Scientific and technological developments have facilitated the growth of international markets and trade among countries. There are some benefits that trading companies stand to benefit from when they trade their goods across boundaries. This paper guided by leading questions discusses different elements of international trade; it will use Morgan Motora and Wadia Corporation as sample companies.
What are the main benefits of exporting for companies like Morgan and Wadia?
When companies engage in international trade, they benefit from an increased market where they can sell their goods and products to a larger market. When a country is enjoying a large market, chances that it will secure sales from the markets are higher; on the other hand, the markets relieve local market the burden of competition where several local players focus on the international trade and the domestic ones is relieved.
When the operation in the international markets, the companies will get to learn of new demands and different ways that products are made; with the new intervention, they will be able to enlarge their production systems which lead to ore business and products on their side (Noruzi, 2011).
What would be the outlook for a company like Morgan Motors if it neither exported nor imported?
Without international trade, Morgan Motors is likely to be lagging in technology and have slowed technological developments. Without either exportation or importation, it means the country will have to depend on local resources/ideas for its development; the result would be a company that fails to utilize its full potential. The efficiency and effectiveness of the company would be hampered since the management is only aware of what is in the country.
What impediments to exporting success do companies such as Morgan and Wadia face? What steps can these companies take to improve their probability of succeeding in export markets?
When operating in the global scenes, a company is faced with several challenges that range from its acceptance by the foreign country, trade barriers, communication barriers, high competition, and cultural differences. However, the challenges can be addressed using strategic business management approaches.
In an international venture, the marketing team plays a very crucial role, the one designs the pathway for the company and creates the company abroad with the assistance of other strategic moves like the help of supply chain and logistics management. Of late, the moves to undertake root marketing and culture intelligence in marketing should be embarked on.
The growth of computers and various technologies can also be put in use to assist the company comes up with better decisions; for example, the companies should develop virtual teams situated in the country of diversification. Virtual teamwork across time, space, and geographical area, they have information that assists in making a sound decision about the market situation in the foreign market. The higher the quality of decisions a company has, the higher the chances of making a responsible decision.
When undertaking an international venture, undertaking market research is crucial, information is power, it will assist the company makes strategies that are responsive to the needs of the market. Market research helps in making marketing penetration strategy, product development, and differentiation strategy; when a company gets the strategies right, then they offer it a competitive advantage. After venturing into the foreign market, Morgan and Wadia should embark on consumer-relationship management strategies to develop and retain consumers’ loyalty (Hill, 2011).
Is it legitimate for local and national government agencies to use taxpayer money to help small companies export?
The debate as to whether national and local government agencies should assist small companies export their produce prevails among policymakers; however, depending on the approach used by the local and national government an answer can be sort. It is not legitimate to directly use taxpayers’ money to benefit some sections of the economy at the expense of others; however, the money can be used indirectly and facilitate exportation.
For example, the policymakers should make infrastructures that reduce the cost of operation in the economy, this will make small companies produce competitive in the world market; such policies are likely to motivate small companies to engage in exportation business.
Hill, W.L. (2011). International Business: Competing in the global marketplace. New York: McGraw-Hill Irwin.
Noruzi, M. (2011). A study of Globalization in International Business. Interdisciplinary Journal Of Contemporary Research In Business, 2(9), 88-90.