Page 50 - eBook: EXIM for Beginner

1. List FIVe (5) readiness of exporter in international business

i. Compliance with Standards Regulations

ii. Product Modification

iii. Packaging and Labelling

iv. Requirements of Exporting Country

v. Extra Costs.

2. Describe any TWO (2) uncontrollable forces that influences the
exporting in international business
Choose any TWO (2) from PEST

There are 4 main effects of these Political factors on business
organizations. They are:

 Impact on economy: A country's political situation has an impact on
its economic situation. The state of the economy has an impact on
business performance.

 Changes in regulation: Governments have the ability to change
their rules and regulations. This could have an impact on a
company.

 Political stability: A country's lack of political stability has an impact
on business operations. This is especially true for companies that
operate on a global scale.

 Mitigation of risk: Political risk can be managed by purchasing
political risk insurance. Companies with overseas operations utilise
this type of insurance to mitigate risk.