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    Unit 1 International Mark

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    “Nikita Solved Paper" (MCOM - International Markotn, 0 z] cn an anenereneent 41. International Marketing : Nature, Scope, Importance, Components & Difficultiog Scope, Importance, Components E Miticulties 4: What do you understand by International Marketing 2 Describe its nature and need. OR What do you understand by ‘International Marketing’ 7 Discuss in detail ‘Domestic Marketing’ vs ‘International Marke . OR “International Marketing has become Indispensable for economic development of developing countries." Comment on this statement. OR What is Global Marketing ? Discuss the characteristics, nature and scope of International Marketing. OR What do you mean by International Marketing? Explai nature and scope of international marketing. Answer : Whatis International Marketing ? International marketing includes activites, tha direct the flow of goods from one country to the users in another country. Definitions = ‘According to Terpstra Vern, International marketing can be defined as "Marketing carried on across national boundaries.” ‘According to Hess and Cateora International marketing is, "The performance of business act fo consumers or users in more than one nation. fe ‘According to Sak Onkuisit and John Shaw and American Marketing Association, “international marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy the individual and organizational objectives.” the This definition defines the following main components of international marketing : (2) finding and satisfying global customer needs better than the competion does. (b) both domestic and international market and @ in the constraints of the global (c) coordinating marketing activities environment. y in They opine that international marketing can include activities such as: (i) Exporting (i) Overseas manufacturing (ii) Working with local partners (joint ventures) ‘Nikita Solved Paper" (MCOM - International Marketing) marketing, 2. Amultinational process 3. Itis a part of marketin, 4. Carrying out all the a 4 (iv) Licensing and franchising overseas. (v) Importing sometimes from overseas subcontractors (Wi) Counter trad, CONCEPT OF INTERNATIONAL MARKETING The following points are included in the concept of international marketing practices within (2) Domestic marketing : tis concemed the marketer's home country. () Foreign marketing : It refers to domestic marketing within the foreign country (¢) International marketing : Itis concerned with the micro aspect of @ market and takes the company as a unit of analysis. The purpose is to find out as to why and how a product succeeds or fails ina foreign ‘country and how marketing efforts influence the results of international itis concerned with low of goods and services between the countries. The purpose is to study how monetary and ‘commercial conditions influence balance of payments and resource transfer of countries involved. Itprovides a macro view of the market, rational and international. (2) Global marketing : It consider the world as a whole as the theatre of operation. The purpose of global markelingis to learn to recognize the extent to which marketing plans and programmes can be extended world wide and the extent to which they must be adopted. CHARACTERISTICS OF INTERNATIONAL MARKETING From the study of various definitions, we note that international 35 that direct the flow of goods and services marketing has the following features or charagtorigtce 1. Marketing beyond national boundari faries: Inintemational marketin formally he goods are manufactured in home country and exported 'o foreign countries bu, itis also possible that a producer company produces goods in a country it produoesga y other than its home country and exports cterational markotin fo ig, the good: ‘ices are exported not to just one Country but to many ountion, itis a multinational process, eae 9 Inlernational marketing is apart of overall 1g includes domestic as well as international ‘marketing ie. marketin marketing. a 2 nikita Solved Paper” ca overall business activity pea eta a come Bf goods or services carried in foreign counties. 6. Other characteristics = (2) International marketing fi riate decision. * Pttonal marketing firms need not only be accurate bu shouig med. Coca-cola could enter the Europeon market iyinformation, whereas Pepsi entered later. Anotner rms need accurate information to make an based onthe | 5 cartpi is the Umely entrance of Indian software Companies ino the US. market compared to those of other countries. © Mesto! trator busines frms segment hel mares bases nthe geographic market segmentation. (6) ee da Satonctp betveeniniematoraltading endintemtona mafketing, but the terms are not synonymous. International trading involves several of the marketing functions, but much of such trading does not involve international marketing management. ‘other words, international marketing is an important