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International Trade: Entering Markets

[Student’s Name]

[Institute’s Name]

[Date]
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Table of Contents
Introduction………………………………………………………………………………………3

Key Risk Factors…………………………………………………………………………………4

Implications of trade tariff……………………………………………………………………….5

Implications are different imposed on BRIC countries………………………………………….6

Conclusion………………………………………………………………………………………6

References………………………………………………………………………………………7
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International Trade: Entering Markets

Introduction

Emerging countries practiced higher growth and a lower increase in the new time. This is

due to the influence of change in developed domestic monetary marketplaces on export mandate.

In particular, the enactment of the alleged BRICS Brazil, Russia, India, and China has improved.

India is only of the biggest customer marketplaces in the realm, with a population of intermediate

class customers predictable to grasp 200 million in 2020 and 2030, 475 million. The report

provides a foreign market entry strategy for a Texas-based startup that manufactures optical,

medical, and surgical instruments in the Indian market. To enter the Indian market, business

executives need to know the latest set of risks, complexities, and practical rules. The study also

examines the key risk factors for US trade tariff entry and its implications in India and other

BRICS countries. As a result, the BRICS countries are developing rapidly under a future trade

policy framework.

The value of a foreign direct investment in the United States in India was $16.7 billion in

2019, a strong upsurge from the preceding time. India's direct investment in the US is through

professional, scientific, and technological services, but it also includes warehousing and

manufacturing. In 2019, US FDI in India was worth $46 billion, but US investment arrives in the

country from a third country terminus. The significant seven months of 2020 saw huge

announcements by US multinationals such as Google, Facebook, and Amazon to invest tens of

billions of dollars. US companies directly employ 1.3 million Indians and support an estimated 6

million jobs nationwide. American companies are the most prominent foreign investors and

managers in India[ CITATION Fer13 \l 2057 ].

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In India, healthcare is provided by both the public sector and the private sector. Private

sector participation in healthcare is growing faster than government investment. There are no

limitations to external direct investment in healthcare facilities. In addition to nuclear drugs,

medical equipment is permitted to be imported below the "open general" sort of import

guidelines[ CITATION Tra15 \l 2057 ] . The customs duty on imported products depends on the

classification of the product. For some devices, the responsibility has been reduced from 25% to

5%. Lower duties apply to products classified as "life-saving equipment" to encourage hospitals

to import modern equipment. Price, excellence, and after-sales provision support are essential

factors in purchasing medical equipment. There is a regular letter of payment for imports. The

government's procurement decisions follow the tendering process and waste time, while in

private hospitals, the process is faster[ CITATION Fer132 \l 2057 ].

Key risk factors

High Tariffs and Protectionist Policies

U.S. investors and exporters face non-transparent and frequently arbitrary regulatory and

tariff rules. Some U.S. possessions and facilities have limited admittance to the marketplace.

Price Sensitivity

Even earlier, the economic downturn and the epidemic, Indian corporations and

consumers were sensitive to extreme prices. US companies will have to assess whether they can

vend at the price that the Indian will pay or will be paid and may modify their sales model

accordingly[ CITATION Boy14 \l 2057 ].

Infrastructure
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Inadequately constructed roads, railways, ports, education, power grids, airports, and

telecommunications infrastructure are significant hurdles as the country struggles for sustainable

economic growth.

Local Content Requirements

Under the 2020 procurement regulations of the Government of India, global buyers are

barred from purchasing approximately $ 26.6 million, and the value of Indian value-added

content is set as a priority for government tenders under this amount. Also, Indian state

administration tenders have localization necessities that US corporations will have to comply

with.

Power of States

India's 28 federations and eight central regions generally have more supremacy than their

US complements. American companies face different trade and economic situations crosswise

India and will need a regional approach to prosper. As a federal organization, most power and

policymaking in India is decentralized, with variances at the national level in terms of political

leadership, governance standards, guidelines, taxes, labor relations, and education.

Implications of trade tariff

Due to China's part as a foremost U.S. and global dealer of medical expedients, active

pharmaceutical ingredients and antibiotics, the supply of medical aid to the United States

declined due to a decline in exports from China. Though some experts and manufacturing groups

have piercing to tariffs that hinder U.S. importations of medical and health products, a sharp rise
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in demand has led to a drop in supply additionally nationalization and stock to China. Turns on

view to be an effective driver.

Although there are no worldwide agreed strategies and values for categorizing these goods, US

imports of medications, medicinal apparatus and goods and allied provisions supply

approximately .7 20.7 billion (or 9.2% of US imports). US official data (Figure 1 and Table 1)

according to CRS calculations.

