COMSATS UNIVERSITY ISLAMABAD

Lahore Campus

Global Business Management

Assignment

Submitted by: Muhammad Hammad

Submitted to: Sir Affan Ahmed Khan

Registration Number: FA20-BAF-003

Question:01
The World Trade Organization International Trade Statistics is an annual report that
provides comprehensive, comparable, and updated statistics on trade in merchandise and commercial
services. The report allows an assessment of world trade flows by country, region, and main product or
service categories. Using the most recent statistics available, identify the top 10 countries that lead in the
export and import of merchandise trade, respectively. Which countries appear in the top 10 in both
exports and imports? Can you explain why these countries appear at the top of both lists?

Answer:
Merchandise export and import are the process by which the tangible goods are sent out
of the country and brought into the country in order to generate revenue. This is one kind of foreign
interaction which is generally referred as trading. The largest categories of tangible goods include
machinery, equipment and automobiles. Other goods include fuel, chemicals, agricultural products etc.

The top 10 countries in terms of merchandise import in the year 2014 are China
United States, Germany, Japan, Netherland, France, South Korea, Italy, Hong Kong
and United Kingdom.

Explanation:
1. China:
• They have high level of foreign exchange reserves.
• Highly developed infrastructure and information technology.
• China’s top three trade partners include United States, Hong Kong and Japan.
• Its exported goods include Electrical machinery and industrial machinery.
• China is the world leader in agricultural and industrial field.
• China is the country with highest population thus emerging consumer market.
• It has market economy.
• Highly skilled and low-cost labor.
• Low-cost products.
• Politically and economically stable.

2. United States:
• The United States has mixed economy which consists of free market with centralized
economic planning and government regulation.
 • Top three trade partners include Canada, China and Mexico.
• Its exported goods include Electrical machinery and industrial machinery.
• Role of dollar dominates in the global economy.
• Provide job opportunities in export sector.
• High quality product.
• Provides opportunity for investment and growth.

3. Germany
• It has mixed economy which consists of free market with centralized economic planning and
government regulation.
• Export high quality products leading to competitiveness.
• It maintains trade balance with the increase in number of exports than imports which result in
profit and revenue generation.
• Its exported goods include industrial machinery and vehicles parts.
• Top three trade partners include France, Netherland and China.
• Politically and economically stable.

4. Japan:
• It has market economy.
• Trade liberalization and exchange rate helped Japan for the growth in import and export
business
• Stable political and economic situation.
• Advance technology system.
• Top three trade partners include China, United States and South Korea
• Its exported goods include industrial machinery and motor vehicles and parts.
• High import of raw materials and resources and re-export finished goods
• High investment in research and development and infrastructure

5. Netherland
• It has mixed economy which consists of free market with centralized economic planning and
government regulation.
• Top three trade partners include Germany, Belgium and United Kingdom.
• Its exported goods include industrial machinery and oil and mineral fuel.
• Advanced infrastructure.
 • Geographic location makes it highly accessible to Europe.
• Manufacture high quality product with innovative technologies.
• It maintains trade balance with the increase in number of exports than imports which result in
profit and revenue generation.
• Politically and economically stable.
• Provide competition in the global market.

6. France
• It has mixed economy which consists of free market with centralized economic planning and
government regulation.
• Skilled and productive labor force and advanced infrastructure.
• Geographic location makes it highly accessible to Europe.
• Strong manufacturing sector.
• High quality product makes it competitive in the market.
• Top three trade partners include Germany, Belgium and Italy.
• Its exported goods include industrial machinery and aircraft.
• Politically and economically stable.

7. South Korea
• It has mixed economy which consists of free market with centralized economic planning and
government regulation.
• Top three trade partners include China, Japan and United States.
• Its exported goods include electrical machinery and motor vehicles and parts.
• High-quality electronic product gives it competitive advantage.
• Large investment in research and development.
• Skilled workforce.
• Stable political and economic condition.

8. Italy
• It has diversified industrial economy, with north developed with industrialization and less
developed south with agricultural base.
• Top three trade partners include Germany, France and United States.
• Its exported goods include Industrial machinery and motor vehicles and parts.
• Politically and economically stable.
 • Industry plays key role in business.

9. Hong Kong
• Free market economy system.
• Top three trade partners include China, United States and Japan.
• Its exported goods include electrical machinery and precious stones and metals.
• Politically and economically stable.
• High quality infrastructure.
• Transparency in banking system makes it a world financial hub.
• Free port without any custom tariff.
• No foreign exchange control.