aspect of international business. It is not the same thing as international trade. Only a part of the international trade flows represents international marketing, “(e) Muitinational corporations (MNC) are major actors in the world of ness and marketing, (f International marketing is an important aspect of global business. {g) International marketing is concerned with global mindset, global market presence, global supply chain and global capital base. (h) The degree and nature of intemational involvement of a firm vary very widely. (i) International marketing is not a new phenomenon. Trade across the globe is as old as business itself However, the volume of international trade and the number of players in it have increased dramatically over the last three decade. @ Comptexity and diversity is found in operations. (k) The study of international marketing s undergoing a number of major changes. Its present focus of interest is strategic emphasis while the previous focus was getting general information. In other words, yesterday's marketing fantasy has become today's reality. A global market place has emerged. (0 As a subject of study, international business and marketing has attracted considerable attention from all quarters. The subject is taught in post graduate management related courses all over the worlds. (m) Intemational business end marketing offers companies new marke!s national marketing Nikita Solved Paper" (MCOM- International Marketing) ____ 13. the growth of international trade and investment has been substantially larger than the growth of domestic business. (0) Growing technology has increased the reach and the ease of conducting international business and marketing. (0) Acombination of domestic and intemational marketing presents more ‘opportunities for expansion, growth and income than does domestic marketing alone. (p) International marketing offers consumers new choices, and reallocates resources, makes preferential choices, and shifts activities on a global level NATURE OF INTERNATIONAL MARKETING Nature of International Marketing is different from the domestic marketing’s nature. Following are the nature of International Marketing : 41, It provide protection to domestic market. With the help of International Marketing every country wants to export more and more, this results a loss for the importing nations, as their industries are affected by this, Therefore, protective policios holp to save domestic market 2. International marketing contains high risk. The factors which contribute the most and make it high risky are the constrain, long Channel of distribution, change in style and fashion, change in value of currency accidents while transportation. 3. There isa high Competition in the international market. \n this the competition is tougher. as exporter has to compete with domestic ‘and international exporter both, International Marketing is generally credit oriented. In International Marketing the goods are given to importer for evelopment and sales on long term credit policy. Thus, making it ‘country vere there is a good political environment. ment) international marketing can easily be done. Ane vice-versa has any adverse impact on International International Marketing is done on different c: urrenc} Here the currency and its value hold a great impact SCOPE OF INTERNATIONAL MARKETING Though, international marketing in essence is export marketing but ° it also includes the following in its scope : 1. Direct export of goods or services to this arrangement, the ex to foreign countries. a foreign country : Under Porters directly export goods or services .r" (MCOM - International Market, “Nikita Solved Paper tT nna osaen 9) “Nikita Solved Paper" (MCOM - International Marketi a Solved Foe a Tpaceage) “Nikita Solved Paper” (MCOM. nternational Marketin | hs epaning sabsrataries abroadior processe sembly, BaCkagiig — ~(y Guaniitative restrictions * Guantiaive Tastee aie TREES @ nufacturing 2 produ ign country (ig posed to allow import of a particular commodity in This is done to protect the domestic industry. : (c) Exchange controls : Under exchange controls, the government of 1 licencing, franchising arrangements whereby the country does not release foreign exchange to importers, with intries are granted rights to use the ‘the result that they are not able to import the goods, ‘or even completely mat example: manufacture Japan.) 