Analysis of Global Trade and International Strategies

This report analyzes the complexities of the global marketplace, focusing on the impact of globalization and international trade on businesses. It examines crucial concepts, analytical tools such as trade statistics and tariffs, and theories like absolute advantage and mercantilism. The report also delves into various international strategies, including global, transnational, and international approaches, evaluating their relevance for companies like Morrison. The analysis covers the importance of adapting strategies to local consumer needs, achieving economies of scale, and managing the challenges of global expansion. The conclusion highlights the significance of adopting appropriate strategies to enhance profitability and productivity in the international market, emphasizing the need for adaptability and strategic decision-making in a global context.

Global
Marketplace
Morrison

Table of Content
Introduction
TASK 1
◦ Importance and impact of global trade and globalization
TASK 2
◦ Relevance of concepts
◦ Analytical tools
◦ Theories of international businesses
TASK 3
◦ International strategies
◦ Global
◦ Transnational
◦ International
◦ Evaluation of strategies
Conclusion

Introduction
There are various issues that is faced by company while performing business activities at global
market area. The major global challenges includes social trends, market area, changes in rules
and regulations and many other factors. This presentation includes significance as well as impact
on globalization on organization. Different theories as well as concepts has been analysed in
order to take better decisions. Apart from this different strategies has been analysed in order to
grow and develop business at international level.

Importance and impact of global
trade and globalization
Globalization can be describe as an effective way that help in performing business activities at
international level. This will lead to have major impact over growth and development of
business. Globalization is very important and this will lead to have positive impact over business
as well as its operations. Global trade will help in achieving various business opportunities that
will lead to accomplishment of set goals. Globalization will lead to enhancing the customer base
of company as well as selling its products to different part of the world.

Relevance of concepts
Trade in the global market allow businesses to grow and expand and provide their goods and
services in various countries. Trade help in promotion of integration of economies and enhancing
the economic efficiency of countries. Global trade has also helped businesses in achieving
economies of scale and gain competitive edge kin the market by offering their products to a large
number of customers.

Analytical tools
Trade statistics
These are the data related to trade in global market which help in understanding the
structure and evaluation of market at international level so that potential opportunities can be
grabbed while the threats can be efficiently dealt with. These statistics must be analysed by
businesses before expanding in the global market.

Cont.…
Tariffs and market requirements
It is important to understand the market requirements and the tariffs that exist in foreign
market so that expansion in international market can be efficiently done by Morrison. The market
access map which was developed by ITC helps the businesses to analyse the market so as to
expand in foreign markets.

Theories of international businesses
Absolute advantage theory
It is the ability of an organization to utilize the available resources so that greater
quantity of goods, products or services can be produced than competitors. This help in increasing
the efficiency of companies and their profitability in market.

Cont.…
Mercantilism
It is a national economic policy which are designed so that exports can be maximized
while minimizing the imports in nation. This policy is adopted so that current account deficit can
be reduced or current account surplus can be achieved.

International strategies
Multi domestic firms such as Morrison set objectives for business and fulfil al the requirement in
certain period of time in order to tailoring and designing their products & services to the local
consumer. Many time they are facing problem in regard of decentralising framework and
different division are conducted without headquarter. In the context of Nestle provide unique
selling in order to increase selling and apply in local culture of the people and offer various
goods at various market lace.

Global
It is different from the domestic firm where provide products & services at international level and
increase productivity as well as profitability. These types of firms are centralized and based on
the headquarter. To make decision in regard of these firs apply different models like Hub and
spoke model.

Transnational
These types of firms have both kind of characteristics of multi domestic as well as global firm.
They wants to enhance responses from existing market and also achieve advantages from global
combination. These firms are operated by the headquarters and system software in particular
nation where it is established.