (o.a. related to consumer behaviour as well as the negotiation process (customs, norms, beliefs, language, religion, etc))
6. Determine the attractiveness of the market in terms of legal dimensions influencing contracts and intellectual property rights
7. Determine the attractiveness of the market in terms of ethical issues.
8. Determine the attractiveness of the market in terms of real or perceived trade barriers (tariff and non-tariff, including technical, health and environmental standards). Countering such barriers need to be addressed.
9. Discuss other tax issues (VAT) you may need to deal with when exporting to an EU country.
10. Discuss how the currency exchange rate risk will be avoided.
11. Discuss any other challenges on your way in areas not mentioned above (logistics, marketing, distribution, payment problems, etc).
Instructions
Write a paper with a story line instead in which the questions above are discussed. You are not allowed to quote. You are expected to use your course materials as well as do some research and use peer-reviewed papers. Avoid Google as much as you can: points will be deducted for the use of websites like Wikipedia, Investopedia, Tutor2u, etc.. Scholar.google.com is in any case preferable to its popular brother but your free Infocenter subscription to EBSCO’s 5000 full-text journals is very useful and you’d be well advised use it.
Use the template for a paper that is posted on Moodle in the assignment section. You will also find a copy of the rubric that will be used to grade your paper.
Good luck!