Companies collect a wide variety of information about their foreign markets to decide in which countries to conduct business and which market segments in these markets they should target. What are the three major markets that exist in all foreign markets? Describe the markets and provide examples of each.
Every organization intends to navigate several foreign markets or countries to expand the business, meet needs, and increase profitability in the long run. Investigating the pertinent market is imperative for the management to be relevant and lucrative in the competitive landscape.
Goods Market
The first market is the Goods Market. It can also be called a consumer market. Different organizations usually make different products or services for customers. Customers have to pay a certain price for a particular product or service. It is the main revenue source for the organization. On the other hand, it is the main utility market for consumers.
Financial Market
The second foreign market is money or the financial market. In this contemporary business era, the money market is in the limelight. In the country, the financial institution usually demands and suppliers’ money. The money market is triggered by the business and expansion process as well. However, the company has to find a money market, which is strengthened and can provide expected returns (Campbell, 2018).
Labor Market
The third market is the labor market. In the market, workers or labor class of the country usually agree to work at a certain price. This price can be called a wage rate. On the other hand, the company has to take work or acquire services or skills to these people to start, run and sustain the production process. Many factors are associated with the labor market such as employee skills, wage rate fluctuations, nature of work and safety measures (Hartman, 2018).
Thus, it is important to contain a comprehensive analysis of these markets to make effective business decisions. All markets are competitive, and some thoughtful considerations are required to gain and sustain success in the long run. Market conditions can also be changed due to different factors, and it can also cause a change in business decisions.
References
Campbell, T. (2018, August 8). 11 Simple Tips for Stock Market Success. Retrieved from https://www.fool.com/slideshow/11-simple-tips-stock-market-success/
Hartman, M. (2018, July 20). Is the job market as good as it was at the end of the Clinton administration? Retrieved from https://www.marketplace.org/2018/07/19/
economy/job-market-good-late-90s-economic-boom
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