Global Marketing and Standardization

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Running Head: Global Marketing Global Marketing Global Marketing 1.Standardization directly opposes marketing and pricing strategies because when standardization takes place everyone is bound to follow the standards, which also includes the prices of products this. When this happens, pricing strategies are no longer required (Czinkota & Ronkainen, 2007). Similarly, price is a very important factor when marketing a product when the prices are standardized marketing is no longer required. Quality of a product will more or less remain the same for every supplier as improving quality will lead to increased cost and with fixed prices profit margin of the producers will decrease. Flour is a very good example, as it is a product, which is consumed by the masses and needs to be standardized (Moran, 2006). Following are the advantages of Direct Investment: I.Causes flow of money into the economy, which in turns generate economic activity. II.It increases employment. III.Aggregate supply will increase. IV.Encourage local suppliers to produce more. Following are the disadvantages of Direct Investment: I.It may lead to inflation. II.Local firms may be harmed adversely if they do not avail the opportunity Canadian chemical company Seagram is a very good example. 2.If an organization decides to expand its operating activities to another country, it will have to revise its strategies. When a company is targeting local market, its strategy is different as it targets all its
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