International Trade and Competition Essay Example | Topics and Well Written Essays - 1750 words

International Trade and Competition - Essay Example Thus organizations usually decide to globalize their operations when they foresee a sufficient profitability in assigning their limited resources to foreign market(s) higher than the expected rate of return from other marketing decisions. iii) The cost of entering the market. Cost may be monetary, time, energy or psychic costs and may arise due to differences in culture and value systems making the product and adaptation cost extremely high, due to the distance, due to high taxation levied by the foreign governments and imposition of tedious rules regulations and procedures by the government of a country thus creating high entry barriers. Countries may differ on their market attractiveness, entry barriers, proximity, culture, rules and regulations and risk factors hence the same organization may have to employ different entry and operation strategies for different countries, also the government policies in the same country may be different for different industries and some products and hence the strategies have to be varied accordingly . Organizations differ in their vision, mission, objectives, competitiveness (strengths and weaknesses), resources and hence the strategies they adopt to face a particular marketing situation. However studying a category of organizations and the international marketing strategies adopted by them helps arrive at few generalizations. The decision maker has to exercise caution in deciding where to generalize and where to discriminate while formulating strategies for the organization s/he is