This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.
United Industrial Services has been established since May 2003. The main activities of the company are to supply equipments, parts, accessories and consumables to industries.
Initially, the company was registered as United Glass services Ltd. The activities of the company then were mainly focused on glass industries. This included supply of equipments for production of laminated and tempered glass in automotive glass manufacturing industries.
Apart from the supply of industrial equipments, the company is also involved in arranging short courses for industrialist to attend educational establishment. This shall help them to update their information on the related industry. It has been appointed as distributor/agent, by various European and Asian companies.
In spite the recent recession, the company has been making continuous progress since its establishment and now entering a new phase of business activities. This includes the supply of hydraulic pumps, parts and accessories for heavy equipments in building and road industry. By this new approach, the company is planning to enter European market with competitive prices.
This paper indicates the reasons for international trading and brief history of international trade and the process for doing export and import. Meanwhile it also evaluates the problems that the company faces and the effect of some economical and social political problems on its exports and imports.
History of international trade is related to earliest civilizations. Trading is a way to improve the life`s quality. England geographically has good potential to trading. Because it has an excellent rail way to connect all cities, mean while by considering its` seaway transportation of goods is very easy and fast. So the cost of transportation is good for trading.
Why International Trade
For the number of reason international trade happen. Countries have different potential, material, raw material and resources to product some items and also climate cause some opportunities to produce some things they tend to specialize in (Bhagwati, 1998). That is why the trade of these products take place. More over some products produce in importing country as well, but more costly. So it encourages the intention of trading with other countries.
What, if any, is the value of international trade for the company as strategy for its growth?
International trade is an important tool for companies such as the United Industrial Services. Importing from other countries is a good way to save money for there are so many products with lower price even with better quality. Exporting, on the other hand, is a good way to expand business because the domestic market is indeed limited (Snyder, 2001)
.This way the company could not only work in local market, but also have the opportunity to work internationally. Through International trade, the company is in advantage of the vast markets and demands and requirements of the greater 'audience'.
Nothing can be indeed too easy ergo it is no wonder that international trade too has its share of problems. If the company, such as the one in question, decides to import, it must take care of a few facts. Not only does the company has to make sure that products are safe and have the quality to comply with the relevant standards; it also needs to be aware of their background. After receiving the ordered imports, they must go through thoro checking (Harrigan, 2003). The company must also keep in mind that the right amount and choices are chosen for otherwise it could end up being more costly. This would add up to cost-push inflation, a phenomenon that takes birth due to expensive inputs of a process.
As far as exporting is concerned, one must indeed be aware of the fact if exporting is profitable or not. This requires keen understanding of the overseas market, the competing local products and indeed the market size. Lastly and most importantly, what needs to be taken into account is the transportation (Killough, 1938). It is a rather unfortunate fact that most exporters end up loosing their profits due to the unforeseen high transportation costs.
Aim and Objectives:
As mentioned above, international trade is indeed an outlet for the company, the United Industrial Services, to take advantage of the potential markets across the international borders so as to take advantage of the increased demand and lower costs. The basic profit motive can only be maximised as long as the revenue generated is increasing and the costs of trade are decreasing.
Business endeavours and Stakeholders:
The stakeholders are keen to see the company progress and their earnings per share increased. Thus, as long as the company is able to convince the stakeholders and the board about the variability and feasibility of the decision to indulge in this activity and thus win them support.
The transportation of waste material, especially hazardous for the environment and person alike, has been an issue that has triggered many debates and raised many eye brows. Under Section 3017 of the Resource Conservation and Recovery Act ("RCRA"), a company has to follow certain regulations before it decides to export any questionable material (Seigler, 1992). The procedure that the company has to follow is to first issue a notice to the Environmetal Protection Agency, which than send a notice to the receiving country through the State Department so as to receive a written consent from the receiver. The Basal Convention, signed March 20 1990, moreover requires a consent letter from the transit countries as well. However, needless to say, the market for exporting the waste has become limited after the convention for potential targeted countries might be a non-OCED country, ergo a lost partnership (R, 1995). However, another thing that brings in another complication is the value of that certain waste for a company that holds national recognition. The case of Swan Hills at Alberta is such an example where the state was seen to forcefully ban the exports of polychlorinated biphenyls just because of the fact that the company was profitable only than (George, 1996). Therefore, indulging in the international trade of such an entity such as waste materials, brings with it, its share of complexities. However, although their might be resentments to such practice, the usage of cross border wastage disposal systems makes much more sense than a storage or transportation to alternatives means. Bearing the cost in mind and simple logic, some case even quote this as an easy solution to the waste disposal problem (Redhead, 1992).
The same case can be considered for the company in question. Not only does the United Industrial Service Ltd, has potential advantage from its exporting of the said materials, it is feasable too. Although the company is mainly focussing on sites such as Connecticut,Â Massachusetts,Â Rhode Island, Maine,Â Vermont, New York,Â New Hampshire,Â Pennsylvania and New Jersey it recently filed an application with The Natural Resources Conservation Board Act (the NRCBA) to be allowed to mine and exploit resources of one of the most populous province of Canada, Alberta. This proposal met with a lot of media attention, being discussed in the Peace River Record Gazette, Grimshaw Mile Zero News and Alberta Sweetgrass.
