Economics and Global Business Applications

Introduction There is no doubt that communication is an integral marketing strategy that a firm must master in order to compete effectively in foreign markets. According to Tian and Borges (2011), a company must adopt sound marketing communication strategies in order to engage in international business successfully (p. 110). Nonetheless, some senior executives fail to realize that cultural difference may enhance or impede a company’s marketing approach in a foreign market.Advertising We will write a custom essay sample on Economics and Global Business Applications specifically for you for only $16.05 $11/page Learn More As the world becomes globalised, many countries have progressively staked a claim to â€Å"a right to culture† in global business (Tian Borges, 2011, p. 110). Some experts have even predicted that national culture will play an important role in determining not only economic growth but also the overall global business strate gies. Consequently, this paper will explore the major cultural issues that impact a firm’s marketing approach in China. Major Cross-cultural Issues Affecting a Firm’s Marketing Approach It is important to mention that cross-culturalization is an unavoidable process since the world is rapidly becoming a global village. On the one hand, as the world becomes more globalised, the disparities between national markets are weakening. On the other hand, the cultural disparities between ethnic groups, regions and countries are (nonetheless) growing stronger. Accordingly, since global marketing communication is a cross-cultural process, senior executives must strive to understand cultural diversity across ethnic groups and countries in order to successfully launch their business operations in international markets (Pitta, Fung Isberg, 1999, p. 240). As noted earlier, global marketing communication entails communication that transcends national frontiers. Accordingly, cross-cult ural communication (from the viewpoint of consumers, values and language) is a complicated undertaking since a certain level of miscommunication is bound to happen. For example, cross-cultural communication problems may surface when a particular group from one culture fail to grasp culturally established disparities with respect to communication traditions and practises that are presented in another cultural perspective. In addition, the manner in which a firm entrenches the norms and values in its advertising messages may positively or negatively impact its business operations in the global market. In other words, a firm must grasp the role of cultural values in advertisements in order to enhance its cross-cultural marketing communication. Thus, a firm’s global marketing strategy should be guided by the cultural values present in the targeted market to avoid misinterpretation of the intended message and consequently result in poor performance in the global markets (Pitta, Fu ng Isberg, 1999, p. 240).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The China market provides a good example for exploring the relevance of cross-cultural communication given the prevalence of numerous variable that determine the manner in which the Chinese businessmen interact with their non-Chinese counterparts. For example, Tian and Borges (2011) point out several factors that new market entrants must consider inculcate in order to market and sell their products successfully in China market. These factors include strong negotiation skills, agility and patience (p. 111). In addition, new market entrants must learn how to adapt to the local market environment in order to compete effectively in the China market (Pitta, Fung Isberg, 1999, p. 240). Cross-cultural Communication and Marketing Strategies In Chinese Market As noted in the previous section, the rapid globalization of world markets has compelled marketing executives to learn how to carry out business operations among diverse cultures. It is worth mentioning that the cross-cultural communication between consumers and marketers is an important factor that determines business success in the China market. Thus, it is important for a firm to collect market data, interpret and use it effectively to ensure business success in the China market. This argument can be supported by one classic example regarding efforts by the Japanese firms to introduce coloured televisions in the China market (Tian Borges, 2011, p. 112). In the late 1990s, the China market was dominated by coloured television sets imported from Japan. Previously, the European and the Japanese television set producers carried out studies to explore the viability of their operations in the China market. The European producers (based on their findings) opted not to venture into the China market. Their studies revealed that the Chinese consumers co uld not afford coloured television sets because the country’s (China) GDP per capita was lower. Nonetheless, the Japanese television set producers opted to market their products in the China market because the findings of their studies revealed that most Chinese shoppers had a culture of saving. Their findings also revealed that this tradition has been practised by successive generations in China for many years (Tian Borges, 2011, p. 113). In addition, the majority of consumers in the Western nations have poor saving habits compared to their Chinese counterparts. For example, the research by the Japanese marketers found that a majority of households in China had saved their earnings for close to three years in order to purchase a television set. The Japanese manufacturers also found that majority of the Chinese households purchased Japanese television sets more than those produced by the local Chinese companies.Advertising We will write a custom essay sample on Economic s and Global Business Applications specifically for you for only $16.05 $11/page Learn More Based on their findings, the Japanese manufacturers were convinced that the Chinese households would purchase coloured television sets imported from Japan. It is against this backdrop that the Japanese coloured television manufacturers reaped enormous profits in the China market because they were able to grasp the distinctive aspect of the Chinese culture (Tian Borges, 2011, p. 113; Pitta, Fung Isberg, 1999, p. 240). Cross-cultural Ethical Differences In Marketing Strategies Between US and China The Chinese culture perceives change as disturbing especially if it is extensive and happens abruptly. This viewpoint is grounded on the principles of Taoism and Confucius which are held in high esteem by the Chinese. It is worth mentioning that Taoism and Confucius tenets have strong influence on the manner in which the Chinese people think and act since they emphasize peac e and harmony. However, the Americans hold efficiency in high esteem in all their marketing strategies. In other words, any marketing strategy that will bring about the desired outcomes is considered as essential. In addition, American marketers lend credence to a rational way of thinking that is anchored in facts. Furthermore, Americans hold in high esteem the desired outcomes which may be troublesome to the existing relations . What is more, Chinese marketers value human relationships and abhor the spirit of individualism in their marketing strategies. On the contrary, human relationships play a limited role among American executives. Furthermore, the spirit of individualism is highly prevalent among Americans because it enables them to acquire their uniqueness via their individual actions and accomplishments (Pitta, Fung Isberg, 1999, p. 247). References Pitta, D., Fung, H., Isberg, S. (1999). Ethical issues across cultures: managing the differing perspectives of China and the USA. Journal of Consumer Marketing, 16 (3), 240-256. Tian, K., Borges, L. (2011). Cross-cultural Issues in Marketing Communications: An Anthropological Perspective of International Business. International Journal of China Marketing, 2 (1), 110-126. This essay on Economics and Global Business Applications was written and submitted by user Lilliana Clay to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

