Succeeding in the international market is never easy for every business. It requires a lot of market research and government support. That is why back in July 2014, President Obama created the international market for businesses and made a link to a website which would aid the citizens to acquire the required information regarding the exportation and importation of goods. In support of the idea, the commerce secretary deduced that international businesses would aid spread innovation to the entire world as well as help the country develop economically. As an act of support to his idea, President Obama ensured that he had the export-import bank raise its funds to more than two thirds which in turn encouraged the small businesses to access funding needed to expand to the international market. Big businesses corporations, as opposed to small businesses, have the capacities to get into the international market. . As noted in the article, small businesses with less than 500 employees only contribute to 30% of the export market in the US. The paper will analyze the case study, point out different problems noted from different stakeholders and offer the possible solutions.
The stakeholders in this study include small companies like Old Wood with 15 employees, and therefore it cannot compete for the overseas market with big companies. As much as President Obama asked financial institutions to increase the exports finances to a small organization, there are risks of default payments like it happened to Old Wood in 2008; a theater in Seoul never made full payment to the company. As already established, prominent organizations dominate the overseas markets. Brisk Business in Hong Kong is a victim of this especially when its supply of computers dried up in 2007. Computer hardware manufacturers decided to dump new products at low prices, and Brisk lost the market share (Little, 2008). The United States depends highly on the foreign sales. However, many of the involved organizations find trouble when maneuvering through rules of other countries especially when currencies fluctuate.
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The critical problems to be solved are for an American organization to learn how to look for markets because other countries love their products. Additionally, it is crucial to learn the rules and cultures of other nations for a healthy business. This is related to the initial case where small business is unable to navigate overseas regulations making it a risky move.
Many countries from Asia and the Middle East are big fans of America products. However, as already established the game changes when the products cross the border with new laws and regulations (W, L. D et al. 2018). The most intriguing part is that most countries in these regions hate America and that was evident when terrorists believed to be from these regions attacked most outlets buildings. The united states economy also dropped following the 9/11 terrorist attack in 2001, and most supplies overseas had to stop. The possible solutions to these problems would be for the leaders to sit down and solve their differences and establish a partnership that will benefit the organizations. Also, some rules and regulations will need to be revised were possible to attain leverage that helps the countries.
In conclusion, the essential difficulties posed in this case are the inability to look for new customers by small organizations. Most of them are not willing to take the risk of doing business overseas because the global economy collapses, then they suffer. However, the solutions stated above will build the confidence of the small organizations with ambitions to trade in other countries.
References
Ebb, Lawrence Forrest,, & Stanford University. (1957). Legal problems of doing business abroad: Seminar 284, academic year 1956/57, professor L.F. Ebb . Stanford? Calif..
Little, D. (2008). American orientalism: The United States and the Middle East since 1945 . Chapel Hill: University of North Carolina Press.
Moller, R. M. P. D. (2000). Securities regulations and their effects on small business . Place of publication not identified: Diane Pub Co.
rooke, M. Z., & Buckley, P. J. (January 01, 1988). Licensing, Franchising, and Other Contractual Arrangements.
W, L. D., In Lesch, D. W., & In Haas, M. L. (2018). The Middle East and the United States: History, politics, and ideologies .
