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 that these
companies can sell their output at profitable prices. In case of Morgan the cars are
expensive and the niche to which its markets the product is too small in the UK to enable
it to sell all its cars. In fact, it is a necessity for Morgan to export. It would not survive if
it did not export. The company sells 70 percent of its output to the US and Europe.
Similarly, in case of Wadia the company would not be able to sell its entire output of CD
players in the USA. Wadia also sell 70 to 80 percent of its output abroad. So, the benefits
for Morgan and Wadia are higher sales for their output, high prices for their premium
products and access to larger number of customers.
2. What would be the outlook for a company like Morgan Motors if it neither
exported nor imported?
It seems that there would not be good sign for a company like Morgan Motors if it neither
exported nor imported. In other words, it could earn less revenue and less profit
opportunity without exporting or importing. In fact, 70% of Morgan Motors’ total
revenue would be generating from exporting their products abroad. Similarly, it could be
difficult to get raw material from within the same country because it exported its most of
raw materials from overseas. In a nutshell, the outlook of Morgan Motors without doing
importing or exporting does not show a better sign for the company due to above
mentioned reasons.
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?
Getting successful in exporting is not easy task because there are lots of challenges and
risks involved that are likely to reduce the chance of exporting success. Some of the
major impediments to exporting are tariff barriers, complexity in conducting market
research, managing finance, absorbing foreign exchange risks and so on. There are
certain steps to be followed while improving profitability of getting successful in export
markets. First, it must utilize exporting assistant or export management company (EMC)
that works as an export specialist who act as the export marketing department or
international department for their client’s firms.

4. Is it legitimate for local and national government agencies to use taxpayer money
to help small companies export?
In my view, it is legitimate for local and national government agencies to use taxpayers’
money to help small companies export. There are many reasons for this. Firstly, it helps
to improve the balance of trade position of a country. Secondly, it provides access to

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 foreign exchange resources required for importing essential things. In addition, the
exports help the county sell its excess production capacity and enhance the potential for
global expansion by local companies. Exports help the country to stabilize fluctuations in
market demand. Not only that much, every national and local government is interested
that its businesses gain a global market share. It brings in a positive flow foreign
exchange. It helps exploit indigenous technology to its fullest and helps increase sales
and profits of the exporting firms. It is for this host of reasons that local and national
government agencies use taxpayers' money to helps small companies export and make
them competitive in the global market.

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