Question

what environmental factors must international marketers consider when entering foreign markets? provide an example

Answer 1

Answer: Environmental factors in international marketers- Environment affects international business, a company wants to go global to achieve growth and expansion. These are the environmental factors that affect international business:

• Political forces- How is the politics there in the country in which company is going to operate?
• Legal practice- What are the business rules and regulations? Which accounting standards, country follows? What are the procedures and penalties? Example: A country's Government may not entertain new entrants in a particular industry.
• Cultural influence- How is the culture of country? Country has cultural differences or not? How a company adopts the culture of that country? Example: People have different values, behavior and beliefs.
• Technological advancement- Which technology is most demanded in that country? How people are adopting technological changes? Are they working on old technology? Example: Blockchain, Artificial intelligence, Virtual reality.
• Competition- Who all are the competitors of the company in that country? There are already established players in that country so company has to cope up with that. Example: Coca-cola and Pepsi both operate in USA.
• Social- What are the country's values? People consider ethics or not? Customers living in one country, may not like products or services of other country. Example: Education, Adaption etc.