Business Growth in Export Trading Term Paper

Business Growth in Export

Trading Company

The business development of companies relies on several factors. Their development on international level is such a factor. There are certain markets that provide important opportunities in comparison with domestic markets. Therefore, companies must focus on such opportunities and on the benefits they provide.

Naturally Green is a company that produces organic foods. The company is established in the U.S. In order to increase its incomes, the company wants to address the markets in other countries also. This is intended to help Naturally Green to increase awareness of its products.

The exports strategy of the company relies on identifying markets that have an important potential that can be addressed. This means that Naturally Green is oriented towards countries where a certain number of customers are likely to be interested to purchase organic foods. Such foods usually have higher prices in comparison with traditional products. Therefore, there are certain customer segments represented by their income that are likely to purchase such products. Naturally Green is interested in countries with individuals that have higher incomes.

Product Category

The category of products that Naturally Green intends to export is represented by organic foods. Such foods are of higher quality in comparison with other types of foods. Organic foods are made from natural products that are not affected by chemicals. These products are preferred by people that are interested in developing healthy lifestyles.

There are several reasons that determine naturally Green to export organic products in other countries (OTA, 2012). The U.S. has numerous organic producers that can become the company’s suppliers in case its production must increase. This means that the company is able to expand its production in order to address important demand from other countries.

In addition to this, the interest in organic foods has significantly increased. The U.S. are the most important producer and market in the case of organic foods. Other producers are represented by Brazil and certain countries in Europe. Therefore, Naturally Green can supply the organic foods demand in other countries.

Target Country Analysis

In order to develop its business on international level, Naturally Green has decided to export some of its products to Germany. This is because Germany has reported an increased interest in organic products. Therefore, the market in this country is able to provide significant demand to the company.

There are several reasons that determined the company to select Germany as an exports country. Germany has the largest economy in Europe. Its large population can provide a high number of customers. In addition to this, the economic development of the country leads to individuals with higher incomes that can purchase organic foods that are more expensive in comparison with other types of foods.

The country’s GDP reaches $3.114 trillion. Most of the GDP composition can be observed in the services sector. The industry is also developed. However, the country’s agricultural sector is not developed. This is because Germany is interested in investing in technology in comparison with agriculture.

Therefore, the country does not produce the organic products that are required by customers in this country (CIA, 2012). The most exported products by Germany are represented by motor vehicles, machinery, chemicals, computer and electronic products, electrical equipment, pharmaceuticals, metals, transport equipment, foodstuffs, textiles, rubber and plastic products. The most important exports partners of Germany are represented by France, the U.S., the Netherlands, the UK, Italy, China, Austria, Belgium, and Switzerland.

The most imported products by Germany are represented by machinery, data processing equipment, vehicles, chemicals, oil and gas, metals, electric equipment, pharmaceuticals, foodstuffs, agricultural products, and others. The most important imports partners are represented by China, the Netherlands, France, the U.S., Italy, the UK, Belgium, Austria, Switzerland, and others. It seems that Germany has a strong trade relationship with the U.S.

This trade relationship between Germany and the U.S. makes it easier for Naturally Green to export its products in this country. Therefore, it is important that the company focuses on addressing the German market. This is intended to significantly increase the company’s incomes.

Distribution Strategy

The success of Naturally Green in Germany also relies on its distribution strategy. In order to address this market, the company can distribute its products with the help of other distributors, retailers, or at the customers. In order to reach its objectives, Naturally Green must distribute its products through retailers.

There are several benefits that retail distribution can provide to Naturally Green. The retailer can help the company to improve its supply chain management. Such retailers also know the market in case, and can provide important information on the demand in this country. This allows the company to better evaluate its production.

In addition to this, retailers can increase visibility on the company’s products. Large supermarket chains benefit from numerous customers. These customers can also be addressed by Naturally Green. If the company selects another distribution channel, it would be difficult for Naturally Green to enter the market, and to address a large number of customers.

Large supermarket chains also provide the benefit of developing the trust of their customers. The company can benefit from this trust. In other words, customers that shop in such supermarkets trust them, and by associating with these supermarkets, Naturally Green can determine the trust of these customers.

It is important that Naturally Green selects supermarket chains with large coverage. This means that the company wants to address the urban and the rural markets in Germany. This is because there is a large number of individuals in Germany that are interested in purchasing organic foods. In addition to this, the company can also identify certain organic products stores and approach them in the attempt of reaching other markets also.

The company must develop a complex distribution strategy. The complexity of this strategy is intended to help the company reach a large number of customers. In addition to this, it is important that the company increases awareness on its products in Germany.