3, Negotii in enterprises in importing cou! ne tarut car in India By SUZUKI company oy ited quantity only. erling company's know-how, viz. patents, Processes or _() Local taxes : Governments can levy heavy local taxes to make the exporting ; acai aesos Costar nan icentd Goes tos Gar ee Ectablishing joint ventures in foreign countries for manufacturing be levied at the rate of 4 percent on domestic whisky and at the rate 4 -xample, manufacturing of motor cycles by Hero of 10 per cent on imported whisky. ormarteing For wane, envonda Co.ofJepon- Different egal systems: 5, Offering consultancy services and undertaking turn key projects Every country has its own laws and the legal system and these differ aero ror example, a Japanese company is offering consultancy from country to country. services to Delhi Metro Train about running metro train in Delt 3. Different monetary systems : 6. Establishing branches in foreign countries : Goods can be Each country has ils own currency and own monetary system. The a ic soreign counties by opening branches there. Such exchange valve of every country's cuency in terms of currencies of other co er adds ttm home country and repack them in small 20untres are diferent, Some countries operate under multiple exchange rates packs and sellin foreign counties. . separate exchange rate applying to certain set of transaction. 7. Appointing foreign agents : An exporter can appoint agents to + Lower mobility of factors of productior : sell its goods in a foreign country. It meets the needs of small 1 factors of production e.g. labour and cay I are quite mobile 4 sithin a country but less mobile between nations. H. ith de exporters who cannot have direct access in foreign markets, fowever, with development Pon ORMS OF INTERNATIONAL MARKETING 1 ar anspor! the mobilly of labour has increased but there are visa strictions, Merchandise exports are like that of physical goods : rice, tea etc. j, Differences in market characteristics and infrastructui A re: Services export i.e. professional, technical or general services like Every country has peculiar characteristics about markets in regards that of computer software, entertainment, engineering, banking, > consumer preferences, demand pattern, channels of distribution, methods, inseeteeee : { promotion etc. These characteristics are f i) Project exports ie. establishment of some projects in foreign countTY overmment controls and regulations. mee eS like starting a railway service by Indian Railways in a foreign country. . Cumbersome export procedures a tion : Oe eres ntegnon)“comeenae ge rcntreanddsumeraion: do not leave the exporting country but the payment for such goods gcumentary requirements, Exporters most knows poco eres and is made in India by the receipient of goods. ‘ocuments to be prepared. jese procedures and For example a project might have been started in India by a foreign , Difference in culture : country and an Indian supplier supplies goods to this project and products (Clilture’oflorie’ count ” y differs from others. Saket abe ae races cea gm cay etre a SPECIAL DIFFICULTIES OF INTERNATIONAL MARKETING — 1¢ goods. He has to mould his product and export marketing strategy Many diffict arise when doing international marketing, the most cording to the culture of the importing country. ey, inion ohesa wie S «Difference in language : 4 Different Sovereign Political Entities : Different languages are used in different countries. An Indian exporter Each country isa sovereign political entity. The goods to be imported '2Y have language problem when dealing with a businessman of China, or exported have to move across national boundaries. As-a result, they are 7P2N or Russia. ; subjected to a number of restrictions; namely pale . {a) Tariffs or custom duties : Governments charge a fee for allowing S compared to domestic marketing, there are more risk i : é 5 isk in impor of goods, which is called custom duty or tarft. Custom duties '@*”etlonal marketing because the amount involved in export orderis heavy are levied to make the goods being imported costly in the local market. i. - a 16 “Nikita Solved Paper” (MCOM - International wan ere is are. his financial pos snd the exporter does nit know the buyer 1.e. : orreputaion There are chances thathe may not get payment forthe g ny there may be unnecessary legal disputes, orloss or deterioration in quaiy, joods during transit seme The sk an be poltcal also, for example here may be war win, importing country there are trade risk that the compatition may become morg intense, there may be fire or the ship may sink due to Tsunami waves ete NEED & IMPORTANCE / SIGNIFICANCE OF INTERNATIONAL MARKETING Need and importance of international marketing has been increasing due to liberalisation privatisation and global ror transportation and financial lows the world is rapidly shrinking. Products developed in one country are finding enthusiastic acceptance in others. Lee Adler is of the opinion that the following factors have made the ‘opportunities of international marketing more comprehensive or wide (@) Increase in urbanisation. (©) Rapid growth of developing or undeveloped countries. (©) Increase in standard of living. (@) Increase in customer's buying power and knowledge. Kotler opines that many companies may prefer to remain in domestic ‘marketing if their domestic markets are enough large. They do not need to eam other languages and laivs, deal with volatile currencies, face pol and legal uncertainties, or design their products to suit different cons ‘needs and expectations. Business would be safe and easy. Inspite