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The Benefits of International Trade
The subject of international trade is being discussed this election year as well it should given the fact that today it is not about the economy of one country but the global economy. It is true that countries develop talents for specific products or services and as such can do a better job than others. The importance of international trade cannot be denied. The world has become more closely connected not only with the Internet but with the need to expand sales for products and services across the globe.
In our country the fact that international treaties are being negotiated provides a level of recognition that international trade is an essential element in this global economy. Companies can no longer rely on customers in their own country but many develop marketing strategies to attract new customers across the world. Developing countries are acquiring a taste for more products from other countries and as such increase the demand for products all over the world.
The concept of international trade and the process for understanding it and tapping into it is something companies today need to address in their marketing strategies. Reaching out to customers across the world is more easily achieved through the technology we now have. International trade does not just take place through treaties but also involves companies acquiring customers internationally through their marketing efforts. The key to companies successfully marketing their products or services is a demand must exist for what they are providing. In addition the quality of what they provide must be equal to or better than their competitors.
Some reports have cited the increase in manufacturing capabilities and production in countries such as China has increased competition throughout the world. China is only one example of the increase in competition. Competition through increased production anywhere is not the only problem for companies today as many individuals with the economy today are starting their own businesses. Dependent upon what products or services they provide the amount of competition must be addressed through marketing efforts. Starting a company today is not an easy task and there are many aspects which need to be addressed. International competition/trade is something that cannot be ignored.
Another aspect with respect to international trade involves the price a company charges for their products/services. Competition and quality along with price is what will determine if a company will have international and local customers. Companies must also remember that the currency exchange will impact the success of acquiring customers. The price in American dollars will be much different when the price is calculated in the currency of foreign countries or Euro dollars. This can make a difference whether individuals will purchase products or services.
The benefits of international trade far surpass the negatives. One negative is the financial support some countries provide their businesses while the United States does not. The positive side is the opportunity expand customer base. This is accomplished by multiple marketing activities to identify the products available to potential new customers while providing the benefits as compared to present or potential competitors. Businesses need to sell their products and services and what they offer associated with them after the sale. This is an important element as customers who buy products or services are looking for the type of services offered after a sale. Customer service should be present before and during the sale but customer service after the sale is an element customers appreciate and can keep them as customers. Poor customer service will cause a company to lose customers even if they have a great product. Good or great customer service will provide an avenue to keep present customers and potentially gain new customers as customers talk to friends, neighbors, family and co-workers. This kind of connection is even more important in international trade. Word of mouth is the type of advertisement money cannot buy.
As identified in the Presidential debate on October 22, 2012 international trade is an important element to connect with other countries. International treaties must benefit all countries for them to be successful. Developing cooperation in terms of international trade is not an easy task but it can be accomplished. The global economy as it is today is dependent upon the success of international trade and all countries must understand that cooperation through treaties result in a win/win situation. The main point about international trade agreements is to increase the opportunities and markets for products from all countries. While the opportunities are there it is up to the individual companies/businesses to market their products/services to increase demand. Successful marketing techniques and potentially new techniques may be required to attract new customers in other countries. Companies must understand and identify how products will benefit individuals in other countries. The benefits in one country may not be the same as another and understanding the distinction between them will make the difference between success and failure in the global economy.