Competeing World Markets

"Competing in World Markets"

Please respond to the following:

Evaluate the barriers to international trade and determine which barrier is the most significant overall. Explain your rationale.

From the e-Activity, asses the barriers to entry you foresee as the Smart for two EV expands into foreign markets to determine which will be the most difficult to overcome. Support your answer with examples or evidence.

Answers:

The cultural and social differences are factors that should be taken into consideration when dealing with issues of international trade. A social and cultural difference brings the aspect of trade on a more personal and emotional level. For a company to stay economically ahead of the curve they will need to make sure that their employees are familiar with international cultures and customs. Cultures are constantly changing and evolving but several things will stay the same like language, religion, and values. Employees and the organization that they work for will not only need to understand the culture but they will also need to be able to communicate in order to do business internationally. The rules are difficult, but there to protect. The businesses responsibilities are to have the proper liaisons in place to understand how these factors may or may not affect their business and the cultures they will be conducting business in. So in summation I feel that the understanding of the culture and adapting to it will be the most significant barrier.

There will be some of these barriers to entry for the Smart for two EV as it expands into different markets and feel that the economic barrier will be the most pressing issue. The vehicle has a lot of great features and well designed, however the price of an electric car versus a vehicle that runs on gas is much more expensive. Something that the consumer will need to consider is their ROI and when could they see a break-even point if ever during their ownership, especially if it is a short...