Business management: International marketing

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Showing posts with label International marketing. Show all posts
Showing posts with label International marketing. Show all posts

Friday, 18 August 2017

World Business Enviroment | Liberalization and Globlization

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World Business Enviroment | Liberalization and Globlization

                                     WORLD BUSINESS ENVIROMENT


Globallization   has created  a world with intigraterd system that make it easier for people to  interact and co0nduct business internationally . economic liberation and globlizatyion are conduct goiod for economics groth , poverty  alleviation and reducing inequaty in society. Globl;ization creats oppoturities and open mqrket for countries and which helps in closdoing the gaps created and open market for contries and within socities by creating opportunities for groth ann development .all organizations wiyh a global presence work  ou different strategies to  reduce world of international business. International institution like the world trade organization
(wtop), the international monetary fund (IMF) and the world bank works towards the smooth function of the international monetary system, establish fair trade practice and give recommendations to develioping countries in creating tyrade –relatred n reforms.

 LIBERALIZATION AND GLOBLIZATION

Globlization can be defined as a process of making something world wide in its scope or application , globalization include a set of process which leads to then integration   of economic, culture, political and system across geographic boundaries. The main aim of globalization is it to make the procty or service successful in many countries withoudoing any modification . in terms of international business, globalization refers to tha international exchange  or sharing of labour forces, nproduct ideas and knowledge, it can also be defined as the efforts of business to expand their operations to new countries business. Then process of globalization is become very comman in internaqtionasl business because of the bthe incesing international of the world market of goods, services and capital.

LEVELS OF GLOBLIZATION

Globliozation most often refers to the increasing degree of connectivity between various countries and their cconomies. International business generally operate  at one of four basic levels of globalization. These are as follows:
Multidomestic company :this is the first level of globalization. At this level the business consist of several independent units units that operate in different countries. At this level of globalization , there is very little communication between the independent units of  a company which are located in different  countries.
International company:this is the second level of globalization at this leve, an internatonal company maintain headquarter5s in one country and the branch of the company are located in different countries.
Transnational company: this is the third level of globalization. A transational company consist of loosely integrated business units in different countries. At this level of globalization. The company focuses on making the product.
Truly global company:this is the fourth and last level of globalization. At this level of globlizatyion the company vierws the entire world as a single businesss market. The company develops an overall strategy for its various operation around the world.

ADVANTAGES OF GLOBLIZATION

Globl;ization has following  advantages:
It result in better interaction between people who are related to different countries.
IT pvovides quick transformation of products and information from one country to another.
IT  A COMPANY DELIVBER ITS NEW PRODUCTS IN THE INTRENATIOINAL MARKET AS SOON NAS POSSIBLE. I
 DIFFERENT APPROACHES TO GLOBLIZATION
GLOBLIST APPROACH
SCEPTIC APPROACH
TRANSFORMATIONAL APPROACH
ANTI GLOBALIST APPROACH


DRIVES OF GLOBLIZATION

Globalization of market
Globalization of markets
Falling barriers to trade and investment
Technological  innovent
Globlization of markets

THE  TERM GLOBLIZATION OF MARKETS CAN BE USED TO RAFER TO THE MERGING OF NATIONAL MARKETS INTO A BIG GLOBAL MARKETPLACE. NOWDAYS, SELLING GOODS INTERNALLY IS EASIER DUE TO FALLING OBHTACLES TO TRADE
FALLING BARRIES TO TRADE AND INVESTMENT
The falling of obstacles to international trade enables yhe organization to vie4w the entire world as their market. The lowering of barriers tro trade and invrstment also allows organination set up a mar4ket for products in the market for trhrir products in one country.


GLOBLIZATION OF PRODUCTION

Globalization of production refers to the sourcing of goods and services from lqcqtion around the world to takje advantages of differences in the cost and quality factors of production. The main aim of an organization is to compete more effectively in it international market by voffering a product with good quality and low cost.


Saturday, 11 February 2017

Challenges of multinational firm|Challenges faced by multinational firm

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Challenges of multinational firm|Challenges faced by multinational firm

Challenges of a multinational firm


A multinational firm operates in diverse environments, the finance manager of the firm encounters a large number of challenges. They include
·       Complex taxation systems : multinational firms, operating in different economic system with their subsidiaries, have to face multiple tax system. The diversity of taxation affects the profitability of the multinational firm and it because a tedious job for the finance manager to perform decision making tasks in such complex situations.
·       Diverse financing mediums: A multinational firm has various sources of financing. However, some of them, coming from the economy in which the firm is new, may generate market-prone risks. This can be due to some specific risks pertaining to the economies that cause the decline in the profitability of the firm.
multinational firm


·       Political risk : multinational firms, while investing in a country, are prone to the political risks in that country. A major political risk faced by them is expropriation on confiscation of private property. It is, therefore, necessary for the firms to carefully analyse the investment ratings of the countries before they invest.

·       Risk of foreign exchange : multinational firms may also faces challenges due to its diverse physical environment . this hampers standardization of products, procedures and management style of a multi national firm. The weather and the landscape of the locations mayalso affect the performances of the individuals of the firm.

Friday, 10 February 2017

What are the problem faced in international marketing?

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What are the problem faced in international marketing?


Problems in international marketing


International marketing and domestic marketing look very different from each other. The basic principles of both are same. International maketing differs from domestic marketing only in the environment in which carried out. International marketing faces more problems and difficulties than domestic marketing. Some of the problems faced by international marketing are the following

·       The distinct legal and political system of countries is one of the problems for international marketing . the legal system in term civil laws, common laws and religious laws.
·       The cross-cultural environment of countries is another problem for international marketing. However, domestic marketing also faces such problems.
·       Financial system can differ from country to country
·       Currency units also vary from country to country. This poses problems in exchange rates.
·       Language can also create problems for the marketer. Same words or terms may have different languages. The language problem is a major issue in india.
·       Market infrastructure of countries can differ from each other. The advertisement mediums used in one country may not be available in another country.
·       Import restrictions imposed by countries on international marketing are another problem.
·       The cost of transportation can be very high in carrying out international business transactions because of large distances between countries.

What is international marketing | concept of international marketing

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What is international marketing | concept of international marketing


International marketing


International business also contains an indispensable concept known as international marketing. The term international marketing should not be confused with international business. At its simplest level, international marketing involves the firm making one or more marketing mix decision across national boundaries. At its most complex level, it involves the firm establishing manufacturing facilities overseas and coordinating marketing strategies across the globe. Different definitions of international marketing are given as follows:
international marketing


The most relevant factors for a firm that is marketing abroad are the following

Social factors :

·       Culture of the country
·       Language of the country
·       Environment and climate of the country
·       Marketing infrastructure
·       Financial system

Economic factors

·       Currency restrictions of the country
·       Government policy
·       Taxation
·       Internal demand management policies

Opposition


·       Opposing organization in the importing country
·       Opposing organization in competing countries
·       Opposing organization in own country

Logistics

·       Costs of planning and controlling the movement of goods
·       Transportation required

Risks

·       Political and commercial risks

·       Risks from enemies, thieves and piracy