The Story of Foreign Trade and Exchange case - Essay Example

The Story of Foreign Trade and Exchange case Affiliation: Nestle is a multinational company dealing with health-related goods like beverages, snacks, cereals and even baby food among other consumer products. It is originally based in Swiss but has extended its market share to all the regions of the world. This has been possible with it using Adam Smith’s ideologies of exporting surplus and with time the market will grow benefitting all. According to the history of foreign exchange which Nestle followed, investing in other foreign countries and maximizing on the opportunities offered by the markets of these different countries were bound to make any business successful (Ki Pping and Klopping, 2012).

Competitive advantage is acquired once a business diversifies its products and ensures that they are of higher quality, fair prices and is locally and internationally available compared to their competitors. This strategy suggested by the story of foreign exchange and which has been adopted by Nestle has made this company attain a competitive advantage in the consumer healthy foods market where there are many giants. Its diversification into not only beverages and snacks but also baby food and the availability of the products worldwide has made it gain more and dominate the market.

Its absolute advantage is derived from its corporate social responsibility which is giving back to the community as much as possible for sustainability purposes. Nestle is one of the companies that formed World Cocoa Foundation whose aim is to integrate with cocoa farmers all over the world and assist them on increasing their productivity, supplying their products and even dealing with the adverse environmental effects. It has also invested more than $500 million to deal with health problems like diabetes and obesity among others.

ReferencesKi Pping, L. and Klopping, L. (2012). Nestlé - A Global Company Comes Under Fire. New York: GRIN Verlag.