The United States is both the world’s largest importer and the largest exporter, although less than five percent of the world’s population lives within its borders. With the increasing globalization of the world’s economies, the international marketplace offers tremendous opportunities for U.S. and foreign businesses to expand into new markets for their goods and services. Doing business globally provides new sources of materials and labor. Trading with other countries also reduces a company’s dependence on economic conditions in its home market. Countries that encourage international trade enjoy higher levels of economic activity, employment, and wages than those that restrict it.
EXPORTS TO USA STATS -> http://www.nationmaster.com/graph/eco_exp_to_us-economy-exports-to-us
IMPORTS FROM USA STATS -> http://www.nationmaster.com/graph/eco_imp_fro_us-economy-imports-from-us
Exporting and importing, the first level of involvement in international business, involves the lowest degree of both risk and control. Companies may rely on export trading or management companies to help distribute their products. Contractual agreements such as franchising, foreign licensing, and subcontracting offer additional options. Franchising and licensing are especially appropriate for services. Companies also may choose local subcontractors to produce goods for local sales. International direct investment in production and marketing facilities provides the highest degree of control but also the greatest risk. Firms make direct investments by acquiring foreign companies or facilities, forming joint ventures with local firms and setting up their own overseas divisions.
A company that adopts a global (or standardization) strategy develops a single, standardized product and marketing strategy for implementation throughout the world. The firm sells the same product in essentially the same manner in all countries in which it operates. Under a multidomestic (or adaptation) strategy, the firm develops a different treatment for each foreign market. It develops products and marketing strategies that appeal to the customs, tastes, and buying habits of particular nations.
EXPORTS TO USA STATS -> http://www.nationmaster.com/graph/eco_exp_to_us-economy-exports-to-us
IMPORTS FROM USA STATS -> http://www.nationmaster.com/graph/eco_imp_fro_us-economy-imports-from-us
Exporting and importing, the first level of involvement in international business, involves the lowest degree of both risk and control. Companies may rely on export trading or management companies to help distribute their products. Contractual agreements such as franchising, foreign licensing, and subcontracting offer additional options. Franchising and licensing are especially appropriate for services. Companies also may choose local subcontractors to produce goods for local sales. International direct investment in production and marketing facilities provides the highest degree of control but also the greatest risk. Firms make direct investments by acquiring foreign companies or facilities, forming joint ventures with local firms and setting up their own overseas divisions.
A company that adopts a global (or standardization) strategy develops a single, standardized product and marketing strategy for implementation throughout the world. The firm sells the same product in essentially the same manner in all countries in which it operates. Under a multidomestic (or adaptation) strategy, the firm develops a different treatment for each foreign market. It develops products and marketing strategies that appeal to the customs, tastes, and buying habits of particular nations.
No comments:
Post a Comment