Jose Miguel Vienes Ms.

Maria Felisa Calicdan

BSBA-311
11 Task Performance 1

1. What are the main benefits of exporting for companies like Morgan and Wadia?

 -the main benefits of exporting for companies like Morgan and Wadia are they can sell
their products at profitable prices. In case of Morgan Motor their cars are expensive, and
the market is niche in which their cars are sold only in the UK. While it is necessity for
Morgan to export into other countries for doing better, the company sells 70% of its
output to the United States of America and the Europe. In the same way, in the case of
Wadia the company would not be able to sell their entire output of the CD players in the
United States of America so that it is necessary for Wadia to sell from 70% to 80% of
their output abroad. Therefore, the benefits of Morgan Motors and Wadia company are
many such as higher sales for their output, and high prices for their products and a huge
access of customers. Access to more consumers and businesses. If you are only doing
business in this country, you may be limiting the total potential profits you could earn on
opportunities to expand your business worldwide. Diversifying market opportunities so
that even if the domestic economy begins to falter, you may still have other growing
markets for your goods and services. Expanding the lifecycle of mature products. If the
domestic market seems saturated for your goods and services, you can introduce them
to new markets in other parts of the world. Potential financing assistance from U.S.
government agencies through loan guarantees that can help fund your exporting
initiatives

2. What would be the outlook for a company like Morgan Motors if it neither exported nor imported?

-the outlook for the company Morgan Motors is not good if neither exported nor imported. The
Morgan Motors will earn less revenue and less profit opportunity without the exporting and
importing of their cars. The fact of 70% of Morgan Motors total revenue would be generating from
exporting their cars abroad. It would be difficult for them to get a raw material needed from within
the same country because it was exported its most of raw materials from other countries. The
outlook of Morgan Motors is without doing an importing and exporting of their cars it does nots
how a better sign for the Morgan Motors due to their mentioned problems.

3. What impediments to exporting success do companies such as Morgan and Wadia face? What
steps can these companies take to improve their probability of succeeding in export markets?

-the impediments to exporting such companies like Morgan Motors and Wadia face is, in
achieving a successful in exporting will be a difficult task, because there are a lot of
challenges/risks they might face which they are more likely reducing the chance of achieving the
successful exporting. The major impediments to exporting is, the tariff barriers, complexity in
conducting a market research, and managing finance, and last is the absorbing of foreign
exchange risks, etc. there are some steps that the companies will follow in improving their profit
of achieving a successful in exporting their products to the market. They should utilize the
exporting management that will work as an export specialist which they act as the export
marketing department or the international department for the client’s firms.
4. Is it legitimate for local and national government agencies to use taxpayer money to help small
companies export?

-the legitimate for local and national government agencies to use taxpayers’ money to help the
small companies export, there are many reasons, it is to help them to improve their balance of
trade position of a country. Also, it provides an access to foreign exchange resources in the
requirements for importing products. The exporting of products will help the country to sell the
excess production capacity of products and to enhance the potential for global expansion by the
local companies. Exporting of products will help the country to stabilize the fluctuations in the
market. Every local and national government is interested that the businesses will gain a global
market share. It brings in a positive flow of foreign exchange. It also helps them to exploit the
indigenous technology to its fullest and helps increase the sale and profits of the exporting firms.
It is the reasons that local and national government agencies use the taxpayers’ money to the
small companies export and to make them competitive in the global market.