715IB International Business Is An Essay.

Arihant Led Lights was established in 2009, and is currently one of the top manufacturers and distributors of LED Lights. The company has a large product range to offer and manufactures high end products with a guarantee period of two years. It has several branches all over India and has a great hold in the market. The company has recently decided to start exporting its products in different parts of the world. UK is the most potential market for the products offered by Arihant  as the LED market in the UK at a consistent  rate of 7% every year.

The organization has a very wide variety of products which are also very good in quality. The company has an owned are about 11000 square feet and massive area of manufacturing that enables the company to carry out production in bulk. The products being manufactured by Arihant go through three different quality checks to make sure that the product is of high end quality. The company also has an in house designing, quality check control and research and development department (Harrington, 2013).

This report is about the process of exporting LED lights and bulbs of M.S. Railtech Pvt Ltd, a manufacturer of Arihant Led Light and Bulbs from India to United Kingdom. India is on very good terms with European countries in the context of trade relationships. A number of Indian firms are conducting business in these countries. Out of all the European countries, the UK has the highest potential for LED lights, which is the core product of Arihant. This report contains a brief research into the background of Arihant Manufacturers and provides a detailed description of the international trade that includes various processes of documentations and transportation. Additionally, the factors that support and weaken the business are stated so that the company can minimize the weaknesses and make the most of the strengths. The UK light market was evaluated at £1.8 billion in 2014 which expanded by 7.5% from the previous year. This demonstrates light market is expanding step by step and it advances the fare for creating nations and they have a gigantic extension to grow their market in the UK showcase (Team, 2017).

Due to globalization, there is an increase in the overall connectivity of countries with each other. Initially the countries would only be involved in legal and governmental schemes and committees, but now days the countries have started indulging into the exchange of products and services with each other on a large scale. This exchange is popularly known as international trade. International trade allows countries to take the advantage of the opportunities available to them across the border and minimize their dependency on only one nation.

Worldwide Trade shapes our regular day to day existences and the world we live in. About each time we make a  deal, we are taking an interest in the worldwide economy. Items and their parts gone to our store racks from everywhere throughout the world. Merchandise and enterprises that are bought by a nation from another nation are termed as imports for the buying country and the goods and services that are sold by a nation to another nation are called the exports for the selling country (UK Government, 2017).

Most global exchanges comprise of the buy and offer of mechanical hardware, buyer merchandise, oil and other such products. In the event that stocks on the New York Stock Exchange fall in esteem, the news is transmitted in a split second around the world, and stock costs everywhere throughout the world may change. This implies nations need to cooperate all the more nearly and depend on each other for flourishing (Amadeo, 2017).

Worldwide exchange happens in light of the fact that people, organizations and governments in one nation need to purchase products and ventures created in another nation. Exchange gives individuals more prominent determination of products and enterprises to browsed and frequently these merchandises are accessible at costs lower than those in the household economy.  Universal exchange is the framework by which nations trade merchandise and enterprises. Nations exchange with each other to get things that are better quality, more affordable or essentially not the same as what is delivered at home.

The WTO is a worldwide association which encourages the creating nations to develop monetarily and they manage arrangements of Open, Non-unfair exchange among its individuals. Their point is to enable the creating nations to develop and do the exchange exercises easily and in a successful way. They frame the arrangements which are valuable for the creating nations to develop and the nations are permitted to appreciate a portion of the advantages as for postponement in exchange orders and so forth (Robinson, 2011).

The UK is a constitutional monarchy that operates under a parliamentary government. The country has a very stable economy, which makes it ideal to conduct business with. The government of the country is very proactive and works closely with local and central administration for the benefit of the people of the region. The trade relations between Inida and the UK have always been very cordial and smooth. This has paved way for a number of companies in both countries to exploit the opportunities available in the countries. This is a good symbol for Arihant Manufacturers since the company seeks to make the most of the available opportunities in the UK to maximize its profit (Construct UK Ltd, 2016).

The UK has the fifth highest GDP in the world which makes it one of the strongest economies around the globe. The country has a very diversified economy, which includes both private and public sector companies. Being densely populated allows the country to make way for a large customer base for even small companies. It is also a free market, which is focusing highly on foreign direct investment making it ideal for international trade. The social trends in the country are also helping the international trade to flourish as people are constantly looking to buy products from overseas available in their country. The technological innovation is ever growing. This is a positive sign as innovation can be used to improve product quality of LED lights making them ore efficient than ever. All these factors suggest that exporting LED Lights to the UK is going to be a very fruitful for Arihant manufacturers.

While conducting international trade, Arihant manufacturers can follow a number of strategies like International Strategy, Localization Strategy, Global Strategy and Transnational Strategy. The company is suggested to use Localization Strategy where the company should manufacture its products on the basis of the requirement of the local market where the products will finally be sold. In this case Arihant should produce its good keeping in mind the specifications and demands of the UK market. This will enable the company to understand the product requirements of UK and hence maximize its sales. Arihant should continue to manufacture in Inida initially, but can eventually shift its manufacturing unit in the UK or get the products manufactured from a third part in the UK.

