The International Marketing Environment.
Political Environment: These types of government include its political ideological base such as democracy, dictatorship monarchy, socialism or consumerism.
The Legal Environment: The regulation of goods and services by the government is very important to an international marketer.
If market is guided by law, it promote the price and distribution of goods and services
Cultural Factor: The culture of a nation is very important in international marketing because this helps the marketer to know the brands that suit them. In the case of developing countries it is not the same, because foreign goods are highly regarded than locally made.
Business customs and Practices: The mode of doing business in foreign countries is one important factor an international marketer should understand and also the mode of contact. There are countries that use Top-level management contact some uses middle management or group level
Another important method is communication achieved through the language of business. So all these and ethic and traditional of other country is very important in international marketing.
Balance of Payments: This means the overall balance of nation’s payments position interest in its international transaction. If a nation is buying from another country, the payment is made to the currency of the seller and if the nations currency is not enough, that means there is problem and imbalance of payment. Here the nation needs to redress its economy by imposing much tariff on importation. The measure of redressing aims of discouraging much importation in favour of locally made product.
International Organisations: The international organization plays major role in the countries market stability, these organizations includes international monetary fund (IMF). The international Bank for Reconstruction and Development (IBRD). The International Finance Corporation (IFC). The international Development Association (IDA).The Organisation for Economics Co-operation and Development (UNCTAD). Organisation of Petroleum Exporting Countries, (OPEC) and the council of Copper Exporting Countries (CEPEC).
International Agreements: This is an agreement and acceptance of reducing tariff on trade. This agreement aims at eliminating discrimination through tariff on foreign products which compete with domestic ones. All charges on importation and others; relating to international marketing should be reduced to a bearest minimum or abolished. The favourable of this reduction is automatically applied to all importing countries.
EXPORT DOCUMENTS
The export documents are very significant for shipment, the documents are necessary and should be accurately complete and filed to avoid problem to the exporter.
These documents include:
1. Export declaration document
2. Certificate of origin
3. Bill of lading
4. Commercial invoice
5. Consular invoice
6. Insurance policy or certificate
7. Bill of exchange
8. Export license
The export declaration document
This provides the name and address of the principals involve in the contact, the destination of the goods and full declaration value of the goods, this is presented at the origin of the export for export control.
A Certificate of Origin
This is required in the importing country and state to know the origin of the goods, the customer duties and to determine the chargeable duties.
A Bill of Lading
This is required to establish legal ownership and to facilitate financial transaction. It serves as a receipt of goods shipped on a board vassel which is signed by the carrier on his agent, stating the good on delivery of receipt at the vassel. It also serves as contract at shipment between the carrier and the exporter.
An Insurance Policy or Certificate
This is required on the method of payment which covers the customers risk on flight or voyage, it is used by the insurer and comes in standard form.
A Commercial Invoice
It is one of the international document required in financial transaction, it state the description of goods and prices sold. It is needed for international financial payment and in some countries it is needed for clearing goods at the customs.
A Consular Invoice
This can also serve as certificate of origin in some circumstances. It is mandatory for goods shipped to countries with advalarem import duties, it must be certified by completely by a consular officer at where the goods is shipped and the charge based on the percentage.
MODE OF ENTERING INTO INTERNATIONAL MARKETING
Dealing with Cultural Issues: Before entering a new market company must carefully understand the cultural environment, and avoid common pitfalls.
Understanding New Markets: While choosing new markets international companies must consider various macro and micro factors. Macro level issues include the political regulatory environment, financial/ economic environment, socio cultural issues and technological infrastructure. At a micro level, competitive considerations, availability of manpower, local infrastructure such as transportation and logistics, network and sophistication of mass media for advertising are important etc.
