Global Marketing Environment

i.          Economic Environment.

Concerns regard to the industrial structure of the host country. Subsistence and raw-material exporting countries can be limited markets for some types of consumer goods.

ii.      Political/Legal Environments.

 Government and Regulations attitudes vary from country to country and in each of the country in their attitude toward foreign firms.  Scrutiny of legal regulation is a necessity. At least four political legal factors should be considered while considering whether to do business in a specified country.

1.      Attitudes towards international purchasing:  Some nations are fairly receptive to foreign firms and others are fairly hostile.

2.      Political Stability:  Stability is another issue. Governments modify hands, sometimes violently. Even without modify a government can decide to respond to new popular feelings.

3.      Monetary Regulations:  Firms have to assess the government and currency regulations within a country to find out if any limitation exist and if they will play a negative role in that country in the international business.  Besides currency restrictions, a changing exchange rate also makes high risks for the seller.  Usually International trade involves cash transactions; still in some example a barter system may be developed, this practice has been called as counter trade and accounts for approximate 25% of all world trade now.

iii.        Cultural Environment.

Cultural differences are very significant in international marketing. Most of advertising and even product images are culturally depend and may be ineffective, unsuitable and even offensive in another culture. Care is needed.