初稿-Country Brief.docx

Bosnia and HerzegovinaCountry BriefThe Export of Agriculture Products into Bosnia and HerzegovinaByContentsIntroduction32. Introduction of Bosnia and Herzegovina32.1 The Social Status of Bosnia and Herzegovina32.2 The Economic Situation in Bosnia and Herzegovina32.3 The Political Situation in Bosnia and Herzegovina43. The Import Demand of Bosnia and Herzegovina Agricultural Products and the Exports of Australia Agricultural Products43.1 The Import Demand of Bosnian Agricultural Products43.2The Export of Australias Agriculture and M Company54. The Problems of M Company Exports Agricultural Products to Bosnia and Herzegovina54.1 Tariff Barriers54.2 The Trade Restrictions of Technical Barriers54.3 The Limit of the Special Safeguards64.4 Product Qualification64.5 Lack of International Competitiveness64.6 Macroscopic Aspect74.7 Micro Aspect75. M Companys Countermeasures75.1 Speed up Scientific and Technological Innovation and Training Professional Talents75.2 Establish an Environmental Management System86 Mode of Entry8Conclusion9Reference10Appendix11Appendix 1 An introduction to the Agriculture in Australia11Appendix 2 Geography in Bosnia and Herzegovina12IntroductionBosnia and Herzegovina is a member of the European Union and a country with a great amount of agricultural production and import volume. Faced with a huge amount of imported food, it is required for Bosnia and Herzegovina to have a scientific food management system as a guarantee, so as not to hinder the high-speed operation of import trade. How to ensure the food with a rapid clearance, and ensure the safety and the interests of consumers is a remaining problem that Bosnia and Herzegovina should consider. Australias agriculture is highly dependent on the world market. A considerable portion of the agricultural products are exported, in which the price of agricultural products reflects the world market price. The fundamental reform of the global agricultural policy will reduce the distortion of the world market. It is necessary to raise the price of agricultural products in the world and provide more trade opportunities for Australian farmers. This essay briefly introduces how the Australias exports agricultural products company face up to the Bosnia and Herzegovina food law, management system, a series of problems for domestic counterparts, which is to use for reference.2. Introduction of Bosnia and Herzegovina2.1 The Social Status of Bosnia and HerzegovinaLocated in central and western of the Balkan Peninsula, Bosnia and Herzegovina is a country near to the Adriatic Sea. The capital of Bosnia and Herzegovina is Sarajevo, the area of which is 51 thousand and 200 square kilometers, with a population of about 3.834 million. The main nation of Bosnia and Herzegovina is Bosniaks (i.e. south, the original period of Muslims, 43.5%), Serbs (approximately 31.2%) and Croats (approximately 17.4%)(Yi&Li,2003). The three nations respectively believe in Muslim, Orthodox and Catholic. Official language is Catalan language bosh, Serbian and Croatian, consisted of the Federation of Bosnia and Herzegovina, the Republika Srpska and a SAR (Boolean Chicot District). There are 10 states under the Federation of Republika; Srpska consists of 7 areasChen&Yu,2005).2.2 The Economic Situation in Bosnia and HerzegovinaAgriculture, food processing industry and the tourism industry are the pillar industry of economy of Bosnia and herzegovina. In 2012, agriculture, industry and service industry in the national economy in Bosnia and Herzegovina respectively accounted for 8.2%, 26.2%, 65.6%.(Qiao&Zheng,2013) The IMF and the European Union respectively signed standby arrangement plan loans (SBA) and alignment and stabilization agreement (SAA) with Bosnia and Herzegovina through social security reform, accelerating the privatization process methods maintain fiscal revenue stability of Bosnia and Herzegovina to ensure macroeconomic stability and promoting economic reform. Nearly two years of austerity and high unemployment effects, domestic demand in Bosnia and Herzegovina declined, and GDP growth slowed. Bosnia and Herzegovinas mainly exports are base metals, minerals, machinery and equipment, wood; mainly imports mineral, machinery, food and chemicals; the main trading partners are Germany, Croatia, Serbia, Italy, Australia and other countries.2.3 The Political Situation in Bosnia and HerzegovinaThe Republic of Bosnia and Herzegovina is located in the former central Yugoslavia, between Croatia and the Serbia Republic. In 1945, the peoples of Yugoslavia had obtained the victory of the anti fascist war. It was at that time that the Yugoslav federal peoples Republic of China (in 1963 it was renamed as the Socialist Federal Republic of Yugoslavia) was established. Bosnia and Herzegovina became a Federal Republic of Yugoslavia. Its capital is Sarajevo. In Yugoslavia period, Bosnia and Herzegovina Hesse was one of the poorest areas within the United Utates.( Andrew,2014) At present, the Bosnian economy is gradually recovering. At the same time, it is changing from planned economy to market economy. The country is divided into three entities in the administration and management. One is the Federation (also known as the Federation), another for the Republika Srpska, again for the BURC Kurt district. In November 1995, Bosnia and Herzegovina made constitution according to the Dayton agreement. The constitution stipulates that its formal name is Bosnia and Herzegovina. Bosh njak nationality, Serbia and Croatia and were as the main body; consisted of Bosnian Serb entity and the composition of the federation; three man presidency of Bosnia and Herzegovina, consists of three main ethnic represents the one composition, members of the presidium were respectively elected by two entities directly( Paul et al,2016).3. The Import Demand of Bosnia and Herzegovina Agricultural Products