How to Save for Retirement When Youre a Freelance Writer

How to Save for Retirement When Youre a Freelance Writer Heres the bottom line: As a freelancer, you dont have an employer-sponsored retirement plan. Youre going to need to do one of two things immediately to ensure that you arent still working when you hit retirement age: Purchase a retirement savings plan through a financial institution, or save your own money to invest as you see fit. Ideally, a freelancer should do both of these things, starting with either a Solo 401(k), an Individual Retirement Account (IRA), or a Simplified Employee Pension (SEP IRA). Next, use your own savings to make your retirement even more secure. Step One: Budget Everything comes down to budgeting, whether it’s cat food or a tropical cruise 40 years down the road. This is where you’ll find the funds to allocate to retirement, and it will help you understand just how much money you will actually need when the time comes. You need to include all monthly expenses in your budget, and keep them conservative. The income of a freelance writer can fluctuate, so be sure to pay your budgeted items before doing any other kind of spending. On top of monthly budgeting for rent/mortgage, food, utilities, car payments, insurance, and other necessities, experts suggest putting at least 10 percent of your pay into savings, starting right now. You should also be putting a similar amount into your retirement fund each month. Step Two: Open a High-Yield Savings Account Your budgeted savings shouldnt just be left in your checking account or stuffed into a wall safe. Open a high-yield savings account where you can place your savings securely and turn them into more money thanks to a high interest rate. Take a look at your current banks interest rate, and compare with other banks to find the highest return on your small investment. The point of this type of account is to stop you from spending your savings, and to eventually yield small returns on the initial amount. You should try to always have your savings in this type of account, whether the amount is small or large. Step Three: Invest When   your savings have begun to grow, its time to use some of those funds for investments. There are many ways to invest a few hundred or a few thousand dollars depending on where you live. You might choose savings bonds; perhaps you’re more inclined to microloans. Wherever you do choose to invest, make sure it is as secure as possible (in other words, no stock market purchases based on a hunch). The U.S. Series EE and Series I Savings Bonds are available in denominations as low as $50 and as high as $10,000. They offer higher interest and rate of return than other kinds of   savings, which makes them a great option to consider once youve begun to grow your nest egg. Microloan investments, such as those offered through Lending Club, allow you to choose the person or group your money will finance, and receive monthly repayments plus interest. Once youve increased your money through investment? Roll it over and keep the process going. A Certificate of Deposit from your bank is a safe way to invest $10,000 or more. Its Never Too Early to Start The most important thing to remember is that you need to start saving today – not tomorrow, next month or next season when you have the extra money lying around. Budget concisely, invest wisely and watch your money grow.