Entering A Foreign Market Through Exports: A Rough Draft Of

Entering a Foreign Market Through Exports: A Rough Dra! of Final Paper

Prior to beginning work on this assignment, read Chapters 5, 6, 7, and 10 assigned this week. Also, review Chapters 1 through 4 from your Week 1 readings. Completing this written assignment in Week 2 will assist you in writing your final paper titled Entering a Foreign Market Through Exports, which is due during Week 5 of this course. This rough draft that you create in Week 2 will become a substantial part of your Final Paper.

Make sure to incorporate your instructor’s feedback received on your Week 2 paper when you work on your final paper in Week 5. The goal of this paper is to identify a new country for export of high-tech equipment manufactured by an American company and formulate a successful global supply chain management strategy. While working on this Week 2 assignment, please consider the following scenario: High-Tech Tools, Inc. is a company based in Otay Mesa, California. Among other high-tech equipment, the company specializes in manufacturing hand-held radar speed guns, used primarily in law enforcement to measure vehicle speeds and in professional sports for measuring speeds of bowling, baseball pitches, and tennis serves.

The company has observed a clear trend in competitors exporting similar goods globally. As the international logistics manager, you are tasked by the CEO to identify a foreign country where High-Tech Tools Inc.’s export sales of radar speed guns could be successful. Using the assigned readings from Weeks 1 and 2, along with additional research, write a proposal to the executive team. This proposal should advise the CEO of a potential export country based on the concepts learned and research conducted in the first two weeks of the course.

Your proposal should begin with a one-page executive summary (see the Writing Center’s "Writing an Executive Summary") that provides a concise overview of the main points of your paper. The primary content of your paper must address the following: present an executive summary that identifies the new export country; describe the benefits of exporting high-tech equipment to the selected country from the perspective of international trade theories and economic agreements; explain any advantages or deficiencies in transportation, communication, or utilities infrastructure in the selected country that may influence international logistics operations; and conclude your proposal with an informed decision regarding exporting to the chosen country based on your data analysis.

The purpose of this assignment is to demonstrate an understanding of exporting as an entry mode into a foreign market and to design an effective global supply chain management strategy. Critical thinking is necessary to evaluate both the benefits and challenges of exporting. The final submission should be three to four pages, excluding the title and references pages, written in APA style. Use contextual (level one) headings to organize your paper. Include at least two scholarly and credible sources aside from the textbook to support your analysis.

The paper must include a separate title page with the following information: the title of the paper in bold, student’s name, university name, course name and number, instructor’s name, and due date. Use academic voice throughout the paper, following guidance from the Academic Voice resource. The paper should commence with a one-page executive summary and conclude with a paragraph highlighting the significance of your proposal. Refer to the Writing Center’s resources for introductions and conclusions, as well as writing an executive summary.

All sources must be cited in APA format as outlined in the "APA: Citing Within Your Paper" guide. To assist with research, utilize the UAGC University Library tutorial on library research and search tips. Be sure to include at least ten credible references, including scholarly articles, credible online sources, and the textbook, and avoid using non-credible sources. Proper documentation of sources in APA style is essential. Review the Grading Rubric carefully to meet assignment criteria.

Paper For Above instruction

The task of expanding high-tech exports into international markets requires a comprehensive understanding of market potential, infrastructure, trade theories, and legal frameworks. This paper presents a strategic proposal for High-Tech Tools, Inc., a California-based producer of radar speed guns, aiming to identify an optimal foreign market for exporting this high-tech equipment. The analysis incorporates trade theories, economic agreements, infrastructure assessment, and a well-structured supply chain strategy to facilitate successful international expansion.

