International Business Marketing

 Nature of International Markets

 Choosing the Market
 Impact of culture, politics and law
 Entry strategies
 Pricing and payments
 Packing and shipping
Nature of International Markets
 Highly developed markets
– US, Western Europe, Japan, Korea
 Emerging Markets
– BRIC + South Africa, Mexico
 Oil Rich Countries
– Middle East, North Africa
 Poor and underdeveloped markets:
– Africa, South Asia
 Other Markets: Latin America
 Choosing The Markets
 Sources of Secondary Data:
– Embassys and Consulates
– Indian Missions in the host country
– Export Promotion Councils
– Commercial Banks
– EXIM Bank
– Internet websites
– ECGC
– Trade Journals
 Choosing The Markets
 Factors influencing choice of market:
– Size of the Market
– Cultural, political and legal risks
– Competition
– Proximity
– Financial stability
– Acceptance by the importing
country/customer
 Impact of Culture
 Language
 Customs: influenced by religion, ethnicity,
standard of living
 Geography and climate
 Meaning of 'time'
 Levels of authority
 Task vs Relationship
Impact of Politics
 Leading Sources of Political Risk

Expropriation or nationalization

Unilateral breach of contract

International war or civil strife

Destructive government actions (non-tariff
barriers)

Harmful actions against employees

Restriction on repatriation of dividends/profits

Differing points of view

Discriminatory taxation policies
 Legal Impact
 Operational Concerns:
– Starting a trading business
– Entering and enforcing contracts
– Hiring and firing local personnel
 Strategic Concerns:
– Product safety and liability
– Product origin restrictions
– Legal jurisdiction and arbitration
– Licensing and franchise laws
 Impact of Legal System on IB
Intellectual Property Rights:

Refer to the right to control and derive benefits from writing
(copyright), inventions (patents), processes (trade secrets)
and identifiers (trade marks)

Legal problems may complicate specifying, regulating and
protecting IPR

Poorer countries provide weaker legal protection of IPR,
than do richer countries
Entry Strategies
 Trade Shows and Exhibitions
 Tie-up with a larger company
 Tie-up with a local company
 Licensing and Franchising
 Pricing and Payment Terms
 Pricing:
– Ex-works/FAS/FOB/C&F/CIF/Destination
– Export incentives
– Customs duties
 Payment Terms:
– Cash in Advance/COD
– Against documents through Bank
– Letters of Credit
• At sight/Against credit days
 Packing and Shipping
 Packing:
– Exportworthy packing
– Containerization (20/40 feet)
 Shipping:
– Air/Sea/Land
– BL/AWB
– Bulk/LCL/FCL/Reefer
– Freight Forwarders/Shipping Lines