BSB119 Study Guide - Final Guide: Externality, Foreign Exchange Risk, Trade Creation
Document Summary
The current consensus is that although the world is moving towards global markets, the continuing persistence of cultural and economic differences among nations would act as a major hindrance on any trend towards global consumer tastes and preferences. In addition, trade barriers and differences in product and technical standards also constrain a firm"s ability to sell a standardised product to a global market. The firm views the world as a single marketplace and its primary goal is to create standardised goods and services that will address the need of customers worldwide. Pursuing a low-cost strategy on a global scale by reaping the cost reductions that come from economies of scale, learning effects and location economie. Since the global corporation must coordinate its world wide production and marketing strategies, it usually concentrates power and decision-making responsibility at a central headquarters location. Still need to adjust for some differences (eg. language)