of it, many companies are attracting into international arena due to the fol : (2) Global firms offering better products or lower prices can attack the company's domestic market. The company might want to counter. attack these competitiorsin their home markets. (b) The company discovers that some foreign markets present higher profit opportunities than the domestic market. (©) The company needs larger customer base to achieve economies of scale. (A) The company wants to reduce its dependence on any one market. (e) The company’s customers are going abroad and require internationa servicing. Roger Bennett feels that there are many specific reasons for doing business abroad in which include the saturation of domestic markets. discovery of lucrative opportunities in other countries, the need to obtain ‘materials or technologies not available in the home nation, increase in the flow of information about conditions in foreign states, desires to expand the volume of a firm's operations in order to obtain economies of scale or the need to find an outlet for surplus stocks of outputs, Further, motives are as follows : ta Solved Papor”(MGOM- International Marketing) GammnetSal Wiis can bs spread ScrOSsd saveral cauntAes, or igalitate in cost reductions and efficiency increases. (ii) Economies of scope (as opposed 10 economies of scale) might become available. Economies of scale are reduction in unit production and resulting from large scale operation, (iv) The cost of new product development could require so much expenditure that the firm in compelled to adopt an international perspectives. : (v) There might be intense competition in the home market but little in certain foreign markets. : : (vi) Cross-border trade is today much easier to organise that in the past. Globalisation, internet, e-marketing and wide facilites for international business have made global business more easy. Daniels and Redebaugh have the same opinion. They fee! that there are four interrelated reasons or factors which increased growth in international business in recent decades : (a) Rapid increase in and expansion of technology. (b) Liberalisation of government policies on cross-border movement of trade and resources. (c) Development jons to support & facilitate international trade. (4) Increased global competition. Vern Terpstra says that there are several reasons marketing abroad ‘may be attractive option for a firm : 1. Aproduct can be near the end of ts life cycle in the domestic market at the same time it experiences a growth market abroad, 2, In some product lines, competition in foreign markets may be less intense than domestically. IF the firm had excess capacity, it can produce for foreign markets ata favourable marginal cost per unit. 4. Geographical diversification, thatis, going international may be more desirable alternative than product line diversification, Perhaps the most obvious reason to consider world markets is the potential they offer. For many products and services, markets outside the country are much larger than the domestic market, outside the country are much larger than the domestic market, In short, the various specific reasons for the need of international ‘marketing are as follows : e n in domestic market, a firm may adopt i) In case of the saturation of product, a firm may find its selling in other nations. in adopt international utilized. "Fron Tha Pont ot View of Expo Foss o sales plus sales * in international markets can enable an expor to reap the Lelbubepraniear ae benefits of large scale production, resulting in reduction in costs & of world mark ‘The most obvious reason is the market potential ts, eo ont a quailty. ing foreign market potent: Mreldance of product obsolescence : Every product has a life cycle, stage comes when a product becomes obsolete in domestic ‘market but it may be sold in less developed countries. foreign markets can become. 3t access. nt of worlds total output, f exports and enable foreign markets. such incentives and BENEFITS OF INTERNATIONAL MARKETING Benefits of international markets can be viewed from three points: (A) Benefits From The Point of View of Natio 4. Exchange of surpluses with necessities : Through foreign trade, surplus produce of land and labour for wich there is no domestic demand is exported and something else in which that country is deficient is brought in. Foreign trade gives vent to a country's supertuity by exchanging them for something else which is not indigenously available. 