Entering into the global marketplace can produce benefits

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Give opinion: Entering into the global marketplace can produce benefits and risks to a company. It's important to remember the target market as well as the mission and vision of the company when considering globalizing. In addition, a great way to determine a good fit for an international marketplace that meets the needs of your company is by doing a comparison using Hofstede's Cultural Dimensions Framework.

According to Section 14.3 in our textbook, there are four strategies that must be developed before entering a global marketplace. Those are direct and indirect exporting, licensing and franchising, joint ventures, and foreign direct investment. Direct and indirect exporting increase flexibility while decreasing risk, but does generate a higher retail price for consumers. Licensing and franchising provide easy accessibility to international market but those may create more competition. Join ventures can be the only way some organizations can gain entry to the marketplace in a particular country and typically require a large principle investment. Lastly, foreign direct investment offer tax incentives but can be riskier than the other strategies (Finch, 2012).

In 2016, the company I work for, Airgas, was purchased by Air Liquide, a French company. We still operate as Airgas under the umbrella company Air Liquide. This allowed Airgas to become more competitive by entering the marketplace internationally and we both have strengths and weaknesses that balance the two companies out. It has generated much more exposure and allowed us many more resources than we had previously when we were only in the United States.

Reference no: EM132275187

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