INBUST REPORTING SCRIPT

Businesses go global to expand their market reach, increase revenue, and diversify risks by operating in
multiple countries. They also benefit from lower production costs, access to skilled talent, and economies of
scale, which enhance profitability and competitiveness. Additionally, globalization allows businesses to
strengthen their brand presence, leverage technological advancements, and take advantage of government
incentives in foreign markets.

REMAINING 8 REASONS WHY BUSINESSES GO GLOBAL

MAKE USE OF EXCESS CAPACITY OFF-SEASON
- Going global allows companies that sell or manufacture seasonal products to balance seasonal demand
fluctuations by selling products or services in different regions with varying peak seasons
- For example, a clothing brand specializing in winter apparel can sell in the Northern Hemisphere during its
winter months and shift to the Southern Hemisphere when seasons change
EXAMPLES OF SEASONAL PRODUCTS:
-winter clothes
-swim wears
-heaters and electric blankets
-Christmas decorations
TRAVEL TO NEW COUNTRIES
-this is the fun factor in taking a business global
-companies not only connect with people from all over the world, but also have a chance to meet with them in
person to grow the relationship and the business
SHARING OF COSTS AND RISKS BETWEEN MARKETS
-by going international, a company diversifies its costs and risks between its domestic and international markets
-this contributes to having a larger market share and earning greater profits
EXTENDING A PRODUCT’S LIFE CYCLE
- Going global extends a product's life cycle by allowing companies to introduce it in new markets where
demand is still growing, even if it declines in the home market
- Since developing countries often adopt products later than developed nations, developed nations bring their
products that are already declining in their home market to the developing nations where the demand is still
emerging
-that way they can still maintain profitability
TAKE ADVANTAGE OF LESS COMPETITIVE MARKET
-for some product lines, local competition may be so intense
-therefore, they go to the foreign markets, where competitions may be less intense
-a lot of developed economies bring their businesses in developing and less developed economies due to low
competition in these sectors compared to the level of competition experienced in their own countries
In the Philippines, we have lots of foreign companies:
Beijing Foreign Business Consultancy Services
Ltd. Co. in Makati
St. Ignatius Foreign Documentation Consultancy Services, Inc. in Pasay
China Jiangsu First Foreign Construction (Philippine) Company in Manila
JCMC Foreign Exchange Currency Company in Pasig, and many more
UTILIZE EXCESS CAPACITY
- Excess capacity refers to a situation where a business has more production capability than the current market
demand requires, leading to underutilized resources and higher operational costs
- This often happens due to seasonal demand shifts, economic downturns, or inefficient resource allocation
- Going global helps businesses utilize excess capacity by allowing them to sell products in international
markets where demand remains strong, even when it declines in their home country
TAKING ADVANTAGE OF GEOGRAPHICAL DIVERSIFICATION
- Geographical diversification (going international) allows businesses to spread their operations across multiple
regions, where in they can ensure steady revenue streams and profitability
-this is less costly than product line diversification or manufacturing or dealing with several products
TAKING ADVANTAGE OF THE DEMAND ABROAD
- Sometimes, a product may be available in one country only, while several countries require the same product. -
-Therefore, the company manufacturing the product should take advantage of the foreign demand
EXAMPLES:
Tesla Cars (USA, initially) – Initially produced only in the U.S., with strong global demand.
Samsung’s Latest Smartphones (South Korea) – Often released in Korea first before global distribution
Maple Syrup (Canada) – A staple in Canada but demanded globally

6.2 FACTORS AFFECTING INTERNATIONAL MARKETING

After knowing the reasons why companies go global, we will now study the factors that affect international
marketing…..
1.ECONOMIC INTEGRATION
-revolves around the trade agreements/ treaties between countries that usually include elimination of trade
barriers leading to a more interconnected global economy
-trade barriers have been lowered or eliminated
-consistent with the free trade economic theory, which argues that the global economy is better off when
markets can function in unison with minimal intervention from the government
Political integration, such as trade agreements and economic unions, can positively impact international
marketing by reducing trade barriers like tariffs and import restrictions, making it easier for businesses to enter
new markets
2. TECHNOLOGICAL ADVANCES
-are a driving force for development making consumers worldwide aware of products, services, and
entertainment creating demand for such trade wares.
-This enables global connectivity, making it easier for businesses to reach and engage customers across borders
through digital platforms.
3. EFFICIENT TRANSPORTATION
- due to containerization and just-in-time (JIT) technology are creating more international business
opportunities.
-This enables businesses to distribute products quickly and reliably across borders, enhancing customer
satisfaction and competitiveness
- enhances international marketing by enabling faster and more cost-effective distribution of goods to global
markets, reducing delivery times and logistics expenses
Containerization is a shipping method that uses standardized containers for transporting goods, making global
trade more efficient by reducing handling costs, minimizing damage, and speeding up transit times.
Just-in-time (JIT) technology is a supply chain strategy that ensures goods are produced and delivered exactly
when needed, reducing inventory costs and improving efficiency.
Together, these innovations create more international business opportunities by lowering logistics costs,
enhancing supply chain reliability, and enabling businesses to operate in multiple global markets with minimal
waste and maximum responsiveness to demand.
4. TRANSITION TO MARKET ECONOMY
- leads to economic development and prosperity, creating new opportunities for international businesses by
opening previously restricted markets and increasing consumer demand for diverse product
- affects international marketing by opening up new opportunities for businesses as government control over
industries decreases and free-market competition increases
- Foreign companies can enter emerging markets more easily
- This shift often leads to increased demand for international brands
The transition to a market economy is the process where a country shifts from a centrally planned economy,
where the government controls production and prices, to a system driven by supply and demand. This shift
involves privatization of state-owned businesses and opening markets to competition, allowing businesses
and consumers more economic freedom.
5. WORLD ECONOMIC GROWTH
- international business and trade stimulate long-term world economic growth through multiple channels, the
most conducted trades being in the monetary and financial system.
- World economic growth positively impacts international marketing by increasing consumer purchasing
power, leading to higher demand for global products and services
- As economies grow, businesses expand into new markets, creating opportunities for international brands to
establish a presence and gain market share
6.CONVERGING CONSUMER NEEDS
- dictate international business and trade participants on what to produce and sell in the international markets
-This also creates a global demand for similar products and brands, allowing companies to standardize
marketing strategies across multiple countries
- This trend enables companies to create universal branding and messaging, making it easier to expand into new
markets with minimal adaptation
Converging consumer needs refer to the growing similarity in consumer preferences and demands across
different countries due to globalization, technology, and cultural exchange. This means people worldwide are
increasingly interested in the same products, such as smartphones, fashion, and fast food, leading companies to
create standardized marketing strategies.