Germany Import Regulations

Germany is a member of the European Union. Some of the benefits of being a member of the European Union also include certain trade benefits. Trade tariffs are lower between countries in the E.U. In addition to this, the reduced barriers between countries in this union make it easier to import and export certain products.

This situation can make it difficult for Naturally Green to export products from the U.S. To Germany. The company must pay certain taxes and tariffs that do not apply to countries within the union. Therefore, Naturally Green must increase the price of its products. This is not helpful in reaching a large number of customers.

The restrictions in Germany’s exports are in accordance with E.U. regulations. The required procedures are also in accordance with these regulations. However, the activity and situation of Naturally Green are not influenced by these regulations. The company’s exports strategy is not significantly influenced.

U.S. Exports Regulations

The U.S. has numerous rules and regulations on trade. The country’s intense trade activity has determined the need of these regulations in order to improve trade relationships. The numerous trade agreements where the U.S. is a member help the country develop the trust of their trade partners.

Safety Regulations and Technical Standards

The foods industry is usually affected by strict safety rules. These rules are intended to protect customers from numerous inconveniencies that can be caused by foods. This also applies to organic products. These products are not chemically treated. However, their quality expires sooner in comparison with other products. The company must focus on certain quality standards that are established by food organizations.

The E.U. also has strict rules and regulations on the quality of food. These regulations refer to food processing, transportation, storage, and others. Therefore, it is important that Naturally Green understands these regulations in Germany and in the E.U. In order to be able to satisfy them with high quality organic products.

Cost Assumptions

In order to successfully address the German market it is important that the company establishes a price level based on the costs of the products.


Organic bread – $15

Organic fruits average cost – $17

Organic vegetables average cost: $16

Organic desserts – $32

Organic cheese – $45

Organic wine – $46

The export price established by the company includes 20% profits for Naturally Green. The company must negotiate the export price with each distributor. This is because certain distributors provide greater benefits, and they request higher discounts. If they can purchase larger product supplies, the company can significantly reduce the exports price.

The company is interested in selling large supplies, and does not want to limit to selling at a higher price. This strategy is intended to increase distributors’ interest in Naturally Green’s products (Business Dictionary, 2012). Therefore, the export price must be established in accordance with the supplies purchased by distributors.

Landed Cost

In order to successfully address the German market it is important that Naturally Green also establishes the landed cost that can favor the company. The landed cost includes the purchase price, freight, insurance, and others. In certain situations the landed cost can also include customs duties, and other taxes that apply to the shipment in case.

Shipping and insurance — 7.5% of the product’s cost.

Packaging — 5% of the product’s cost.

Profits — 20% of the product’s cost.

Organic bread landed cost – $15+7.5%+5%+20% = $19.2

Organic fruits landed cost – $17 +7.5%+5%+20% = $21.76

Organic vegetables landed cost – $16 +7.5%+5%+20% = $20.48

Organic desserts landed cost – $32 +7.5%+5%+20% = $40.96

Organic cheese landed cost – $45 +7.5%+5%+20% = $57.6

Organic wine landed cost – $46 +7.5%+5%+20% = $58.88

The landed cost is established in accordance with the profits requirements of the company. The company must also identify the profits that distributors in Germany are interested in. This is intended to help Naturally Green develop a pricing strategy that can satisfy the company, its distributors, and its customers. It is important to also develop the pricing strategy in accordance with productivity.

Reference list:

1. Industry Statistics and Projected Growth (2012). Organic Trade Association. Retrieved November 21, 2012 from

2. Germany (2012). CIA, the World Factbook. Retrieved November 22, 2012 from

3. Landed Cost (2012). Business Dictionary. Retrieved November 22, 2012 from

Get Professional Assignment Help Cheaply

Buy Custom Essay

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Why Choose Our Academic Writing Service?

  • Plagiarism free papers
  • Timely delivery
  • Any deadline
  • Skilled, Experienced Native English Writers
  • Subject-relevant academic writer
  • Adherence to paper instructions
  • Ability to tackle bulk assignments
  • Reasonable prices
  • 24/7 Customer Support
  • Get superb grades consistently

Online Academic Help With Different Subjects


Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.


Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.

Computer science

Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!


While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.


Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.


In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.


Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.


We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!


We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.


Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

  • When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
  • We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

  • The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
  • We will have a different writer write the paper from scratch.
  • Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment  Help Service Works

1.      Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2.      Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3.      Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4.      Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

smile and order essaysmile and order essay PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!

order custom essay paper