International Marketing

-because of an increase in privatizations which have increased market liquidity.

-technological—because of improved transportation and communication opportunities today, trade is now more practical.

-global trade agreements such as the General Treaty on Trade and Tariffs, and trade organizations such as the World Trade Organization (WTO), North American Free Trade Agreement (NAFTA), and the European Union (EU).

Identify five reasons why companies may decide to sell their product or service in foreign markets.

- To increase the overall level of total profits

- To take advantage of an innovative to the world product or service

- To enjoy the corporate tax advantages offered in overseas countries

- To satisfy the goals of corporate management who might wish as a general matter of policy that the company should be committed to international operations

- Because the home market might be saturated

What considerations must a company have in these areas when undertaking international marketing?

- political differences : ex)oil companies which invested in Iraq or Libya became victims of these countries’ misconduct that led to bans on trade.

- economic differences: There are economic differences between the US and other countries. Some countries have much lower standards of living.

- social differences: ex) differences in family structure

- legal differences:  a different legal system in each country.

- cultural differences : ex) what is a pet in the United States might be food in another country. Pork is not eaten in many countries./ language differences

- differences in business practices:  In many countries, few households have a personal computer. In many parts of the world, a large number of households do not have electricity, telephones, or indoor plumbing.