Executive summary
The purpose of this document is to analyze ASEAN and NAFTA trading blocs in terms of Riordan Manufacturing’s business expansion. The document defines barriers to trade, advantages and disadvantages of being a member in presented trading blocs, identifies membership conditions and determines the impact that these conditions may have on Riordan Manufacturing business expansion. The document assesses the cost of compliance and non-compliance with rules and regulations of mentioned trade blocs and analyzes the impact of trade relations among member and non-member countries. Based on this analysis the document rationalizes the NAFTA trading bloc as the proper choice for the future expansion proposal.
Introduction
“In today’s global market place, meeting standards or other specific requirements, and obtaining the independent confirmation that you do, have become essential for business success. In the domestic market, traders have to make sure that your products or services do not pose a risk to users, consumers or the environment. The trend is for business-related laws to place the responsibility for compliance squarely with business. Internationally, many markets rely on more specific technical requirements that must be met before products can be placed on the markets. Many countries insist that the traders use standard and specifications that they are familiar with. Many foreign regulators require their own testing and certification before allowing the products to be sold in their country.” (ASEAN Secretariat, n.d.)
In order to expand globally Riordan Manufacturing Inc. will have to identify, assess and comply with many laws and regulations with no particular relevance to the area of expansion. These laws and regulations will depend ...