Discuss the strengths and weaknesses of using export controls to effectively stem the tide of high-tech equipment to countries who do not share our political or democratic beliefs. Provide an example.
Strengths of Using export control:
In today times where the market situation is very rigid and tough in order to keep up within the market, the use of certain market rules and regulations helps the exporter to overcome from the unbearable losses and expenditure to maintain the long lasting working procedures; there are certain ways where the exporter can get the relief and benefits from the government and policies. The ways export control strengthen to effectively stem the tide of high-tech equipment to countries who do not share our political or democratic beliefs are as follows:
Evaluating the product export potential ability, knowing whether you will be able to make international commitments, Analyzing the market research and policies, evaluating the distribution channel of transferability, and making you know the scenario with shipping mode and procedures.
International Partner Search: It is performed on the basis of United State companies that help their exporters to find the relative potential buyers that helps in finding the potential agents and broker for better working environment. The transactions are processed through local United States Export Assistance Centers.
International Buyer Program: This service involves the commercial procedures that help the buyers of Untied States to maintain and ascertain the managerial function of the companies. Without having much trouble and influence with the exhibitors and policies to maintain the overall impact of the company, certain rules and regulation helps the managerial function to create the impact of the business enterprise.
Exhibitions: The government helps the exporters to showcase their product from the companies enrolled within the specific tenure and policies. It helps in managing the overall impact of the companies that gives a clear rise in the working procedures and managerial function of the business enterprise (Brand, 2000)
Weakness of Using export control:
The political attributes gives the impact on working outcome of the company and trader to hamper their work procedures and policies.The U.S. involves the company’s overall impact of the companies and individuals in order to ascertain the overall view of the company policies and procedures. The legality of the trading listing that helps in making the U.S. treasury website makes the overall impact of the prohibit trade within the global recognition.
The leverage can be giving to the exporter on the term of policies while working for Untied States. It helps the exporter to avoid many multiage policies which hampers the business working aspects.Example, An exporter from Iraq wanted to buy product from Untied States, then the procedures for buying the product is very policies oriented and legally forceful. (Johnson, T. (2002).Export/import Procedures and Documentation. AMACOM Div American Mgmt Assn. Brand, R. (2000). Fundamentals of International Business Transactions. Kluwer Law International)