International Marketing

1. Define International Marketing 2. What is the scope of International Marketing? 3. What are the challenges of International Marketing? 4. What are controllable factors affecting International Marketing? 5. What is meant by Trade Deficit? 6. What are uncontrollable factors affecting International Marketing? 7. What is meant by SRC? 8. List out few Social Factors affecting International Marketing 9. List out few Economic Factors affecting International Marketing 10. List out few Competition Factors affecting International Marketing 11. List out few Logistics factors affecting International Marketing 12. Globalization 13. What is meant by Trade Surplus? 14. List out few Risks affecting International Marketing 15. What is Global Marketing? 16. What is the Role of International Marketing? 17. List out few problems in doing International Business 18. What is International Trade? 19. What is meant by Balance of trade? 20. How can SRC be reduced? 21. What is meant by Ethnocentrism? 22. Why are International Trade Theories Essential? 23. List out the Classical Theories of International Trade 24. List out the Modern Theories of International Trade 25. List out the Recent Theories of International Trade 26. What Mercantilism? 27. What is meant by Leontief Paradox? 28. What are the benefits of International Trade? 29. What is Parliamentary Government? 30. What is meant by Absolute Government? 31. What are the Classifications of Governments on basis of Economics Systems? 32. List out few Reasons why going global is advantageous to the company 33. What is meant by Communism? 34. What is Socialism? 35. What is Capitalism? 36. List out few Political Risks 37. What is Confiscation? 38. What is Expropriation? 39. What is meant by Nationalization? 40. What is meant by Domestication? 41. What is Social Unrest? 42. List out few Indicators of Political Instability 43. What Steps are to taken to Minimize Political Risks? 44. How are Nations of the world classified? 45. What are the Components of Socio Cultural Environment? 46. What are the Types of Legal Systems? 47. What do you mean by Common Law? 48. What is meant by Islamic Law? 49. What is meant by Conciliation? 50. What is Arbitration? 51. What are the Political factors to be considered for International Marketing? 52. List out few Economical factors to be considered for International Marketing 53. What are the Social Factors to be considered in doing International Marketing? 54. What are the Technological factors to be considered in doing International Business?

International Marketing
1. Define International Marketing International Marketing is the performance of business activities that direct the flow of a company's goods and services to consumers or users in more than one nation for a profit International Marketing is the application of Marketing orientation and Marketing capabilities to International business International Marketing is simply the application of marketing principles to more than one country 2. What is the scope of International Marketing? a) b) c) d) e) f) g) h) Opening a branch /subsidiary abroad Licensing / Franchising arrangements Establishing joint ventures in foreign countries for manufacturing or Marketing Offering consultancy services Undertaking turnkey projects Sub Contracting Counter Trade Importing for export production

3. What are the challenges of International Marketing? a) b) c) d) e) f) g) h) Huge Foreign indebtedness Unstable Governments Foreign-exchange problems Foreign entry and Government bureaucracy Tariffs and other trade barriers Corruption Technological pirating High cost of product and communication adaptations

4. What are controllable factors affecting International Marketing? The controllable factors are Product, Price, Place and Promotion. 5. What is meant by Trade Deficit? An Economic condition in which a nation imports more than it exports 6. What are uncontrollable factors affecting International Marketing? Social Factors Economic Factors Competition Logistics Risks

7. What is meant by SRC? SRC stands for Self Reference Criteria; it is an unconscious reference to ones own cultural values, experiences, and knowledge as a basis for decision. Cross perception of market needs can be blocked by one's own cultural experience.

