Presented by Maggie Chen
Business without Borders: Global is emerging and our world is shrinking. Doing business internationally is a faster way to grow your business than locally. There are several advantages as below:
1. New market opportunities: International business presents firms with new market opportunities. These new markets provide more opportunities for expansion, growth, and income. A bigger market means more customers, increased revenue, a larger profit margin, and allows the business to realize economies of scale.
CTL Business Group specializes in Taiwan, Hong Kong, Singapore and China. There are huge opportunities to extend and grow up your business in these four countries. As the world ‘s population is approximately 6.7 billion and Taiwan, China, Hong Kong and Singapore’s total population equal to 1.4 billion, they represent a full 20% of the world’s population. One in five people on the planet are there. We offer in-depth looks at the cultural environment of the emerging global economy and provide you the chance to grow and extend your business 41 times more than here.
2. Access to cheaper inputs: Operating internationally may enable the firm to source raw materials or labor at lower prices.
For example, manufacturing jobs salary are around $150 US dollars in China. We pay similar position around $3000 US dollars in here. That’s 20 times different.
3. Increased quality and efficiency: Exposure to foreign competition will encourage increased efficiency. Doing business in the international market allows firms to improve the quality of their product in order to gain a competitive advantage.
REAL CASE: PUMA, is a major German multinational company that produces athletic shoes, footwear, and other sportswear. The company was formed in 1924 by two brothers, Adolf and Rudolf. They split in 1948, forming two separate brands, Adidas and Puma.
Puma has 9,500 employees and distributes its products in more than 120 countries.[when?] For the fiscal year 2003, the company had revenue of ﾀ1.274 billion.
Puma ranks as one of the top shoe brands, after Reebok, Adidas, and Nike. This example tells us, international competition allows company to improve their produces in order to stand out in global stage
4. Diversification: As the firm diversifies its market, it becomes less vulnerable to changes in local demand. This reduces wild swings in a company’s sales and profits.
REAL CASE: Old Navy, Gap and Banana Republic. They are same company but using different brands to diversifies market. Old Navy has cheap prices for students. Gap has middle prices for children and young people. Banana Republic has high prices for working at office people.