Question

Topic : international Marketing

Discuss how governmental instability can affect marketing ? Must be two paragraphs

Answer 1

International Marketing Definition

International Marketing is defined as the performance of business activities designed to plan, price, promote, and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit. The only difference between the definitions of domestic marketing and international marketing is that in the latter case, marketing activities take place in more than one country. No matter domestic or international the Marketing objective remains the same for marketers. The objective is to make profit by selling products or services in geographies which have a demand for them.

The challenges with respect to the international Marketing

1. Competition
2. Legal Restrains
3. Government Controls/ governmental Instability
4. Varied Consumer Behaviour
5. Ecological factors – Weather etc-

Now as highlighed here that government could be a challenge with respect to the international marketing

let us understand how?

As is quoted " you cant sell a new product until you understand their politics"

Politics are a crucial factor in the conduct of international trade. Characteristics such as political stability, the attitude of political leaders to foreigners and foreign trade, or the degree of state intervention in the economy will affect a company’s ability to enter a foreign market and turn a profi
An unstable government or an environment of political conflict will increase the risks faced by international marketers. Inefficient governments can cause expensive delays (especially at customs posts) and difficulties in financial settlements. Weak governments can court popularity or try to make themselves seem strong by taking highly visible and restrictive measures against foreigners, especially foreign business people. Most types of political risks arise out of the following sources:

Property seizure: Governments sometimes seize the assets of companies doing business within their borders. Methods of seizure include confiscation, expropriation or nationalization (which might result in the full or partial transfer of ownership).

Conflict and violence: Outbreaks of hostility, either within a country or between countries, can have catastrophic effects on the conduct of trade. Over the past few decades, the incidence of wars between states has declined, but there has been a proliferation of domestic conflicts (civil wars, terrorist campaigns, secessionist movements), which inevitably bring instability and economic uncertainty. Conflicts may also be associated with embargoes or sanctions, which are equally disruptive to a company’s plans and prospects. In the past, sanctions were used regularly against the countries of the former Soviet Bloc as well as against the apartheid regime in South Africa.