Question

subject- international trade law (Supply Chain Management)

Discuss in detail (with examples) major factors to be considered while deciding international partnership. the answer should be more than 250 words also mention the references from where the answer is taken.

Answer 1

Explanation:

For the journal, see Supply Chain Management (journal).

For broader coverage of this topic, see Supply chain.

Supply-chain management field of operations: complex and dynamic supply- and demand-networks.[1] (cf. Wieland/Wallenburg, 2011)

In commerce, supply chain management (SCM), the management of the flow of goods and services,[2] involves the movement and storage of raw materials, of work-in-process inventory, and of finished goods as well as end to end order fulfillment from point of origin to point of consumption. Interconnected, interrelated or interlinked networks, channels and node businesses combine in the provision of products and services required by end customers in a supply chain.[3] Supply-chain management has been defined[4] as the "design, planning, execution, control, and monitoring of supply-chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally."[5] SCM practice draws heavily from the areas of industrial engineering, systems engineering, operations management, logistics, procurement, information technology, and marketing[6] and strives for an integrated approach.[citation needed] Marketing channels play an important role in supply-chain management.[6] Current research in supply-chain management is concerned with topics related to sustainability and risk management,[7] among others. Some suggest that the “people dimension” of SCM, ethical issues, internal integration, transparency/visibility, and human capital/talent management are topics that have, so far, been underrepresented on the research agenda.[8]

Although it has the same goals as supply chain engineering, supply chain management is focused on a more traditional management and business based approach, whereas supply chain engineering is focused on a mathematical model based one.[9]

INFO FROM WIKIPEDIA AND BRITANIKA

Answer 2

A business must be prudent to select markets where its foray would be successful.

Explanation:

Economic Factors:

• Many firms may feel that some consumers are unable to afford their retail goods so they will refrain from pursuing those markets, while other markets may readily accept a modified version of their current product.  Before they agree to invest money, businesses must research details in depth and determine the number of customers who will purchase their goods. They must consider if there are many individuals having adequate disposable income to purchase the commodity they wish to sell.
• The company also has to evaluate the economic conditions & the economic stability of the nation in which it wants to work, in addition to the capacity of consumers to purchase the product. A analysis of payment balance, Inflation, trading trends and currency stability can offer an insight into the country's economic growth and well-being. These are essential indicators of the level of risk associated with the future economy of the country.

Social and Cultural Factors:

• Countries vary from each other in terms of ethnicity, culture, climate, and several other forms of life. Such differences enable marketers to understand whether these differences will deter or promote the company's marketing activities on the new market.
• Products relevant to the lifestyle of people will have to be significantly altered or may not be accepted, whereas in nations, even with wide-ranging lifestyles,  goods may gain acceptance. Moreover, marketing and other business activities must be modified according to country cultural & social nuances.
• Socio-cultural disparities have prompted marketers to change their mix of marketing. This may involve translating messages into different languages or making new advertisement that adapts to  various markets in which the business operates.

Political and Legal Factors:

• The mindset of the govt& people of the host nation must be understood before a company wants to spend capital. It should also recognize the past background of a company and their professed role in the face of foreign investment and assets. Citizens' attitude towards foreign businesses, goods & people should  be carefully considered .
• Simplified processes, the lack of bureaucratic impediments , subsidies and opportunities, are strong indicators of a government's readiness to attract international investors for their countries' growth. . Political stability & foreign investment attitude matter a lot in encouraging participation of multinational companies. Changes in govt policy could pose problems for the company's productivity potential.
• It is also essential for companies to examine tax regimes & other legal structures and procedures in other nations before they start operations. Regulatory structures are not robust in many developed nations and it is highly difficult for foreign companies to carry out& implement their policies and contracts. For each of these nations, the operation of companies is influenced by certain govt interference, such as they are accorded a lot of protectionism.

Market Attractiveness:

• The market attractiveness is determined by assessing the demand opportunity with regard to revenues to be generated, the prospective business competition and industry dynamics in the potential market.
• In addition to the competitiveness & macro-environment considerations, the revenue and profit capacity of a company can be measured on the basis of the amount of capital investment necessary to establish operations, the length of growth, the structure of the industry, and the number and scale of barriers the company need to face. Some of these metrics can be collected by analyzing other industry participants' history or by researching related industries if it is a nascent market.
• A large market with a high growth trend can be very appealing and major upfront investment in a market such as this can be justified. The market 's attractiveness is supplemented by the lack of proven rivalry and consistency of form and numbers of competitors. A market’s appetite for "differentiated products" would invite "dissimilar players" within  the same industry, who operates in "different market segments" sans involving in "cut-throat competition".

Capability of the Company:

• Prior to a company deciding to venture into global markets, it must conduct an "audit" of its capabilities & resources. The company must have "clear competitive advantages" concerning  technology, market knowledge, reliable partners, products' portfolio ,  & other relevant parameters.
• The company must have foreign-market specialists as well as some knowledge & experience about foreign markets. The local business experience does not work in large part for international markets and local executives are likely to make strategic and operational errors