With the world becoming smaller and repeated references to the global village syndrome, people feel that it’s not long before the borders of trade become totally transparent. While this is a positive in many ways, particularly for the global consumer, there are downsides. For one thing, with the influx of sellers from the world over, the local industry comes into direct competition with the international industry. While some contend that this will bring local industry on par with international industry, the truth is that many local sellers feel threatened by the change. Costs of production in one area may vary greatly from those of another area, and if businesses from the 2 areas come head to head, this will be an important determining factor for the survival of the high production cost business. Some of the ways regulators and business people have thought to protect and foster growth in local industry are below.

Tariffs on imports:–

The local industry has the option of lobbying for tariffs to be applied on the import of products and services into the country. There are many ways to tax these international businesses so that the costs come to par with local industry. Due to the cost of transporting products, this also happens naturally in many cases – the cost of shipping may be prohibitive on an auto ancillary from Russia as opposed to one made in Detroit, though the original price of the former may be much lower.

Subsidies:–

The reverse concept is to grant subsidies for the local industry to grow and strengthen itself to take on international industry players. This is only effective in the short term, however, and is somewhat controversial since subsidies are normally considered fair for weak or infant industries.

Raise barriers to entry:–

The trade council can raise the barriers for entry for a business by imposing global standards. This means that the product must conform to international standards for it to be sold in the country, which means that the quality improves and thus cost of the product increases.

Find USP for local products:–

The local industry can also respond to this type of situation by creating need for local products. A special niche or a unique selling point of the local products means that there will be a specialized market for it and the product cannot be replaced by the international industry.

Join them:–

If you can’t beat them, join them. Local industry can look for ways to partner with international industry, through individual sellers or as a whole, to ensure that everyone makes a profit. Many businesses are choosing to outsource some of their functions so that they ultimately make more profits.

However, there is a good side to global competition. It serves to protect the local customer by reducing the possibility of monopolies within the local industry. But this is a matter to concern the government. So long as there are no unfair trading practices that harm the consumer, the local industry needs to look towards maximizing profitability and competing in a global market place.

About the Author

William King is the director of UK Wholesale Suppliers, Wholesale Suppliers and Dropshipping Directory. He has 18 years of experience in the marketing and trading industries and has been helping retailers and startups with their product sourcing, promotion, marketing and supply chain requirements.

Google468x60

by: William King
Total views: 43 Word Count: 533 Date: Thu, 21 Aug 2008 Time: 4:06 AM 0 comments

Facebook

How to Develop a succesful Home Based Internet Marketing Business

If you've developed a sensation of Internet savy, you could prefer to consider cashing in on your experiences and develop a home based internet marketing business. There are a lot of advantages that you are able to gain through the establishment of a home based internet marketing business.

How To Make Money Fast From Your Home based Business

There are a number of things you will be able to do to guarantee that you make profit as fast as possible from your home based business. Why is it important to make profit as fast as possible ...

Hit the moneylenders before they won to the the consolidation of personal debt

The consolidation of personal debt is not difficult. To tell the truth, many Americans are taking care of their own debt and developing their own strategies. This is a strategy of consolidation of personal simple debt that will allow you to conquer it to the moneylenders before the beat....

Advanced Tips to Make More Money With Online Business

You certainly can make more money with online business. Indeed many online businesses are available today for you.

Home Based Business Advertising On A Budget

A home based business is usually a small-scale business with a limited advertisement budget. As a home business owner, you need to find a way to post business advertisements without breaking down the bank! Here are some evidenced offline and online marketing tips you are able to use to promote your home based business opportunity.

How to request their first mortgage for a saving-housing loan

Their first house purchase is once exciting. You have made the decision of buying a house, and maybe you not even found a house that was only perfect for you and their family (or to be family soon the one!). Now it is the time when you begin to examine their options with regard to obtaining a mortgage. In requesting a mortgage, you will be looking for through financial companies that offer loans for primerizos in the housing purchase. You want to find and to use ace many discounts ace possible in their first purchase. ...

What are the Measure taken by American Express to protect their cards

American Express has taken some measures of protecting the privacy and the security of its holders. Last in the technology are it uses to protect the bill numbers. This is to assure that fraud and robbery of identity are protected against ace much ace possible....

The Law of Attraction and Science

Australian, Rhonda Byrne, created quite a stir about "The Secret", when she debuted a book and movie of the same name, that explores "the law of attraction" (like attracts like). Many wonder about the attraction law and if it is fact or just wishful thinking on the part of a lot of people....

Work From Home And Make Money Online – A Few Tips!

If you are looking for Work From Home And Make Money Online then the most immediate know-how to do this is to get together an affiliate program. It is a beneficial commencing channelise to making money online and it is potential to make very good money getting along this.

Business Networking Works but Why?

We have entirely discovered that business networking works and it is one of the most beneficial techniques to get new business for your company. Professionals, consultants and so more types of people savour the business networking technique and develop long-term relationships with those they get together.

Starting Your Own Home Based Business

Leading off a home based business is a basic step for those looking to create more wealth or farewell the daily grind of the rat race. Leading off your own home based business demands a great deal of preparation to guarantee that you are on the correct track to accomplishing your goals. Many businessess fail without adequate planning, and indeed a home based business will act the identical.

Make Money Fast Online - The Truth About What You Need to Do

We enquire ourselves each day "is it possible to make money fast online? The reality is, we just have to realise the world wide web, and how it really works..

What are the Ways to Make More Money from Email Marketing

One way you can make more money with email marketing is by selling advertising space in your email newsletter to other home-based business and online business owners. This is especially effective if you have a good list as people know that email marketing to a good-sized list is one of the most powerful forms of marketing you can get.

Rating: Not yet rated

Comments

No comments posted.