This not only allows them to price their products lower, but also opens up a broader market of people with the disposable income to buy more goods and services. New and ever improving communications technology has spread throughout the world, allowing international marketing campaigns to be coordinated all from a domestic base. The internet and mobile phones have opened up entirely new international industries with endless potential. Globalization has changed the way people shop.
Consumers are better able to shop around for good deals and are prepared to buy from overseas without necessarily viewing products first hand. Globalization has also increased market competition, in turn increasing the importance of effective international marketing. Many organizations cannot rely on the fact that they are the only player in a long held domestic market, there are new competitors from overseas appearing all the time. Transport and distribution systems are more efficient than ever before, making it easier, faster and cheaper for businesses to get their products to consumers.
Electronic transfers have also made making and receiving international payments faster and more secure. Finance is more readily available to both consumers and organizations, thanks to the globalization of many financial providers. Investors are interested in spreading their investments over a wider range of markets to reduce their overall level of risk. An increased availability of capital makes it easier for organizations to finance their international marketing efforts. Globalization will continue to bring more and more buyers and sellers together into the future.
For the purpose of this assignment, I am assuming myself as the owner of a plastic molded toy company in United States that manufacturers, and distributes plastic molded toys through retailers across the country and around the world. The company is capitalizing on the strong growth in the children’s toys segment and planning to expand in an aggressive manner throughout the nation. The company ...
The organizations that are able to make the most of the opportunities globalization provides stand to the best chance of succeeding in their international marketing campaigns. In the past, marketers have capitalized on the demand stemming from the developed regions of the world; North America, Europe and Australasia. Demand in these markets remains strong, however, growth has slowed significantly in the recent past. International marketers are now turning to the developing regions of the world where there is still huge potential for market growth.
The emerging markets with the highest growth potential are located in Africa, South America, Asia and Eastern Europe. More specifically, international marketers are focusing their efforts on gaining entry into South Africa, Brazil, India, China, and Russia. As these markets become more industrialized, workers are able to earn a more stable and higher income. There are a few key factors that you can look at to identify the emerging markets with the most potential. Population and population growth forecasts are useful indicators of total market size. The Unit 407 International Business Strategy opulation of India and China combined is over 2. 5 billion people, clearly indicating why international marketers are interested in entering these markets. The level of infrastructure in an emerging market is another good indicator of market potential. When engaging in international operations, you rely heavily on services provided by the local market. You are likely to utilize transportation systems, communication systems and energy infrastructure to sell and distribute your products and services. It will be easier and more cost effective to work in countries that already have reasonably well developed and reliable infrastructure.
Income and spending behavior are also important factors to consider when analyzing an emerging market. When looking at income figures, ensure that you look at the median income rather than the average income. This is because many developing countries feature a small amount of the population who hold the majority of the country’s wealth. This can cause average income figures to overestimate what the majority of the population actually earns in a year. Spending and consumption behavior takes into account the way that people spend their income.
Why are some countries rich while others are poor? The answer to this question explains the theory of economic growth. "The question so fascinated the classical economists that it was stamped on the front cover of Adam Smith's famous treatise, an inquiry into the nature and causes of the wealth of nations." Economic growth can be simply defined as the growth of real output of an economy over time. ...
For example, is all of a family’s income spent on basic necessities (food, clothing, shelter) or is there enough left over to be spent on luxury goods (electrical appliances, cars, computers)? You also need to look at the culture of spending. For example, do families save their disposable income or do they like to spend it on products that define status in the developing world, like brand name clothes, a car or a mobile phone? By carefully analyzing all of the issues and factors that influence market potential, you can work out which markets you should target and what marketing strategies you can use to gain a market share.
There are barriers to entering many of the world’s emerging economies, however, the potential for achieving international marketing success in these regions should not be ignored. Discuss the following:1) How globalization affect the country’s economy. 2) What are the principle areas of concerns in relation to globalization 3) What event have occurred as a results of the concerns about globalization and how have they impacted on global trade bodies 4) What benefits has trade provided to poorer countries? Question 2
Read the following extract and answer the question below: The European debt crisis is the shorthand term for Europe’s struggle to pay the debts it has built up in recent decades. Five of the region’s countries – Greece, Portugal, Ireland, Italy and Spain have, to varying degrees, failed to generate enough economic growth to make their ability to pay back bondholders the guarantee it was intended to be. Although these five were seen as being the countries in immediate danger of a possible default, the crisis has far- reaching consequences that extend beyond their borders to the world as a whole.
In fact, the head of the Bank of England referred to it as “the most serious financial crisis at least since the 1930s, if not ever,” in October 2011. By looking at the European Union (EU) crisis, discuss what pitfalls the Gulf Cooperation Council (GCC) may encounter, draw a parallel in terms of political stability, oil production and economic growth? Unit 407 International Business Strategy Question 3 International Trade Agreements Beyond the GCC and Arab world, the UAE has bolstered its trade links and interaction with global economies.
Joe Timo teo English 015 NAFTA research Mrs. Jacobson November 12, 2003 NAFTA NAFTA or the North American Free Trade Agreement was signed by the United States, Canada, and Mexico in 1992, and took affect on January 1, 1994. The trade agreement raised the tariffs of the signatory countries. The agreement also calls for a gradual elimination of the crossing the border costs between the three ...
It joined the World Trade Organization in 1996 and became an active member by participating in various trade negotiations and fulfilling many of its obligations. The UAE is bound by various trade, economic and technical cooperation agreements with 12 countries in Asia, 8 countries in Africa and Europe and two in South America and Australia. As part of the GCC’s negotiation team, it is currently holding agreement talks to establish free trade zones with the European Union, Japan, China, India, Pakistan, Turkey, Australia, New Zealand, Korea and the Group of Mercosur which include Brazil, Argentina, Uruguay and Paraguay.
It has also concluded the negotiations and the signing of free trade agreements with Singapore, European Free Trade Association (EFTA), Switzerland, Norway, Iceland, the Principality of Liechtenstein and New Zealand. All these agreements are aimed at improving wider trade and economic cooperation based on equality and mutual benefits and in accordance with the laws prevailing in each county.
The UAE has also entered into several agreements on the protection and promotion of investment and the prevention of double taxation with a number of Arab and foreign countries to facilitate an attractive investment climate and foster foreign trade in non-oil merchandise. Question Discuss and identify three positive and three negative features for a free trade agreement in which UAE is involved or consider becoming involved and evaluate the reciprocity of the agreement. Unit 407 International Business Strategy