Effective small business management an entrepreneurial approach. Chapter 12 global marketing strategies.

Learning objectives Upon explaining this chapter you will be able to: Explain why “going global” has become an integral part of many small companies strategies 2.Describe the principal strategies for going global. 3.Explain how to build a thriving export program. 4.Discuss the major barriers to international trade and their impact on the global economy. 5.Describe the trade agreements that will have the greatest influence on foreign trade into the twenty-first century.

Introduction It is no longer a surprise to entrepreneurs that they face global competition in the marketplace. The new economic world order is the result of the interaction of dynamic forces. Culture, politics, and the basic social fabric of nations are evolving at unprecedented pace as change is facilitated by technology and challenged by global economic and competitive forces. Twenty-first century entrepreneurs recognize that the markets of today are small in comparison to the market potential of tomorrow. The world market for goods and services continues to expand fueled by global economy, which welcomes consumers with new wealth. Global business is accepted as a natural phenomenon, and new entries join daily. The tools of global business are not beyond the reach of any entrepreneur

Why go global? Reasons 1.Failure to cultivate global markets can be a lethal mistake for modern businesses, whatever their size. a)Increasingly, small businesses will be under pressure to expand into international markets, to consider themselves businesses without borders. 2.The Benefits a)Offset sales declines in the domestic market. b)Increase sales and profits. c)Extend their products' life cycle. d)Lower manufacturing costs. e)Improve competitive position and enhance reputation.