INTERNATIONAL_BUSINESS Essay Example | Topics and Well Written Essays - 3000 words

INTERNATIONAL_BUSINESS - Essay ExampleCompanies investing in foreign markets argon ultimately inhibited by the underlying antipathy of the local firms and dearth of local traditions and norms awareness thus suffer constraints owing to their alien status. There are already many established foreign firms that demand apparently penetrated the market hence entrust offer ready competition but also offer up us with an insight of the market strength. Peng et al (2009) through their integrated global trade model plan two approaches in discerning global industry frameworks. These are the institution-based outlook in which overseas enterprise corporations concentrate on studying the domestic trade situation and the resource-based outlook whereby the corporation uses its customary hawkish advantages like advanced equipment or merchandise to add a toehold in the domestic markets.China as one of the top growth emergent markets offer a vastly developed latent computer programme for establi shing an global market to cater for the many foreign travellers including investors and tourists in addition to the local traders. This will earmark the firm a viable entry point into the nascent ASEAN regional market for ABC PLC. jibe to Porter (2009), a firms external competitive advantage is mostly dependent on location of the business. He observes that even with the advent of globalisation the cost of doing business in China has comprehended due to high energy and other logistical expenses. Beizhong (2009) cites three criterion used by firms intending to contingency into foreign markets. These include the competitive ability in the international market, the competitive advantages and competitive risks (Pg.2). International organic evolution will enhance our hotel chain growth by cushioning the current economic recession in our other ventures with the sustained growth always prevalent in China. The marketing model to be followed will be as outlined in Bothma (2008)