The process and procedures involved in International Trade have been fortified by the World Trade Organization and the International Monetary Funds. The involvement of these two bodies has made the whole procedure of international trade very simple and smooth. The two ways in which the company can conduct international trade which are Direct Manner and Indirect Manner. M.S. Railtech Pvt. Ltd is advised to export their products from India to the UK in a direct manner. The company can benefit from the this method as it will get a chance to directly look into the procedure of international trade; the list of documents required and also the market condition of the country with whom the business is going to be conducted. The elimination of an intermediary will have a positive effect on the business of the organization. In fact the company can also expand the business on its own in future rather than depending on any middleman. The company could also  do the trade using a middleman. This would help the company to get assistance in filling the right documents in the right way and spare it of unnecessary trouble of facing rejections. Also, the company could use the knowledge and expertise of this middleman to gain valuable information about the risks involved. This decreases the overall risk being borne by the company. Indirect manner of trade can be beneficial for the firms who are indulging in international trade for the first time and do not want to take a very high risk.

The central station and stockroom of Arihant Manufacturer is located in Pune, Maharashtra. The products of the company are distributed throughout India via this central hub. The company uses the transportation facilities located in the vicinity to supply its products to different areas and for  conveyance purposes. For the purpose of transporting the goods overseas, the company is suggested to join hands with FedEx (UKIBC, 2016).  FedEx will take the organization’s products from its central stockroom to the port in a legitimate way under sealed and secure condition in order to ensure the safety of the products. The transportation has to be done very carefully as the products will be fragile and can be damaged easily. The mode of transportation used in this trade will be waterways. The goods will be picked up from Jawaharlal Nehru Port in India and will be headed to Port of London, United Kingdom. The import code for LED Lights and bulbs in the UK is 8543709099. The shipment will then be merchandised to LIDL Limited which has a valid permit to get these items imported (Construct UK Ltd, 2016).

Export Documents Required

Bill of Export is a critically important document required by the custom authorities in order to allow the shipment. Business invoices provide a detailed description of the cost of the items and the date of their delivery. The letter of credit is a document that provides verification, ensuring that the exporter will receive the installment and the amount mention on the letter of credit is accurate.

FedEx will be completing the transportation of goods in both the countries. The characterization and coding of the products in shipment are done by Arihant Manufacturers which will assist in arranging and amending the products accordingly.

1. The  lights that had been imported by Europe initially, from China, Bangladesh, Inida and Vietnam were poor in quality which had an adverse effect on the LED Lights import market in the UK.A number of European countries have had to go through a lot of trouble in selling these low quality lights. Consequently, the European nations have now begun to test the items before importing them to reduce the loss that will be born by the company selling them. Numerous stringent rules and regulations have been introduced after the countries had a bad experience
2. While shipping the merchandise, there can be deferred in the view of regular disasters and can hurt the item. Requests won't not reach on time and this will have an awful impact on the client and this will prompt postpone in installments.
3. Developing business sector of Led Lights in the UK will prompt, aggressive condition and this can influence the evaluating strategy and danger of diminishing cost by the local makers, in the event that they diminish the value it will influence the exporters (Walsh, 2012).

1. As Arihant Manufacturers is the sole producer and manufacturer of the products, the organization has the benefit of saving on any additional costs of buying the products from any other organization and then exporting.
2. The price of LED lights in the UK is far more than the products’ price in India. Arihant Manufacturers can make higher profits in the UK. The cost of exporting has to be incurred but still Arihant Manufacturers enjoy a significant portion of the profit margin from the business.
3. Arihant Manufacturers can join hands with the local manufacturers which would allow Arihant Manufacturers to cut down on a major percentage of its cost of production whilst increasing its profit. This will also enable Arihant Manufacturers to escape from a number of taxes that are levied during the process of  merging with the local manufacturer and start producing goods at a cheaper rate. This will eventually help Arihant Manufacturers  maintain competitive advantage and become a leader in the market. Arihant Manufacturers can also get some tax relief by conducting the manufacturing process in the UK itself..
4. Getting recognized in the UK will give Arihant Manufacturers a great opportunity to enter into other European countries easily without requiring any major introductory promotions and activities. A lot of other European nations have great potential which could help the organization to become world famous (Safi, 2016).
5. The Led light market is developing each year, making way for Arihant Manufacturers to recover its initial capital investment readily and then start making additional profit in the following years.

To conclude, it can be said that the idea of exporting LED light bulbs from India to the UK seems like a great business idea. The content stated in the report explains the importance of international trade, the challenges and opportunities and also lines up a series of documents that are required to comply with the legal and national rules of different nations. The study explains the export plan of LED lightbulbs from India to the UK as a very opportunistic trade between both countries and individual firms. Due to increase in the globalization international trade can be used by every country to receive foreign remittances and also take benefits of the opportunities available across the world.

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Team, A., 2017. Arihant LED Lights, a New Technology in LED Lighting. [Online]
Available at: http://www.arihantledlights.com/about.html

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Walsh, A., 2012. Guide to International Trade: Supporting your global ambitions: RBS, Available at: http://www.britishchambers.org.the UK/assets/downloads/RBS_Guide_to_international_trade.pdf

Zion Market Research, 2017. Global LED Lighting Market size & growth estimates $54.28 Billion by 2022: Zion Market Research, Available at: https://globenewswire.com/news-release/2017/04/24/970037/0/en/Global-LED-Lighting-Market-size-growth-estimates-54-28-Billion-by-2022-Zion-Market-Research.html