Condition of Demand

Topics: Decision making, Globalization, International trade Pages: 2 (596 words) Published: December 11, 2010
Demand conditions
The structure of demand may affect the competitiveness of firms in the international market by providing an impetus for domestic firms to produce high quality ,well designed ,reliable goods ,relative to those supplied by their foreign competitors assuming that such an emphasis on product consistency or differentiation , rather than a cost reducing. One of the most effective strategies for firms is to pursue to what content is likely to be affected, by such demand conditions. “A nation’s competitive advantage is strengthened if there is strong local demand for its goods and services” (Porter). This demand provide a number of benefits, Firstly it helps seller to understand what buyers want .Secondly if change become necessary ,such as customer desire for a product to be a smaller or more efficient ,the local seller can change the product immediately. Developing international perspectives

Many companies do their business in other countries, however they have not developed the need of international perspective, this requires in three areas: experience, focus and attention. Moreover, one way to create an international perspective is to hire individuals with international experience .For example research has shown that in the USA many U.S chief executive officers have much less lack of experience compared to European and Japan companies. One of the benefits of experience is that help managers to evaluate situations, and this process is different from which used at home. Furthermore, managers mainly rely on strategic planning and humanistic aspects of international business .A second way to develop an international business is to emphasise the importance of international activities. Unfortunately these activities are often low on a list of priorities. Consumer Tastes

International trade is not only based on price, some people will pay much more for a product even though they can buy a similar product for less money. The willingness of paying...
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