Global Business Strategy
Globalization brings in a lot of challenges, which are specific to performing consistently in various nations as well as international marketplaces. What are the excellent means to go through or take benefit of an international marketplace? When can one alter an item’s characteristics to modify it to customer requirements in the various international marketplace? How do one can supervise the expenses and difficulties of manufacturing and/or endorsing items in various sites, with various languages, customer hopes, and cultural understandings?
Thus in this report, the research and recognition of the nature of the international marketplaces are briefly discussed. The factors that influence the development, as well as the implementation of international business strategy, are also discussed further in this report.
International markets give jobs to a huge amount of people. It is believed as an essential source of making an overseas exchange for the country. In these trades, all the payments are completed in foreign cash of various countries. These trades aids in enhancing the standard of living of the community in various countries by providing good quality products. The international market comprises of various types such as exports and imports, licensing, investment, franchising, foreign direct, etc. There are certain natures of international markets (Weerawardena et al,2019):
- International restrictions – In international markets, there are frights of the constraints that are obliged by the government of the respective countries. Several governments of the countries do not permit international trade in their country. They might have tariff barriers, trade blocks, foreign exchange limits, etc. These aspects are damaging to international markets.
- Advantages to partaking countries – It provides profits to the countries that are partaking in international trade. The wealthier or progressed countries develop their business to the worldwide level and they obtain the utmost profits. The growing countries acquire the newest technology, employment chances, foreign capital, quick industrial growth, etc. This aids growing countries in growing their economy. Thus, growing countries unwrap their economy for overseas investments.
- Large Scale Operations – A huge amount of operations are performed in international markets at a time as it is performed on a vast scale worldwide. Manufacturing of the products at a vast scale, they have to satisfy the demand to a worldwide extent (Duman et al, 2017). Marketing of the item is also done at a vast scale to make them conscious regarding the product. Primarily, they satisfy the local requirement and then they sell overseas the excess in the foreign marketplaces.
- Integration of Economies – The economies of several countries are combined by the international markets. The organizations utilize the finance, resources, infrastructure, and labor of the other countries, gather the goods in other countries and trade their goods in other countries.
- Dominated by urbanized countries – International markets are lead by urbanized countries and their Multinational Companies. Countries such as U.S.A, Japan as well as Europe each are the countries, which are manufacturing high-quality goods, they have staff working for them on elevated pays. They have huge economic and other resources such as the most excellent technology as well as the Research and Development hubs. Thus, they manufacture high-quality items and services at cheap costs. They aid them to detain the international market.
- Market Segmentation – International markets are based on market division on the view of the geographic division of the customers. The market is segmented into various sets according to the requirement of the customers in various countries. It manufactures products according to the requirement of the customers of the various market divisions.
- Sensitive Nature – International markets are immensely influenced by economic rules, technology, political atmosphere, etc. It might play an affirmative function to enhance the trade and might also be pessimistic for the trade. It solely relies on the rules made by the government, and it might aid in enlarging the trade as well as maximizing the benefits and vice-versa (Guillén et al, 2018).
There are few factors that lead to the development in the International Business:
- Growth and expansion of technology
The beginnings of the telegraph in 1838, the telephone in 1877, the wireless in 1896, the aeroplane in 1904, the television in 1927, the liquid-fuelled spaceship in 1928, the coaxial cable in 1931 as well as the digital computer in 1947 were every main incident, which generated the development of international trade. After air transportation, electronic conversation, digital data processing has been the various other major regions of technological creativity. Each of these technological enhancements given the stage for organizations, to begin an elevated number of activities of international trade (Zhang et al, 2017).
- The liberation of cross border processes
The governmental obstruction for international trade has been reduced after the Second World War. NAFTA, the European Union, ASEAN and other geographical financial blocks all over the world give some constraints on cross border movements. The European Union was rewarded the Nobel Prize for harmony in 2012 in the identification of its building maintenance of harmony, enhancing the connection between countries via business, understanding and human rights in Europe for six decades. The European charge president Jose Manuel Barrosa at the beginning of getting the prize said that “we respect this prize as well as hold what had been accomplished. This success will push the expedition for structuring a better-maintained world with the worth of freedom, human rights, and democracy.”
- Growth of supporting services
Governments and organizations have created services that initiate further international trade. For example, Mail that is government domination, can be relocated by an airline rather than the origin of the country, can go by several various nations earlier than reaching the ultimate destination with the stamp of the nation of origin. Also, banking companies have created efficient and effective methods for organizations to get paid for their overseas trades. The banks might help in the disbursement of any money via different global transactions upon the receipt of products (Gray, 2019).
Weerawardena, J., Mort, G.S. and Liesch, P.W., 2019. Capabilities development and deployment activities in born global B-to-B firms for early entry into international markets. Industrial Marketing Management, 78, pp.122-136.
Duman, D.U., Green, S.D. and Larsen, G.D., 2017, June. Competitive strategy as narrative: Turkish contractors in international markets. In 9th Nordic Conference on Construction Economics and Organization 13-14 June, 2017 at Chalmers University of Technology, Göteborg, SWEDEN (Vol. 13, p. 451).
García-Canal, E., Guillén, M.F., Fernández, P. and Puig, N., 2018. Imprinting and early exposure to developed international markets: The case of the new multinationals. BRQ Business Research Quarterly, 21(3), pp.141-152.
Child, J., Hsieh, L., Elbanna, S., Karmowska, J., Marinova, S., Puthusserry, P., Tsai, T., Narooz, R. and Zhang, Y., 2017. SME international business models: The role of context and experience. Journal of World Business, 52(5), pp.664-679.
Gray, D.E., 2019. Doing research in the business world. Sage Publications Limited.