Cooperative and International Business Strategies

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Recommended: Importance of business ethics to international business success

Strategic Management

1. What most distinguishes domestic and global market? And why?

Domestic market:

Domestic market is the financial market which targets a single market. This kind of market deals with only one set of competitive, economic, and market issues. Similarly it faces only one set of customers even though a company has a different segments in the market. Domestic market is also known as an internal market and domestic trade. This market has a very limited scope because the market is within country’s own borders.

Global market:

Global market is the financial market that targets the worldwide scale. It represents the buying and selling the goods all around the world. It has to deal with different sets of competitive, economic and market issues. This kind of market implements several different marketing strategies based on the region the company is marketing to attract the customer’s attention. It has a very wide scope since the market runs globally.

The major differences between domestic and global markets with the explanation are presented in the following chart:

Domestic Market Global Market

Stable:

Because it targets the single market Unstable:

Because it targets the multiple markets

Predictable:

Because it has a single set of customers Unpredictable:

Because it has multiple sets of customers

Less complex:

Because it has a limited scope Complex and Risk:

Because it has a unlimited scope

2. What roles do ethics play in international strategy on both a business and corporate level of strategy?

International strategy is the strategy through which the firm sells its goods or services outside its domestic market.

Ethics play a vital role in international strategy on both a business and corp...

... middle of paper ...

...s. The relationship with partner is formalized with contracts and formalities tend to stifle partner efforts to gain maximum value from their participation.

Opportunity maximization: It focuses on maximizing partnership's value-creation opportunities. There is an informal relationship and fewer constraints which allow partners to take advantage of unexpected opportunities, learn from each other and to explore additional marketplace possibilities

References:

Ireland, H. (2013). Strategic management: Competitiveness & globalization. (10th ed.). Cengage.

Schultz, J. (2014, April 09). Mgt 6203 lecture 2 . Retrieved from http://www.youtube.com/watch?v=VoRj7G2yHgI&feature=youtu.be

How companies in emerging markets break out . (2010, June 09). Retrieved from https://www.youtube.com/watch?v=9REV9mIL7E8

Schultz, J. Power-point slide (Chapter 9)

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