MANAGING INTERNATIONAL TRADE Coursework Example | Topics and Well Written Essays - 1500 words

MANAGING INTERNATIONAL TRADE - Coursework Example History has shown that developing nations have substantially progressed with the essence of open market operations in international trade. It is not possible for a firm to gain competitive advantage and lead the market competition without the help of internationalization of business. However, it should be analyzed that without the help of strategic planning in business, it is not possible for firms to expand in the competitive international markets. Effective strategies, framed through strategic management principles, help a firm to progress in the long run. This project would consider ways in which the Indian (developing country) consumer goods firm of Godrej Consumer Products Limited (GCPL) would export or initiate its trade in the competitive market of Paris in France (European country) (Godrej, 2013). Research on the Assignment Topic The economy of France, unlike India, is highly developed. Almost all the business segments of the country have progressed (David, 1986). The majorit y of the business segments of the country are privatized, which reasons out the strong competition in the market of France between the companies. The per capita income level of the country has increased from $35900 to $36100 from 2010 to 2012 (CIA, 2013). The high and increasing level of per person income is responsible for the high standard of living in the country. The aggregate demand created by the domestic individuals in the nation, regarding consumer goods services, is high in France. This is because consumer care products are sort of comfort or luxury goods that have a positive income effect. With the rising income of the consumers, the demand for such goods would also increase. High demand in the market has increased the degree of competition of FMCG companies in France. The consumer goods firms already exhibit monopolistic competition with each other in the country. Thus, when the Indian company would formulate its export strategies, it has to clearly understand the busines s market of France. The Indian company should realize that the population of France is 61 million as recorded in 2012 (CIA, 2013). Thus, if it becomes successful in exporting its products in the affluent market of France, then it would enjoy a wide base of customers. Rather, the trade barriers in France are also few as the company’s public authorities impose less restrictions on trade. The government of the country always encourages higher degree of privatization and international trade to augment its level of social welfare. Approximately $577.7 billion worth of goods and services are imported in France (CIA, 2013). This proves that the government of the country is very lenient towards foreign investments. The country has a high international reputation. However, Godrej must realize that the first language of the country is French, so it must have trading employees who are well-versed in French. The rate of taxation imposed by the French government is approximately close to 20% (CIA, 2013). Thus, on the whole, it can be concluded that the French market is a highly competitive, rich and liberal market. The strategic decision adopted by the company, for exports in France, must consider the market conditions of the same explained above. Background Among all the sectors in an economy, the FMCG (Fast Moving Consumer Goods) sector is one