U Kar Ka: Offering Quality Tea at Affordable Fees Since 1928 - Research Paper

Introduction

U Kar Ka is a traditional Myanmar tea producing company since 1928 (Shi, and Gong, 2012). The Company aims at providing the best quality tea at the most affordable fees that ensure that any person from any social status can easily purchase their products as most are offered at very affordable rates. The company produces a variety of products hence making it known widely both locally and internationally. Just like any other thriving business, the U Kar Ka company faces a lot of competition, especially from the Indian and Asian companies. The company has so far been doing well with shops all over the world (Shi and Gong, 2012). Though they don't export too much in the United States, it has been significant progress for them since most citizens in the United States prefer taking coffee. Among the goods that china export to the United States of America, tea has been the least commodity though it has improved with 1.2 % since Americans are slowly embracing tea. (De-Heer, 2011). This paper is about a report that shows the import of U KAR KA Jasmine Tea to the United States.

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They make use of the most appropriate marketing strategies to attract more buyers and make their products more known to their potential customers. In terms of pricing, they ensure that their products are affordable, readily available in the markets, and favors all social classes present in their region. The company provides a wide range of products in their markets; they also produce black tea and even pickled tea leaves (De-Heer, 2011). They highly respect and believe in the potential that green tea has. For them to take control of their surplus production, the focus on the growth of their farmers by always giving back to the community and also taking a big part in making sure that the population grows. Through this, their company grows vividly.

The company ensures that they have all the trading documents, and this gives them a chance to create more international markets.

The company deals with the export of goods from Maynmar (Burna). Businesses always have an opportunity to expand globally (De-Heer, 2011). However, they still have to take several steps to ensure that the company is ready to take charge of the export business. The following steps have to be considered when exporting goods:

• A company should be willing and ready to ship.
• Create an export business plan.
• Plan an effective marketing strategy.
• Find foreign buyers and markets.
• Get paid and finance on the export transaction.

In today's market, many companies sell goods and services globally. 95% of consumer rates are outside the United States of America (De-Heer, 2011). For a company to sell its market value, it must continue to efficiently boost their bottom line and also build on its competitiveness by marketing and selling their products to world markets.

Other reasons that should motivate companies to expand their export of goods include:

• The future involves growth in global trade in products, and services-The future is held to speed on the flow of goods and services across diverse borders and to reduce the costs involved in the exportation of goods due to an increase in competition.
• Free trade agreement partner opportunities are whereby states will negotiate free trade agreements to support the more natural movement of goods across borders where the consumer is at. This will increase the competition in the market, therefore, making these products cheap for consumers will create additional business opportunities by strengthening intellectual property rights, and protections and under this agreement, foreign companies will be treated as equal to domestic companies.

Creation of a global marketing and international sales.

The exportation of goods is proper when it comes to the economy of a country. In this instance, when U Kar Ka Company exports its tea produce to the United States from Myanmar, it brings, among other benefits, an upgrade on the economy of the state (Shi, and Gong, 2012). Other importance of these export includes an increase in employment rates and the balance of payments.

What Then Determines The Level Of Exports By U Kar Ka Company?

For U Kar Ka to have a successful export that would increase the economic growth of the state, they need to consider the following factors:

• Competitiveness- this here plays a significant role in determining the number of goods one can export. For U Kar Ka to be competent and to have a high market value for their products, they need to look at their price rates and compare them to other companies doing the same export business. This can only be determined based on the productivity, infrastructure, and price of raw materials to grow tea.
• Quality of products- the key determinant here for the company is on the quality and value-added to their tea.
• Exchange rates- the company needs to look at the exchange rates of their state to the United States of America to ensure that they do exportation when there is no depreciation in their prices at market value.

The economic growth of the USA is the country they are exporting their tea products.

How then does U Kar Ka Company create an efficient market value for their goods?

The company needs to ensure that they introduce their products to the market and state the benefits and reasons as to why their products are worth being exported, reduce on costs to attract higher market value, ensure that they become a market leader in the industry, and to provide high-quality tea products.

What then are the benefits of exporting their goods to the USA?

