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International Marketing Environment - Essay Example

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International Marketing Environment Name of of Professor Date Introduction The study of international marketing environment holds importance since in the present times, the power and influences of globalization have increased to great extents, particularly in regard to businesses and international trades…
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International Marketing Environment
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International Marketing Environment

Thus, the understanding of the environment of international marketing is significant in order to successfully achieve business goals (“Understanding the Global Marketing Environment”, n.d., pp.4-5). The Role of Government in International Trade The government has a significant role in international businesses, where the government promotes the activities of the trades and businesses. Various financial and non financial types of assistance are provided by the government that helps the country and its businesses to attract the FDI. This, in turn, enables the countries to fight their competitive countries. Foreign businesses are more attractive with the increasing liberalization in trade across different countries, deregulations and privatizations leading to greater opportunities of international businesses. Thus, governments have the opportunities to “open up their borders to international trade and investment, standardize their systems and procedures, adopt internationally acceptable values and attitudes, and encourage the development of democratic institutions” (Aswathappa, 2010, p.10). Economic integration is attracted to a country when the country intends to develop financially and structurally. The various stages of integrations include free trade agreements, customs union, common market, and economic union. The free trade agreements regulate the initial integrations of trade between countries. External trade policies are controlled and regulated by the customs union. The common market decides on the movement of people across countries for the purpose of trades. The economic union contains all the elements of the other stages and regulated the monetary and fiscal policies of the international trades (Landers, 2012). Thus, it can be understood that these stages of economic integrations have significant impacts on the process of international trades between different countries. Economic and Cultural Elements of International Marketing Environment Economic and cultural factors are essential for the understanding of international marketing since these factors largely determine the marketing environment of the businesses and trades. Economic elements are significant since they have effects on the demands of any product being marketed in foreign markets. These elements include the size and composition of the target population, size and structure of the foreign market, level of competition, the sources of competition, rates of inflation, the restrictions on imports, tax systems, and other factors. These factors determine the demands and the rising level of trades across countries, thus, making it clear that economic elements affect international marketing environments. Cultural differences are also important in this regard since much of the social and ethnic issues result from such differences affecting global trades. Understanding of these factors is essential since they not only affect businesses but also support the marketer of the businesses in successfully gaining the target group in the foreign markets. Thus, elements like behaviors, values and beliefs are needed to be considered effectively (“Impact of Economic and Cultural Elements On International Marketing”, 2012). Political and Financial Risks with International Marketing The financial risks that are mostly involved in international tra ... Read More
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