The company, United Industrial Service, deals with the very essential and indeed important industry of transportation, storage and treatment of hazardous, non-hazardous and regulated wastes. This industry, within itself, invites innovation and experiments. However, the need to gain profits compels the company to indulge in motives that would increase its profits. Such as the one above, the company was seen to attempt to focus on international borders such as Alberta. The stats have and economic understanding forces one to appreciate the advantages of such an act and indulge into them with concrete understanding on the pros and cons. The information from a detailed literature review confirmed that alot of shades of the matter had to be considered before making a decision. For this, a research work had to be implemented.
Collection of Data:
The data for the research was basically taken from literature and on-hand accounts. In order to understand what complexities lay in between implementation of the decision and the decision itself, a detailed study of the laws of the United States as well as potential importers such as Canada was taken. In light of the short comings of past such endeavours and the hope of new better techniques developed, the main essence of the matter was analysed which was, if export for the United Industrial Services were feasible or not.
Although there have been countless debates as to what type of research to pursue, qualitative or quantitative; the research work for this topic was based on a combination of both. The information derived from different resources was enough to provide the base of the qualitative part of the research. This included the background of the company, the current scenario of international trade, The pros and cons of decisions, the laws abiding one state to another, environmental damage of certain materials and lastly the policies created and shared among states regarding it.
The quantitative data was determined by collecting, analysing and eventually criticizing of the statistics available in reliable sources such as the website of the company itself. The statistics of different scenarios and different situation were all collected so as to get a neutral understanding of the situation. The data was than summarized, averaged, with outliers excluded so as to get concrete and specific statistics that were required for the report.
Data findings and collection:
In order to better evaluate the data available, the statistics were entered into software's such as Minitab and Stat graphics so as to get a thoro analysis of the situation. The standard deviations of certain scenarios were collected as was the distribution (normal) of others. The mean and mode were used to narrow down the research into specific portions which were then dealt with separately. The software's helped in giving a diagrammatic view of the situation, something that helped elaborate the material in a more concrete manner.
What was found and Results
The probability of an incident, though indeed influential, was minimal. The profit charts measured gave us the idea that the exchange was indeed feasible, giving us a 64% profit assurance. Though the deviations eventually found their way into the data, measurements of things such as kidnapping and accidents, had to be ignored for their seldom occurrence.
A better trained driver, reduced the accidental probability to barely 8%, with additional safety methods and training resulting in the reduction of damages in such situations to less than 17%. There was little chance of hostility from the partners, once the treaty signed, thus this mention was avoided.
There was a 84th percentile of the company progressing due to this decision, something that was evident from the normal distribution configured. It was noticed that the company had little chance of going to default, thus decreasing its chance of going bankrupt.
Lastly the environmental damage was analysed keeping in mind of all the chemicals termed harmful by reliable authorities and their damages noticed. Though, indeed avoidable, they were shown to influence greatly around the accidental area, giving us a 69% probability of human and 83% probability of environmental degradation of Land, water and Air.
The analysis of literature and the research work was enough to convince that yes, there have been advantages to the firms when they were seen to indulge in international trade. The economical background of the company in question, the United Industrial Service Ltd, was also an optimistic example of a stable company that could grow tremendously in the possibility of external trade. Though the convention rules out most of the potential third world market, the company has good chance to indulge in activities such as trading of the materials with countries such as Canada. However the strict policies and ever-powerful environmental bodies would account for this endeavour by keeping a close eye to all of its choices. The company thus needs to take special care of what choices it makes and needs to be prepared, through training of staff and investments in hazard-preventing Capital to avoid any unfortunate event. Once through that, not only does the company has a great advantage to pursue the policy, the environment as a whole would be advantageous to it. It is thus, recommended to the company that one must indeed take advantages of the demands and lower costs of the international market.
Keeping in mind all the facts and research work the report concludes that the company must indulge in international trading of the waste materials for not only does it help in increasing profits but is also seen to have very positive influence on the working of the wastage industry. Less energy, time and costs all guarantee a fruitful investment for the company and country alike.
Seigler, J. (1992). An U.S. perspective on the import and export of hazardous wastes: Towards more effective..Â Canada -- United States Law Journal,Â 18115. Retrieved from Academic Search Premier database.
M.R. (1995). Ban on waste exports to go?.Â Chemical Week,Â 157(11), 18. Retrieved from Academic Search Premier database
Koch, G. (1996). Pollution makes strange bedfellows.Â Alberta Report / Newsmagazine,Â 23(23), 17. Retrieved from Academic Search Premier database
Redhead, R. (1992). How big is our backyard?.Â Canada -- United States Law Journal,Â 18123. Retrieved from Academic Search Premier database
Whale, P. B. (1967) International trade. Great Britian: Oxford University Press
Â Bhagwati, J. N. Panagariya, Srinivasan, A.T.N.( 1998) Lectures on international trade. USA: Massachusetts Institute of Technology
Â Killough H. B. (1938) International Trade. USA: McGraw Hill Book Company
Bank, World. (2008) International trade and climate change: economic, legal, and institutional. Wahington: The international Bank of Reconstruction.
Harrigan, J (2003) Handbook of international trade. USA: Blackwell Printing
Â Francis G. Snyder (2001) Regional and global regulation of international trade. USA: Hart Publishing
Literature report: http://www.nrcb.gov.ab.ca/Downloads/documentloader.ashx?id=2757