International Marketing in a Global Economy Research Paper

International Marketing in a Global Economy - Research Paper Example This is because common marketing concerns (such as input or production costs, price, advertising and distribution) are likely to differ from country to country where the business firm targets to market its products or services. There are four ways to develop markets in foreign land according to the Encyclopedia of Business and these are: (1) international trade through exporting products and services from the country of origin; (2) entering into joint venture arrangements with one or more foreign companies; (3) licensing patent rights, trademark rights, etc. to companies abroad; and (4) establishing manufacturing plants in foreign countries. Exporting is the easiest and most frequently used strategy of entering international markets because there is lesser risk of financial losses for the company. International trade comes in when a business entity engage in the buying (importing) and or selling (exporting) of goods or services in the global market arena. In exporting, factors to consider are: market opportunities, foreign exchange risk, import and export financing, and challenges of doing business in a foreign market. Business analysts note that in exporting, firms should focus on at least single market i nitially, start entering foreign market on a small scale (to limit potential loss due to failure), and be realistic about time, commitment and resources needed. Two contrasting viewpoint for developing global marketing strategy are being expounded by many business analysts. First is the localized marketing strategy that considers four differences across countries: buyer behavior characteristics, socioeconomic condition, marketing infrastructure, and competitive environment. Many companies failed to succeed or experience difficulties in the international market because they did not fully understand differences in buyer behavior knowing that