2, Better standard of living: Intemational rade affords countries and their citizens a higher standard of lving. Without international trade, product shortages or absence of wanted products will deprive Gitizens a comfortable and decent standard of living. Income from ‘exports increases national income also. 3. Growth of overseas market : Developed countries, which have surplus of industrially produced goods find markets for them in ‘agreements about trade and commerce 1, many countries have become ‘World Trade interact with each other and start appreciating .each , customs and traditions which leads to establishment smational trade takes place between countries which may be developing counties. Some goods which have become obsolete in poles apart in their politica ideologies. ads Countries, find market in developing countries. DISADVANTAGES / DETRIMENTAL EFFECTS economic growth : It has been observed that economic OF INTERNATIONAL TRADE growth of a country is closely associated with growth rate of its If a country allows unrest exports. in many way free trade, important among these, are : orts may cause shortages in the country »xport anything, exports may cause shortage of essential 6. Employment opportuni crease production of goods resuits nal production and increa asbsssin hae workers are employedin diamond N of intemational supply and demand rather than because of try in India which is basically an export industry. local factors. (MGOM - International Marketing ‘Uinrastricied imports Can wipe: industries. This is Specially “Nikita Solved Paper” (MCOM - International Marketing) 24 . “The other commonly recog nial from language. customs, traditions and other cultural diferences, geo-grapt distances and climatic variations between domestic and international 20 =—3-Wiping out of focal industries * the infant and inefficient domestic i about developing countries where infancy stage. markets. Mi 4 nae Sate api means expring goodstoforetgncounties, ™T. srancal canon relating to the conduct of inernational advanced courts Ca Us marketing are quite different in most respects from those employed in unwanted surpluse; francing domestic trade. The method of credit extension and method of no restrictions. financing are extremely different. 5, Danger of a country becoming an exporter of primary goods “There is the entire field of governmental control and restriction Ranger rating on export of those goods where 2 COUNITY ér)o} exercised by every sovereignty. Competition is generally not open and free. Fatal comperative advantage, can permanently make it @ SUPPIkjaws, restrictions, taxes, tariffs and controls are all part of the expressed of primary goods. sovereigntly of all foreign countries. Moreover, these devices are constantly changing and they must be ‘INTERNATIONAL MARKETING’ vs ‘DOMESTIC MARKETING oliovied closely in an export marketing venture, statistical data for many ‘Similarities & Differences Between export markets is either non-existent or inaccurate. Language is a major Domestic & Export Marketing obstable for export markets. The fundamental problem is the lack of common background and experience which any domestic marketer shares with his export markets as the dumping ground fort! management task in broad outline is the same for expcconsumer. marketing as itis for domestic marketing. The broad categories Thus, the analysis and solution of international marketing problems creltonmpntal factors are the same i.e. social economic and poiiiczequires skills, background, and insights in addition to those required to (i) The broad approach to the solution of marketing problemsisidenticsolve striclly domestic marketing problems. namely, the consideration of alternative methods, in ight ofthe fry DIFFERENCE BETWEEN ‘environment, to achieve the goal ofthe firm. DOMESTIC & INTERNATIONAL MARKETING (i The basic concepts, activities and processes of marketing apr—gasis of diference| —Dormestic Marketing | Tnterman aetuly to export marteling 8 they do to domestic marketing. 1" Restitons or Novecotise orev CUnee aun or TES t Trade goods, no quotas or custompestictons may be thar. (6) Dissimilarities = ‘The difference between domestic and international marketing ari, eget cee, a - entirely from differences in national environments within which expcy:yegasvstem | Same within the count Dierin diferent counties. eriteving fs conducted, and the differences in the organisation ay. neosty accrsat [Pacaraie ane acer ee tern counties, programmes of a company operating simultaneously in different nation production capt feelymovabiewitinthe iferentcounties. markets. 5 ‘Although both domestic and intemationa marketing activities conducted in a legal environment, the components of legal environme. differ. Certain types of regulations and laws which are found in domes. countries are missing or are different in export markets. Taxes and tat7- [Same, wit sight itference, in citferent parts ofthe country. bounties. Simple, not elaborate, umbersome and elaborate diferent in difer Culture and language|Moreorlessthe sameinalparts Vastly different in different of the county langu-ages may countries. vary wiuely amongst domestic and export markets. Restrictions such as trade quotas and exchange control ares, Risk and need ot [euepontvovince ne diferent a international markets than in domestic markets. france ances emir eed ot There are differences in the type-and characteristics of domes'®: Need for Marketing |Less [intense and international currencies in which the export trade takes place 294° 10, Government ment Domestic trade is generally [rade is subject to government exchange rates imposed by different countries. Interference free from gover Government institutions and, banking system very Wid! | oe from country-to-country and often have significant influence on market’ Price eee eat ese as wel se activities. sviclons through expon and import policies. Competition nite Solved Paper” (COM International Marka, 22 Domestic Marketing 4. One nation, same language and culture. 