Essay Example | Topics and Well Written Essays - 250 words - 140

Essay ExampleIn order for firms to compete world(a)ly, it is important for managers to understand the nature of global markets (244). Competition is worldwide, and therefore it is imperative that companies understand the kind of goods and services that layabout give them a belligerent advantage over other global industries. In addition, the productivity of labor can also postulate the economic boundaries of firms. For example, industries with limited labor generally concentrate on producing basic commodities, while those with high expertness focus on producing advanced goods and services. Thus, the availability of labor adverts the cost of production, which in turn re-defines trade (Samuelson & Marks, 245). In global markets, the prevailing exchange rate is as well important when computing the cost of production, because it in the end influences the costs of exports and imports (Samuelson & Marks, 246).Another important factor is the competitive market condition. Indeed, one of the aspects managers consider when making decisions is how they can compete within markets. Depending with market environments, they consider factors that can cause barriers to their entry or even affect how they establish their prices. In a competitive market environment, for example, organizations have to consider the number of firms in the market, how prices atomic number 18 established, and if they can have control over them (Samuelson & Marks, 281).Finally, the application of e-commerce and technology are significantly re-defining trade in many areas, particularly cost economies. These methods facilitate customer increase because they have the potentials to reach a hulking population, and also offer a variety of online services, which ultimately leads to cost savings for the firms (Samuelson & Marks,