International%20marketing%20Session%202

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International marketing Session 2

• Ana Colovic

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The environments of international marketing

• All marketing activities occur within legal,
  economic, cultural, political and other
  environments.
• Each country has its own legal system, culture,
  socio-economic infrastructure etc.

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The economic and political environment

• Economic factors
• Competition
• Growth rate
• Living standards
• Tax regimes
• Import controls

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The economic and political environment

• Political factors
• stability
• International relations
• Freedom of speech
• Political parties
• Bribery and corruption among government officials
• Terrorism

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Risk

• Risk needs to be assessed systematically and
  monitored on a continuous basis.
• Macro risk - affects all foreign firms operating
  in a country
• Micro risk - applies to a particular company

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The cultural environment

• A nations culture represents a collective frame
  of reference through which a wide range of issues
  and problems are interpreted.
• Culture consists of the following main elements
  religion, language, social structure, shared
  beliefs and ethics, non-verbal language.

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Legal aspects in international marketing

• Local laws determine marketing practice.
  Legislation may exist regarding product
  characteristics, packaging and labeling, brand
  names, length of guarantees, pricing and
  promotion and many other issues.
• There is no uniform law governing international
  trade, only the application of a countrys
  domestic law on international transactions.

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Legal systems

• Three types of legal systems predominate in the
  modern world
• Common law
• Civil codes
• Islamic law

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Conflict of laws and jurisdiction

• International business involves clashes between
  differing legal systems.
• Legal action occurs (in general) in the country
  of the party that is being sued.
• Jurisdiction issues within the European Union are
  covered by the Brussels Convention of 1982 and
  the Rome Convention of 1990.

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Globalization

• Globalization means different things to different
  people. Many elements affect globalization the
  technological capacity of a country, access to
  large integrated markets, the competitiveness of
  firms, international institutions which provide
  the necessary framework.