International Trade - Exporting and Importing Essay

International Trade - Exporting and import - Essay ExampleSome of the popular tractors manufactured and exported by the regular army are, John Deere, Ford word of honor and Kubota.The companies engaging in international deal have to face various barriers before they can market place their produce to oversee countries. The export of tractors from the USA to chile or Thailand is affected by the following factorsThe use up for the produce is the principle factor in the determining the viability of the verdant to export the product to. An example is the tractor which is apply for tilling to produce crops for local and foreign consumption. chilli pepper produces lumber, fruits and vegetable, grapes, pears, onion, wheat, corn, oats, peaches, garlic, asparagus and beans. Its major agricultural exports are impudent fruits, canned vegetables and wines. The government of Chile is encouraging more export from Chile to boost the country economy. Thailand on the opposite hand is a mai n exporter of rice. Due to this, tractors, which are used for tilling in full-grown scale farms, are usually in high demand.Before considering whether to export the tractors to another country. Careful military rating must be done to ensure that the country does not have the technology or equal facilities to manufacture the product being exported. If the country has the means to produce the same product, then the exporter will be faced by stiff competition by the local manufacturers who may offer the same product at a cheaper price.The existing business deal blocks can p... , Ecuador and Peru if these countries have the ability to produce tractors then Chile would be obliged to purchase the tractors from the other member countries. This in turn would limit the exportation of tractors to Chile. Chile has signed bilateral trade agreement with the USA, Singapore and Jordan, this trade agreement encourages trade between USA and Chile, tractors can hence be exported to Chile with ease and the manufacturer can succeed in exportation tractors to this country. Thailand on the other hand belongs to the ASEAN trading blocks. The countries in this trading block are Philippines, Singapore, Indonesia and Malaysia. The free trade agreement between the USA and Thailand have not yet materialized hence the tractor exporter may have difficulties exportation to this country. Internet According to Rajib (166), the cyberspace and E-commerce has led to the globalization. Customers from all over the world can search the internet and find products of their choice. Upon identification of the product to purchase they can pay online and also carry out other transactions through the internet. The firm seeking to export tractors to Chile and Thailand can use the internet to communicate the tractors. Bilateral trade agreements These are trade agreement between two countries, the agreement dictates what a country will export and import from its partner. These trade blocks can either pro mote or hinder trade between two countries. If two countries sign bilateral trade agreement then exportation and importing goods becomes relatively easy due to reduction of barriers and excessive import tax. However, these agreements may hinder other countries from exporting products to those with bilateral trade agreements. Exporting tractors from USA to Thailand may be hindered by lack