Local responsiveness in international business #events #tradefair #exhibition
Local responsiveness refers to a company that localizes its products and services to meet conditions and nuances in other countries. Global integration refers to a company’s local presence in the global market and the degree to which it can use the same products and services in other countries.
local products in international business
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International Business in an Environment Transformed by Globalization
Like HEC Montréal, the international business discipline emerged out of a central concern for the training of future managers. As a new type of company began to make its appearance following World War Two, a handful of professors saw a need to develop new pedagogical content and decided to join their efforts in order to explain the reality of the time more accurately. This new reality was characterized by significant growth in cross-border activities by companies, which left them faced with unprecedented management challenges. Little by little, a new field began to establish itself in management faculties and schools, which were forced to find ways to reconcile the multidisciplinary nature of the field with a mode of administrative organization largely dominated by separate disciplines.
It presents export as the main means of increasing the well-being of the population and an opportunity for companies to increase their revenue and efficiency. An introduction to government intervention is made as one of the main ways to overcome obstacles to promotion of the internationalization of companies, namely – creation and development of the export promotion organizations. The relevance of
the development. The object, subject, and research thesis of the dissertation, the purpose of the development is formulated, specifics are set tasks to perform.
Initially, the obstacles facing companies related to exit are outlined abroad that could stop companies from exporting. These difficulties are usually internal, such as lack of sufficient resources or opportunities for internal realization of the new activities, lack of opportunities to retain the benefits derived from exports. In addition, these barriers are increasing because in the process of internationalization additionally, other requirements and needs appear, such as technical customs documentation requirements, contractual agreements with potential partners, etc.
But since the options for these businesses are limited (they either adapt, having an idea to become competitive with global level, or go about their business as usual and face the inevitability of reduced sales and profits), usually it is national governments that provide different types support and assistance for companies, especially for small and medium-sized enterprises (SME). The support from the national governments of the companies in their attempts at internationalization, is in the form of promoting the export and related development programs.
Taking into account the restrictions on SMEs, without such a government support most of them will not be able to benefit from the growing international trade opportunities and their general performance would aggravated. There is therefore a need for a comprehensive, coherent and consistent support for companies by offering quality services, related to the business development of companies with a special focus on their internationalization, while at the same time it must correspond to the reality and needs of SMEs.
The stages of internationalization for companies (especially SMEs) are also examined, namely: local marketing focus, pre-export, experimental export entrainment active entrainment engaged entrainment.
Based on the need for assistance that companies experience at the various stages of internationalization, are defined and the economic case for government intervention to support exports.
In the commercial field, they are usually associated with market defects in the action of the market, in addition to the influence of natural mechanisms ‘demand’ and ‘supply’, with governments intervening in the export area with two objectives: to increase export flows and to select sectors in which the country must specialize. Every literature on the matter indicates that what matters is not only what is exported, but also what is exported. The intervention of the government is directed to correct deviations in the goods market and means of production by direct intervention in the market where the defect is manifested. In this regard, functional and selective can be distinguished approaches.
The former are aimed at correcting market defects with an impact on the entire national economy without disturbing the distribution of resources across sectors (i.e. public investment in physical or human capital, provision of information and technical support); the latter are aimed at changing the distribution of resources with a goal favoring some sectors or regions over others (specific subsidies or tariffs, investing in specific sectors).
Other arguments for government intervention have been considered such as: information problems (firms not being able to choose the right level of quality and accordingly enter foreign markets, they cannot identified potential partners and their trustworthiness; rather it is necessary government policy to provide public information); coordination defects (can cause investing to be at a different level than optimal; the best intervention is through supporting and facilitating coordination through information provision, 12 incentives for activities and technologies, etc.); the disadvantages of capital market (key determinant of slow development of otherwise efficient sectors; the intervention may be aimed at competition in the credit market, facilitating the provision of information, credit insurance).
Therefore, arguments for intervention by governments are provided by the shortcomings of the market for goods and means of production. Government intervention prevents situations where it can signals a comparative advantage in the wrong sector, as in these/similar cases the appropriate intervention policies would be to support the sector with real comparative advantage.