Marketing

What factors are contributing to the intensity of todays global competition?

Todays global competition is greater than it ever has been. More and more companies want to do international business than ever before. It is a growing market. However, there are difficulties with such a busy market. Many countries have unstable governments, policies and regulations. Many governments are corrupt and require bribery for their business. Some currencies are unstable and trade barriers like a, tariff or quota, can make it difficult.

What are the advantages and disadvantages of direct investment in a foreign market?

There are many advantages and disadvantages to directly investing in a foreign market. Directly investing means that you will develop and/or manufacture your product in that country. An important part of making this work is having experience in exporting. One advantage is that the production and labor can be much more cost effective. Additionally, the government may give grants or discounts to encourage your business. The business will create jobs which in turn will create a positive outlook from the local consumers. You would also have full control over your manufacturing business and marketing.

Unfortunately, there are disadvantages as well. In a country with a weak government there may be devalued currencies, and the government itself can be problematic. Also, the manufacturing in a failing government can have issues. The workforce can be minimal or have low production.

Name 2 foreign markets in which a household appliance manufacturer would be interested in investing and two markets in which it would have no interest in investing.

Two foreign markets a household appliance manufacturer would invest in is Europe, mainly England and Germany. The reason for this is they have many people who have houses and apartments so they would require household goods. Two markets they would not invest in would have to be...