Key Markets in International Business: A Detailed Comparative Analysis

This essay provides an overview of the key markets in international business: government, industrial, and consumer markets. It emphasizes the importance of gathering information about the potential of these markets, the economy, and the political situation of a country before entering international markets. The essay highlights that companies must conduct thorough research and stay updated to avoid potential challenges during foreign trade. It also discusses the characteristics and potential of each market, noting the significance of tailoring business and marketing strategies to compete effectively, especially in competitive environments like the consumer market in the United Kingdom. The essay concludes that all three markets are important for international trade and that a well-researched and proven business strategy is essential for success.

Running head: INTERNATIONAL BUSINESS
INTERNATIONAL BUSINESS
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Before entering into the international markets, all international companies gather
information regarding potentiality of the markets in order to secure the considerable amount of
return from those markets. The international companies research as well as keep themselves
updated so that possible measures can be taken to avoid any kind of unpleasant circumstances
while conducting foreign trade. There are three major markets under consideration that most of
the international companies operate into. The markets are namely, government market, industrial
market and most importantly consumer market (Tolstoy, 2014). Therefore the whole course of
the discussion will be elaborating the each market with appropriate examples.
The companies choose markets as per their goals. Therefore it is imperative for the
companies to research and identify the target customer and their requirements before making
selections for the target markets. In this regard, it must be mentioned that all of the three markets
have equal potential in terms of foreign trade. The impact of the three markets is significant but
then also it must be assured that the business strategy is well researched and fully proved (Laufs
& Schwens, 2014). Thus the three markets together make up the whole economy of any nation or
any country. A corporation seeking entry an international market needs to analyze the market
segmentation before so that it can smoothly operate its business in the foreign country. For
example, consumer market depends on the demands of the customers’ personal consumption.
The largest consumer market exists in the United Kingdom. Thus it is of suggestion for the
companies who operate the business in the consumer must consider the United Kingdom as far
as the foreign trade is concerned. However, it must be mentioned that there are a large number of
companies exist operating business in the consumer market of the United Kingdom (Emelyanov,
Prityko & Moroz, 2015). Thus the before entering the Consumer market of United Kingdom, the

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companies need to have different price strategy as well as the marketing strategy in order to
compete with the existing companies.
The term industrial market refers to the business market where the corporations or the
companies invest their money in the corporations in order to continue the operation of the
business. Thus businesses spend money in the infrastructure, equipment, supplies, machinery and
so on. The businesses spend money to other businesses, business to sales where the products of
one business are sold by another business. It has been observed that purchasing products from
other business than purchasing products from direct suppliers (Laufs & Schwens, 2014). Most of
the industries that make up the industrial are the agriculture, construction sector, communication
sector, mining business, and public utilities and so on. Mostly in all countries, industrial markets
are quite in numbers. However, there are some specifications. For example, the construction
sector is more flourished in the developed countries while at the same time investment rate is
higher in the agriculture sector of the developing countries. Therefore it can be said that
industrial market has a significant potential in bringing the revenue for the foreign trade.
Businesses seeking to enter the industrial market need to research about the economy of the
country as well as the contribution of the industrial market in the economy so that measures can
be taken accordingly.
Beside of industrial market and consumer market, the government markets can be very
beneficial for the businesses seeking to enter into the foreign markets. The government of United
States’ expenditure every year is to a greater extent for the purpose of development in the
country. Several tenders are given too many businesses with a good pay to them (Gaspar et al.,
2016). Therefore countries where political conditions are stable, the businesses need to enter
those economies.

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To conclude, it will be right to assert that all the three markets are important for any
international business to do foreign trading. But then before entering into the international
markets, all international companies must gather information regarding potentiality of the
markets, the economy of the country, and its political situation in order to secure the
considerable amount of return from those markets. Therefore the international companies need to
research as well as keep themselves updated so that possible measures can be taken to avoid any
kind of unpleasant circumstances while conducting foreign trade. The three markets that have
been elaborated in the whole course of the discussion are namely, government market, industrial
market and most importantly consumer market which open up greater opportunities for the
companies interested in foreign trade.

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References
Emelyanov, A. A., Prityko, E. A., & Moroz, E. V. (2015). Some Aspects of Regional Consumer
Market Potential Development. In Сборники конференций НИЦ Социосфера(No. 57,
pp. 150-151). Vedecko vydavatelske centrum Sociosfera-CZ sro.
Gaspar, J., Kolari, J., Hise, R., Bierman, L., & Smith, L. M. (2016). Introduction to global
business: Understanding the international environment & global business functions.
Nelson Education.
Laufs, K., & Schwens, C. (2014). Foreign market entry mode choice of small and medium-sized
enterprises: A systematic review and future research agenda. International Business
Review, 23(6), 1109-1126.
Tolstoy, D. (2014). Differentiation in foreign business relationships: A study on small and
medium-sized enterprises after their initial foreign market entry. International Small
Business Journal, 32(1), 17-35.