They applied FDI (foreign direct investment) strategies to overcome the difficulties in exports resulted from tariffs. Due to European have EU (European Union). In some part of internalization such as market and policies have more opportunities than other MNEs. They also have good chance to use technology to break the barriers of time and distance making it simple and possible for multinationals to deal with emerging economies. Expand their businesses and become globally competitive players, European multinational enterprises have expanded their business to the emerging economies because this market having plenty of lower labor costs and capital.
• What are the benefits of international trade? What are some negative aspects of international trade? International trade has advantages and disadvantages. On the one hand, it opens the market to all sorts of products, which in turn raises the competition between the local and the international producers; and on the second hand, it gives importers advantages to import different products, and it gives the consumer a wide variety of products, and different options to choose from. It can be a challenge for a better quality, lower prices, and a wider range of products.
Exports will also potentially bring stability to otherwise fluctuating market demands. Because of these reasons, local and national government are attracted to exports because their local businesses can gain a share in the global market. Conclusion Morgan Motors and Wadia are just two examples of companies that would not survive with exporting. There are many benefits to exporting such as increasing sales and profits, reducing the risks of being bound only to the domestic market, balancing growth across multiple markets, and potentially lowering unit costs, and possibly achieving economies to scale. Therefore, these types of companies choose to export for these reasons as well as for gaining the continued ability to survive in the
Going international will certainly grow your business. The more the company grows the more valuable it becomes. You can see evidence of this if you watch the stock prices of a company that starts small and grows over time. The development of international relations can also open doors to do more business in other countries. There are a few drawbacks to international trade and
Some country makes them comfortable at the expense of making others miserable. Globalization can be formed at the expenses of others finance, resources and stability. According to the theory of comparative advantage, country gains comparative advantage when they are able to produce goods and services at a lower opportunity cost than others. The ability of producing at lower cost makes country’s gain competitive against other. Country will produce extra units of goods, which it has comparative advantage, to export and soon they become specialize in producing them.
Immigration contributes critically to the economy of the host country, either positively or negatively. This paper has argued that immigration should be encouraged in order to improve the host country’s economy because there are obvious benefits to the economy of the host country in terms of state revenue, the labor market, and country development. Although, some might argue that immigration leads to mass deportation, and an increase on border-patrol budget as well as a decrease in the wages of native-born, high-skilled workers. As discussed before, immigration increases gross domestic product and provide cheap services, enabling high-skilled, indigenous workers to focus on their work more, rather than doing domestic jobs, such as house cleaning. Moreover, immigrants create innovations, such as Google, and they increase the number of scientist in the U.S. As a suggestion, the host country should inspire companies to employ workers depending on their experience, so immigrants have a great opportunity to compete with the natives.
Globalizing the trade to become international wide gives more opportunity for the country to fulfill the demand of the country. Not just able to cover the demands quickly, but also providing a cheaper way to provide demands that can not be fulfilled from local commodities. The stability of demand accomplishment in production creates a good situation for production to keep up and
Advertisement is an important factor for the development of economy of country. Especially in U.S.A where advertisement change economy itself, culture, social and political system. The stimulation for the demand of products and services helps the economy grow stronger and stronger. New inventions become known much faster and can establish their spot in the sales figures of the economy. If there are more people buying these products the overall costs will drop and the product will become cheaper for the customer which raises his willingness to buy even more.
The term ‘trade’ is like a two edged sword.There are many reasons as to why. By trading, it brings in a lot of advantages to the country. International trade brings valuable benefits such as the exploitation of a country’s advantage. It allows trade to encourage a country to specialise in producing goods and products and services in which it can be most efficient and effective and also at the lowest possible cost. Another advantage would be that trade allows the increase in competition and overall lowers the world prices of goods.