International Marketing

Write one paragraph commet for each post

1) The government of the host country is looking out for what is best for their own. We saw this for tariffs and protection of the domestic economy in earlier chapters. The book also talks about that the most important reason to do foreign investment and business is to develop the economy at a faster rate (193). If the government of the host country sees that doing business abroad will help their economy, they are going to push businesses to do it. The oppose will happened if they see it harming or putting the economy into danger. Another thing to remember is that the government does decide what comes in and out of the country. The local laws and import restrictions have to be followed in order for the product to come through (178 & 179). An example being milk in Thailand. The milk has to have at least 50% of it coming from local farm communities in the country (178). This is to ensure that their people have a fair chance of profiting from the market. Something to remember is that foreign businesses cannot control what a country decides to let in base on their own laws and customs.

2) As before established, political and legal forces both domestic and foreign are considered uncontrollable aspects of the environment in which a marketer is to operate. A marketer must decide if, where, and when to enter a foreign market, and one important aspect of the environment to consider is a country's governmental stability. An obvious example is whether or not a country is currently in a state of war and political violence. The book gives several countries in Africa as examples, saying, "For its nations to prosper, they need foreign investment. But investment is leery of unstable nations, which is the status of much of Africa." (172) Violence of any kind, and especially if it is motivated by nationalistic, anti-foreign business groups, makes it physically dangerous for marketers to operate. Even if violence is not directed at foreign businesses, wars still cause logistical nightmares. If worst came to worst, the target country may cease to exist in a recognizable form. But a government does not have to be benevolent to be stable, and stability looks different for different cultures. The book contrasts Italy and India to illustrate. Italy and India both have changed their governments around 50 times since the end of World War II, but while Italy's attitude toward international trade has been consistent, allowing business to continue even through political turmoil, India's approach changes as often as its government, being friendly for a short time and unfriendly the next. (172) Depending on how many voices are considered valuable in a governmental structure -- whether it is more monarchial, dictatorial, oligarchal, or democratic in structure (173) -- how often new officials are instated, and how those officials are selected for their positions, a country's policies can either be set in stone or turn on a dime. Even laws that have been considered foundational for a country's way of life can, under a specific set of circumstances, become null and void before a marketer can consider how it will affect their approach.

3) Invention is the mother of efficiency, and efficiency is vital to fostering economic growth. From the modest stirrup to the combustion engine, people are always looking for ways to speed up their lives, to reach out into the future and yank it back to the present -- a compulsion of impatience. Today, the Internet is the primary method used to indulge that impatience. Instant access to an insane wealth of information allows people to learn new skills and form new knowledge bases than previously possible. Connecting people across countries also opens up new business opportunities "for emerging economies to catch up with richer ones." (268) Giving people the ability to see the world at different angles and discover new ways of life and business encourages positive change. The Internet helps reduce transaction costs and promotes smaller businesses. Anyone with the Internet can find ways to promote their business -- of course, the success of self-promotion through the Internet is affected by the same variables of skill and luck as it would by traditional means -- and the ability to connect to other small businesses means that they can work together to reach the rest of the world. A disadvantage of living in a poorer community is that your immediate potential customer base has just as little as you do, so in order to make more money, you must find people who can and will give it for your goods and/or services. The Internet allows people to connect to wealthier consumers at a low cost. (269)