Solution
Shefali answered on
Nov 12 2021
INTERNATIONAL BUSINESS
GLOBAL BUSINESS MANAGEMENT ASSIGNMENT
Table of Contents
Answer to Q1 3
Answer to Q2 3
Answer to Q3 4
Answer to Q4 5
Answer to Q5 6
References 7
Answer to Q1
Production and logistics decisions are important for multinational enterprises. They produce in different parts of the world and transport finished goods globally. They can take advantage of cheap labour, favourable tax policies, inexpensive raw materials and set up the production unit where economies of scale can be achieved. It will help in reducing operating costs and increasing profits of the enterprise. The multinational enterprise can search for the economy where they can cheaply conduct the production process, or lower consumer cost is involved (Soundararajan et al. 2020).
The transportation cost also needs to be taken into consideration, as the high price will imbalance the budget for the organisation. The enterprise needs to think about how they can deliver the right product to the right customer at the right time, also with minimum cost and maximum quality. They need to have the place where warehousing cost is not much more and shipping goods to different parts of the world are even not much high. Therefore, to achieve more profits and to work efficiently and effectively in other parts of the world, one need to consider labour costs, cost of raw material and packaging, access to ports, infrastructural activities, warehousing and security of good and services (Van Zanten & Van Tulder, 2018).
The global logistics management in the starting may lead to increased production costs because the whole framework needs to be developed. It is time-consuming and requires more efforts. The enterprise also needs to change the strategies to keep them align with the marketing changes. The planning of the supply chain is also a difficult task as the ways to distribute the goods, places to distribute and which all intermediaries it will include. Moreover, the multinational enterprise needs to lower the prices to stay ahead of a competitor, which may be the biggest challenge for them. They may also face a problem to adapt to the external environment such as political environment, economic environment (Ketokivi et al. 2017). Different countries have different standards, rules and regulations of operating commercial activities.
Answer to Q2
International marketing is concerned with the trading of goods and services across the globe. For example, Red Bull, an Australian company, transports its goods to different parts of the world. International marketing gives rise to numerous problems, as the markets are more dynamic, challenging and uncertain. The main issue is of tariff ba
iers. These are the taxes and duties imposed on the export and import of goods and services. Antidumping duties are also levied on imports. It is difficult for marketers to adapt all these and earn a reasonable amount of profits.
The highly formal procedures also make international marketing difficult (Paul & Mas, 2020). Some countries have a big list for completing the formalities for importers and exporters. The guest countries need to fulfil legal formalities also. Different countries have different cultures and pose a problem when there is a need to adapt to the culture, religion of other countries. The requirements, preferences, buying behaviour, consumption patterns and expectations all differ from country to country. Many times, it is not easy to understand the behaviour of consumers in other countries. The language is also the most significant challenges.
Different languages are spoken across the globe, so communication gaps arise, thus creating a problem in selling goods and services. Political instability is also an issue for international marketing. The government in different countries have their own rules, priorities and approaches to international trade (Leonidou et al....