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The Different Aspect of the Global Market

In: Business and Management

Submitted By Georgeludo
Words 443
Pages 2
Abstract The world of business has been experiencing ongoing changes in the way firms run their operations. Now more than ever many firms are transforming their operations to include participation in the global market. As with any type of market, global market presents firms with both; challenges and rewards. Understanding the differences between domestic and global market is of advantage for the firm’s success in the global market.

The different Aspects of Global Market The global market provides firms with great opportunities to create more revenues through trade in the new markets. The success of firms in the global market is dependent upon firms’ understanding of the differences in a number of aspects which in one way or the other stands the chance to either help or ruin the firm’s chances of success. Operating in global market requires acknowledgement of the differences in culture. According to Anthony et el., (2010) culture has shown to be among the key issues affecting the success in the global market along with other factors such as bribery, political environment, infrastructures, exchange rates, legal environment, and business practices to name some a few. It is important for a firm then, to prepare a strategy that addresses these issues because of their significance in the overall success of the firm. It is necessary for the management of the firm to pay attention to this because failure to do so could be detrimental to the firm. The global market provides that needed opportunity for firms to increase their profits through penetration into the new markets where there are many potential new customers for the firm’s products. Doing business in the global market could prove to be very challenging at times, however, for those who have succeeded to establish themselves into it have reaped huge profits from their new customer base. To conclude one could say that the global market presents many opportunities to firms which are looking into increasing their earnings. To benefit from it firms are required to carefully plan their strategies before attempting to enter into the market because of the many challenges which they are most likely going to face. Many of the challenges in the market can be averted through proper planning ahead of the firm’s entrance into the market. Anthony et el., (2010) stated that “whatever differences exist, if the firm is organized and managed correctly, it will be able to face any problem that arises” (p.93) The global market, though full of challenges has yielded many good returns to those who maneuvered to overcome the risks involved in it, the main requirement to obtaining the desired success is to plan with care.

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