I. Introduction In today’s environment more and more B2B companies are became international, because they want to be compete in an increasingly global marketplace. So that will increase their profitability in ways not available to simply domestic enterprises. With addition region of operations, comes the challenge of managing business operations in multiple countries and that coordinating company’s marketing activities in more than one nation. However, for many marketers selling products and services in their own country is easy when compared to the efforts needed to gain sales in other countries.
First of all, it is a chance for a company to expand its current market. Because of the huge population around the world, advertising products and services overseas can create and attract a larger size of consumers as well as increasing profits (Bradley, n.d.). Another benefit brought by international marketing is that firms can minimize operating costs (Bradley, n.d.). For example, cheaper costs such as labor cost and advertising cost, or even tax in some host countries are bargains for companies aiming to target the international market. As a result, costs are minimized while profits are maximized as much as possible.
For a company to be successful in international marketing, it should develop and socialize a global marketing plan early enough so as to establish key relations, research local markets, and know whether it can accommodate local needs. Lastly, effective communication is important at all times for any company if it needs to be successful in international marketing. A vital element that makes global marketing work is the relationship established between the company and foreign market teams and an open communication channel is important in nurturing such relationships.
Promotion of international business benefits all the countries across it which takes place. The countries from which goods are exported benefit by incoming foreign exchange and wealth, while creating employment for their workers. In countries which import those goods, the consumers benefit by getting better products at a lesser price, thereby creating a 'consumer surplus '. Also, international business can greatly improve the economic development. Therefore government should be intervened to a certain extent.
Trading goods like: oil, jewelries, foods, clothes, machines, etc.…. Services like: banking, tourism, internet and communication, transportation, and etc. selling a product to the global market is exporting that product, buying that product from a global market is importing that product to the country. A country can export goods when supply of that good is greater than the demand, in that case it can sell it to other countries, a country also needs to import when demand for a good is greater than the supply of that good. International Trade can increase efficiency of countries they deal with (trade), it also allows them to have comparative or/and absolute advantage.
They would say that competition is healthy and necessary for economic growth. However, there are many reasons why trade barriers are beneficial and play an important role in international trade. Some of these reasons include being self-sufficient in producing military goods, trying to avoid becoming too specialized in our industries, keeping new industries alive domestically, protecting against foreign competition, and increasing domestic employment while reducing the number of jobs outsourced to other countries because of their cheaper labor
They also help to identify foreign suppliers and customers to aid the firm with long-term and short-term market penetration efforts. Intermediaries, along with export facilitators can bring the global market to the domestic firm’s doorstep by assisting to overcome financial and time constraints. Export Management Companies (EMCs) is another form of exporting and importing within market entry. They are firms who represent others for a commission or who work as distributors that perform specific international business services. They usually focus on one geographic area where their expertise allows them to offer specialized services.
With an absolute advantage, a country engages in international trade because it can produce a product more efficiently than any other nation. But more often, countries trade because they enjoy comparative advantages: They can produce some items more efficiently than they produce other items. The import-export balance including the balance of trade and the balance of payments, and exchange rate differences in national currencies affect the international economic environment and are important element of international business. 4. A.
Tax systems can vary even in the principles of levying taxes. Besides of national legislations tax issues, global commerce are regulated by international agreements between individual countries. The entrepreneur desire to reduce the production costs of their products is natural. Therefore, for example, the production of consumer electronics is rapidly moving from developed countries to China and Malaysia, where labor cost is lower (Dahlman, n.d). As one of advantages, the benefits of the national tax system of some countries may be a kind of resource as useful as cheap labor or a mineral deposit, which attract business from all corners of the earth.
The reason is that International trade brings various benefits to both business firms and countries: First of all, International trade boosts development and generates growth by allowing exchanging knowledge, standards, and best practices of skills and techniques globally and using the best that fits well. Moreover, Country’s Shortage and high costs become avoidable. Scarcity in availability of raw materials or expensive labor force in local market is exempted. Obtaining the raw materials at relatively lower price than local market can reduce the cost of doing business. In case of illiquid Local markets clients can benefit by Easy access of acquiring financing by entering into highly li... ... middle of paper ... ... terms and condition which may cause future disputes or Documentation risk • Acknowledge the buyers culture and accept cultural differences to keep friendly based business partner.