Chapter 1 – Introduction to International Trade and Business Management

Instruction: Answer the exercise carefully. Contents of your answers (self-construct) should have
minimum of two (2) paragraphs with at least four (4) sentences each.
1. Discuss the importance of global marketing in making a firm’s product or service globally
competitive.

Marketing is a significant aspect in terms of introducing the product or service of the firm
in the global market. The stand of the product or service of the firm usually lies within its well
planned and strategic marketing techniques. Companies considered marketing as a way to cope
up in the market and how they can take a stand in a dynamic business environment. It is like
selling what the company sells.
Marketing also serves as a platform where the company can introduce what its product
or service is. It also includes what the product or service it can offer and why customers should
buy or patronize the product against the other competing brand. Good marketing strategies take
a significant part of what a company can achieve. It takes a great part of what a company can take
in the competitive business environment.

2. What is the impact of international trade in a firm’s profit?

As the company grows and introduces its business internationally, it can generate more
profit as it is operating in a larger market. Generating a larger profit requires good and successful
business operations. But then international trade also has risk like foreign exchange risk that can
highly affect the business operation and eventually, the profit of the firm itself.

3. Is it important to study the physical environment of a country before setting up a business over
there? Justify your answer.

Studying the physical environment of a country is important before setting up a business.

Considering the environment where the company will operate has a big impact on the business
itself. What business you will build, the products or services it will offer, the target market and
the culture of people in the country must be considered predominantly. These aspects must all
be considered in order to step up in the next level of the business.
Understanding and analyzing the environment where you will put up your venture is the
first step in making progress. Without this process, the business cannot operate well or the
products or services it will offer may not be suitable for the people in that country. This is also
an important aspect to consider for the company not to waste more resources in the future
operations. Rigorous business planning is needed before taking the venture into the next level of
success.

4. Comment your insight about this matter: “Cultural differences, is one of the most difficult
problems in international marketing.”
Entities must always consider the cultural differences of each country from time to time.
Countries differ in many ways just like in aspects, culture and traditions. Analyzing and understanding
cultural differences is on top priority in order to utilize and perform marketing internationally.
Companies must keep in mind that in order for the customers to buy their products or services, it
must be aligned with their cultural preferences.
 This matter also explains that trading internationally is not a piece of cake. Companies
who successfully enter the international market have to take a lot of well planned and strategic
business techniques in order to cope up with the heterogeneous market. It is also a reminder that
companies should not always put more importance on how much profit they can generate but should
put more importance on what they can offer in order to please their customers.