International Business Strategies For Action Essay

Which is cost difference determines the patterns of international trade. Absolute advantage is trade benefits when each country is at least cost producer of one of the goods being traded. In the 1800s, David Ricardo developed the theory of comparative advantage to measure gains from trades. This theory is based on comparative advantage and it states each nation should specialize in production of those goods for which its relatively more efficient with a lower opportunity cost.

With the advancements in technology and innovation, the world appears to continue to grow smaller. With technology and innovative advancements, businesses have grown in local markets, as well as globally. An organization located in Taiwan seeking buyers and understanding the demands required can sell products all over the world. Multinational companies have been doing business in other countries for a century; however globalization has changed the picture for even smaller companies around the world. Smaller companies can also get their market share in the global economy. In this paper, globalization is defined, as well as identifying various challenges and opportunities associated with globalization.

The rapid pace of Globalization has led to a change in the global economy during the past several decades; it is believe that factors such as trade liberalisation, access to cheaper labour and resources, similarity of consumer demand around the world, and advances in technology and communication has widened the market of consumption, investment as well as production on a global scale. These globalization driven factors created new challenges and global competition for businesses around the world thus as a response many companies decided to expand their operation across national borders in order to be competitive. A company that operates their business in at least one country other than its country is called Multinational

If you've reached a point that you feel you've gotten about as far as you can on your own in charting your export strategy, it's a good time to consider joining forces with another company of similar size and market presence that is located in a foreign country where you are already doing business, or would like to. First, it's important to understand exactly how a global strategic alliance works, and what it can and cannot do for you.

Firms pursue an international strategy in order to take advantage of the larger market for potential consumers and buyers of products and services on a global basis, as compared to the limited markets available in the home countries of businesses. In this way, expansion into the international market presents companies with a large scope for growth opportunities (Hitt et al., 2011, p. 219). Firms are also better able to earn a larger gain from their investments due to the larger potential market. Firms are able to ramp up production and other capabilities so that they can achieve better economies of scale and make the same quality products and services more cheaply. There is also bigger scope for performance and for innovation, since a diversity of markets offers a wide range possible strategies for bringing exciting new products to market and attempting new management and business strategies.

In today’s highly globalized world, companies are facing competitive pressure to expand into international markets. These markets offer immense opportunity, but they come with challenges and they require companies to develop new skills and abilities in order to success overseas. These developments include recognition of diverse consumer needs, cultural attitudes, political regulations, and product adaptations. The differences between operation in one country or multiple countries are significant, but if an organization can successfully adapt and implement these important abilities, it can tap into markets with great potential.

The first topic to be discussed is the idea of globalization. Merriam Webster online defines globalizing as “to make worldwide in scope or application.” Globalization is an important aspect in expanding an organization. Swanson and Holton (2009) state “Multinational companies are taking advantage of economies of scale and scope, proximity to markets and suppliers, and differences in the natural, political, and human resource-related infrastructure in countries around the world in order to achieve and maintain competitive advantage” (p. 421). It is more beneficial for companies to expand globally than to try to continue increasing profits just within their country. Eventually, they will reach a maximum profit that they can make unless they decide to globalize their organization.

According to a global strategic business development expert, Mona Pearl (2011), the chances for global expansion are unlimited, and the potential for exponential growth is persuasive. Regardless of size or company structure, organizations which take a proactive, strategic approach to understand both risks and costs will stay one step ahead from competitors and get the benefits of a successful globalization origination. To create successful global business strategy plan, the company has to ask its customers the right questions at the right time to the right people. Start with strategy, understand the culture, and identify competitive edge are three keys to successful globalization. First, the company should start with strategy not tactics. The company must begin with developing a long term action plan which is connect to company vision, mission, and activities. The company must use the benefit from corporate strengths while identifying chances in desirable and compatible markets. It is important to understand the people and their culture, and examine each market, before answer any tactical questions. Because of lack of international experiences, most managers move toward by using what they are comfortable with, or its calls tactics (Mona, 2011). As Mona (2011) advised, “Tactics is an actions in a vacuum without a well-conceived conceptual framework” (p.214). Tactics would lead to bad assumption in market choice, because of the lack of strategic direction. For example, Latin

In the emerging era, every industry must be considered a global industry. Today, globalization is no longer an option but a strategic imperative for all but the smallest firms. The following framework and set of conceptual ideas can guide firms in approaching the strategic challenge of casting their business lines overseas and building global presence:

The world offers significant business opportunities for every company, however, opportunities are accompanied by significant challenges for managers. Managing global operations across diverse cultures and markets represents a big challenge and opportunity for companies. To compete in the global market and be successful, companies must learn the strategies, policies, norms and technology necessary to conduct international business. The opportunities for global expansion are numerous, and attaining success is a matter of developing the right strategy to win local markets and its consumers.

This is the first Masters level and business focused class I have ever taken. Most topics are completely new to me, although there have been a number that have peaked my interest, for the most part this materiel is all new. The concept of incorporating a global focus into one’s business plan seems practical since today’s age of technology is expanding the reach of all but few businesses. To focus strictly on the domestic possibilities limits a businesses’ potential and minimizes the broad reach of resources that a global environment offers. Prior to this class I did not realize how many advantages are associated with a global outlook. The following are some of those advantages: managers and entrepreneurs have access to a larger talent pool for possible employment; natural resources are abundant both labor and supply; the possibility for growth is enhanced; and with that comes the possibility for increased profit. In order for entrepreneurs and managers to reap the benefits of a global business, they must first structure a business plan based on their strategic vision to incorporate a more globally focused business process. When venturing into uncharted waters such as the global market or foreign investment, there are a number of pitfalls related to cultural variations that can derail even the most successful of domestic companies. Therefore, it is imperative for managers and executives to develop a globally focused business plan based off of stringent

The key term globalization was chosen for this research paper due to the significant role it plays in the business world. Business professionals need to have a broad understanding of how globalization impacts the economy and creates different interactions among nations. By immersing themselves in how globalization functions, business professionals can make effective and successful investment, marketing, and management decisions. Furthermore, the advances of technology have opened many doors for businesses to expand and seek greater opportunities internationally to maximize production and profits. Therefore, having a clear understanding of globalization and all it encompasses is key to success

INTRODUCTION: Enlarged competition and relaxed economic restrictions have given rise to the development of the force of globalisation, which subsequently have led to multinational companies and managers. In 2000, the global trade in exports and imports extended 25% of the world GDP (Govindrajan & Gupta 2000). The rise of globalisation speculates a number of imperative tests to business seeking international incidence, more notably, to these business’s global managers to successfully help achieve this presence. Numerous strategic facets must be measured prior to commitment at an international level, and afterwards. Continuous flexibility is essential in order to adapt to the fluctuating patterns at local, regional and international

International business has many aspects that you need to be aware of before doing business in another country, whether you are a small business or a fortune 500 company. There are many different cultures and ways of doing business around the world. I choose to focus in on doing business in Italy. They have many different ways of doing things than we do here in the United States. There are certain topics of conversation that are welcome, there are certain ways of dressing, certain ways to make a deal with them and many more. Italy also belongs to many International organizations.

I am an international business development consultant for multinational company. Ms. Jenny Chang who is a CEO of a Singapore based company appointed me as a consultant to prepare a report for a new project of her company. Her company designed a new innovative CAD system for designing and weaving wool carpets that can improve the design and manufacturing efficiency significantly. The CEO want to expand their business in Pakistan. I have following three choices to prepare a recommendation report.