Furthermore, discrepancies affect inventory levels because the continuous inventory inaccuracies result in revere plastics having to overstock on inventory to be able to replace shortages. 10. This will result in an increase in holding costs for revere
Last, but certainly not least, they eliminate tariffs and other trade taxes. This gives companies within both countries a price advantage. Advantages: They are easier to negotiate than multilateral trade agreements, since they only involve two countries. This means they can go into effect faster, reaping trade benefits more quickly. If negotiations for a multilateral trade agreement fails, many of the nations will negotiate a series of bilateral agreements instead.
This globalization system has its own guidelines, rationale, incentives, and motivations that will and do influence every organization, every nation, and every group, either straight forwardly or in a indirect way. According to my perspective globalization does not promote conflict in the international system because globalization is making the world less competitive and diminishing conflicts, it makes nations more interconnected, particularly through trade. Presently the decentralized strategy for generation and lower transportation costs all around the globe implies that a solitary decent can have segments that were delivered among a nations around the globe. A phone could have parts that were made in China, Malaysia, and India etc. Also, new markets are opening up always making worldwide organizations enter in more zones of the world.
There has been research supporting standardization because globalisation has stimulated a union of cultures with similar environmental and customer demand around the world. The bases of the arguments of the supporters of standardization are that needs and wants of the consumer do not vary significantly at the international level. In their view the world is becoming increasingly more similar in relation to the requirements of the customers and environmental factors despite their regional and geographic location. Additionally, trade barriers are getting lower and that technological advance and companies are displaying a global positioning in their strategy. As they believe, creating one strategy for the global market and standardizing the marketing mix elements can achieve consistency with customers as well as lower costs (M. Theodosiou & L.C.
The aim of the paper work is to describe goals of international trade; to describe what international trade is; how it organizes and works; to give explanation of economic principles (absolute and comparative advantage); to revise advantages and disadvantages of international trade; to revise restricting trade International trade Trade — when two or more individuals exchange goods and services among each other. It is known that people have been trading things since ancient times. Trading included all civilizations. It was necessary to achieve better variety and quantity of goods and to make an easier life for people. In today’s world, trade has an important role as well.
Another advantage is that selling large quantities of the same, non-adapted product and buying components in bulk can reduce the cost-per-unit. Other advantages related to economies of scale include improved research and development, marketing operational costs, and lower costs of investment. Finally, following a standardized approach helps companies aim focus on a uniformed marketing mix specifically focusing on one single product, leaving enough room for quality improvement. Choosing this approach will give a company a strong identity of brand and reputation. Another factor is that when adapting to global standardization, corporations have a competitive advantage in cost and effectiveness; they view their companies as a whole-as a one entity and not as a group of different national markets, unlike the multinational
Porter’s value chain is a good tool for company to understand their business and determines costs and affects profits. It is a flexible model that all businesses must undertake in some form. • Disadvantages: Porter’s value chain is a relative professional analysis model, people who are not experts in its use might not benefit from this tool. 4. Conclusion Like ZARA posted on their official website, they believe that the customer is at the heart of our unique business model, which includes design, production, distribution and sales through our extensive retail network.
Integrated Marketing Communication Currently in a highly competitive and fragmented market, where information technology and electronic commerce are in continuous development, a business cannot fail to have good strategies Integrated Marketing Communication. It is one of the keys to success of a company, whether multinational or SMEs. Everything Communicates We know that everything communicates, but you should know the proper way to communicate with internal (employees) and external users (customers outside the company), which is in constant change. As a result any company wishing to achieve success, that the market perceives and marketing closer to the reality of the image you wish to achieve company or product must stay ahead. The market
Every company that considering taking their product or service global need to understand the benefits that their get when going global. The plan for entering global markets must be different from the domestic marketing strategy due to the variations in the culture, customs, language and needs of customers and potential customers of the company. The global company usually retains the capability, reach, knowledge, staff, skills, insight, and expertise to deliver value to customers worldwide. It’s important to make detailed market research regarding demographics, as well as the need and level of demand for the company product or service in a particular area before going global. For the companies who want to market their products globally, they should recognize a marketing mix that works in the domestic market may not have the same success in another market.
According to David Ricardo, free trade promotes specialization, it enables domestic workers to concentrate those good and services they have competitive advantages with. In simpler words, business does what they are good at and kaizen applies to this strength to further strengthen their advantages. 3. FREE TRADE AREA (FTA) A free trade agreement is a set of policies set by 2 or more countries that have few or no price controls in the form of tariffs or quotas between each other. Free trade agreement allows the agreeing nations to focus on their comparative advantages and to produce the goods they are comparatively more efficient at making, thus increasing the efficiency and profitability of each country.