Final answer:
In evaluating Beau's case for internationalization in the craft brewing industry, it's crucial to assess the typical strategies of craft brewers, the benefits and challenges of going global, internationalization modes and markets, and how to manage resource issues. International trade can greatly influence a market-oriented economy due to potential disruptive changes and the need for governmental regulation to protect national interests.
Step-by-step explanation:
Assessing International Trade in the Craft Brewing Industry
When considering Beau's case for internationalization in the craft brewing industry, it's important to assess several factors. The typical craft brewer’s strategy involves a focus on unique flavors, niche markets, and a strong local or regional presence. Benefits of internationalization can include market expansion, brand diversification, and increased sales. However, the challenges are substantial, including navigating foreign regulations, establishing a supply chain, and cultural differences that may affect product reception.
Internationalization Options
As craft brewers like Beau's consider going global, they have various internationalization options, such as exporting, licensing, franchising, or establishing a foreign subsidiary. Each mode offers different levels of control, risk, and investment. For instance, exporting is less risky but offers less control, whereas a foreign subsidiary demands significant resources but ensures greater control.
Resource Issues in Expanding Globally
Resource issues are a crucial aspect of international expansion. Breweries must evaluate their financial, human, and production capabilities to sustain international operations without affecting their domestic success. Moreover, they need to manage resources to balance environmental concerns alongside their international business aspirations to avoid contributing to global pollution.
Impacts of a Market-Oriented Economy
In a market-oriented economy, international trade can have a profound impact, both positive and negative. While trade can lead to growth and variety, it can also result in disruptive market change, challenging local businesses and economies. Additionally, overreliance on imports can pose risks to national security and job markets, prompting governments to sometimes restrict trade to protect national interests.