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International Business Marketing Nature of International Markets

Choosing the Market

Impact of culture, politics and law

Entry strategies

Pricing and payments

Packing and shipping

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Nature of International Markets Highly developed markets

US, Western Europe, Japan, Korea

Emerging Markets

BRIC + South Africa, Mexico

Oil Rich Countries

Middle East, North Africa Poor and underdeveloped markets:

Africa, South Asia

Other Markets: Latin America

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Choosing The Markets Sources ofSecondary Data:

Embassys and Consulates

Indian Missions in the host country

Export Promotion Councils

Commercial Banks

EXIM Bank Internet websites

ECGC

Trade Journals

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Choosing The Markets Factors influencing choice of market:

Size of the Market

Cultural, political and legal risks

Competition

Proximity

Financial stability Acceptance by the importing

country/customer

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Impact of Culture Language

Customs: influenced by religion, ethnicity,

standard of living Geography and climate

Meaning of 'time'

Levels of authority

Task vs Relationship

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Impact of Politics

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Leading Sources of Political Risk Expropriation or nationalization

Unilateral breach of contract

International war or civil strife

Destructive government actions (non-tariffbarriers)

Harmful actions against employees Restriction on repatriation of dividends/profits

Differing points of view

Discriminatory taxation policies

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Legal Impact Operational Concerns:

Starting a trading business

Entering and enforcing contracts

Hiring and firing local personnel

Strategic Concerns:

Product safety and liability Product origin restrictions

Legal jurisdiction and arbitration

Licensing and franchise laws

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Impact of Legal System on IBIntellectual Property Rights:Refer to the right to control and derive benefits from writing

(copyright), inventions (patents), processes (trade secrets)and identifiers (trade marks)

Legal problems may complicate specifying, regulating andprotecting IPR

Poorer countries provide weaker legal protection of IPR,than do richer countries

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Entry Strategies Trade Shows and Exhibitions

Tie-up with a larger company

Tie-up with a local company

Licensing and Franchising

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Pricing and Payment Terms Pricing:

Ex-works/FAS/FOB/C&F/CIF/Destination

Export incentives

Customs duties

Payment Terms:

Cash in Advance/COD Against documents through Bank

Letters of Credit

At sight/Against credit days

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Packing and Shipping Packing:

Exportworthy packing

Containerization (20/40 feet)

Shipping:

Air/Sea/Land

BL/AWB

Bulk/LCL/FCL/Reefer

Freight Forwarders/Shipping Lines