Global Market Entry Strategies

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Questions and Answers

What is a global market?

A market where goods, services, and labor are exchanged throughout the entire world (correct)
A market that only operates within a single country
A market that only sells digital products
A market that only operates online

What is the main difference between a distributor and an agent?

A distributor sells products through online marketplaces, while an agent sells products directly to customers
A distributor buys products and resells them in the target market, while an agent acts on behalf of the company to facilitate sales without taking ownership of the products (correct)
A distributor acts on behalf of the company to facilitate sales without taking ownership of the products, while an agent buys products and resells them in the target market
A distributor sells products directly to customers, while an agent sells products through online marketplaces

What is the benefit of opening a physical presence in the target market?

No need for a physical presence in the target market
Immediate access to the local market and customer base
Access to a large, global customer base
Direct control over operations, branding, and customer interactions (correct)

What is the benefit of selling through online marketplaces?

Broad reach: Access to a large, global customer base (C) Signup and view all the answers

Why is it important to adapt products and services to foreign markets?

Because a product design or marketing strategy that works in one country may not work in another (D) Signup and view all the answers

What is the importance of providing good customer services in global trade?

It helps acquire new foreign buyers and retain them, and also obtain valuable feedback (B) Signup and view all the answers

What is the first export strategy for small businesses?

Export high-quality products that meet the needs (A) Signup and view all the answers

Why is it important to export high-quality products?

It affects the image of your business and your country (A) Signup and view all the answers

Why is it beneficial for small businesses to form partnerships when entering a new foreign market?

To tap into local expertise and knowledge of the market (B) Signup and view all the answers

What is the primary goal of international logistics standards?

To ensure quality, safety, efficiency, and sustainability in global trade and transportation (C) Signup and view all the answers

What is an example of a sustainable practice in a small business?

Implementing recycling programs (D) Signup and view all the answers

What is the role of logistics in the supply chain?

It is a component of the wider supply chain (D) Signup and view all the answers

How can small businesses manage international regulations and logistics?

By doing extensive research and planning ahead (A) Signup and view all the answers

What is the primary reason why governments provide support and incentives to small business exporters?

To boost their country's exports and economy (C) Signup and view all the answers

What is the relationship between logistics and supply chain?

Logistics is a component of the wider supply chain (D) Signup and view all the answers

What is the benefit of taking advantage of government support for small business exporters?

It increases their access to international markets (D) Signup and view all the answers

Study Notes

Global Market Strategies

A global market is a platform where goods, services, and labor are exchanged worldwide.
Five ways to enter a global market:
- Using a distributor or agent to facilitate sales
- Acquiring or partnering with a local business for immediate market access
- Opening a physical presence for full control over operations
- Selling through online marketplaces for broad reach
- Offering direct e-commerce sales for customer insights

Export Strategies for Small Businesses

Export high-quality products that meet customer needs to maintain a good business image
Adapt products and services to foreign markets, considering economic and cultural differences
Provide good customer services to acquire and retain customers, and obtain valuable feedback
Form partnerships with local businesses to overcome resource limitations
Take advantage of government support for small business exporters

Logistics in Global Market Strategies

Logistics is the flow of commodities from point A to point B, including transportation and warehousing
Logistics is a critical component of global market strategies, ensuring efficient and effective flow and storage of goods and services
International logistics standards aim to ensure quality, safety, efficiency, and sustainability in global trade and transportation

Managing International Regulations and Logistics

Research and plan ahead to manage international regulations and logistics
Seek professional help when needed
Stay updated with changing regulations and standards
Be ethical and responsible in managing international logistics

Sustainable Practices in Small Businesses

Sustainable practices include reducing energy consumption, implementing recycling programs, and using eco-friendly products and packaging
Other sustainable practices include supporting local suppliers, offering telecommuting options, and promoting public transportation or carpooling
The goal of sustainable practices is to reduce, reuse, and recycle.

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Description

Learn about different ways to enter a global market, including using distributors, acquiring local businesses, and selling through online marketplaces.