Write an essay in which you discuss the issues below. The essay should count up to 10 pages of text (i.e., excel graphs, tables and references). Letter type: Times roman 12. Line distance 1. Please make sure you provide appropriate (APA style) references to literature that you use.
The Kuwait Dairy Company (KDC) produces dairy products made of fresh milk. Assume that the company would want to export yoghurt to the EU. The future ELJ client(s) will be invoiced in euros. Assume also that the EU customer will be granted a customer credit of three months by the Kuwaiti exporter and will pay after that period.
- Profile the company with specific reference to why you believe it is geared to exploit the EU target market.
- Comment on the competitive (comparative) advantage you believe the proposed export product could enjoy in the EU market. Does this correspond with the advantage in the domestic market? Is the advantage sustainable over time?
- Analyse the external environment the focal firm may face in the country to be entered. Who are the main players in the competitive field?
- Determine the attractiveness of the target market in terms of market size and growth.
- What cultural differences will the company encounter when dealing with the EU or one of its member states and how will it navigate these differences?
- Determine the attractiveness of the market in terms of legal dimensions influencing contracts and intellectual property rights.
- Determine the attractiveness of the market in terms of real or perceived trade barriers (tariff and non-tariff, including technical, health and environmental standards). Countering such barriers need to be addressed.
- Discuss other tax issues (for instance, VAT) you may need to deal with when exporting to an EU country.
- Discuss how the currency exchange rate risk will be avoided.
- 10. Discuss any other challenges on your way in areas not mentioned above (logistics. marketing, distribution, payment problems, etc.)