Discussion Reply International Business
Introduction
In today’s global world, organizations of all sizes are expanding into new areas. This kind of expansion may offer a variety of advantages, including more significant market growth, increased efficiency, a decrease in reliance on the local market, and the possibility of diversification. Hout, Porter, and Rudden’s (1982) research discusses three instances of businesses that have been successful in global competition. Each company used a unique method to implementing its worldwide strategy. Companies must do worldwide business in today’s global climate because international commerce has enabled nations to extend their markets for products and services that would not have been accessible locally. As a consequence of increased competition, the market has more competitive pricing, providing more accessible goods to all consumers.
To remain successful in a more competitive market, companies will need to be more entrepreneurial, innovative, and adaptable to the realities of globalization. Organizations must continuously strive to keep costs as low as possible while maximizing profits in their activities and interactions. As a result, to achieve business goals while also providing excellent value to consumers, businesses must plan strategically to handle business difficulties and maintain a significant portion of the target market. Taking a company worldwide is a realistic approach to grow your market and achieve additional objectives.
Current trends
There are a plethora of viewpoints on the advantages and disadvantages of international commerce. Gourani (2019) argues that global trade is sometimes essential for a company to remain competitive and offer the most satisfactory goods globally. He asserts that businesses are critical to the economy of all countries because they provide employment, spur economic development, and bring out the most innovative ideas. Companies are being forced to confront the difficulties of becoming global corporations and entering the more extraordinary and regular worldwide marketplace. Businesses, on the other hand, face multiple challenges and opportunities when they join the global market. When an organization’s management and worker values are oriented toward global possibilities rather than just local ones, it is said to have a global culture.
Businesses worldwide will benefit greatly (Azevedo & Mittal, 2016). Companies participate in international trade for various reasons, but the end objective is usually growth and development. A global strategy may help a business diversify and grow. Companies with international operations may benefit from lucrative investment possibilities that may not exist in their native country. Additionally, Blachman (2018) says that Success in a global market necessitates the establishment of a cross-border business. By preparing ahead of time and knowing client needs and cultural and behavioral differences. Many studies linking firm-level multi-nationality (or global diversity) with performance are theoretically and empirically incorrect, say Verbeke & Forootan (2012). Consequently, the world’s biggest companies must attain and maintain a balanced worldwide geographic distribution of their operations and revenues.
Finally, it is critical to understand that social and commercial interests frequently overlap. An open economy with a robust middle class and solid institutions may benefit everyone (Clausing, 2019). Global operations may assist in developing brand awareness to encourage sustainable contract negotiations, new marketing initiatives, or further expansion.
Future Research
Future global business trends will need many businesses stepping outside of their comfort zones and adopting new techniques that have not yet been tried and proven. If your company can embrace adaptability, your prospects of success in the worldwide market after COVID-19 will undoubtedly be higher. Businesses must act immediately on two fronts, as outlined below. First and foremost, companies must address the concerns of investors about long-term viability. If the COVID-19 issue is any indication of what a climate catastrophe could look like, it is that it is systematic, quick moving, broad reaching, and global. This is speculation, but it is not unthinkable. Consequently, there is a strong argument for companies taking proactive steps to reduce their climate risks, such as making their capital assets more climate resilient or diversifying their supply chains.
Resources
Azevedo, R. and Mittal, S.B. (2016). Business Can Help Shape the Future of Global Trade. WSJ. https://www.wsj.com/articles/business-can-help-shape-the-future-of-global-trade-1464293577 (Links to an external site.)
Blachman, A. (2018). Cross-Border Is Becoming a Non-Negotiable. Are you ready? https://www.entrepreneur.com/
Clausing, k. (2019). Building a Better Globalization. Harvard Business Review (Links to an external site.).https://hbr.org/ (Links to an external site.)
Gourani, S. (2019). Should Business Be Open to International Trade? Forbes. https://hbr.org/1982/09/how-global-companies-win-out
Hout T., Porter, M. & Rudden, E. (1982, September). How global companies win out. Harvard Business Review. https://hbr.org/1982/09/how-global-companies-win-out
Verbeke, A., & Forootan, M. Z. 2012. How good are multinationality–performance (M–P) empirical studies? Global Strategy Journal, 2(4): 332–344.