10. United Kingdom

• It has advanced open market economy.
• High production of oil and gas.
• Advanced technology.
• Politically and economically stable.
• Top three trade partners include Germany, United States and Netherlands.
• Its exported goods include Industrial machinery and oil and mineral fuel.
• High demand of product and services.
• It has strong financial system

11. Canada
• It has market economy system.
• Top three trade partners include United States, China and Mexico.
• Its exported goods include oil and mineral fuel, motor vehicles and parts and industrial
machinery.
• Bilateral trade base due to high acceptance of U.S made goods and services thus making it a
largest export market for U.S.
• Leading technologies.
• Availability of diversified energy resources.
• Banking sector highly developed.
• Politically and economically stable.
Question:02
Food in an integral part of understanding different countries, cultures, and lifestyles.
You run a chain of high-end premium restaurants in the United States, and you are looking for unique
Australian wines you can import. However, you must first identify which Australian suppliers can provide
you with premium wines. After searching through the Australian supplier directory, identify three to four
companies that can be potential suppliers. Then develop a list of criteria you would need to ask these
companies to select which one to work with.

ANSWER:
The Australian suppliers in premium red and white wine are Miller Dixons creek estate, BRL
Hardy Limited, Tyrrell’s Vineyard Pty Ltd, Andrew Yap Wine and Food consulting, Gentle Annie Wines,
Kings of Kangaroo Ground, The Lark Hill Wine Company, Millers Dixons Creek Estate etc.

Potential Suppliers:

• Ashbrook Estate Pty Ltd:

They produce premium varieties of white and red wine.
Manufacturing and packaging take place using its own equipment on site. They
contribute 8% of Australian wine shares.
• Andrew Yap Wine and Food consulting:
They are in premium wine business from last 30 years and
export wines to different countries including Singapore, Malaysia, Hong Kong,
Thailand, United States etc.
• Gentle Annie Wines:
There main product includes high quality premium wines. Wines
are generally hand made in rich and fully flavored offering best quality at reasonable
price. They export wines to Canada, Germany, Ireland and Singapore.

It is very important for the suppliers to understand the three-tier system consisting of
manufacturer, wholesaler and retailer and comply with it when doing business in USA.

Criteria:
• The suppliers need to take basic permit for importing the wines from the Alcohol and
Tobacco Tax and Trade Bureau (TTB) and Alcohol dealer registration is the next step
which needs to be filed before starting the import relationship.
• All the wine products need to meet the requirement under the Miscellaneous Trade
and Technical Correlations Act of 2004.
• The producer or the manufacturer of the beverages has its registration from Food and
Drug Administration (FDA). It will be important for the Australian supplier to notify
FDA about the import relationship about the registered wines.
• It is important to check whether the supplier has approval based on specific
requirements from COLA (Certification/Exemption of Label/Bottle Approval).
Question:03
You work for a pharmaceuticals company that hopes to provide products and services in
New Zealand. Yet management's current knowledge of this country's trade policies and barriers is
limited. After searching a resource that summarizes the import and export regulation, outline the most
important foreign trade barriers your firm's managers must keep in mind while developing a strategy for
entry into New Zealand's pharmaceutical market.

ANSWER:
Trade barriers are government laws and regulations that benefit domestic providers in the country.

Unwarranted requirements, testing or certifying processes, investments, or

immigration limitations are only a few examples. The New Zealand authorities may
be available to help you in detecting and removing unjust trading obstacles.

Trade barriers in New Zealand:

Some trade barriers in New Zealand are as follows,

12. Educational facilities:

If you're exporting educational facilities and need help overcoming non-tariff barriers,
then you have to notify educational New Zealand

13. Producing:
Inform the Department of Commerce, Innovative thinking, and Jobs Unless you're a
producer confronting norms, regulations, limits on marketing to particular authorities, or certain
constraints that were previously limiting the firm from distributing.

14. Food and agriculture are two of the most critical sectors in the world:
Inform government Department for mostly Regional Development while you're within
the production of goods & experience non-tariff obstacles like unreasonable product regulations and
compliance or wildlife conservation.

 The CPTPP sets guidelines that apply to government-sponsored drug and medical device subsidy schemes.
The appendix would only apply towards the Pharmacy’s examination of designed to support
pharmaceuticals in New Zealand.
 Many components in the appendix result in an enhanced and discussion. These are based on current
Pharmacy procedures, such as posting large amounts of data on the company site, the techniques it utilizes
to be ready to invest during the application procedure, and the information published on conclusions.
QUESTION:04
The number of member nations of the World Trade Organization has increased
considerably in recent years. In addition, some nonmember countries have observer status in the WTO.
Such status requires accession negotiations to begin within five years of attaining this preliminary
position. Visit WTO's website to identify a list of current members and observers. Identify the last five
countries that joined the WTO as members. Also, examine the list of current observer countries. Do you
notice anything in particular about the countries that have recently joined or have observer status?

ANSWER:
WTO (World Trade Organization) is an organization that looks after the world trade happening between
countries and create rules and regulations for that trade.

Countries:

1. Cabo Verde 2008

2. Cambodia 2004
3. Armenia 2003
4. Lithuania 2001
5. Jordan 2000

These countries have a same point in common which is that,

These countries are still struggling to find their place in world trade.