Trade is a key factor in the growth of the economy. Trade involves the exchange of goods and services for money. It begins with the individual and spreads out beyond borders to international trade. In this essay some of the factors that relate to development of international trade are discussed.
QFD is an acronym for Quality Function Deployment. QFD is a system used to transform the demands of the user into design quality. It involves the application of functions and methods as dictated by the requirements of the user, to subsystems in the design process. The deployment can also be effected on component parts in the design process, (Ficalora and Cohen, 2009).
It helps the designer to look at a product aspect from the viewpoint of the user. The deployment involves a focus on the company, specific product or technology development needs. It may also entail some marketing strategy analysis and market segment study.
Through QFD, the voice of the customer is put into action. This means that the needs of the customers are put encompassed in product or service engineering design. It helps identify and implement marketing strategies that are both competitive and tactical.
SWOT stands for Strengths, Weaknesses, Opportunities and Threats.SWOT analysis is a means used by traders to analyze the placement of their firms strategically in relation to the business setting. It enables managements of businesses to find out the internal potential and limitations within their internal environment.
A SWOT analysis makes it possible for managers to analyze the environment in which the business operates and create a predictive projection of the trends involved.
This Market projection can come in handy in the decision making process. The overall objective of a SWOT analysis is to provide an insight into the market trends and the strategic position of the organization thus devising measures that will help meet the market needs and remain on the competitive edge.
The pillars of capitalism define the freedom that is involved in the markets. The measures of freedom involve such things as property ownership, volition which gives every human being the right to make choices, the idea of working together cooperatively, the aspect of learning new things that come by and healthy competition which means that there should be no limits as to how far people go in offering service to others, (Stiglitz, 2007).
Global business involves business transactions that are formulated and carried out internationally. That is, the businesses are carried out across nations. They serve to fulfill the aims and objectives of individual business people, companies and different organizations.
There are different types of businesses carried out internationally with the primary ones being import and export trade and foreign direct investment. (Czinkota, Ilkka, and Michael, 2004) Others include foreign contracting and franchising and others.
Considering the four aspects defined above, it can be seen that, they all serve to give a lift to the global economy. This is done by empowering individual traders in their bid to realize the strategies that they need to employ. While the pillars of capitalism give individuals rights to trade freely with what they own, global business allows them to trade across borders.
QFD helps the traders to incorporate their customer requirements into the design procedure, thus producing goods and services that are in a better position in the competitive market. SWOT analysis helps traders realize their strategic position in the market place. This puts in consideration the internal strengths and weaknesses of the trader, and the threats and opportunities that present themselves in the market place.
This way, the trader can be able to focus on specific issues that will affect profitability positively. These aspects work hand in hand to enhance economic growth both for the individual trader and the global at large.
References
Czinkota, M., Ilkka A. & Michael H. (2004) Fundamentals of International Business. South-Western, Mason
Ficalora, J., Cohen. L. (2009). Quality Function Deployment & Six Sigma. 2nd Ed. Prentice Hall PTR,
Stiglitz, J. (2007). Making Globalization Work. London: Penguin.