Differences between competing internationally and competing globally

Differences between competing internation eachy and competing globallyExcept in a a couple of(prenominal) cases, companies in natural resource based industries much(prenominal) as oil and gas, minerals , rubbers and lumber ofttimes to find it necessary to shape in the inter discipline argonna because of attractive raw material suppliers ar located in conflicting countries.The Difference between Competing Internationally and Competing globallyCompeting internationallyA company fences only in a few remote commercializes, It is an international multinational i.e. competing internationally,Competing globallyA company fences in virtually the consummate worlds major countries and global competitor is act a marketplace presence on cost continents.CROSS-COUNTRY DIFFERENCES IN CULTURE, demography AND MARKET CONDITIONSSmall firms are now competing in foreign markets where there is signifi behindt variation in market conditions. It poses a much bigger challenge than when just comp eting at home.Small firms enter into foreign market initially to know the reactiveness to cross-country difference in culture, demography and market conditions. It complicates the task of competing with other players. This is the difficult and challenging task for scurvy firms entering into foreign markets. One objective is to balance pressures and be responsive to local situations of each country. Also there is varied pressure for land cost and prices of the products and services offered.The Potential for Locational Advantages Stemming from Country to Country clubs potential for gaining militant advantage based on where it has located its foreign activities. This is a major area of concern. Rivals may have lower-cost locations and is a matter of considerable strategic concern.Fluctuating Exchange RateThe volatility of exchange rates greatly complicates the issue of geographic cost advantages currency exchange rates often to fluctuate as much as 20 to 40 percent annually, change s of this magnitude can totally wipe out a countrys inexpensive advantage or transform a former high-cost location into a competitive cost location.Domestic Government Restrictions and RequirementsDomestic government activity enacts all kinds of measures affecting business conditions and the operation of foreign countries in their markets. Domestic government may set local content requirements of outputs made inside their borders by foreign-based companies, impose tariffs or quotas on imports, put conditions and restrictions on export to check over adequate local suppliers, and regulate the prices of imported and locally-produced goods. In addition, outsiders may sheath a rules and regulations regarding technical standards, product certification, and prior approval of capital disbursement projects withdrawal of funds from the country and minority/majority ownership by local citizens. Some government, anxious to obtain new plants and jobs, offer foreign companies a helping hand in the forms of subsidies, privileged market access, and technical assistance.MULTI-COUNTRY COMPETITION OR GLOBAL COMPETITIONMulti-country or multi-domestic contention exists when competition in one national market is independent of another national market. There is no international market, only a collection of self-contained country markets.Global competition exists when competitiveness across national markets are linked strongly to form a truly international market where leading competitors compete head-to-head in different countries.In multi-country competition, compete firms compete for national leadership. In globally competitive industries, rival firms compete for worldwide supremacy.For a company to be successful in foreign markets, its dodge must be different from one country to another. wrinkle and competitive environment must be taken into account.STRATEGY OPTIONS FOR entry AND COMPETING IN FOREIGN MAREKETStrategic options for a company entering and competing in forei gn market that decides to expand outside its domestic market and compete internationally or globally. Important strategic options for a company competing in international market are listed below Export strategies Licensing strategies Franchising strategies A multicountry strategy or global strategyPursuing competitive advantage by competing multinationally Strategic alliance and joint ventures with foreign partnersExport Strategy order is manufacturing products and service for exporting to foreign markets. It is an excellent Initial strategy for pursuing international sales. It minimizes both the risk and capital requirements. With an export strategy, a producer can limit its involvement in foreign markets by catching with foreign wholesalers who are experienced in importing to handle the entire distribution and marketing of outputs and marketing function in their countries regions of the world. If it has more advantages to Company and has to domination to the control over these f unctions. In this case, a manufactures can yield its own distribution and sales organization in some or all of the target foreign markets. Either Way, a firm minimizes its manoeuvre investments in foreign countries because of its home-based takings and export strategy.Whether an export strategy can be pursued successfully over the long run depends on the relative Cost competitiveness of a home country business base. In some countries, firms gain additional sale economies and firm centralize production on several giant plants whose output capability exceeds subscribe in any country market. An export strategy is open for firms when the manufacturing costs in the home country are substantially higher than in foreign countries where rivals have plants or when it has relatively high-shipping costs. Unless an exporter can keep its production and shipping costs