International Marketing Environment Essay Example | Topics and Well Written Essays - 1000 words

International Marketing surroundings - Essay Example19). In order favorable balance of payment to be achieved, governments do subsidise the exports and impose quotas and high tariffs on imports. Though different countries adopt different strategies to increase the inflow of foreign currency through exporting, most countries facilitate shipping through forwarding agents and provide loans and other facilities as well. Some countries impose navigation policies as well to maximize the inflow of foreign currency and to augment up to favorable balance of payment. Trade bloc subdivision countries lots enjoy free- heap so that each(prenominal)(prenominal) sphere can export and import to each other without any barrier to plow corresponding quota, tariff and embargoes. As economist viewed, there can be several levels of sparing integration indoors the free-trade area such as least integrated to most integrated (Hill, 2004, p. 270). Some times, member countries in a free trade area are allowed to determine its own trade policies since all the barriers to trade of goods and services are removed. The major four levels of economic integration are 1) Free-trade area, 2) Customs Union, 3) Common foodstuff and 4) Complete economic integration. 1-Free trade area, Tariffs are fully removed from the members of the free-trade area and each member country maintains its own external tariffs. 2- Customs Union in which a member-country adds a common external tariff to the Free trade form. 3- Common Market, which is the custom union plus the abolition of restrictions on the mobility of services, people, and capital among member countries. 4- Complete economic integration, in which members nations surrender certain elements of their sovereignty and involves high degree of economic integration (Ball et al 2005, p. 128- 129). 2. Describe the economic and cultural elements of the international market environment and explain how these factors affect marketing operations. Soci o-cultural and economic elements do normally impact the international business environment as is normally distinct in the home trade as well. Culture is the sum total of beliefs, rules, techniques, institutions and artifacts that can characterize gentleman populations (Ball, 2005, p. 176). When it comes to international marketing, the culture in different marketing landscape is a critical element that would largely influence the business and its success. While going global, it is highly important that the business should know well all the whereabouts of the culture and socio-cultural elements prevailing in the market in order to understand customers unique(predicate) as well as common attitudes, requirements and approaches to a particular goods or service. In international trade arena, economic elements are perhaps most uncontrollable forces for businesses. Though businesses depend on economic prophecy and other indicators, economic forces have generally been found to be highly fluctuating and more often economic crisis may create greater challenges on the business. GDP, Income distribution, GNI, unit cost per labor and the general economic conditions do normally impact the international trade. A marketer going globally is required to prize the economic conditions in the country and structure his marketing operations accordingly. 3. Summarize the major political and monetary risks associated with international marketing. Hill (2004, p79) defined political risk as the likelihood that political forces cause changes in a country