There are four approaches to international recruitment: ethnocentric, polycentric, geocentric, region-centered. It was mainly a [geocentric society / polycentric society / etc], but sometimes we can switch to other approaches as needed.
8.4. There are mainly four approaches to GIRH. These include the ethnocentric approach, the polycentric approach, the geocentric approach and the regiocentric approach (Wall et al, 2010).
5 forms of international trade
- Import and export. Import: a good or service imported into one country from another country.
- License. Another way to grow your business internationally is through licensing.
- franchising. Franchising is closely related to licensing.
- strategic partnerships and joint ventures.
- foreign direct investment (FDI)
Together, these two factors translate into four types of strategies that international companies can pursue: cross-border, global, transnational and international strategies.
The 11 biggest challenges of international trade in 2017
- International commercial structure.
- Foreign laws and regulations.
- International accounting.
- Cost calculation and overall pricing strategy.
- Universal payment methods.
- Exchange rate.
- Choose the right shipping methods all over the world.
- Communication problems and cultural differences.
In this article we will understand the characteristics of international trade.
Savings in large-scale production: Due to high demand, international activities lead to large-scale production. Every country in the world can benefit from large-scale production. Product price stability: International trade shows strong fluctuations in product prices.
Earning Money: International companies export their goods and services around the world. This saves valuable currency. This currency is used to pay for imports. The currency helps make business more profitable and strengthens the country’s economy.
Region targeting is an approach adopted by a company in which it adopts a marketing strategy for a group of countries grouped according to their market characteristics; H. the market characteristics of these countries will be more or less similar. Management focuses on the region.
Doing international business means doing business in more than one country. These are transactions in goods and services that take place globally. International trade is carried out in various ways: import and export, franchising, licensing, foreign direct investment, outsourcing and offshoring.
Definition: The polycentric approach is the international recruiting method used by human resources to recruit staff for international companies. The polycentric approach recruits host country citizens for managerial positions to lead branch operations.
Examples of international companies
Two strategies that multinationals use to enter the markets of other countries are vertical and horizontal expansion.
With this strategy, McDonalds adapts to the needs of consumers as the cultures of some countries require. Personalization works great for McDonalds. The strategy will allow the fast food chain to achieve greater reach around the world. The strategy requires higher communication and production costs.
Example. Coca Cola is a large multinational company headquartered in the United States and headquartered in Atlanta, Georgia. Their offering ranges from Cola to Fanta to a variety of other products. Products sold in different countries are adapted to consumer demand in each country.
International strategy is how a company procures and uses scarce resources to achieve international goals. It is about determining the products and services to offer, the market in which to participate and compete.
A localization strategy focuses on customer behavior, shopping habits, and general cultural differences in each country in which it operates. When a business enters a foreign market, it becomes difficult to provide buyers in the country concerned with a comfortable and familiar customer experience.
As a company’s international operations have grown, it is possible that it has entered a number of different markets, each requiring a strategy tailored to each market. This is known as a global strategy. For example, the luxury goods group Gucchi essentially sells the same products in all countries.