International Trade and Mariano

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Case Study 1: A Golden Opportunity: Exporting Easy Flame Barbeques to Argentina?

1. Many export activities begin in this way; however, there are a number of issues Mariano has overlooked. Name five of these. 2. Mariano has chosen indirect export as his initial mode of entry-discuss the advantages of this compared to other possible entry modes Mariano might have chosen. 3. How might Austrade be able to help Mariano with his proposed international marketing venture? Identify the types of services that Austrade offers. 4. In what ways will Mariano’s background and skill set assist him in undertaking this venture? What skills might he lack? Is his general approach one that you would personally recommend? 5. In what ways would exporting the barbeques to Argentina differ from distributing the products to other parts of Australia where they are currently not available (such as Western Australia)? Are there advantages to internationalization? 6. What uncontrollable factors in Argentina could impact on Mariano’s chances of success in his proposed international marketing venture? In particular review the role of economic and financial conditions. 7. Assuming the Easy Flame manufactures are interested in selling the products what are some of the important decisions Mariano needs to make in formulating an export marketing strategy?

Answers

1. Many export activities begin in this way; however, there are a number of issues Mariano has overlooked. Name five of these.

There are many exporters who started their business from different countries n they being the origin of other country as Mariano, one among the same, Mariano Ferreyra, an Argentinean-Australian who has been resident in Australia for a number years, found this some what surprising. Here are the Issues on which Mariano over looked 1) He has noted some of the similarities in lifestyles between Australian and his fellow Argentineans, and having traveled to Brazil he could see similarities there as well. 2) Noted many of the differences as well between the predominant Anglo-Saxon culture in Australia and the Latin American cultures. Where Latin American is a continent comprising a series of markets that many Australian exporters do not usually consider. East Asia, North America and Europe have far more prominence in exporters’ minds. 3) Mariano has seen many products nit available at home in Argentina, or which, if they are available, generally incorporate a lower level of technology, he has also noticed products available in Argentina that do not appear to be available in Australia at that point of time the two economies are at different stages of economy development so that Mariano thought of doing business from Australia and can take away the business to Argentina where, 4) Many export activities begin in this way he said, living in Australia it seems easier for Mariano to identify products here that might be suitable for exporting to Argentina as a lot of work would be required acquiring the identified products and organizing their shipment. 5) And he also looked on the Argentina’s natural resources, population skilled human resources well infrastructure, considerable manufacturing capacity, membership of a regional free-trade association and large middle class families. Through which he understood the position of the market so that he can export the business from Australia to Argentina.

2. Mariano has chosen indirect export as his initial mode of entry-discuss the advantages of this compared to other possible entry modes Mariano might have chosen.

There are different modes of entry into another country, such as, • Export
• Licensing
• Franchising
• Assembling Unit
• Joint Venture
• Manufacturing
• Agents
• Local or Distribution or Dealership Mode of entry.

Argentina is however, a less developed country than Australia, which has many consumer products at the maturity...
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