International Trade Analysis essay
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There are significant advantages and disadvantages that are associated with international trade. FedEx happens to a statistic of both advantages and disadvantages as illustrated below. Some of the advantages that International trade has laid upon FedEx are illustrated by increasing the market competitiveness of the corporation. With increase in sales, there is a corresponding increase in financial benefits. Moreover, international trade has also increased the company’s circle of sales. This in turn contributes to its stabilization in the global market. With the increase in demand of its products made possible by international trade, the company would increase its production capacity hence more revenue.
The increase in salaries for its personnel, that are characteristic of international trade will motivate its staff hence maximize input. Furthermore with the rapid expansion and growth, more job opportunities will be created. With this realization, the allocation of resources will be enhanced hence a more rapid growth for the organization will become apparent. On the other hand, international trade poses greater challenges towards the company. To begin with, the company will have to reduce its natural resources since international trade is long-term goals oriented. Furthermore, with the interaction of different people with varying racial background, social problems associated with cultural diversification will become apparent (Farhoomand, & N.G. P 2004).
The process of documentation in international trade also hinders business growth. This may be due to the increased risks attributed to global business. International trade is basically global hence risks associated with globalization will be characterized in the company. The increase in wages may be counter productive as the company may struggle to meet the sudden financial demand. Furthermore, the need to develop more business plans that would meet the global market may strain the company financially hence lead to inflation. These are some of the disadvantages associated with the company’s venture into international trade.