2. Transport cost is a major marketing expense. 3. One currency 4, Political environment and factors are the same. 5. Market is relatively homogeneous 6. Noproblems of exchange control and tariffs. 7. Data available, usually accurate and relatively easily collected at less cost. 8. Relative freedom government interference. 9. Individual company has effect on environment. 10. Chauvinism helps. 11.Relatively stable business environment. 12, Uniform fina from tle climate. 13, Business “rules of the game" mature and understood. 12. Variety of financial a) International Marketing Many nations, many language, and cultures. Transport cost influences only jg some extent. Different currencies in differery countries. Different political environment ang factors in different countries are vital. Markets are diverse and highly heterogeneous. ‘There are problems of exchange controls and tariffs and they act as, obstacles. Data collection a formidable task, requiring significantly higher budgets. Government. influence business decisions. ravitational” distortion by large companies. CChauvinism hinders. |. Multiple environmenets many o! which are highly unstable. limates ranging from overconservative to ly inflationary. 13, Rules diverse, changeable ané unclear. Nikita Solved Papor” (MCOM - International Marketing) 23 eee eo Lanennnnnnnet eg) 23 International Marketing Environment A Sree ronment a1; How does economic, cultural, political and legal enviroment affect international marketing ? Explain. What is International Marketing Environment? Discuss the external factors of international marketing environment. What is the meaning of International Marketing oR OR. Environment? Discuss internal & external environment. OR Explain external environment relating to international marketing and distinguish between internal and external environment. OR Analyse the forces which come under internal international marketing environment. OR Write notes on : (i) Internal Environment (ii) Compe! Environment. . Answer : By marketing environment we mean, market conditions under which an exporter has to, operate. |(B)External Environment in Foreign Country 4, Political environment 5, Legal environment 6. Technological environment ae Sompaltion environment anwont Ts autumn ay iolans ne ea aeion Ree cenetonion called internal environment and foreign market 1. Financial resources +2, Human resources 3. Leadership & company objectives: 4, Research & development 5. Image of the company 6. Production capacity & growth potentials, pany related factors refer things cg 5. com s Internal environment Syees. The resources may be financial or ‘company objectives and its resources ‘enable a company to know what the intemational market. Internal ‘Analysis of internal environment jts strong and weak points about entering areits strong: eee ources needed besause the export orders are, generally, of big amounts and they i, ke a lot of time to get payments forthe goods sol 2, Human resources : Specially qualified and experienced managers in manage intemational business. Either the firm must have sons or should be able to hire them. ‘and company ol Itis necessary that top ould be able to guide and lead managers to accept ternational marketing. 4, Research and development : There is intense comps intemational markets, new and better products keep on entering the should have research facilites to develop and produce latest and better products. 5. Image of the company : A company with good reputation and a favourable image in the domestic market wil find it easier to enter international markets. A company who's products do not find market locally may not succeed in international markets also. 6, Production capacity and growth poter ims, with large production ‘capacity can only succeed in international markets, foreign markets grow at fast pace, the exporting firm must therefore, have sufficient growth potentials. EXTERNAL ENVIRONMENT. Environment external to the firm may be: (A) In the home country, and (8) In foreign countries where the goods or services are to be exported. (A) External Environment in Home Country ‘An exporting firm, before entering international market has to see Conditions in the home country. Does the government allow export of those ‘goods which the company produces ? Are there any export quota réstriction ? Have exports to seek government permission for exports ? Is there any export duty on exports or does the government give any financial support in the form of