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„? Identify at least current 3 trends in field of exporting and international trade

„? pecify the approach/methods [modus operandi] employed in the conducting of exporting,

importing and international trade.

„? ×rite short notes to explain on each of these trends that you have named

„? eferences and sources must be provided

3



E-commerce refers to the global exchange of goods and services using the internet as a
marketing channel (Keegan and Green, 2008). It is one of the trends in the exporting and
international trade due to rapidly technology development.

E-commerce encourages disintermediation which is the elimination of intermediaries between

seller and buyers (Turban et al, 2008). Traditionally, business process involves producers,
wholesalers, retailers and consumers. E-commerce provides a channel that producers can pass by
the wholesalers and retailers, selling directly to consumers.

(Adapted from Turban et al, 2008)

Company direct export the products and services from home country to host country through e-
commerce. Before that, the process involves many layers of intermediaries such as domestic
wholesaler, export management company, supplier international procurement office (IPO),
trading company, wholesaler and retailer from host country.
£ow, the customers from foreign country can easily obtain the products from home country
through e-commerce. The same situation also occurred in the import process, the importer can
using e-commerce to direct import their desires products without depend on the intermediaries.

The benefits of e-commerce trend include value improving, relationship capturing and cost
reducing. Through the direct export above, customer satisfy with the products because it meet
their requirement due to the direct communication between customers and producers. The
relationship between customer and producers are closer and increase the customer loyalty. ×hile
company also enjoy cost reduction because they save the cost such as transportation,
management, energy, human resources and others between intermediaries.

è 
 c
è c
?

èIT is the principle of production and inventory that prescribes precise controls for the movement
of raw materials, components parts and work-in-progress (Coble International, 2011). Toyota
was the first company to begin system in 1953 by integrating the manufacturing companies
around the world into their manufacturing process (The Business Insider, 2010).

èIT works towards zero inventories, reducing warehousing, handling and financial costs and time
for tracking stocks and movement (Ajami et al, 2006), in response, companies can produce
higher quality produce and increase numbers of satisfied customers which can generate higher
profits (ichardson, 2000). Hence, this system is adopted in most companies¶ activities with
internet in the international trade for export and import.
????????????????

(Adapted from C&L ystems Group, 2011)

èIT requires schedules in order for the efficient of lean manufacturing and supplying. Base on the
graft above, a company needs to communicate the schedules with suppliers to make level
schedules. The production are delivery are performed base on the schedule where seek one-piece
±make and one-piece-move. The products are produced in small lots and other schedule levels
are frozen as to make each operation produce a perfect product to eliminate waste.

ü

c





üTA is a trade agreement between certain countries granting their members an exclusive favour
and is a common type of regional trade agreements. üree Trade Agreements (üTAs) are
generally aimed at providing the means to achieve quicker and higher levels of liberalisation that
would create effective market access between the participants of the üTA. Traditionally confined
to trade in goods, with the establishment of the ×TO, trade in services has been included in
many üTAs.

Today, üTAs currently pursued with selected countries are not confined to liberalisation and
market opening measures alone. They are comprehensive and include investment, trade
facilitation; intellectual property rights (IP) as well as economic cooperation in areas such as:

Ê? competition policy;
 Ê? standards and conformity assessment;

Ê? information and communication technology;

Ê? science and technology;

Ê? education and training;

Ê? research and development;

Ê? financial cooperation;

Ê? mall and Medium Enterprises (MEs) development; and

Ê? paperless trading.

üTA shows very different aspects depending on the involved countries. An üTA made between
developed country and a developing country focuses on free trade of goods or reduction of tariffs.
However, üTA covers a large number of sectors since 1995. It covers services, investment
incentives, copyrights, government procurements, competition policies, trade relives as well as
lifting of tariffs. educed tariffs by trade agreements made among multilateral parties provide a
larger coverage of sectors. egionalism represented by üTA is a main trend of international
economies and is being expanded since the birth of the ×TO.

Establishment of üree Trade Agreements enables companies to introduce their product into the
overseas market, apart from increasing existing market share. At the same time, it also allows
company to improve and enhance their competitiveness. Manufacturing companies in Malaysia
should take advantage of duty elimination or substantial reduction as they now have an edge over
their competitors from countries not enjoying preferential treatment. Moreover, it also helps
company to reduce costs such as export and import duties. Thus, competitive prices can be
offered to customers.






Ajami, .A. et al (2006). 9
 
 
   
. 2nd Ed. £ew York: M.E.
harpe. Inc.
Coble International (2011) International Trade Terms [Online]. Available from:
http://www.importexporthelp.com/a/international-trade-terms.htm?[Accessed: 22th April 2011]

C&L ystems Group (2011) è


 9   
 
 
  
[Online].
Available from: http://www.cl-group.com/?prd_jit.html [Accessed: 22th April 2011]

ichardson, M. (2000). 
    9
 
   
  


  
 . £ew Zealand: Edward Elgar Publishing Limited

The Business Insider (2011)    9 
 è


 9   [Online]. Available from:?
http://businessinsiderblog.com/2010/05/09/managing-inventory-just-in-time/ [Accessed 22th
April 2011]

Turban et al, 2008, 3
  !"Canada, Pearson Education.

Keegan ×. è., Green M. C., 2008, Global Marketing, 5th edition, United tates, Pearson Prentice
Hall.

MITI (2011) Malaysia¶s üree Trade Agreement Involvement [Online], Available from:
http://www.miti.gov.my/cms/content.jsp?id=com.tms.cms.section.ection_8ab55693-7f000010-
72f772f7-46d4f042 [Accessed 22nd April 2011]

KOIMA (2011) ×hat Is üTA? [Online], Available from:

http://www.import.or.kr/index.do?mnId=fta01 [Accessed on 22nd April 2011]

The national Trade Promotion Agency of Malaysia (2010) Benefits of üTA [Online], Available from:
http://www.matrade.gov.my/cms/content.jsp?id=com.tms.cms.article.Article_hide_BenefitsüTA
[Accessed on 22nd April 2011]
Turban et al, 2008, 3
  !"Canada, Pearson Education