Approaches to entering International Markets

International marketing is defined as the trading of goods between countries across

foreign or international borders outside of national borders. There are many

reasons why countries trade goods and these include: The local market is no longer

interested in the product, foreign exchange which allows countries to get better

value for their products or goods, there is more competition across international

borders for certain goods and there are many more reasons.

Before countries can enter or conduct trading outside national borders

consideration has to be made to the trading country’s laws and regulations. In the

past the exchange of goods across international borders has been extremely difficult

but over the years agreements have been made and trading has become a

widespread trend.

Today trading is more practical as there are more developments in technology

which has improved communication and transportation. Also, there is vast

competition between countries relating to the growth of technology as to who can be

the best producer in the newest and best technology.

In order to promote international trade countries have formed agreements which

aid in the trading and exchange of goods. These include: The General Treaty on
Tarrifs and Trade, the World Trade Organization, the North American Free Trade

Agreement (NAFTA) and the European Union (EU).

The approaches which should be taken or considered before conducting

International trading include:

1.) Culture – Culture is defined as the morals, values and norms which define a

nation’s way of life. Culture is also considered as part of the external

influences which impact the consumer. Before entering into trading

agreements or entering international borders to conduct trading, be

informed of their culture and study their beliefs and norms so that they will

not be violated or offended in any way and this will also help to gain their

respect and it will be easier to enter into agreements.

2.) Language – Be informed of the language of the trading country and be sure

to communicate clearly to the client or clients about the products and by

communicating in the native language of the trading country this will aid in

assist in acceptance of the trading products and also translation of the

packaging on goods is very essential as this will aid in providing a good

reputation for your products and company internationally but all trading

agreements will be clearly stated to consumers.

3.) Market Research – This is probably the most important approach which

should be conducted before entering international borders. It is essential to

 research if the product/products are allowed or demanded in that particular

market as it would be unnecessary and unprofitable to set up a business in an

area where the demand for the goods is low or it is not allowed.

By researching the geographical area and deciding whom to trade with

(demographic) and how you would enter a new market (Strategic) this will portray

where the demand is greatest, whom to conduct trading agreements with and where

the new market or business will be erected. Also, by researching the other markets

internationally, profitable businesses are identified and franchising can then be

considered. This is the combination of more than one business into different areas

and this will help to boost profits and revenue.