Answer to Question #246969 in Economics for Neha

Question

Ganesh began a mask manufacturing unit in Chennai ten years ago. He sells surgical masks to several medical institutions in South India. Though the business is doing well Ganesh started to feel that he should expand the business by attracting more customers. Ganesh has an opportunity to sell the masks to Sri Lanka and Mauritius. He has also been contacted by a party in Gurgaon for sales. Based on his production capacity Ganesh can either take up the North India market.

a. What factors are to be considered by Ganesh to decide if he wants to go for exports in Sri Lanka and Mauritius?

b. If Ganesh decides to go for Exports what procedure and documents are required?

Answer 1

a. Like any business decision, going global comes with risks. The factors to be considered by Ganesh to decide if he wants to go for exports in Sri Lanka and Mauritius are:

1.Do You Have a Ready-Army to Run Your Export Business Flawlessly?

2.Are You Ready to Invest?

3.What Is Your Target Audience?

4.How Have You Priced Your Products? Is the Pricing Too High or Too Low?

5. Are your documents ready?

b. As per Notification No. 114 (RE-2013)/2009-2014, dated 12th March, 2015, there are 3 mandatory documents required for export which are as follows: Bill of Lading/Airway Bill: Bill of Lading/ Airway Bill issued by carrier of goods are one of the three mandatory documents required for export.