subsidy on export of those goods, market daily. A company wishing to enter international business it exporter can de (6) External Environment in Fo Why to understand external environment ? ing to Cateora and Kaeveney “The key to successful ess is adaptation to the differences in the environment ign countries and their imp countries differ enormously in almost every 9 of international marketing, ‘The main external environmental factors are: - Economic environment 5. Legal environment 6 7. Economic Environment :* The economic environment of a foreign country determines the marketing opportunities of rational business. A country's economy includes sources of domestic ie economy, economic system, income, domestic supply & demand world's economic do nft operate at the same level is necessary to form a clear idea of economic situati Country where the goods etc. are to be marketed. graphic Environment : Demographic factors refer to the growth rate, age-wise composition, family size, nature income levels etc. Demographic factors have great effect on consumption of different Joods and services, ‘country has large population, there willbe more demand for goods. Poor countries with small population do not offer much business opportunities. efficiency of that (COM International Market, ian Oe SCOR Toes mare na country is poor buthas large population Itmay offer sizaty market even for those goods and services which may be regarded as luxuries there may be enough demand fr them evenif only Spercentof the popuiaticn can afférd them. 3. Social and Cultural Environme' requires interaction with people in other co culture of the people to whom we are going Culture refers to education, ethics, etiquet beliefs, food taboos, rituals, about marriage, death, sexual restrictions, morality, truth and superstitions of people Cultural Gifferences deeply affect the market behaviour in different countries. 4. Political Environment : Political environment includes characteristics and policies of various poltical parties in the country, the nature ofits constitution and the government system. Unstable politcal environment exposes many risks to foreign business, Many countries of the world are continuously under political confcs, itis not sae to do business with them, to study political environment: International marketing fe must understand the our goods or services, of government whether democratic, communist, dictatorship ian) or monarchies: ie government. ‘economic management i.e. ability to pay foreign its fiscal and monetary policies etc. (iv) Frequency of changes in government p (v) Attitude towards foreign investment. (vi) Host country’s relationship with rest of the world. Host country's relationship with exporting company's country. Altitude towards assignment of foreign personnel. ies and honesty of government administration 5. Legal Environment: A company intending to operate in a foreign country for business purposes should have thorough knowledge about business laws of that country, It should be able to use laws which ar the effects of laws which are against its interest. There is no international law that governs intern: ness. Each nation has its own laws which vary fom count county io Every country has its own legal bindir i i (on foreign investments, legal bindings on the imports as well 2 favour and to reduce another. 6,Technological Environment : A manufacturer has to keep a watch ical developments taking place in the field of his operations. An 188ess the state of technological developmentin the market where he intends to market his products Itto compete in technological markets of developed countries, if he lags behin development. the reason, why exporters from developing countries can l only those commodities which require greater use of manual labour like lery,cut-diamonds et. the factors like type of technology in us he speed with which new te influence marketing decisions. 7. Competitive Environment: In international marketing exporters have to face competition at three levels, ) competition from exporters of home country, cut throat. Only those exporters can survive who can sell technol advanced products of good quality at low price. ee 7 “Nikita Solved Paper" (MCOM - International Markoting, 3. Identification & Selecting Foreign Market Q.1: Whatis the meaning of ‘identifying foreign, market ? Discuss general analysis and specific analysis ? OR Discuss the factors which influences the selection of International marketing in de! OR Write a short essay on indentifying an selecting foreign market. OR Explain foreign market entry mode in reference to Indian market, Answer : Identifying and selecting Foreign Market Why the Need for Selection ? The first step when undertaking international marketing, is selection of market. All attempts to sellin foreign markets will fal unless the right Product is marketed in the right market. Proper selection of market will save waste of time, money and efforts.

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