Question

With global marketing exploding, comment on the following:

1. What are 3 benefits for a firm to engage in global marketing?

2. Describe 3 alternatives for first time exporters to reach foreign consumers.

3. Explain an Economic Block with an example and cite 3 benefits of such an arrangement.

Answer 1

1. 3 benefits for a firm to engage in global marketing are as follows:

• More access to larger customer base thus help in increase revenues from new customers
• Greater access to new human resource having unique skills and mindsets.
• Opportunity to diversify your business

2) first time exporters can reach foreign consumers through

• Export trading companies which buys product from domestic companies and resell abroad
• Export management companies which provide the domestic companies with expertise to locate foreign buyers. these companies also have the responsibility to handle paperwork and also abide by laws
• Offset agreements which connect a small firm with a major international company.

3) An economic bloc refers to a group of companies which are involved in international trade through a free trade agreement and act together for a common purpose. Example of economic bloc is EU, NAFTA (North American free trade area) etc.benefit of these agreements are that they boost economic growth, profits and jobs for all the countries involved. It also helps lower prices for consumers through lower tariffs and reduced import prices.