Question

Please, explain how cultural and demographic factors could affect the country's strategy in the new market (give specific examples):

explain how international trade and intellectual property factors could affect the country's market entry,

explain how currency and foreign exchange issues can affect the company's strategy and performance.

Answer 1

1. Business-related social and cultural variables include beliefs and procedures, customs, traditions and behaviors of all individuals in a specified nation, fashion trends and market operations that influence behavior and choices. Socio-cultural perspective is one of the most important factors influencing marketing decision-makers and strategic goals of enterprises entering new foreign markets. It should be noted that legal factors that affect business are also considered as one of the major socio-cultural factors that can affect businesses. During strategic analysis, proper identification of this factor could lead to better strategic alignment of the company with society

Language, more specifically translation, needs to be paid very close attention to when doing international marketing. There have been some embarrassing mistakes in international advertising that most likely did not help companies sell their product.

A excellent instance is when Coca-Cola was first translated into Chinese it meant "wax tadpole bite" or "wax stuffed female horse" depending on the Chinese dialect in which it was written. At General Motors, nobody realized the translation for their car's name, the "Nova," in South America meant "it won't go." Gerber used the same packaging with the cute little baby on it that they used to package their baby food in Africa in America; they did not realize that with the high rate of illiteracy in Africa it was common for food packaging to display a picture of the contents inside.

2. Protection of intellectual property is crucial for the promotion of international trade.
All nations ' businesses are now operating in an increasingly competitive global marketplace. Strong domestic and international patent and trademark protection is vital to U.S. business success in that marketplace. The greatest competitive advantages of the United States in the past were the ideas that led to their industrial and technological advancement. Today, on the international marketplace, the United States requires to encourage and defend those thoughts.

The causes of the trade deficit include the recent world recession, the debt problems of some developing countries, increased competition, and the strong U.S. dollar, There is no one simple solution to the increasing trade deficit, either internationally or domestically. But clearly, trade expansion is essential to remedying this situation

Many U.S. corporations have used, and continue to use, patents and trademarks to obtain and protect market shares internationally. These efforts could be even more effective if the relationship of intellectual property protection to trade were better understood. A myriad of factors affect trade, all of which make it difficult to isolate the specific contribution of patents and trademarks.

3. Businesses interact with, and may be affected by, overseas markets in a variety of ways; whether you import machinery from Europe or export your goods to China. This will involve receiving or sending a foreign currency from or to your business partner in many circumstances, and so you will naturally be exposed to the exchange rate.

Sales forecasts can be one of the following for multinational companies: headache, hindrance, tailwind or motivator. When sales are listed in another currency, where they get more complicated, and when the exchange rate moves against you, what looks like a firm beat on your well-thought-out sales forecast turns into pennies.

While the effects of fluctuating exchange rates aren’t immediately obvious for those buying goods on the high street, paying your gas bill or procuring machinery for your new venture, the nature of the UK economy leaves businesses and the wider economy highly sensitive (for better or worse) to movements in the price of the pound.