DEVELOPING OF GLOBAL VISION
International commerce is an important factor in today's world economy. Many countries value this type of commerce because their GDP depends on it. Countries like the United States, however, take a different stand. many people are hesitant to world trade and globalization. One of the things they fear is job outsourcing.This might be a bit of a negative effect to one country but it is beneficial to the other ones as well as to the companies themselves.
Zara, being an international company, has to deal with world trade and globalization in regular bases. There might be job outsourcing in Spain, but in the other seventy countries many millions of jobs have become available. Also,new technologies that Zara has, are available to these new countries, and although it may seem as if the new advanced technology would reduce the number of jobs available it is quite the opposite. With the help of the new technology more products can be produced in less time, which would mean that new markets would have to be open, thus more people in distribution and retail would have to be hired.
Multinational companies, like Zara have many other benefits. Zara is present in 73 countries, which means that the company would have to pay taxes to each of their government improving their internal economy. Also, though global marketing standardization they can offer the same type of products to many different countries. However, Zara is not succeeding through this strategy. It is succeeding doing the opposite: it has succeeded through variation. Zara offers a variety of products that satisfy the wants of all ages and of all cultures in which this company exists (also known as multidomestic strategy).
Zara, being an international company, has to deal with world trade and globalization in regular bases. There might be job outsourcing in Spain, but in the other seventy countries many millions of jobs have become available. Also,new technologies that Zara has, are available to these new countries, and although it may seem as if the new advanced technology would reduce the number of jobs available it is quite the opposite. With the help of the new technology more products can be produced in less time, which would mean that new markets would have to be open, thus more people in distribution and retail would have to be hired.
Multinational companies, like Zara have many other benefits. Zara is present in 73 countries, which means that the company would have to pay taxes to each of their government improving their internal economy. Also, though global marketing standardization they can offer the same type of products to many different countries. However, Zara is not succeeding through this strategy. It is succeeding doing the opposite: it has succeeded through variation. Zara offers a variety of products that satisfy the wants of all ages and of all cultures in which this company exists (also known as multidomestic strategy).
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