The Global Firm

TheGlobal Firm

Manyfirms today pay little attention to the domestic market. They reachout to the markets in different countries to sell their products. Global marketing has been promoted by the advancement in thecommunication, transportation and financial flows in differentcountries. Thispaper explores the concep of the global firm and various decisionsmade in the international market.

A global firmis a firm operating in more than one country. The firmcangain more reputation than the competitors operating in the domesticmarket. Products produced in a given country are acceptedenthusiastically in other countries. The domestic firms that stay athome may not only loose the chance to enter other markets but mayalso lose the home market to the global firms.Theyhave their expatriates in many countries across the globe who helpthem reach the world market(AMA,2010).

MajorDecisions in the International market

Thefirst decisionin the international market is to understand the internationalmarketing environment.The global firm needs to be aware of the globaltrading systems thatinclude tariffs, quotas and non-tarifftrade barriers. They need to consider the regional free trading zones.Global firm should also consider the economic environment and thepolitical environment (TheManage Mentor, 2003). The next decision is deciding whether togo international.Different firms may be triggered to go internationalby several factors within the firm.Before goingInternational,the firmshould access the risk and its ability to operate globally. However,going abroad is the best opportunity for growth even for the smallbusiness (Fletcherand Heather, 2013).

Decidingthe type of markets to enter is the third decision in theinternational market. The firm needs to define the internationalobjectives and goals. They should decide on the number of countriesthey are targeting. Theyshould rank different countries using several criteria such as size,growth and risks (TheManage Mentor, 2003).

Thefourth decision is deciding on how to enter the market. The firm maydecideto export both directly and indirectly. They can also use jointventures such as licensing. The firm may also decide to use directinvestment. They may decide on many other ways of entering the market(Kotlerand Armstrong,n.d).

Againthe firm should decide on the international marketing program.They can use standard marketing mix such as same products,distribution and advertising.The firm may also use the adapted marketing mix for differentmarkets. They should have different product promotion strategy (TheManage Mentor, 2003).

Thefinal decision is deciding on the organization of the global market.The firmshould manage the global marketing activities. They should organizedifferent export departments that can enable them to export theirproducts freely, create international division with other countriesand become a global organization that canoperate in more countries across the world (TheManage Mentor, 2003).


Theglobalfirm operates in more than one country. They are able to exploredifferent markets in other countries .This enables them to increasetheir sales volume. The firmneeds to make several decisions before entering the global market.The decisions will allowthe firmto be successful in its operations in the international market. Theyshould be aware of the risklevel in different countries and formulate proper strategies formanaging such risks and improving their sales.



AMA.(2010) marketing power. Retrieved from

FletcherR, and Heather C. (2013). InternationalMarketing: An Asia-Pacific Perspective.New York:PearsonHigher Education

KotlerP and ArmstrongG. (n.d).Principles of Marketing (14th Edition). NewYork: Prentice Hall

TheManage Mentor. (2003),Major Decisions in International Marketing. Retrieved from