8. List out few Social Factors affecting International Marketing a) b) c) d) e) f) g) h) i) National legal regime Political situations Financial system Marketing infrastructure Culture Language Climate Life style Standard of living

9. List out few Economic Factors affecting International Marketing a) b) c) d) e) f) Commercial policy variables i.e. tariffs, quotas, licensing, non tariff barriers Currency restrictions International and management policies and instruments Exim Policy Inflation Deflation

10. List out few Competition Factors affecting International Marketing a) b) c) d) e) Competition within home markets Completion across national boundaries Competition vis- a- vis producers in the importing country Competition vis- a- vis exports from the competing countries Competition vis -a -vis other exporters from one own country

11. List out few Logistics factors affecting International Marketing a) Availability of required type of transport ( sea, air etc) b) Costs of transportation 12. Globalization Globalization is a process by which regional economies, societies and cultures have become integrated through a global network of communication, transportation and trade. 13. What is meant by Trade Surplus? An Economic condition in which a nation exports more than it imports 14. List out few Risks affecting International Marketing a) b) c) d) Political risks Commercial risks Acts of god Acts of enemies, pirates, thieves

15. What is Global Marketing? Global Marketing refers to Marketing activities coordinated and integrated across multiple country markets. It also denotes the use of advertising and marketing on a global basis.

16. What is the Role of International Marketing? International Marketing does more than just bring cheap products to the consumers It improves world economy Countries that trade together are less likely to go for war Countries that trade together have shared interests and Economic ties

17. List out few problems in doing International Business Access to finance Policy stability Inadequate supply of infrastructure Government Inefficiency Corruption Inflation Foreign currency regulations Tax Rates Tax Regulations Crime Labor restrictions

18. What is International Trade? Exchange of raw materials and manufactured goods (and services) across national borders is called International Trade. 19. What is meant by Balance of trade? The aggregation of buying (importing) and selling (exporting) by both sides leads to the country-level trade surplus or deficit. 20. How can SRC be reduced? Define the problem or goal in terms of home country traits, habits and norms Define the problem or goal in terms of the foreign culture traits, habits and norms Isolate the SRC influence in the problem and examine it carefully to see how it complicates the pattern. Redefine the problem without the SRC influence and solve for the foreign market situation.

21. What is meant by Ethnocentrism? It is the tendency to believe that ones ethnic or cultural group is centrally important, and that all other groups are measured in relation to ones own. 22. Why are International Trade Theories Essential? Trade theories are essential to explain Why should countries trade? What explains actual trade patterns? Prescriptions for Government policy Active versus passive approach to trade Which products, within a country, should be given preference over others Should Government interfere in free movement of goods and services

23. List out the Classical Theories of International Trade

Mercantilism (1500s-1800s) Absolute Advantage (1776) Comparative Advantage (1817)

24. List out the Modern Theories of International Trade Factor-Proportions Theory (1930s) International Product Life Cycle (1960s)

25. List out the Recent Theories of International Trade Strategic Trade Theory (1970s-1980s) The Porter Diamond (1990s)

26. What Mercantilism? Mercantilism is an Economic theory, considered to be a form of Economic nationalism that holds that the prosperity of a nation is dependent upon its supply of capital, and that the global volume of International trade is "unchangeable". 27. What is meant by Leontief Paradox? The Leontief's paradox is that the country with the world's highest capital-per worker has a lower Capital: Labor ratio in exports than in imports. 28. What are the benefits of International Trade? Increased sales Higher profits Reduction of dependence on traditional markets Diversified markets New knowledge, experience and enhanced domestic competitiveness Global competitiveness

29. What is Parliamentary Government? Also called as Open Government, Parliamentary form of Governments usually consults with citizens from time to time for the purpose of learning their preferences. Most industrialized nations and democratic nations can be classified as parliamentary Governments. 30. What is meant by Absolute Government? Also called as Closed Government, These include monarchies and dictatorships, in an absolutist system; the ruling regime dictates Government policy without considering citizens needs decisions. Such systems are undergoing a drastic transition. United Kingdoms constitutional hereditary monarchy is an example. 31. What are the Classifications of Governments on basis of Economics Systems? Communism Socialism Capitalism

32. List out few Reasons why going global is advantageous to the company 1. Increases sales and profits = bigger chunk of growth gain.

2. 3. 4. 5. 6. 7.

