Selling stoves only to the United States could limit the number demanded to less than the amount that is cost efficient to produce. The demand for the firm's product may be seasonal and irregular. By expanding the firm's market to other countries, production costs may be lowered by more effective production scheduling. As the product reaches maturity, this competitive edge is reduced and can be maintained only creating new markets, where the product reenters the growth stage. By selling its established goods in new overseas markets, the organization is also able to increase its profits without risking new product development.
Some foreign goods are less expensive because of lower production costs.
Global Strategies 1. Product Standardization - Produce and sell a product using the same methods throughout the world. Economics of scale. Global Focus - Select a particular segment of the industry in which a business competes on a world wide basis. National Focus Strategy Focusing on particular national markets to take advantage of national market differences.