Recently, trade disputes have been happening in developed and developing countries. Due to increased economic development, economic boundaries are fading and worldwide economics are integrating toward a unified market.
For this reason, the initiation of the World Trade Organization in 1995 accelerates domestic and foreign economic growth. WTO targets nation's foreign trade policies and for this, markets need to be opened and each nation's trade conditions should be properly revised to the international trade standard.
This also stimulates a nation's need to enforce trade reform.
The Free Trade Agreements eliminate many trade barriers, such as tariffs, and enables open transactions and interchanges than the WTO would be able.
It offers a sector, which transfers resources, previously in ineffective industries, and encourages a specialization in goods for effective industries, which promote manageable growth. This attracts foreign investments from other nations. While it is stipulated that a nation's smaller markets decrease and the country, which holds more capital, requires due diligence of the targeted market's conditions.
It is possible that a free trade agreement, which originates from a collaborative division of effort, is desirable.
But each country has an industrial development stage to overcome, and managing development is different for every country. So, it is necessary to have new solutions for international trade relations under the FTA system.
For more information about Korea-America Free Trade Agreement, please refer to the websites below.
Cultivates an Enterprising Spirit to Help Build Small Businesses.
According to economic trends in autonomy and competition, there is recognition that small businesses are an integral part of a market economy. Protection and development of small businesses are regarded as critical. Small business development will be setback without proper management, underlying numerous complex factors, so various strategies are necessary. Moreover, a policy should increase small business autonomy so that they have competitive sustainability. Once the small business sector becomes stronger, national economy stabilizes, and international competitive capability becomes a reality.
For more information regarding domestic and overseas trends in small business sectors, please refer to the websites below.
Executes Strategies for Corporate Overseas Expansion.
For expansion to an overseas market, comprehension and strategy about
the market is needed. Most of all, it is necessary to develop a product which is up to international standards, and to have an expert comprehension about the internal trade.
JG BLI works with the National Institute of Standards and Technology, the Federal Trade Commission, Federal Communications Commission to ensure verification and copyright of small business products. We also help small businesses to participate and attend FOSE (Formerly the Federal Office Systems Expo).
Typically, a company grows through merger and acquisition with other corporations for expansion of production and marketing ability.
M&A transactions include the total acquisition of a company, which has lost its legal and economical independence; the financial merger of a company, which maintains its legal and economical independence; or financial/strategic cooperation.
One key factor for an M&A is when a company, which is unfamiliar with a target market, invests overseas. Acquisition of an existing corporation reduces uncertainty of a new market by incorporating the success of the previous entity.
Also, merging an existing company, which has long history in one field, it is possible to overcome the difficulty of establishing a new base by incorporating existing business, qualified human resources, accumulated technique, and management experience. Furthermore, point of entry to the local market can be aggressively executed from the early investment stage supported by consumer recognition of the existing brand, product, and sales vendors.
However, there are still many conditional factors of uncertainty regarding the value of the existing entity, the cultural gap, intricacies of communications, and so forth.
For a successful M&A, due diligence and feasibility is necessary to resolve these unknown factors and to properly assess the nature and value of the transaction.
Educates CEOs in Their Global Marketing Strategies Through Seminar Sessions.
While, international barriers are weakening and trade is active, global competition is inevitable and overseas expansion is necessary.
For a successful overseas expansion, there must be international competitive strength supported by the foundation in the domestic market. Therefore, a CEO must have accurate understanding about the globalization strategy and the ability to execute international trade and management.