Questions: Questions about …

The Waiter

Three men in a cafe order a meal the total cost of which is $15. They each contribute $5. The waiter takes the money to the chef who recognizes the three as friends and asks the waiter to return $5 to the men.

The waiter is not only poor at mathematics but dishonest and instead of going to the trouble of splitting the $5 between the three he simply gives them $1 each and pockets the remaining $2 for himself.

Now, each of the men effectively paid $4, the total paid is therefore $12. Add the $2 in the waiters pocket and this comes to $14…..where has the other $1 gone from the original $15?

Question: What is online trading and its benefits to consumers and marketers?

Answer: Online marketing is the process of selling and buying goods and services through internet. It is likely to have certain advantages to both consumers and markets.

For customers, shopping may become an easy job. Since, they do not have to battle traffic, find parking space and walk through different stores to find and examine products. They can easily compare brands, check out prices and other merchandise 24 hours a day from any location. So, all these consequences would be eliminated by the usage of internet. The commercial on-line services give abundance of comparative information, about companies’ and competitors’ products. In addition to this, on-line buying is interactive and immediate. Consumers can often interact with the sellers’ site to find exact information, products or services they desire, then order them on the spot. There are also benefits for marketers. Firms can build good customer relationships by communicating with them in their site. So, this brings companies and their customers closer to each other. Company will also get to know the needs and wants of customers so the firm need not spend a lot of money on market research to find out this particular information. They can increase customer value and satisfaction through product and service refinements. The costs may reduce and efficiency may be improved by eliminating the costs of maintaining a store and accompanying rent, insurance etc. Since, customers deal directly with sellers (channel 1 is implemented over here).

Finally, internet is a truly global medium that allows buyers and sellers to click from one country to another in seconds. So, the market for the firms is large therefore they may segment them differently and find gaps and exploit them through the use of internet.

Question: What is Globalisation?
Answer: Nowadays, globalisation is the most known word among individuals and people surely would like to know what actually it is.

Globalisation is the trend towards free international trade and free movement of capital between nations. This is resulting in the growth of multinational corporations that seek the widest markets for their uniform products and the cheapest locations for production. It has assisted the companies to invest more in growing markets and it is supported by governments by reducing the barriers towards international marketing.

Consumers like to have access to wide choice of products so they even think of buying from outside businesses. This is one of the reasons which firms consider to trade internationally.

Globalisation also offers additional opportunities, international location, for firms. So, they can get long term benefits by using globalisation in the advantage of business.
But, there are also some negative views directed towards globalisation. It is always exact that businesses usually consider their own interests and objectives therefore they may not invest the profits earned back into that country. They also pollute the environment that operate in. So, any objections by government may drive them away from the country leading to currency fluctuations.

Therefore, to fully analyse whether globalisation sounds great, it is preferable to find out the benefits and demerits resulting from it.