Global Market Expansion and Oppurtunity

• Global Market define as the market in which goods and services of one country are traded (purchased or sold) to people of other countries.
• IMF (International Monetary Fund) role is to promote International Cooperation, to promote the expansion and balanced growth of international trade, to promote exchange rate stability, to make its resource available to its member who are experiencing BOP problems, and to establish a multilateral system of Payments.
• A fixed exchange rate denotes a nominal exchange rate that is set firmly by the monetary authority with respect to a foreign currency or a basket of foreign currencies.
• A floating exchange rate is determined in foreign exchange markets depending on demand and supply, and it generally fluctuates constantly
• Japan, Europe, and USA usually allows their currency to float.
• The exchange rate has an effect on the trade surplus or deficit, which in turn affects the exchange rate, and so on.
• In general, however, a weaker domestic currency stimulates exports and makes imports more expensive.
• Conversely, a strong domestic currency hampers exports and makes imports cheaper
• When selecting an International Market, it's sizeable enough to be profitable given your operating cost, its growing, its not already swamped by competitors, or you have found a way to stand out in a crowd, either its accessible or you can find a way to reach it, you have the resources to compete in it, and it "fits in" with your firm's objectives and mission.
• Sliding - Down the Demand Curve, a company pursuing this strategy has the objective to become established in foreign markets an an efficient producer at optimum volume before foreign or domestic competitors can gets entrenched.
• Market Skimming, this involves the strategy of getting the highest possible price out of an product's distinctiveness in the short-run without worrying about the long-run company position in the foreign market.
• Market Penetration, this strategy involves establishing a price sufficiently low to rapidly create a mass market. Emphasis is place on value rather than cost in setting the price.
• Preemptive Pricing, Setting the price at its very low level to discourage competition
• Extinction Pricing, the purpose is to eliminate the existing competitors from international markets.
• Indirect exporting refers to selling to an intermediary, who later sells the good or services either directly to importing wholesalers or to customers.
• It could also be a sale by the exporter to the buyer via a locally located intermediary, such as an export trading company or an export management company.
• Indirect Importing, which a company buys a products from someone in another country using an intermediary, or a product that is bought in this way; some of these goods are indirect imports.
• Intermediary is a person or organization that arranges business agreement.
• Advantage of Licensing, it creates an opportunity for passive income, it creates new business opportunity, it reduce risks for both parties, it creates and easier entry into international markets, it creates self-employment opportunities, and it offers the freedom to develop a unique market approach.
• Disadvantage of Licensing, It increase opportunity for IP theft, creates dependency upon the licensor, creates added competition the marketplace, it offers limited time, could damage the reputation of both parties.