Export operations refer to the international trade functions where a shipment of goods take place from one place to another (Coks & Stokes, 2018). Beginning export operations in foreign markets have advantages and disadvantages.
Advantages
Export operations in foreign markets increase competitiveness. It allows exposure to new ideas, techniques in marketing and competing ways of placing the business in a better position to compete.
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It reduces vulnerability. Export operations make a company not to depend on the local markets entirely. This is helpful as unfavorable economic conditions at the local level might be prevented from affecting the business. Export operations lead to lower costs. Through export operations, sales increases, and hence leading to production levels increasing (Meernik, 2018).
Disadvantages
Modification of products is one disadvantage. For safety and security requirements to be met, the products need to be modified. Some companies may not know how to go about it. Increased competition. In these operations, export markets are competitive. Markets which are not competitive don't do well in these operations.
Differences between the U.S and Multinational operations that affect strategic management.
Cultural difference. Values, beliefs and assumptions define a company's culture. In the U.S, the behavior of those employed, customers and suppliers are diverse than those in multinational companies. Cultures emphasize on different universal commitments.
Legal systems is another difference. Every country has its legal and political system. Understanding this is important to abide by the rules of a particular country and not those belonging to your market only.
U.S foreign relations have an impact on its economy. This relation helps the United States to put measures which foster commercial interactions with other nations to safeguard their business abroad. Foreign policies are important to businesses as it is through an understanding of these policies that these businesses go on smoothly (Bandeira, 2019).
References
Bandeira, L. A. M. (2019). An Astonishing Continuity: From George W. Bush to Barack Obama. In The World Disorder (pp. 47-59). Springer, Cham.
Cox, M., & Stokes, D. (Eds.). (2018). US foreign policy . Oxford University Press.
Meernik, J. D., (2018). The political use of military force in US foreign policy . Routledge.
