Importance of International Trade Essay
Importance of International Trade
Discuss the importance of international trade to the company’s business (4.1) International trade is very important in this era for every international company, trade (export/import) in capital, goods and services between countries. This topic discussion about Virgin Atlantic Airways, for them international is very vital in commercial flight business. What is the importance of Virgin Atlantic Airways do international trade? As an international company, their business target to various countries. If not business internationally, company cannot running the company’s goals. In other side Virgin Atlantic Airways have benefit a larger sales market. It means open opportunities for market expansion (slide benefit) Market expansion is efforts to expand the market with the aim of increasing sales, networking and brand awareness. How to increasing brand awareness? For recommendation Virgin Atlantic Airways could build positive image such as little percentage of income used to help starving children in Africa.
This will be known by many people and increase positive image. It will impact company’s sales, could be the people’s choice because this positive image indirectly. What is exported by Virgin Atlantic Airways ? Flight services for a lot of people. As example flight services to various countries such as Delhi, Hong Kong, Sydney, Cape Town, Boston, Chicago, Las Vegas, New York, Tokyo, etc. (Virgin Atlantic Airways Ltd, 2013) Analyze about it, Virgin Atlantic Airways already do the right steps to build the company from scratch in 1984 with the goal of becoming a global aviation company (international). Then exported service is done need to be added again to the countries that have not expanded as Eastern Europe and South East Asia. http://www.virgin-atlantic.com/tridion/images/factsheetcompanyoverview_tcm4-426059.pdf One of impact importance international trade is company can see suitable market internationally, indirectly forcing the company to do market research before making business decisions. Otherwise if company just focus on domestic market, they just know about domestic not until international. That implication for company does international trade. As recommendation importance of international trade for Virgin Atlantic Airways can more focus to the market a range of Asian countries such as South East Asia (Indonesia, Malaysia, Thailand, etc) which have a large enough population Because in this region have high levels of flight activity is quite high. It prove by Air Asia, one of the company that owned by Malaysian businessman. They focus
on low cost fares flight in South East Asia. Air Asia very success in that sector with get a lot of income. This is right decision to choose suitable market as the focus of the company. If Virgin Atlantic Airways wants to success in International trade, develop ability to identify the suitable market.
Second recommendation to strengthen the company’s network in each country market made by Virgin Atlantic Airways in the context of international trade services, could put the reliable person to handle and provide a report to the center as a reference for developing the business in the future. Local people taking local who has extensive knowledge of the business activity in order to further strengthen the company in the face of shared problems in the country. Another importance of international trade is when entered international market, will be a lot of options for customers to choose which product is best or Consumers benefit from increased competition. Analyze about it, increase in competition that opportunity for Virgin Atlantic Airways compete and prove that the airline is the best among the others. As example always consistently provide best service to customers in schedule. Schedule can be advantage for Virgin more timely than any other airline. This is one of the most common disadvantages owned by almost every airline around the world. Virgin Atlantic Airways has been able to prove the exact time in the flight schedule. It rarely owned by other airlines because Virgin guided time is very important to customers. At least not to make customers wait for long time if there is any problem. (Slide benefit) nations benefit from foreign investment and standard of living increase * Economic alliances typically lead to political agreements
Evaluate the impact of global factors to the company’s business (4.2) Global factor is the factors that affect company how to run business with conform to trend and something happening globally. In fact, global factor affect company’s strategy to do success business. Every country or place has different culture (global factors). In Indonesia, social factors very affect where almost people like discounts event such as trends if there are discounts in a transaction, the product is likely to be sold. The consumer culture can be used to make virgin Atlantic airways discount tickets through