Earns a greater return from a set of core competencies. Generates economies of scale in production. Enhances local competitiveness and paves the way to larger, more lucrative customers. Create jobs, productivity growth, and wealth. Enlarges the pie of potential investors. Insulates seasonal domestic (local) sales by finding new foreign markets and selling excess production capacity. 8. Cuts costs through global outsourcing. 9. Reduces dependence on existing markets. 10. Capitalizes on tax advantages. 33. What is meant by Communism? Resources should be owned and shared by all the people for the benefit of the society it is the Government that controls all the productive resources and industries and as a result the Government determines jobs, prices, education the emphasis is on human welfare (China) 34. What is Socialism? A Socialist Government owns and operates the basic, major industries but leaves small businesses to private ownership (France) 35. What is Capitalism? Capitalism is an economic system in which the means of production are privately owned. Supply, demand, price, distribution and investments are determined mainly by private decisions in the free market rather than through central economic planning or through democratic planning. Capitalism also refers to the process of Capital accumulation. 36. List out few Political Risks Confiscation Expropriation Nationalization Domestication

37. What is Confiscation? It is a process of a Government taking ownership of property without compensation. 38. What is Expropriation? Expropriation is politically motivated and forceful confiscation and redistribution of private property outside the common law. It differs somewhat from confiscation in that there is some compensation a company whose property is expropriated agrees to sell its operations not by choice but by force. 39. What is meant by Nationalization? Nationalization is the act of taking an industry or assets into the public ownership of a national Government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of Government, such as municipalities, being transferred to the public sector to be operated by or owned by the state. 40. What is meant by Domestication? In this case foreign companies relinquish control and ownership either completely or partially to the nationals the result is that private entities are allowed to operate the confiscated or expropriated properly.

41. What is Social Unrest? The social unrest is the major cause for the political unrest. It includes conflicts among different groups in the society, religions, and trade unions. A company may not be involved directly in such disputes but the business is likely to be disputed by such incidents. 42. List out few Indicators of Political Instability Social Unrest Social disorders Economic hardships Domestic Disputes Religious differences Racial differences Attitudes of People Government policies Attitudes of People Attitude of nationals

43. What Steps are to taken to Minimize Political Risks? Stimulation of local economy Employment of Nationals

44. How are Nations of the world classified? Developing Countries Developed Countries

45. What are the Components of Socio Cultural Environment? Language Customs Education Social Environment Religion Legal system

46. What are the Types of Legal Systems? 1. 2. 3. 4. Common Law Civil or Code Law Islamic Law Commercial Law

47. What do you mean by Common Law? Tradition, past practices, and legal precedents set by the courts through interpretations of statutes, legal legislation, and past rulings. 48. What is meant by Islamic Law? Interpretation of the Koran that encompasses religious duties and obligations as well as the secular aspect of law regulating human acts 49. What is meant by Conciliation?

Nonbinding agreement between parties to resolve disputes by asking a 3rd party to mediate differences is called Conciliation. 50. What is Arbitration? Arbitration is used in solving International commercial disputes, - parties involved to select a disinterested and informed party to act a referee to determine the merits of the case and a judgment that both parties will agree too. 51. What are the Political factors to be considered for International Marketing? The political stability of the nation. Monetary regulations. Historical relationship between countries Influence of communities or unions for trading? International and domestic laws What is the nature of politics

52. List out few Economical factors to be considered for International Marketing Consumer wealth Expenditure within the country. Inflation rate. Quotas Import tariffs Subsidies to national players Level of new industrial growth? Currency fluctuations Gross Domestic Product (GDP), Levels of employment, National income

53. What are the Social Factors to be considered in doing International Marketing? Language Customs Religion Values Culture

54. What are the Technological factors to be considered in doing International Business? The technological infrastructure of the market. Do all homes have access to electricity Is there an Internet infrastructure. Copyrights, Intellectual property laws Patents Tariff and Non-Tariff Barriers.