Question

describe 4 major forces that promote international business today. provide example gor each force

Answer 1

Four majorreasons for the Growth in International Business

Culture

The welcoming trend to buy foreign good and working practices are culture factors that inspire to invest in other countries market. Since, marketing strategies for local and foreign business practices are very different, international marketing need to taken in consideration the local culture, norms and customs.

The tobacco industry for example, companies will often use the symbols and trends of western society in regards of smoking to attract the local customers. Taking another good example; company marketing pork would experience lesser sales in Islamic country, than it would in China.

Political and legal issues

Following political and legal factor are influential in deciding to invest in abroad and therefore be included in international marketing strategy.

Government attitude

The level of government regulations

Red-tap and bureaucracy

Monetary regulations

Political situation

Economy

With respect to the level of development the target economy can be identified as;

Developing

Newly industrialized

Industrialized

The pros and cons of above economies vary as per circumstances. For example, people in developing countries have low standard of living, buying cost but cheaper labor and raw material. On the other hand in developed countries competition may be high and margin of profit may be less.

Trade blocks

Over the time various trade blocks have emerged which is great source of convincing to invest in international marketing. The common example of such blocks include the European Union, the North America Free Trade Agreement (NAFTA), South Asian Association for Regional Cooperation (SAARC) and the Association of South East Asian Nations (ASEAN)