and the Exports of Australia Agricultural Products3.1 The Import Demand of Bosnian Agricultural ProductsBosnia-Herzegovina foreign trade has been dominated by import, which was embodied in agricultural products. Every year there are a large number of imported agricultural products through other neighboring countries to Bosnia and Herzegovina, and the statistics of customs agricultural imports were about 1.4 billion Euros in 2012, accounting for 18.46% of the total imports of Bosnia and Herzegovina and rose up 1.68% from a year earlier. Compared that the agricultural products export is small, exports of agricultural products in 2012, 327 million Euros accounted for 8.12% of total export of Bosnia and Herzegovina and up 4.21% from a year earlier. Grain is also similar, Bosnia and Herzegovina has 250,000 hectares of arable land that not be developed, but last year the imported 150000 tons of corn valued 58 million mark and 140,000 tons of wheat valued 53 million mark. Bosnia-Herzegovina foreign trade deficit was 7.51 billion in 2014, of which 2.1 billion were used to import agricultural products and food. It is reported that Bosnia and Herzegovina still imported large quantities of similar products although timber resources, stone, fruits, vegetables and other products of domestic supply is adequate( Nicolas,2013).3.2The Export of Australias Agriculture and M CompanyThe export of Australias agricultural products is an important part of Australias exports. Every year the exports of goods and services in Australias share of gross were about 20%(Zala&Erjavec,2015). Exports will continue to increase because the Australian agricultural output continues to grow for several years, in addition to the agricultural products. M Company in Australia is in the agricultural products export company, completed the supply, integration and the industry leader. But because the companies has changed operating environment in recent years and M Company found some problems in market competition, the export of M Company agricultural products are affected by various factors. The international environment restriction of trade barriers and exports are constrained by the world economic situation, so we will analyze the M Company exports of agricultural products of Bosnia and Herzegovina to face problems, and solve it.4. The Problems of M Company Exports Agricultural Products to Bosnia and Herzegovina 4.1 Tariff BarriersTariff is the most basic trade policies. Agriculture agreement comes into force, although the effect of tariffs gradually reduced. However, agricultural products as fruits in many countries are sensitive products. Therefore, tariff in the national fruit imports still plays an important role. Bosnia and Herzegovina is setting seasonal tariffs on fruit, and imports of fruit produced in THE EU, so a high tariff on imported fruits in lower duties in other time in production season. It does not produce lower tariffs about fruit in Bosnia and Herzegovina. So M Company exported agricultural products to Bosnia and Herzegovina facing the problem of tariff barriers.4.2 The Trade Restrictions of Technical Barriers The trade of technical barriers is the major form of barriers in international trade activities in China-Africa tariff, and it mainly refers to the business Product importer in order to maintain their production, consumption safety and health for the reasons, such as through the technical regulations, technical standard accurate and the health and quarantine standards or specific provisions of commodity packaging and labels. Due to the trade of technical barriers in the form of the nominal rationality, legitimacy, the agricultural trade protection among countries is gradually becoming the most commonly used and the most powerful trade policy Protection tools. Bosnia has been through the technical trade barriers to protect their own agricultural products market since joining the European Union. The export of M Company agricultural products to Bosnia and Herzegovina will face the problem of the trade of technical barriers. 4.3 The Limit of the Special SafeguardsM Company also faces a specific product transitional safeguard mechanism and the negative impact of the safeguard clause is short. For example, in 2005, the World Canned Oranges Second largest exporter of Spain, with the export of Chinese canned orange price was too low making the orange industry poses a serious threat and orange farmers face unemployed, cited as requested to the European commission to take measures to Chinas exports of citrus canned enterprises implement special safeguard(Ferhat et al,2008). After the proposal was rejected, Spain made again in Spain safeguard for Chinas exports of citrus canned investigation. This is agricultural exports encounter safeguard survey for the first time after Chinas accession to the WTO. Once the EU decided to take safeguard measures, the exports of Australias agricultural products will be subject to a deadly blow.4.4 Product QualificationIn order to protect the safety of agricultural products, developed countries not only established the advanced technical regulations and standards, but also implemented strict quality certification, including the quality system certification and product certification of agricultural products. The former refers to the IS09000 quality system, environmental management and other series, which includes hazard analysis and critical control point, the British Retail Consortium audit standards, international food standards, the EUs fine agricultural practices and other certification. If the M Company cannot obtain this certification in Australian, it will be difficult to get consumer confidence in Bosnia and Herzegovina. This has a great impact on the sales of M Company.4.5 Lack of International CompetitivenessInternational competitiveness of agricultural products is ability that the produces