Political and legal environment in international marketing. The Political And Legal Aspects Of International Marketing 2022-12-23
Political and legal environment in international marketing Rating:
8,3/10
340
reviews
The political and legal environment plays a significant role in international marketing as it can significantly impact a company's ability to do business in a foreign country.
Political factors refer to the stability and government policies of a country. A stable political environment is essential for businesses to operate smoothly as it allows for predictability and reduces the risk of disruption. On the other hand, political instability can lead to uncertainty and unpredictability, which can make it difficult for businesses to plan and operate.
Government policies also play a significant role in international marketing. These policies can either facilitate or hinder a company's ability to do business in a foreign country. For example, trade policies such as tariffs and import/export regulations can affect a company's ability to sell its products in a foreign market. Similarly, tax policies, labor laws, and environmental regulations can also impact a company's operations in a foreign country.
The legal environment of a country refers to the laws and regulations that govern business operations. It is essential for companies to understand and comply with these laws and regulations to avoid legal issues and fines. In international marketing, companies must also be aware of the differences in legal systems and cultural norms, as they can vary significantly from country to country.
In conclusion, the political and legal environment plays a crucial role in international marketing as it can significantly impact a company's ability to do business in a foreign country. It is essential for companies to carefully consider these factors when entering a new market to minimize risks and ensure smooth operations.
Political Environment in International Marketing Essay...
MNCs may be expected to create local employment, transfer technology, generate export sales, stimulate growth and development of the local industry. Some countries regulate closing of operations and in some countries businesses are not allowed to close shops especially when they have sold products that have guarantees and warranties. Some products are more politically vulnerable than others, in that they receive more government attention. For example the pajama game discussed in global perspective is not unusual for multinational corporations. The regulations will be more business-friendly and there will be a higher degree of incentives offered for those who want to enter that market. Deciding whether to go global: not all companies have to dive into international markets to survive. Companies with only domestic markets have been able to sustain their customary rates of growth.
The maturity of a company to market share increases steadily, trying to achieve the market growth. Regulations affect marketing practices, as do the actions of independent regulatory agencies. This special attention may result in positive or negative actions towards the company. How does a host country political and international legal environment or trade barrier affect the Malaysian The Islamic Law 's Enforcement Of Halal Regulations in the last two decades had an immense impact to the political and legal environments which are essential aspects in international marketing. The first factor is political and legal environment which means marketing decisions are strongly affected by laws, government agencies and pressure group in society.
Political Environment In International Marketing Research Essay Example
Monetary and fiscal policies — inflation, currency devaluation, increased taxation, and currency controls etc. The domestic companies have reduced their manufacturing employment more than the US multinationals. In Europe there has been a longstanding ban on advertising for prescription-drug products, which is designed to keep government-subsidized health care costs under control. Detective Lombardo's first task of the meeting was to explain to the business owners that laws are important for protection and growth. Nations can and do abridge specific aspects of their sovereign rights in order to coexist with other countries.
These factors also form the marketing environment when we talk about it in a global context. One of the cardinal purposes of economic patriotism is the saving of national economic anatomy where national involvement and security are more of import than international considerations. In 1999 the European Commission threw out an appeal against Greece's national ban on toy advertising on daytime television. Companies must also be aware of changing laws and regulations related to online marketing, such as those that govern online advertising, affiliate marketing and the use of mobile technology. Each state has different laws for companies to follow.
Political Legal Environment of International Business
However, if it did pull out pajamas from Canadian market it was subject to 1. Wal-Mart was caught between a Canada-US foreign policy feud. Price of products D. Learn about the federal legislation, regulatory agencies, and state laws that affect business operations, including marketing. A clearly laid out legal framework has great implications since it allows organizations to follow the stated process and proceed smoothly. STRATEGIES TO LESSEN POLITICAL RISKS MNCs can use other strategies to minimize political risks and vulnerability.
Political and legal environment of international marketing Free Essays
After liberalization policy in 1990s, it reentered India. MNCs may be expected to make local employment, transportation engineering, generate export gross revenues, stimulate growing and development of the local industry. Political risk assessment can:? Here steps in international jurisprudence. . Economic risks are an important and a recurring part of political environment that a few companies can avoid. Less severe is however, expropriation, which requires reimbursement, for the government seized investment. According Basic Marketing the 9th edition by William D.
The Political And Legal Aspects Of International Marketing
This means they develop global and domestic marketing strategies. How do you assess political risk? The trend toward worldwide instant communication. Marketers must also consider the overall international business environment. By the social environment we mean the consumption trends of groups and individuals. It is non wise to seek and win over new clients by wholly Americanizing them.
Political and Legal Environments on International Marketing Information
Marketers must be aware of the broadest range of political and legal regulations that may affect their product, service or industry. They need to be aware of the different governments, their political actions, their stability, and their relation with other countries, and constantly monitor them by keeping up to date with economic affairs around the world. The World Trade Organization, for example, gives an outline on the behaviour that it finds acceptable from its member states WTO, 2010. It is important to keep updated on state government changes within the state the business is located. The Arab nations, for example, have blacklisted a number of companies who conduct business with Israel. Political Environment in International Marketing THE POLITICAL ENVIRONMENT: The critical concern Political environment has a very important impact on every business operation no matter what its size, its area of operation.
o Political and legal environment international marketers must also consider
Wal-Mart Canada was breaking US law if it continued to sell pajamas, and was subject to a million-dollar fine and possible imprisonment. One of the major areas concerned is boycott, which is when companies reject to conduct business with someone. A good illustration of an uncontrollable variable that might impact international business is a marketing decision with respect to research. This pride can take an anti-foreign business bias. The environment is made up of laws and government agencies that influence and constraint various organizations and individuals in society. For example if there is a change in the law it may mean that the business has to change the way it does things.
Products that have an effect upon the environment exchange rates, national and economic security, and the welfare of the people are more apt to be politically sensitive. A eloquence in the local linguistic communication helps doing gross revenues and cementing good public relationships. Due to… Mkt 421 Week 5 Individual Essay Example Management is faced with many decisions when considering the environmental factors that affect marketing. The second factor is the technological environment, which includes forces that affect new technologies; improved technology will become trends and ever-increasing development of electronic media devices. Just this year alone, they recalled products such as baby seats that resulted in skull fractures, dehumidifiers that caught fire, toys that were choking hazards and certain bunk beds that have been known to break apart. Political risk assessment can be done as simple as conducting an online research yourself, or by hiring experts and consultants familiar with the host country.
