Soybeans, The, Inc.

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USoy, Inc., a multinational company, exports soybeans to China. Soybeans are a type of legume mainly grown in Asia, South and North America. Due to the diminishing cropland space in China, demand for soybeans is expected to keep growing in the future. The reason USoy chose soybeans to export out of all the other products is because soybeans are one of the top agricultural exports from the United States. Soybeans have many nutritional benefits, they are composed mainly of protein, low in carbs, high in fiber, good source of various vitamins and minerals and they contain a number of plant compounds that may help prevent breast and prostate cancer (Arnason, 2015).

Chosen Country - China
The chosen country we decided to export
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One of the main animals they feed soybeans to are pigs, and China has half of the world’s pigs (Brown, 2013). They also feed their farmed fish. Soybeans are consumed boiled like beans. They are used to make oil, soybean powder, as a renewable resource, are mixed with other items to be used in binding furniture. Everyone has some use for soybeans.

Factors Affecting Trade For any country, international trade will have an effect on its economy. One factors that influences trade in China is inflation. If inflation is high in China, exporting to China will decrease and local businesses may resort to purchasing in other countries. Another factor that will influence trade in China is the impact of national income; if this increases compared to the home country, the current account of the foreign country will decrease, and the real income level will rise and result in demand for imports. Government policies also affect MNC’s when it comes to subsidizing exports and restrictions on import bills. If exports are subsidized, it will make local business bigger competition for companies importing to that foreign country. Restrictions on imports such as imposing of tariffs on imported goods, can reduce the company’s import. Any restrictions on exchange rates will affect the ability to use the revenue that businesses receive in Renminbi. This will cause the new Chinese law to affect doing business in China. Also if China’s government changes its policies on the value added tax
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