Global_Marketing_and_Trades

Global Marketing and Trade Demetrius Dority Introduction to Business Enterprise 1008 MAN1030 Dr. Betty Works 8/24/2010 . Global Marketing and Trade Bill Nickels Jim Mc Hugh Susan Mc Hugh Bill Nickels University of Maryland Park Jim Mc Hugh Linwood University Susan Mc Hugh University of Missouri Reference (2010-1986) Bill Nickels, Jim Mc Hugh, Susan McHugh pg.75 Sociocultural, Economic financial, Legal, and Environmental forces are all challenges to Global Trade. (2010-1986) Bill Nickels, Jim Mc Hugh, Susan Mc Hugh pg.66 The key strategies include licensing, exporting, franchising, contract manufacturing and international joint ventures. Global Marketing and Trades Different strategies are used to reach the global markets. The forces are sociocultral economic, financial, legal, regulatory, and physical and environmental forces. Many advantages and disadvantages of outsourcing. Many strategies are used in reaching global markets. The main strategies are licensing, exporting, franchising, contract manufacturing, foreign subsidiaries and foreign direct investment. In licensing the right to manufacture and use a company’s trademark come into play When selling products to another company, this is known as exporting. Franchising sells the right to distribute a licensed idea, business name or product in a particular territory. Adapting to a countries preferences is also key in franchising. When a company produces private-label goods and another company attaches it’s own brand name to it, this is known as contract manufacturing. Joint ventures allow companies to join in and undertake large projects. With strategic alliances, companies build competitive market advantages. For a company to maintain complete control over the technology and expertise they possess, subsidiaries are especially key when buying permanent property or businesses in foreign nations, known as foreign direct investment. Beliefs and differences in sociocultural forces, economic and financial forces, legal and regulatory forces, and physical and environmental forces affect the amount of commitment, control, risk and profit potential associated with global markets. Loss of company product secrets and promised royalties can also affect global markets and trade. When a company contracts with another company to perform essential functions such as production or accounting this is known as outsourcing. Less complicated jobs can be outsourced globally. By doing this companies can focus on areas in which they can excel and grow. Outsourced work allows companies to create efficiencies that in return allow them to hire more workers. Consumers benefit from lower prices generated by effective use of global resources and developing nations grow, adding to economic growth. The down side to Offshore outsourcing is that jobs are permanently lost and wages fall due to low-cost offshore competition. It also reduces product quality and can cause damage to a company’s reputation. Communication among company members, with suppliers, and customers become difficult. Conclusion Global trades involve’s a few key strategies such as licensing, franchising , and outsourcing to name a few. Subsidiaries benefits in securing company secrets , revenue, reputation . Contract manufacturing requires little start-up cost and boost economical growth.