• Increase their sales potential; - exporting their tea products will help the company increase its sales potential in general. Instead of the company focusing on local sales, they expand their sales potential and also discover opportunities to present their products in diverse places. This is also a way of scanning opportunities in other countries.
• Increase in profits- exporting goods will increase on earnings of the company. This is mainly so because most of the time, foreign orders come in large numbers compared to local laws, which hardly come in large quantities because the consumer knows that the company is in their local state, and they can always get the produce.
• Increase economic growth for the company.
• Increase in domestic economic activity.
• Creation of stronger diplomacy and foreign policy among the two states- due to the rise in the exchange of goods that are quality rated and are useful to the consumers.
• More options for the company- this is because the company can be no longer significant on a single market but can also try and venture into other quality products that can be needed by diverse countries.
• Long term sales life of the products- since this will create a new market eventually, the company will have a life-long running business on the produce.
• Goods trade-in with China.
• United States goods trade in with China

Comprehensive Market Report

Government Regulations and Tariffs in Importing Country

Some tariffs and regulations are set in every country that regulates the goods that come in or get out of the country. The fare is the tax that is applied to every export or import on a ruling or sovereign nation. It is policies or governs ship that helps in protecting the domestic or local produce. Every country has these policies. In the United States of America, the tariffs are applied to the imported goods to increase their prices (Hicks, 2009). This enables the local producers are sellers to sell their products at favorable prices because they are not forced to reduce their costs due to competition from the imported products. The government's priority is the domestic products because they employ so many people. Increasing the prices of imports also helps the local products to sell at a higher price. When imported right gets into the United States of America, the taxes are paid to the United States customs by the United States, only registered firms. This is the only form of payment, and then the chain of charge, which is the tariff, is passed to consumers, manufacturers, and the customers of the products by the importers through raising the prices. The tax mostly affects the buyer by making it so costly to try to import the goods into the United States, which is beneficial for domestic manufacturers but also expensive to the consumers.

The consumption of tea in the United States has been on the rise in the years. The Jasmine tea that is produced by U Kar Ka has been on the increase in absorption in the United States markets, making more substantial quantities of imports. The company has shops worldwide due to the demand of their tea leaves. The tea leaves are imported from China, which is fond of using global trade rules for their benefit. China, with so many exports, is said to use the inconsistency that is in international trade at the expense of other countries, which includes the United States of America to grow its economy because they don't suffer from the recession (Hicks, 2009). China engaged itself in a two-pronged effort to be able to continue dominating the exports. This was done by it lowering the currency value and the use of protectionisms that they use against their partners in trade.

The china government is known to defend the policies of exports too much. We can say that their systems are not very friendly, having dominated the export trade due to having many products that other countries need from them. They always want to be on the better side of the deal to boost their economy.

The balance of payment in china at the moment is that the net foreign direct investment flows together with the surplus of the parallel to the current flow of the outflows, which facilitates or makes China capable of borrowing money from the world which they use in financing the loans they give to the world.

The china's foreign exchange policy states that the foreign exchange state of administration and china's people's bank should manage the exchange rates flow inside and outside the country, and by the use of a distributed float system, they set the exchange rates. (Hicks, 2009)

To import goods in the United States, they must get in through the port of entry with authorization being done by the customer and boarder protection, and the duties that are estimated should be paid fully. To be able to export, one is required to get a license for every country that one plans to import from. The procedures to get one are not the same. One might get a training certificate to gain knowledge on how to import from different countries. To import from different states vary, but to import from China, one needs a shipping list, customs declaration, bill of lading, sales contract, and an insurance policy. The tariff duty of exporting U Kar Ka tea leaves is 25% on 2493 goods.

References

De-Heer, N. E. A. (2011). Formulation and sensory evaluation of herb tea from Moringa oleifera, Hibiscus sabdariffa, and Cymbopogon citratus (Doctoral dissertation). Retrieved from http://dspace.knust.edu.gh/handle/123456789/2095

Gao, Y., Hu, N., Han, X., Giffen, C., Ding, T., Goldstein, A. M., & Taylor, P. R. (2009). Jasmine tea consumption and upper gastrointestinal cancer in China. Cancer Causes & Control, 20(10), 1997. Retrieved from https://link.sprin...