Executive Summary

This proposal recommends targeting the South Korean market for the export of High-Tech Tools, Inc.’s radar speed guns. South Korea presents a promising opportunity due to its advanced technological infrastructure, high law enforcement and sports institution activity, and favorable trade agreements with the United States. The country’s strong economy, adherence to free-trade agreements such as the KORUS FTA, and sophisticated logistics and communication networks position it as an ideal entry point for U.S. high-tech exports. Challenges such as transportation costs and infrastructural delays will be mitigated through strategic partnerships and carefully planned logistics. This proposal concludes that exporting to South Korea offers substantial benefits aligned with trade theories like the new trade theory and product life cycle theory, supporting the strategic move by High-Tech Tools, Inc.

Introduction

The globalization of markets offers American high-tech manufacturers new opportunities to expand their reach. High-Tech Tools, Inc. specializes in manufacturing radar speed guns—devices with applications in law enforcement and professional sports. Although the company has seen increased competition globally, targeted international expansion remains a vital growth strategy. Identifying a suitable market necessitates careful analysis of economic stability, infrastructure readiness, trade policies, and cultural factors.

Trade Theories and Economic Agreements Supporting Exporting

Trade theories such as Adam Smith’s absolute advantage and David Ricardo’s comparative advantage establish the foundational logic for exporting, highlighting the benefits of specializing in goods where a country or company has efficiency (Smith, 1776; Ricardo, 1817). Modern theories, like the new trade theory (Krugman, 1979), emphasize economies of scale and network effects, which can benefit High-Tech Tools, Inc. by leveraging technological infrastructure in an importing country. Furthermore, trade agreements such as the Korea-U.S. Free Trade Agreement (KORUS FTA) facilitate smoother export processes by reducing tariffs and trade barriers, promoting bilateral trade (USTR, 2017). These agreements enhance the economic viability of exporting high-tech equipment to South Korea.

Infrastructure Considerations

South Korea boasts a highly developed transportation system, including extensive rail networks, advanced road infrastructure, and efficient ports like Busan, which is among the busiest globally (KOTRA, 2022). Its telecommunications infrastructure is among the best worldwide, characterized by high-speed internet penetration and widespread use of mobile networks. Utilities such as electricity supply are reliable and capable of supporting high-tech manufacturing operations. Such advanced infrastructure minimizes logistical challenges and supports the timely delivery of high-precision radar guns. Nonetheless, minor logistical costs may arise from import customs procedures and distribution within urban centers, which can be managed through strategic local partnerships.

Challenges and Mitigation Strategies

Despite infrastructural strengths, potential challenges include logistical costs due to geographical distance and import tariffs if tariffs revert to non-preferential rates. Mitigation involves establishing local distribution centers and partnering with local logistics firms to streamline customs clearance and last-mile delivery. Additionally, cultural differences and market knowledge gaps can be addressed via targeted marketing strategies and local representation.

Decision and Recommendations

Based on the strategic analysis, South Korea emerges as the most suitable target market for High-Tech Tools, Inc.’s radar speed guns. The country’s technological advancement, favorable trade environment, and robust logistical infrastructure support effective market entry through exporting. This approach aligns with trade theories advocating specialization, scale economies, and the benefits of free trade agreements.

Conclusion

Expanding into South Korea offers significant opportunities for High-Tech Tools, Inc. to increase export sales and establish a foothold in the Asian high-tech market. The country’s infrastructure, economic ties, and trade policies considerably mitigate potential logistical and market entry challenges. By leveraging trade theories and strategic logistics planning, the company can achieve sustainable growth and competitive advantage in this promising market.

References

• Krugman, P. R. (1979). Increasing returns, monopolistic competition, and international trade. Journal of International Economics, 9(4), 469-479.
• KOTRA. (2022). Korea’s infrastructure overview. Korea Trade-Investment Promotion Agency.
• Ricardo, D. (1817). Principles of Political Economy and Taxation. London: John Murray.
• USTR. (2017). U.S.-Korea Free Trade Agreement (KORUS FTA). Office of the United States Trade Representative.
• Smith, A. (1776). The Wealth of Nations. London: Methuen & Co., Ltd.