International trade is also knows as a globe trade which give the country opportunity to expands their markets for both good and services that otherwise may not have been available in other countries. This type of trade also give advantages for world to rise the economy in term of prices, supply and customer demands, affect and are affected by global events. All of the good and services can be found on international market. International trade will involve two types of process which be export and import. Export is a function of international trade in which the goods produced in a country will be sent to another country for future sale or trade.
Nike: The Sweatshop Debate Introduction The goal and purpose of this paper is to introduce Nike Incorporated and to present the sweatshop debate. Nike is an international company that designs, develops, markets, and sells athletic footwear, equipment, apparel, and accessories worldwide; operating in Europe, China, North America, Japan, and developing markets. Nike was able to take its business overseas thanks to globalization, through which they were able to outsource in an attempt to save money, improve production costs, and increase profits; this however made it fairly easy and enticing for them to exploit their outsourced workers – such as with the sweatshop debate. Nike was suspect of manufacturing its goods in developing countries where
The first method that they utilized was that they switched from a vertically integrated brand structure to a functional multi-rand structure. The functional multi-rand structure helped Adidas by creating a global sales function that is responsible for commercial activities and marketing for both brands. With a global sales function, it allows Adidas to split Reebok and Adidas into wholesome and retail department, which allows them to cater to the various necessities of both brands. The second method that they utilized was by focusing their investments in the best possible markets and channels in foreign countries by critically evaluating buying behaviors of their consumers in order to secure shelf space for their goods. The third method that they used is that they embraced e-commerce, which allows them to appeal to their customers more efficiently and make purchasing products for consumers more
This was in an attempt to increase its profits and revenue. The company developed an international strategy in order to retain a competitive advantage. This was due to the globalization and rapid development of international markets. There was also reduction of trade barriers and tariffs which made the company come up with the said strategy. The company aimed also to benefiting from economies of scale.
It profits from a commission paid by the manufacturer on a pre-agreed basis. - Distributor (importer): independent company that stocks the manufacturer’s product. The distributor will have substantial freedom to choose its own customers and price, and profits from the difference between the price it charges its customers and the price it pays to the manufacturer. - Piggyback: a contraction of ‘Pick a Back’: choosing a back to ride on. This refers tot he rider’s use of the carrier’s international distribution organisation.
In the case a firm decides to opt for a direct export mode, it can choose to open an office abroad as a way of FDI, in this way the company can organize marketing activities with the aim of supporting distributor's sales, (Terpstra, V. et al. 2012). Authors also argue that another way to create a FDI is by installing a distribution facility, with the aim of storing products in a central place, and later on distribute them to the external markets. This enables to reduce freight costs, to depend less on distributors and to control inventory and to adapt the products to consumers. Furthermore, foreign manufacturing is when a firm produces in a foreign market to supply all consumers; e.g.
You might know the existence of plenty multilateral and bilateral free-trade agreements between U.S. and many Latin American countries, that are designed to offer your business a competitive edge over other European and Asian rivals. These trade agreements should propel you to enter or expand your business in Latin American. You need to know, that Free trade agreements help you compete on prices, quality, as well as offering prompt delivery of your goods and services to these markets.
INTRODUCTION: Globalization is an economic integration that infers the opening of regional and nationalistic that looks at interconnected and interdependent provinces with free trade of goods, services and capital across its national boundaries (Shuey, Kiely and Wells, 2001). Globalization involves the transferring of proverbial policies across international borders, the dispersion of knowledge and cultural solidity. Globalization has created boundless prospects for businesses across the world, that global marketing is an integral component for profitable establishments. Businesses are capitalizing on globalization and expanding their products into different countries’ markets. Mac Cosmetics wants to expand its global brand products in
Throughout the world, companies are constantly striving to improve their marketing strategies in order to increase business and make a better name for themselves. There is an amount of work required to achieve some of the particular goals that correlate with running a successful business and remaining successful during the process. At times, some companies may have periods where they are struggling in various areas or obtain conflict within the local community that it is initially attempting to work with. Therefore, apart from maintaining a healthy and successful business, the business must be able to have a positive influence on the local community in order to continuously gain more business and create a name for themselves. In British Columbia,