BUMA 20043: International Business and Trade

Q#4: Discuss why you should study international business and trade.

As a person who aims to have a better, stable, and successful life, it would come across
your mind the thought of having or starting up a business. Entering the world of commerce is not
a joke as it entails various risks that should be taken into consideration before finally deciding
whether you go for it or not. It is a good thing that a subject which tackles the theories and
concepts behind successful companies and businesses is taken up by a student like me. It will
be a great help in guiding my way through establishing the roadmap of success of the business
I plan to start.

Knowledge upon the significance of the subject (international business and trade) is
essential to the train of thought that every business man/woman must have. It discusses the
possible opportunities and threats that a business may encounter locally and as it goes global.
Some of the favorable outcomes that globalization may brought are market expansion,
production advantage, cost advantage, and differentiation advantage. While threats that an
international business and trade may face are credit risk, ethics risk, foreign exchange risk,
shipping risks, country and political risks, among others.

Being a student who aspires to reach the top and make money for a living, starting a
business seems like a good idea. Equipped with the right knowledge and continuous learning
about the said subject, as well as insights on how the commerce world actually works, hopefully
I would be able to make it to the top and achieved the dreams and goals that I have established.

Case Study No. 1: Halal Certification helps Egyptian Dairy Group Quadruple Sales to Malaysia,
fin new markets.

Halal Certification is a concept where products, particularly food products, are being
verified as to whether they are fit to be consumed and are completely safe. This concept, which
was originally founded by the Muslim religion, covers the set of practices that are commonly
associated with food that is acceptable and beneficial, as well as healthy practices that provide
less health risks and improvement in the quality of life of the people who will avail such
products.

Certifying and branding products as halal is an important marketing tool as it enables

companies to find and capture new markets. However, in year 2013, Mohamed Abd El-Wahab
who is an export manager of the Greenland Group for Food Industries believes that ‘Egyptian
food is by definition halal’ which led him to the conclusion that halal certificates do not add up to
the growing number of sales of their product. Soon enough, Mohamed Abd El-Wahab recognize
the significance of halal and participate in International Trade Center (ITC’s) Enhancing Arab
Capacity for Trade (EnACT) programme. This participation resulted to quadrupled sales of
Greenland Group to Malaysia.
 This case study shows one of the many factors that contribute to the success of
businesses in running their operations, taking it to its peak. As shown in this case study,
Greenland Group for Food Industries’ participation in the EnACT programme make a huge
improvement in their business growth. At first, it may be difficult to comply with or participate to
the said process due to technical obstacles but in the long run, these obstacles will be
outweighed by the benefits that the company will receive. Companies that are halal certified are
more prominent and well-trusted by the people since they carry out their operations following
the rule of transparency.