During the first part of this class, we talked about globalization and Localization. The different forces of the two. One is more powerful than the other because of the forces. Companies should consider national differences in order to be successful in their business. However, during the second half of this class, we learned about different international business strategies, what foreign markets to enter, & different entry modes. Each of the entry modes have advantages and disadvantages.
First force of globalization, would be advancement of technologies. For example, development in telecommunications and information technology. Second force, would be openness/liberalization, such as imposing tariffs on goods and service. Most government established the free trade which it increased the growth rate of the economy. Third, market opportunity which is knowing consumer tastes and preferences. Finally, collective goods and global governance is the last force in globalization. It is an important factor, because of the intergovernmental organizations (IGOs) and non-governmental organization (NGOs) control some of rights in the business.
One force, geographical differences, because distance matters when localizing. In addition, this concept of localization is localizing in a certain area or region. Second force, economic differences because of the different types of currencies in countries. However, cultures/civilizations and administration/politics are another force, localization is the world of nations and culture. In other words, getting a product or concept across a specific area to be similar.
The forces of globalization are more powerful than localization. That is because, globalization...
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...en, considering Germany, Netherlands, Saudi Arabia, and Japan. Therefore, taking under consideration that United States’ and United Kingdom’s cultures are similar. The two countries are close in distance.
The best entry mode for BRO would be exporting their products. Many manufactures start off being exporters to expand their products. However, some of the manufacturing firms switch to a different mode to better serve a foreign market. An advantage would ability to realize location and experience curve economies.
First disadvantage, high transportation costs especially for bulk products. That is why most chemical firms manufacture regionally because of the costs. Second, trade barriers being expensive and risky regarding the host country government. Third, issues with the marketing agents because exporting marketing, sales, and service can be expensive as well.
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