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Government's role in Marketing - Research Paper Example
Governments play a crucial role in the international trade arena and can impact the viability of a business in many ways. Governments can facilitate a business by relaxing taxes and providing infrastructure etc or they can hinder a firm’s efforts to enter a market by imposing law designed to favor domestic firms…
The two most important economic factors that affect international marketing are:
1. The industrial structure of a country
2. The income distribution of a country.
The product and service needs of a country are shaped by the country’s industrial structure. There are 4 main types of industrial structures. They are as follows:
1. Subsistence economies: People consume what they grow and such an economy offers very few market opportunities.
2. Raw material exporting economies: Economies wealthy in one or more than one natural resources but poor otherwise. Such countries are excellent markets for large equipment etc and for luxury goods if a wealthy upper class is present.
3. Industrializing economies: Manufacturing accounts for 10-20% of the country’s economy. These countries are a good market for raw textile materials, heavy machinery, steel etc. A new affluent class and a small middle class are usually created by the on going industrialization, both of which require new types of imported foreign goods.
4. Industrial economies: Services and manufactured goods are the chief exports of industrial economies.. A large middle class usually exists making industrial economies an ideal market for all sorts of goods. ...