In: Operations Management
Global Trade
Screening potential International markets, narrowing the focus and selecting the target market of the global trade
300 words
Global trade or international trade refers to the transfer of goods and services from the home country to another county (Export) and getting goods and services from other countries to the home country (Import). for doing a global trade, every businessman has to follow a process and take care of some criteria to be followed and taken care of.
Following are the three steps that are necessary to select a potential target international market for trade:
1. Screening potential International markets: It is the first step in which the international market is scanned on the basis of some collected information and data about its trends. trends include costs involved, competitors, threats, opportunities, and many more. It helps in establishing various alternatives that need to be studied in the second step below.
2. Narrowing the focus: After finding out 10 to 12 highly potential markets in the international trade, it is the time to analyze the data thoroughly to select a few. In this step, the overall visions and focus of the businessman are narrowed down to some of the really good options. This can be done by deeply digging the roots of the international market.
3. Selecting the target market of the global trade: The final step is to decide the target market that the business wants to get into. This decision must be made by selecting the best alternatives identified in the second step above and by considering all the factors. It also includes the study of the legal, political, economic, and social environment of the foreign market.