MedicalCare International Harvard Case Solution & Analysis

Introduction

The paper attempts to discuss the logistical issues for the countries Brazil and India before commencing the export operation to Jebel Ali. The paper also attempts to evaluate the modes of transport for the export of the products. Furthermore, the paper discusses and compares the transit time by sea for the suppliers exporting from their ports. The suppliers include from the country include Baltimore and Rotterdam comparing with Sao Paulo and Bangalore. Lastly, the paper attempts to provide recommendations while reviewing and comparing between the transit times for both the exporting countries and destinations.

Various Logistical Issues

Exporting from a particular country can help a company to grow and prosper, but at the same time the particular option poses many risks. MedicalCare International has exported from companies situated in Rotterdam and Baltimore; however, since their capacity has been fully utilized therefore, the company aims to target new exporting countries which include Sao Paulo and Bangalore. The logistical issues that could be faced by MedicalCare International are discussed below:

Information

Information issues regarding a clear understanding of cultures, economic conditions of the country, political stability, and customs could be the basic essentials that should be considered before making decision for export. Therefore, the company could encounter research issues in deciphering and exploring the current issues of the country. The best approach towards deepening the understanding of a country is to meet with the business community and the government delegations to understand the procedure of export and the requirements in meeting the criteria for the particular country. Moreover, trade officers could guide the company with the buyers and the sellers of the products, while consulting with the government sources could also be beneficial for the company while making exporting contracts (Stadtler, Kilger, & Meyr, 2014).

Laws and Regulation

International trade laws and regulations could be complex and can vary from countries to countries and can create a significant impact to the export operations. The company needs to consider the contracts that shall be signed by the two companies and must be adhered by the Indian and the Brazilian legislation. The company should also need to investigate the rights of the intellectual property and also the taxation, custom duties, and payment conditions from the supplier so that the company may decide the total cost and make future decisions (Stadtler, Kilger, & Meyr, 2014).

Payments

There could come a time when the company may face concerns of how the company or its suppliers may send the payments for the shipment. The company shall be facing many intermediaries and other clients in whom the company needs to become extra careful as Brazil and the Indian market are also new for MedicalCare International. The payment options may include open accounts, letter of credit, cash in advance, collections, and other modes of payments (Kraxenberger, 2008).

Tariffs, Customs, and Free Trade Zones

As the two factories outlined would be sending the goods to Jebel Ali which makes it the foreign market, therefore, these companies shall consider political agreements and other arrangements before sending the shipment. Also, it is the duty of MedicalCare International to make these companies understand the issues that these companies might face as they are going international for the first time. Therefore, these companies may consider the four aspects before entering the free trade zone market of Jebel Ali. Since Jebel Ali is a free trade zone, the customs duty do not intervene the trade which ensures that there are no taxes or any other payment structure involved when the goods are handled or landed in the area. However, if the good is exported from Jebel Ali to other areas then the particular company would have to deal with the custom duties of that particular country. The second aspect includes the customs requirement which involves the taxes and the custom duties the overseas company has to pay while dealing with exports. Since MedicalCare International is involved in importing different materials from Sao Paulo and Bangalore to Jebel Ali, therefore, the company does not have to get involved in the complexity of custom requirements (Kersten, 2011)...................................

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