International Marketing

Why has International Marketing grown so much in recent decades?

 Global marketing reaches customers, markets and advertising beyond the borders of domestic region. The more a culture spreads, the more its products do. Since traveling is a lot easier as it used to be, people from different cultures visit different countries. Better communication, transportation and freer international markets are signs of globalization. These aspects lacked in the past and while it used to be risky, international marketing is in many cases a necessity for businesses. In recent decades, the global capital market has grown so rapidly because of the rise of privatizations. Privatization takes a potential role global capital market development. Capital markets arewinning the present and seem likely to dominate the future of corporate finance in developed and developing countries alike. Total proceeds raised by privatization programs, so it is clear that national governments have been among the biggest winners from privatization programs, since these have dramatically increased government revenues, which is clearly one reason the policy has spread so rapidly.

What are some of the factors that has allowed this to happen more easily now than in the past?

The factors include improved communications, transportation and businesses that are too big for their own market.

Identify five reasons why companies may decide to sell their product or service in foreign markets.

Home markets may be too saturated, so that the product is already maximized in given market and there is no more space to sell it anymore, foreign markets offer potential profits while it still emerges, this is result in rapid sales at low costs in the marketing, Spreading risks to different countries and poor trading conditions may caused to market globalization.

What considerations must a company have in these areas when undertaking international marketing? 

           Political differences
Changes in the government such as terrorist activity, increase the risk of business failure. For example Civil wars in Nepal dramatically decreased businesses.

           Economic differences
One must take in account the GDP and the rates of taxes, age structure of population and interest rates, the GDP vary from country such as United States that has GDP of $ 14 447 100 and China that has GDP of $ 5 739 358

        Social differences
  Sold of the products is also effected by cultures that include the importance of    marriage and the role of women in the society.  For example, IKEA's advertisements that had a happy women in nicely designed kitched in a European country, lacked the woman in the picture in an Arabic country.

      Legal differences 

      Very big impact of foreign businesses and may affect product safety and labeling. In USA Children under the age of 12 cannot be directly advertised to.

              

         Cultural differences
Cultural differences may have a huge impact. If a business doesn't recognise, the roles of women in the society, the business will fail.  

      Differences in business practices 

      It take different amount of time in different parts of the world to starts a business, the formalities and paper work around a new business. It depends on the country for example in Great Britain this process may take just a few days but in Slovakia it may take up to 2 years