Question

Why would operating in a global (rather than a strictly domestic) marketolace create a need for additional information for managers? Discuss some of the additional information managers would need and why such information would be valuable.

Answer 1

It is important to understand the differences between operating in a global market place and a domestic market. Some of the reasons for additional information are as follows:

1. International Law: Each country has its own law, and this is to be followed while doing business in that country.

2. Logistics: Each country is not the same in terms of infrastructure development. Also some countries might be using waterways as the mojor form as compared to roadways in the domestic country, hece it is imp to understand and know information regarding this.

3. Culture: Each country has its own culture and this needs to be understood to develop relations in that country. Culture defines the society in which we have to do the business,

4. Level of competition: The product which your company sells might be a new product in the foreign country or even might be a product with intense completion. This will result in determining of your sales and marketing strategies.

5. Government: Each country has its own government and they have their policies with respect to foreign companies. Keeping in view these policies, operations are to be handled in that country.