Global Business Management Report: Market Entry Strategies and Trade

This report provides a detailed analysis of global business management, focusing on various aspects of international trade and market dynamics. The report examines the impact of a strong dollar on the US economy, particularly in relation to exports and international sales, highlighting the challenges faced by businesses with overseas operations. It further explores market entry strategies, discussing the use of direct exports, licensing, and foreign direct investment (FDI) by small and medium-sized enterprises (SMEs) to access foreign markets. The report also addresses the role of embargoes in international trade, explaining their legal basis and influence on both political and economic landscapes, referencing the authority of the United Nations in mandating such restrictions. Finally, it reviews the Doha Round of trade negotiations, identifying the primary reasons for its failure, including disagreements over agricultural subsidies and the inability of participating economies to reach consensus, which led to the conclusion that no agreement was preferable to a potentially contentious one. The report includes a reference list with relevant sources.

Running head: GLOBAL BUSINESS MANAGEMENT
GLOBAL BUSINESS MANAGEMENT
Name of Student:
Name of University:
Author Note:

1GLOBAL BUSINESS MANAGEMENT
Table of Contents
Answer to Q11.................................................................................................................................2
Answer to Q7...................................................................................................................................2
Answer to Q3...................................................................................................................................2
Answer to Q1...................................................................................................................................2
Reference List..................................................................................................................................4

2GLOBAL BUSINESS MANAGEMENT
Answer to Q11
A strong dollar means that the currency buys more of a foreign country’s goods which
has weaker dollar value. It is bad for big companies in US that has lot of overseas business as it
lowers the value of international sales and profits because consumers will not buy goods from
US due to strong dollar value and hurt US exports. It can be good for other economies such that
the currency is becoming more valuable in correspondence to currency of another country.
Answer to Q7
SMEs use three tools to enter the foreign markets such as FDI, Licensing or franchising
and direct exports. Direct exports provides protection to SMEs in domestic economy and enables
to serve countries in other economies. Licensing is a tool used in manufacturing companies
where one firms has the right to access technology or trademark of other firm in another
economy. Small scale foreign firms control domestic firms through FDI.
Answer to Q3
Embargo are legal as it enables the government or group of governments to restrict the
export or movement of goods from one country to another (Sutton, 2013). It is used as a
government order that is the result of unfavorable economic or political circumstances between
the two nations. Embargo restricts the exchange of certain commodities specified by the two
economies. It can influence a nation both politically and economically. Decisions relating to
embargoes are legally mandated by the United Nations.
Answer to Q1
Doha Roha was aimed to enhance international trade by lowering trade barriers. The
prime reason for the failure of Doha Round was because EU and United States were unwilling to

3GLOBAL BUSINESS MANAGEMENT
give up their agricultural subsidies (Rios, Thiebaut, & de Carvalho Azevedo, 2015). Many
countries like Brazil, India and China did not support the agreement. Economies were unable to
negotiate among themselves. As a result, it was believed that no deal is better than any deal as it
created more conflicts among economies.

4GLOBAL BUSINESS MANAGEMENT
Reference List
Rios, L. E. J., Thiebaut, B. D. S. L., & de Carvalho Azevedo, V. A. (2015). Transferencia
internacional de tecnologia: Efeitos para os paises em desenvolvimento. PIDCC: Revista
em propriedade intelectual direito contêmporaneo, 9(3), 174-191.
Sutton, S. C. (2013). Open access, publisher embargoes, and the voluntary nature of
scholarship. College & Research Libraries News, 74(9).