The marketing implications of the differences between the two trading methods include;
Free trade Area may lead to exporting of the unstandardized goods to other countries, hence
causing the member countries to have inferior goods. Common market may lead to a brain drain
of the labor from the less developed countries, hence making the less developed countries have
insufficient trained personnel. It may also contribute to a reduction in the development of less
developed countries as developed countries will use their superior technology to produce goods
in some countries hence denying other countries market share.
3. Actions taken by company to counteract market changes
One of the common ways in which a company may overcome future decline in export is
focusing on strategic partnerships. Strategic relationships include working together with
competitive partners, professional associations or bankers to enable the company to stay visible
during tough times. During such time, the company is set to work on building awareness and
maintaining market rapport so that in time of recovery, there is no delay when a company finally
gets to an advantageous position. Diversification on marketing opportunities may also help the
company avoid complete loss in the future decline in exports. The company may engage in
production of different commodity which is likely to be in demand in the future. Therefore, the
company will be in the market continuously even though dealing with a different commodity.
Reorganizing new market opportunities is also another way of solving the problem of
uncertainty in the future export. New opportunities such as attracting customers who are not
being offered high-quality services, customers who are no longer being served, and ones who
are served by less competitive companies. In this case the company will only need to change
customers in case the initial market is declining.
4. Difference between custom union and political union