agricultural products in a country or region occupy and maintain market share in the international market competition. International Competitiveness has been widely used in the study of fruit export trade. The evaluation index system of international competitiveness can be constructed to analyze the competitiveness of agricultural products including the international market share, comparative advantage index and other indicators. M Company will enter the agricultural trade market in Bosnia and Herzegovina. It will face the challenge from the worlds agricultural export company such as agricultural products trading company in Europe and central Asia. They will bring a lot of pressure to M Company. Once the M Company has no competitive advantage of agricultural products in the international market, it cannot occupy enough market shares and has the ability to continue to be profitable.4.6 Macroscopic AspectM Company in Australia has some problems in brand marketing. The government is lack of macro guidance, consulting, investment and regulation in the production and operation of agricultural products. Market system is not great enough to improve the scientific and technological research in fruit market system. Information update is very slow and cannot adapt to changes in market supply and demand. And the change of information is very little, because the information channel is not perfect. It is difficult to pass to the farmers.4.7 Micro AspectWith the rapid development of foreign trade, Australias export enterprises become numerous. In order to control the resources of foreign customers and expanding of the market share, the competition between enterprises presents a kind of irrational malicious competition, mutual exclusion, mutually extruded. And some export enterprises even have some of the self mutilation price behavior which has disrupted the market order. Agricultural products have low price, low technical threshold and low profit margins.From 2000, there have been more companies joining the industry and the competition become more intense. The whole industry is still in a low intensity of the price war.M Company in Australia export agricultural products to Bosnia and Herzegovina. M Company also faces with fierce competition in the same industry. This will have a huge impact on the profitability of the M company.5. M Companys Countermeasures5.1 Speed up Scientific and Technological Innovation and Training Professional TalentsM Company should speed up the upgrading technology of agricultural production develop of environmental protection technology. First of all, M company should carry out product analysis and timely find out whether agricultural products do not meet the environmental regulation of harmful substances. Secondly, M Company should pay more attention to independent research and new technology. Or M Company should update the production and processing technology of agricultural products and pay attention to the cultivation of talents. M Company should achieve multiple both social and environmental objectives and benefits. M Company can cooperate with the institutions of higher learning to cultivate professional quality and environmental protection awareness. M Company also can timely grasp of the importing country, learn laws and regulations of Bosnia and Herzegovina and study the corresponding countermeasures.5.2 Establish an Environmental Management SystemM Company should incorporate environmental management into the enterprise system. M Company should effectively prevent environment and human health from harmful material. Thus, M Company should establish a sound environmental management system. M Company should not only consider the economic benefits of enterprises but also combine social interests and environmental interests. Allsectorsshould improve the awareness of environmental protection. 6 Mode of Entry Export entry mode is the model that the production of produced in the home country aresold through the establishment of marketing channels in the target country market. It is a way to minimize the degree of involvement of foreign markets and of course, is also a way to minimize the risk. General, companies export their products indirectly through the international intermediaries. And then they gradually export their products directly which is the way with a strong control. M Company is an agricultural products enterprise and it takes the way of directexport. It helps M Company a lot in entering the Bosnia and Herzegovinas market. M Company does not use domestic middlemen but directly sell products the middlemen abroad or the end users. For example, M Company sets up export department abroad, which is directly responsible for processing enterprises to enter the international market and the related matters. The fundamental difference is that production enterprises can directly contact with the international market between direct export and indirect export. M Company can have further control of the international market. Because of the direct export, M Company rapidly accesses to market information. M Company can have a large overseas marketing control, set up their own marketing channels and get rid of the interference of middlemen, which help enterprises to understand more customer information. Of course, M Company must also add more people and property investment and take greater risks. M Company directly exports its products, which mainly include the following forms: foreign sales agent, foreign distributors, foreign retailers, foreign end users and setting up overseas branches. (1) According to the cooperation agreement with domestic production enterprises, foreign sales agent uses their own sales channels and sells products in the international market. (2) Foreign distributors buy a product to domestic enterprises in agreements price and then sell them to foreign retailers. (3)Foreign ret