Question

what are the comanding hights and why are they important in our understanding in internatinal marketing

Answer 1

The commanding heights are factors controlling the economy. Previously the government control was evident on commanding heights of an economy. The term is coined by Lenin in Russia to show how major industries and enterprises earlier commanded the economy. The commanding heights thus mean the private or public industry existence such as heavy industry, public utilities companies, transport companies, etc. Fight between government and private companies to control commanding heights is evident and therefore, knowledge of commanding heights is imperative for international marketing.

History of commanding heights reveal that government initiatives have been failing to provide desired results while controlling the economy. For international marketing and business expansion, it is imperative to know where the command economies exist that means where the government still controls the activities of private companies. It is necessary to avoid such market where extreme control is imposed by government. Now in the whole world, due to failure of governments to command industries and companies, privatization gives back the economic power to the entrepreneurs and new rules of game in international market are established. Now all developing countries reduce their tariff barriers, and compete in a free market. New technologies and entrepreneurial ideas now shape the economy. These factors are important for international marketing. The global workforces, continuous FDI are the new rules for business. Old industries such as heavy industries and manufacturing industries lose their relevance as they are not commanding heights for the economy. Now health care and education have become the new commanding heights. Therefore, for an international marketer, these insights assist to make good strategies for business expansion.