TRƯỜNG ĐẠI HỌC THƯƠNG MẠI

HỌC KỲ II NĂM HỌC 2020 – 2021

(Phần dành cho sinh viên/ học viên)

Bài thi học phần: Tiếng Anh thương mại 1.4 Số báo danh: 14
Mã số đề thi: 03 Lớp: 2136ENPR5111
Ngày thi: 09/06/2021 Số trang: 03 Họ và tên: Trần Văn Huỳnh

Điểm kết luận:

GV chấm thi 1: …….………………………......

GV chấm thi 2: …….………………………......

Câu 1 (5 điểm):

Write an essay to answer the questions “What benefits do companies expect and what are
the challenges when exporting products to foreign markets?” Give specific examples to
illustrate your point of view.

With the expansion of the Internet, many businesses have now begun to compete on
a global scale. Whenever a business starts to grow and expand, entrepreneurs start trying
to become more competitive by exporting goods. Any company, before committing its
resources to venture in the export business, must carefully assess the advantages and
disadvantages of exporting into a new market. Anyway, companies need to carefully
assess and evaluate the advantages and challenges of exporting before committing
resources.

The reason for your company to consider exporting is quite compelling; the
following are few of the major advantages of exporting:

One of the main advantages of exporting is increased sales and profits. Selling
goods and services to a market the company never had before boost sales and increases
revenues. Additional foreign sales over the long term, once export development costs

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have been covered, increase overall profitability. Additionally, it brings diversification.
Selling to multiple markets allows companies to diversify their businesses and spread
risks. Companies will not be bound by changes in the business cycle of the domestic
market or of a particular country. Another point that supports to exporting to foreign
markets is to gain new knowledge and experience. Going international can bring valuable
ideas and information about new technologies, new marketing techniques and foreign
competitors. The profits earned can benefit a local company as well as foreign businesses.

While the advantages of exporting by far outweigh the disadvantages, small and
medium size enterprises especially face some challenges when venturing in the
international marketplace.

The first challenge of this is financial risk. Collections of payments using the
methods that are available (open-account, prepayment, consignment, documentary
collection and letter of credit) are not only more time-consuming than for domestic sales,
but also more complicated. Thus, companies must carefully weigh the financial risk
involved in doing international transactions. Besides, tax policy is also a risk for exports
Moreover, the different disadvantage is product modification. When exporting, companies
may need to modify their products to meet foreign country safety and security codes, and
other import restrictions. At a minimum, modification is often necessary to satisfy the
importing country's labeling or packaging requirements. Last but not least is to find
market information. Finding information on foreign markets is unquestionably more
difficult and time-consuming than finding information and analyzing domestic markets. In
less developed countries, for example, reliable information on business practices, market
characteristics, cultural barriers may be unavailable.

For instance, in recent years, Vietnamese coffee has been exported to many
countries around the world. When joining WTO, Vietnam has many development
opportunities. Enjoying the same equality as other exporting countries, export barriers are
removed, market opportunities are expanded, and new production technologies are
accepted. However, our coffee producers and exporters also need to be aware of the
difficulties. The first is about tax policy. Vietnam is not among the countries that are

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prioritized in terms of tariffs on instant coffee products when participating in traditional
markets such as the US, Japan, and the EU. In addition, the system of checking and
monitoring product quality standards is still weak and outdated. Countries with large
coffee consumption attach great importance to inspecting and monitoring the quality,
origin and brand of goods, while in Vietnam this activity has not been focused on the
coffee industry since production to export. Therefore, Vietnam needs to learn from the
experience as well as absorb the science and technology of other countries.

Entering an export business requires careful planning, some capital, market know-
how, access to quality product, competitive pricing strategy, management commitment
and realizing the challenges and opportunities without them it is almost impossible to
succeed in the export business. Hence, understanding the advantages and disadvantages of
exporting can help smooth entry into new markets, keep pace with competition and
eventually realize profit.

Câu 2 (5 điểm):

Situation:

Your company specializes in producing genetically modified foods. You have been very
successful in your own country, an Asian country and now several contacts in some
European countries have expressed interest in your products. What problems do you
anticipate if you start to export, and what solutions can you suggest?

When the company starts exporting activities, it will inevitably have inadequacies.
First of all, the import side can't help but worry about the trust in the quality of the
product: fake or poor quality. Therefore, having confidence, my company will issue
reliable certificates of safety and assurance and have a commitment to compensate if there
is a risk related to product quality. The next problem is to compete with domestic and
foreign companies. I need transparency, professionalism, fair competition with them.
Another issue is that if demand increases, there will be a problem of shortage of
production equipment. Therefore, we need to equip and improve equipment and machines
to meet consumer demand.

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