Global Markets | EssayIvy.com

Running Head: Global Markets

Global Markets

Name:

Institution:

Unit:

Date:

Running Head: Global Markets

Global Markets Analysis

Victoria (2015) explains how the invention of the internet, it has become very easy for

any individual to open up any business and sell their products and services the way they see fit.

Also, it has expanded the horizons within which people can make news, culture and business

available worldwide. For the small companies, it turned into a boom since they can now get

inexpensive customers, manufacturing and administration services from offshore companies

since they are unable to afford to add new employees, plant, and equipment in the home country.

The internet, therefore, is tempting many other small businesses to expand globally. The

following paper will thus explore the cons and pros for any business going global. The main

aspects featured will be language and culture, cross-time zone business, currency, legalities, and

delivery.

One of the best examples of why language barrier affects the global market was the

introduction of the Nova model in Mexico by the Chevrolet where "no va" means it doesn't go in

Mexico which is clearly a bad name to give to a car. Language is not the only challenge that has

affected the decision to go global. In some countries, discount pricing is considered as a sign that

the products being offered are inferior and that the color white is a funeral color. These linguistic

and cultural hindrances can all be avoided if the person intending to go global has established

reliable partners, advisers and investors in the target countries one plans to invest in. When one

can work according to the local customs, then they can access very profitable markets in the

overseas. Language and cultural barricades are not the only problems one may encounter. If one

can manage themselves well, they can be able to service up to 40 percent of the world

population. Doing business in varying time zones can also prove to be cumbersome. All the

businesses, therefore, need to have 24-hour management systems and capabilities with customer

Running Head: Global Markets

care. If there should be any problems that arise, the issue must be handled immediately by the

manager that is authorized to do so. One of the best solutions that have handled such time zone

differences is to have senior managements in the critical areas of operation, Victoria (2015).

Keefer (2013) expounds on the issue of currency, and the unexpected fluctuations may

destroy the amount of profits that people make but at the same time can be the reason for a

windfall. The relativity of the dollar against the other countries of operation and where one

focuses on supplying their goods and services may make these products either expensive or

inexpensive. This can be controlled by embracing the use of currency hedging whereby one can

require using professional assistance in doing so. Keefer believes that the credit card translations

can also be a problem and the best method to go round this problem is to hire merchant account

providers who will offer all the best currency conversion rates. Another issue with global

expansion is the legalities that are involved in subsidiary countries. Besides the privacy concern,

one encounters laws that tackle the issue of selling over the internet, fax or through the

telephone. There are also varying views that regard the protection of intellectual property. It

helps to license all products and IPs to an overseas partner who must understand that the

company interests have to be protected. One should also hire an attorney that is experienced in

international trade before any mistake can be made.

International trade can prove to be lengthy in delivery and also requires the company to

pay guarantees for the orders made through letters-of-credit through the bank. The products at

times do not meet the expectations of the clients and, therefore, the need for reliable delivery

services. These are such as the international overnight package companies that can help solve all

these delivery problems and then increase the profits of the company exponentially and customer

markets considerably. Local company managers should also have a strong business relationship

Running Head: Global Markets

with banks that operate internationally and branching into the target market one is dealing with.

They assist in providing the vital on-the-scene problem-solving capabilities, Victoria (2015).

Running Head: Global Markets

References

Victoria Duff (2015): "The Pros and Cons of Going Global with a Business," Demand

Media.

Amber Keefer (2013): "Pros and Cons of Global Marketing Strategy."

Place new order. It's free, fast and safe

Paper type

Deadline

Page count

550 words

Total price: $ 15.00

Our customers say

Jeff Curtis

USA, Student

"I'm fully satisfied with the essay I've just received. When I read it, I felt like it was exactly what I wanted to say, but couldn’t find the necessary words. Thank you!"

Ian McGregor

UK, Student

"I don’t know what I would do without your assistance! With your help, I met my deadline just in time and the work was very professional. I will be back in several days with another assignment!"

Shannon Williams

Canada, Student

"It was the perfect experience! I enjoyed working with my writer, he delivered my work on time and followed all the guidelines about the referencing and contents."