Elma P.

Rejano
ASSIGNMENT 4
1. Can the emerging technologies pose a challenge for an international marketer? Give valid arguments to
support your answer.
Technology has transformed marketing by making campaigns more personalized and immersive for people
and creating ecosystems that are more integrated and targeted for marketers. And it’s not just the interface
between brands and people that have been transformed. New technology in marketing has permeated the
infrastructure and systems on which companies are built, delivering value to procurement and adding to the
bottom line. Which technology category will receive the most investment is dependent on the type of company
and the level of implementation required. Some technologies require minimal integration with legacy systems,
while others demand extensive integration. However, the investment is justified by the amount of revenue
these technologies are anticipated to bring in for companies. Greater digital interactions will generate more
data sets, which will allow retailers to better customize promotions, prices and products for each customer,
dynamically in real-time.
2. Discuss the various key economic issues that influence international business.
All businesses, whether domestic or international, are affected by the dynamic economic environment
conditions prevalent in the market. Among many economic factors affecting business some are; interest rates,
demand and supply, recession, inflation, etc. Let us take a look at such economic factors. All businesses want
to maximize on their profits. All this can be achieved by analysis of demands of consumers, provision of
appropriate supplies to them and the maintenance of high quality of goods and services. As simple as this
operation is, many factors affect it. The sales, production and procurement processes of a business are greatly
impacted by these economic elements. Below is a list of economic factors that affects businesses. Consider,
all of them are interconnected.
Demand and Supply
There are two great economic factors affecting business models work – demand and supply. Demand is how
willing and able a consumer is to purchasing what a business offers and supply is how able the business is to
make available what the consumer needs. For example, when a mobile phone infused with the latest
technology is introduced to the market, it fetches a higher price due to the high demand in markets, and the
prices remain high if the demand is more than the supply.
Marginal and Total Utility
The amount of satisfaction that is derived by consumers from the amount of goods they have is referred to
Utility. After continuous and successive consumption of units of same goods, the fulfilment that is experienced
by the consumer starts depreciating. This results in short-term or long-term fall in sales of the business. Most
Organization prepare for the launch of a different brand before the collapse in utility and sales is experienced.
The hurl of a new brand ensures that the revenue trend of business does not drop down. The fall down of utility
is one of the economic factors affecting businesses.
Money and Banking
Banking facilitates monetary and fiscal policies that affect business and the economic environment also the
consumers of business. Money in circulation dictates the demand of the consumers. On the contrary, banking
facility dictates the borrowing capacity of individuals as well as the business. Banking polices play a crucial role
in affecting the prices of goods and interest rates together with assets prices and investments. The economic
environment activities and inflation are influenced by the monetary policies of a particular country. This whole
dynamic situation is also known as monetary policy transmission mechanism.
Economic Growth and Development
The amount of money that is being invested into channels of long-term upgradation and the finances of the
people living in the society at large in a particular country is decreed by the economic growth of a country.
Among all the economic factors that are affecting business, development is the upmost important one. As a
business needs to cater for the demands of an economic environment potent society.eg, The luxury brands
perform hearty during an economic upswing, much more than the organizations which their outcome is
essential offerings.

Income and Employment

Another crucial aspects of the economy that affects a business operation, are the rate of income and
employment varsity in a particular country. The density of employment determines the rate of demand in a
company and even the country including the purchasing power of individuals.
General Price Level
General price levels of commodities is also a key economic factor affecting businesses and plays a huge part
in its growth. You could talk about the cost of raw materials for the production of commodities in any economic
environment, the paying power of potential clients, the cost of production and transportation rates as some of
the most important elements that end up contributing to the retail price, thereby lowering the profits generated
by a business.
Trade Cycles
This too plays an integral part in the fluctuation of cost of goods and services sold by a business. The cycles
include but are not limited to; depression, recession, recovery, prosperity. These are all phases that make up a
business cycle that dictates the demand and supply of all goods and services and general prices of all
commodities, whether essential or non-essential.
Inflation
Inflation usually occurs when the supply of money is too much in the economic environment market while not
equally supported by a similar availably of goods and services. Now, there is a lot floating around in this
situation. The prices of goods have to increase one way or the other, in order to sustain the businesses. And
so there is an increase in the cost of raw materials needed for production. This upsurge in the cost of raw
materials obviously translates to the retail price.
Recession
Companies usually make great losses and face dips in sales and profits during recession. And in order to
reduce their costs most of them usually resort to staff cuts, retrenchment and firing, reducing capital
expenditure, advertising budgets, research and development activities, and so on. Of course this affects
companies and organizations of all sizes regardless of the economic environments they are in.

3. Describe the various indicators of political instability.

he most common causes of instability in governments are:
a. a change in the form of government – this is the most drastic cause because a “reform” government is often
replacing a government which encouraged foreign business
b. a shift in political parties – the policy of various parties quite often differs concerning restrictions or
encouragements of foreign business,
c. a rise in feelings of nationalism – the people may pressure the government or party in control to negatively
influence the extent of trade with foreign countries (i.e., “Buy American”).
4. You are a marketing manager of a textile company that is looking to venture into international business. The
country you want to target first is the UK. You want to start by exporting to UK. What environmental factors
would you keep in mind and how would you analyse the business environment of the UK?
The UK has been a highly-populated island nation for centuries and the country’s current environmental issues
are a culmination of these years of interactions between the British and their natural surroundings. These
interactions have somewhat intensified since World War II as increased national wealth and globalization have
demanded the production of more goods, services and infrastructure. As a result of these increased demands,
the UK ecosystem has yielded less and less over the years. For example, UK soils were considered poorly
managed and “degraded” by the UK National Ecosystem Assessment in 2011.The public awareness and the
growing perception of social cognizance about the environment have forced the textile industry to produce
environmentally friendly products. For this reason, nowadays many companies and organizations focus on the
environmentally friendly way of production. In order to create a sustainable textile, the main change factors
have been linked to eco-materials so less and harmless waste, reusing/recycling, lesser usage of energy,
water and chemicals and ethical issues in production processes. This article emphasizes the environmental
effects of textiles in detail and contributes to cleaner production and sustainability in the textile industry by
initiating a discussion on the opportunities for change in textile processes in accordance with the laws.
5. Why is it difficult for a marketer to position products in a culturally diverse nation like India?
It is difficult for a marketer to position in a culturally diverse nation like India because India is one of the most
diverse lands found anywhere else in the world. From language to dressing-style, the country has been hailed
as one of the most complex amalgamation of various cultural identities. The large number of different cultures,
knitted together in such a close and perfect manner, make India’s diversity one of the wonders of the world. It
is time to put a lid on the infamous communal versus secular debate and celebrate the diversity our beloved
country has to offer.