The paper "Challenges Faced by the Australia Local Firms in Marketing Their Products " is an outstanding example of marketing coursework. As a result of the internet, movies and others for entertainment, Australia culture is well known across the globe. However, this does not mean that Australia products and services will be popularly introduced in other countries since being aware of a brand is not same as preferring it. It is a very expensive and long process for Australia companies to gain the trust of foreign customer who is used to their local products and services.
Moreover, there have been increased resentment towards the Australia companies as they are being perceived as attempting to take over positions long held by local companies in foreign countries. 1.4 Finding Reliable Partners Foreign companies often establish a relationship with distributors in the countries whose markets they are seeking to enter, they hire sales representatives based in these countries. To succeed in establishing this relationship these firms may engage local public relations and marketing companies to help them. Australia local company lack prior experience in the foreign market hence finding workers who are competent and trustworthy may be a challenge 1.5 Distance and time Even with advanced technologies, an executive in other countries would prefer to establish relationships on a personal level which means Australia local company would need a significant investment in travel costs as well as having key executive out of the office for extended periods.
On the other hand, time zone differences may make difficult to coordinate projects where collaboration is required 2.0 Comparative advantage This refers to the ability of the company to produce products or services at a lower opportunity cost than its competitors.
This enables the company to sell its products and services at a lower price than its major competitors which will enable the company to realize strong sales margins. The principle of comparative advantage which was coined by David Ricardo is fundamental in the determination of the pattern of trade among nations. Opportunity cost is the benefit foregone for undertaking an activity and therefore if a country has a lesser value for its resources in the alternative use, it can most efficiently employ resources in this activity.
A company’ s entire focus can be shaped by having a comparative advantage or disadvantage. For instance, if a cruise firm discovered that it had a comparative advantage over its competitors as a result of its closer proximity to a port, it might encourage the latter to focus on other, more productive, aspects of the business 2.1 Absolute Advantage This refers to the ability of a company, region or individual to produces services or goods at a lower cost per unit as compared to any other entity producing those services or goods.
A company with absolute advantage is able to produce goods or services using a more efficient process and/or using smaller units of inputs than another other company producing the same goods or services. The principle of absolute advantage was first described by Adam Smith in the context of international trade. Smith stated that it was impossible for all countries to get rich simultaneously by following mercantilism since exports of one country are imports of another country. According to Smith, countries can only gain simultaneously if they practiced free trade and specialize in accordance with their absolute advantage.
therefore, this idea became the basis of international trade as everyone exports what they are best at and most nation were better off since they were able to produce and sell more as well as have access to lots of products and services other nations produce more efficiently than they do
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