Business Report

 

Business Report

Marketing refers to those activities that a company will undertake to market its products and services. To the primary customers referred to those customers within the locality of the company’s origin and to the secondary customers who are not residing closer to the company, they can be citizens of other countries other than the country of origin. Global markets refer to those businesses that trade their services and products worldwide without a country of interest now that they sell to all the customers without considering the country, they are located in. For example, food is a basic need for all humans; therefore, people will buy food as it is a universal product; thus, specific global companies like Coca-Cola will sell to customers all over the world.

I believe that global markets are neutral since they are efficient at times. At times, they are inefficient depending on the worldwide company’s expectations to sell its products and the expectations of both the primary and secondary customers from the company manufacturing the product. Academic works of literature argue that markets cannot be perfectly efficient but can try to be efficient depending on the efforts put by the manufacturing company (Zhang et al.,2019). They also talk about how global markets could be inefficient; therefore, it is better to believe that global markets are some combinations of both efficient and feeble because they keep revolving between the two.

The global market is efficient because these markets are allocative, informational, and operational, depending on the company’s strategies to sell its products and services globally. Overconfidence and errors in judgment by the investors can make the markets efficient. However, global markets can be efficient even if there are errors made when valuing stocks. This market will always exhibit significant volatility explained by the earnings and possible dividends of the global company (Pedersen,2019).

Global markets are efficient through competitive trading because the newly marked prices of the products will be reflected in new information about a product that the fundamental values will be reflected in. This will enable the company to have a standard price of a product since the difference in currencies will balance to ensure that the customers from different countries pay a similar price for a product, thus guaranteeing efficiency with a standard marked price to sell a commodity globally (Garcia & You,2015). Global markets that are truly efficient will eliminate the chances of beating the markets for its products and services. Having a standard market price will ensure that any information available to anyone is incorporated into the market price before emphasizing global markets’ benefits. The efficiency of these markets as the amount of data and quality increases will be marketed more efficiently, therefore minimizing the arbitrage opportunities.

Marketing products and services globally are simple. Suppose the company will always enjoy the benefit of having customers globally. It has those referred to as the primary customers who hail from the location’s locality. The secondary customers include visiting the stores from new countries. Thus global markets promote a better relationship between the company and the people because it will enjoy a large marketing scale. The people will benefit from getting products with the best quality of the company. Lastly, global markets will also enjoy the marketing scale since they are well-established worldwide. The customers only prefer what they produce in that there are no external competitions, thus improving efficiency in global markets as the company has a monopoly advantage.

In the world of business, it is the hope of every entrepreneur owning a company to have ready customers. Customers’ loyalty is won by almost giving the best product to them, maintaining adequate production levels, and maintaining acceptable standards of product quality by never producing the products with an advantage of enjoying monopoly (Gârleanu & Pedersen,2018) Therefore, global markets can’t be perfect. The economic theory defines an inefficient market as one that the asset prices do not reflect the valid values, resulting from several reasons, like the market price of a commodity in a global market should remember the available information about the stocks.

Global markets require the company to develop different and more flexible strategies to market the products in other countries to minimize market failure in the business. Thus, enjoying a monopoly can interrupt regular global marketing as the products will be on-demand in the markets. No companies are matching the quantity and quality of the products sold to the customers. Therefore, external factors, both positive and negative, inadequate public goods, environmental concerns that are dynamic globally, under the provision of merit goods, and over-provision of a demerit good are the reasons for market failures, thus promoting inefficiency in markets (Pedersen,2019).

In conclusion, a good business report will summarize that global markets can be efficient at times, depending on how well the business is managed and inefficient. Certain factors promoting failures cannot be avoided since these businesses cannot be perfect throughout. It is preferred to strategize with considerations of global markets having some combinations of the two. It will always shift sides between efficiency and inefficiency whenever the factors put the business between the two situations. Global markets are not competitive and independent. They are also cooperative and interdependent thus. It is not an easy thing for such needs to be perfect throughout; therefore, they can be efficient and inefficient, sometimes depending on the situation.

 

 

 

 

References

Zhang, D., Lei, L., Ji, Q., & Kutan, A. M. (2019). Economic policy uncertainty in the US and China and their impact on the global markets. Economic Modelling79, 47-56.

Garcia, D. J., & You, F. (2015). Multiobjective optimization of product and process networks: General modeling framework, efficient global optimization algorithm, and case studies on bioconversion. Aiche journal61(2), 530-554.

Gârleanu, N., & Pedersen, L. H. (2018). Efficiently inefficient markets for assets and asset management. The Journal of Finance73(4), 1663-1712.

Pedersen, L. H. (2019). Efficiently inefficient: how smart money invests and market prices are determined. Princeton University Press.

 

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