All kinds of business and economies could take opportunity to gain the potential benefits from international trade. For example, a multi-nation corporation can lower its product cost by locating its factory in country with relatively low exchange rate and tax rate. Consumers tend to spend more money on normal goods when their purchasing power increases. International company can always gain potential benefits of international business which leads to cost efficiency.
Under the current state of natural, the world’s overall economy is continuously developing, and regional economies become more and more interdependent. China’s economy is dramatically expanding with the tendency of increase in the currency’s exchange rate. As a result, companies might begin to consider about moving some of the factories in China to other country in the purpose of avoiding increase in product cost. On the other hand, the increasing average income in the country and the huge population indicate a tremendous potential to expand business. The foresighted corporations should spend more budget and effort on marketing for Chinese consumers.
Month: April 2011
Under today’s economic trend of Globalization, a large international corporation’s market covers a lot of countries in the world. Government regulation varies among countries, therefore, companies should apply different marketing strategies in different market segments. For example, Google was involved in tremendous political troubles with the Chinese government during the last couple years. Because the it repeatedly violated the country’s internet censer ship policy , Google ended up with having to leave this giant market of China. 
In different political environment, companies needs to fully aware and comply with any government legislation before applying one market’s successful experience to another. Fast food and confectionery company such as Macdonald’s and Mars have to be caution for the growing obesity concerns in some counties. Furthermore, The passing of laws regulating the sale of “unhealthy food” have been on the rise especially in the European Union, whose members have set up laws over obesity concerns.