Fig. 1. U.S. Imports of Medical Equipment, Pharmaceuticals, Goods, and Materials in 2019

As the U.S. Intensifies its exertions to curb the extent of COVID-19, the shortage of

pharmaceutical products and PPE from China has led to a shortage of medical aid. Minnesota-

based 3M, for example, the massive manufacturer of N95 breathing, expressed the New York

Times which entirely the masks industrial at its Shanghai plant were vended to encounter China's

national petition. Former mask producers, for instance Canada's Medicom, say the Chinese

administration has not until now sanctioned them to trade PPE-3. China's Ministry of Commerce
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has claimed that it is not banning the export of medical equipment, 40 but this statement will not

apply to the current situation as all of China's domestic production is controlled by the

government and is ready for domestic use.

Table 1. In 2019, U.S Imports from China

HTS Depiction Cost (US)$ Stake

Numbe of U.S.
r Imports
30 Pharmacological Products 1,560,469,274 1.2
3001.90 Heparin and Its Salts 189,703,230 43.1
3005.90 Gauze , Medical Wadding, Bandages, and Analogous 314,187,928 49.8
Objects
3002.11 Malaria Investigative Test Sets 914,555 57.7
9018 Medical Devices, Appliances 1,700,270 6.2
9018.20 Ultraviolet Apparatus 11,518,493 14.6
9018.31 Syringes (Comprising Measures and Equipment) 106,008,902 14.4
2941 Antibiotics 307,137,836 35.9
2941.10 Penicillin and Products 59,397,093 51.8
2941.20 Streptomycin’s and Products 4,453,931 30.1

The widespread of U.S. liberalization costs at Chinese possessions throughout the COVID-19

epidemic might extra uncover the U.S. bargain to China's additional manufacturing potential at a

time of economic recession in United States. Companies of china can also seize market share and

take a unique step in the US market by softening the market condition the U.S. reduces FDA and

other product guarantee[ CITATION Mei19 \l 2057 ].

Table.2 Share of U.S. Weights (%) and Value in 2019

HTS Numeral Depiction U.S. Imports Total U.S. In Total U.S.

Value from Imports value Imports share of
China (US)$ (US)$ China (%)
9004.90.0000* Protective Goggles 919,198,348 503,787,243 54.8
6307.90.6090 Medicinal 11,110,786 5,995.502 46.7
Protecting Dress
3926.90.9910 Laboratory Ware 485,245,133 86,823,074 17.9
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3401.19.0000 Organic Surface 164,744,333 106,402.484 64.8
Active and Soap
Goods
4015.19.0550 Sterile and Nitrile 1,363 ,838 200,326,159 14.7
Gloves
Implications are different imposed on BRIC countries.

In evaluating the catastrophe's influence, the situation is significant towards memo that the

BRICS Alliance stayed not founded on monetary resemblances. There are four inventive BRICS

may not be much dissimilar. Though, this divides them into two subsections. China and India are

quiet farmer economies with comparatively closed, state-controlled, and formal capital markets.

However, the other two, Russia and Brazil, are still mainly natural resource-based economies,

with a mixed state. Open to foreign trade and financial flows. Private sector control of capital

markets. The former group has guided exchange rates higher in China than in India, while the

latter is more flexible[ CITATION Arr18 \l 2057 ].

Conclusion

This research shows that a company entering the Indian market should consider the

following aspects: India's emerging market with a populace of 1.29 billion, and 350 million

medium class and diverse Indian values, radical system, economy, Technical and legal schemes.

Make connections and use the entry mode to match the right local partner according to the

business model. They were improving potential excellent marketing plans to identify potential

competitors and gain a competitive advantage over competitors. From the simulated results, we

can see that increasing the openness of the BRICS countries will increase their economic status

and social welfare and exports, especially for China and Russia. However, a unified movement,

such as reducing tariffs and a reduction in agricultural subsidies, would lead to unbalanced

growth, meaning that there are some differences between the BRICS countries.
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Works Cited

Arrive, & Feng. (2018). Corporate social responsibility disclosure: Evidence from BRICS nations.

Corporate Social Responsibility and Environmental Management.

Fernandes. (2013). A Case Study Approach On Indian Companies And Global Companies Entry In Foreign

Markets–An Analysis Of Glocalization Strategies. 30-39.

Pohit ; Sanjib. (2019). The US-China Trade War Impact on India and its Policy Choices.

Trade and Health: Towards Building a National Strategy. (2015). World Health Organization.

Ulrich, B. :. (2014). Market entry strategies into the BRIC countries–a comparison of Danish family and

non-family businesses. International Journal of Globalisation and Small Business, 15-36.

Bojnec, Š., Fertő, I., & Fogarasi, J. (2014). Quality of institutions and the BRIC countries agro-food

exports. China Agricultural Economic Review.

Meinen, P., Schulte, P., Cigna, S., & Steinhoff, N. (2019). The impact of US tariffs against China on US

imports: Evidence for trade diversion?.