Consumer Products Inc (PCI) is a regional consumer products company with its head office in Phoenix, Arizona. Its board of directors has agreed to diversify the market by venturing into the international market to have an access of a larger market share and be more competitive against its competitors such as Colgate, Unilever and Procter and Gamble who had gone regional. However, it is important for the board and the administration staff to be aware of the micro and macro economics concepts which shall affect the company once it goes international. This paper shall address on how the economy of United States and other regions will affects the company….
Some economy fixes the pricing of commodities by controlling prices. Consumer product Inc ventures in the international market it shall be exporting most of the goods produced in United States to other countries. Their operational costs would be higher than the local producers which would make them operate at a loss or make very minimal profit margins which would not be able to sustain their operations over seas. The most favorable market is in which prices are determined by supply and demand or pricing of other competitors (Kaynak, Et al. 2002)….
The company shall need to evaluate the above economics dynamics in different regions while deciding on the regions which they shall invest. Without clear understanding on how macro and micro economics shall affect the company sales internationally would resort to making decisions which would not be viable (Young, 2009). They should also evaluate the performance of different economies often and assess
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