International Marketing Term Paper

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International Marketing

One of the fastest growing and most profitable investment opportunities open to international entrepreneurs today is the possibility of constructing entities known as 'virtual corporations' or 'hollow corporations.' Such companies are designed to capitalize on outsourcers' points of leverage to achieve greater efficiencies, lower costs, and access to resources, thus increasing one's own competitive advantage. In other words, because of one's proximity to particular goods, without much capital, by constructing a 'hollow corporation' one may act as an effective 'middle person' or distribution center for goods. These are usually goods desired in another area of the world that are plentiful near one's own location, but not plentiful in another location. (Commercial Accounts, November 11, 2001, Website Accessed November 29, 2002, (http://www.thepldgroup.com/commercial%20accounts.htm) Of course, the reverse is also true. One can also import goods from abroad, with the intent of facilitating distribution of these goods to a scarce section of one's own country.

The Internet has made such hollow corporations, primarily constructed with the intention of importing and exporting goods, both easier to set up and far less expensive to advertise and promote. The Internet has also enabled such hollow corporations to become more globally based. However, when setting up such a company, designed to market goods internationally through the Internet, a potential businessperson must keep several factors under constant consideration.

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The simple use of the Internet can and will provide a low-cost opportunity for global advertising. But always, there must be an acknowledgement that the regulations pertaining to different countries vary. Despite the many individuals whom might have access to knowledge through the Internet, not all will provide an entrepreneur of a virtual corporation with a viable market. Thus the Internet's potential fluidity of knowledge can pose a danger as well as a boon, as agreements have the potential of being entered into too quickly. Ultimately the potential investor must keep a cool head in the face of such a heightened opportunity to enlarge his or her coffers. Also, individuals with whom one does business with must be verified as reliable and trustworthy. This is often a difficult thing to accomplish on an international scale, at an international distance.

A potential international marketer must then survey similar companies in existence on the Internet and also outside of the World Wide Web.

He or she must do so with an eye to ensure that he or she is fulfilling an unmet need to import and export goods. Or, if a need is in fact being met by potential competitors, the goods transmitted ought not being priced at….....

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