When dealing with marketing internationally you must take into consideration the other country’s financial resource. To refer to a country’s ability to save, which translates into a higher proportion of investment it can meet with its own resources. This means consequently that the other country can hold their own. Also, their government’s political philosophy affects economic policy as well as the degree of regulation or assistance it exerts on internal commerce and external trade. Aspects to consider include the quality of the economic and financial management process, long-term development strategy and short-term policy measures. Regarding the latter, particular attention should be given to fiscal, monetary, wage-price and foreign exchange rate policies. In recent years, government restrictions have been imposed in many countries for economic reasons. One particular restriction, a fixed exchange rate for the currency, can cause serious problems for foreign creditors.
A Foreign banks’ presence can also help to achieve greater financial stability with host countries. As the host countries may benefit immediately from foreign entry, if the foreign bank recapitalizes a struggling local institution and, in the process, also provides needed balance of payments financing (afex.com). Fixed conversion rates, used to protect weak currencies from decline in the world market, eventually lead to massive devaluation and currency weakened to the extent that the country cannot pay for its imports. With this information you would be able to know what country you could capitalize off the most to generate a greater profit from.
The process can best be accomplished by three options: gathering information in-house and analyzing it internally paying for the services of an outside consulting company or a combination of the two. Analytical approaches include obtaining statistical data, developing historical trends and growth patterns and listing strengths and weaknesses. Some typical sources of information are governmental agencies, banks, the Finance Credit and International Business (FCIB), economical and political reporting services, newspapers and magazines and internal company reports. (afex.com)
It is best to weigh the disadvantages and advantages when marketing internationally which include any of the following economical, political, legal, cultural, and social. The point is that no matter how great your marketing is a business may fail or succeed if you know nothing about your consumer. Nothing is ever guaranteed including success, but it can be planned for. Businesses need to foresee their market when going internationally. One of these resources can include advisory consultant, focused not only on marketing risk consideration, but marketing risk evading, to assist with a non basis opinion when the situation demands it. International marketing can be risky, but shouldn’t be overlooked for fear of failure.
Resources
http://afex.com/ as Retrieved from the World Wide Web on January 31, 2006
Marketing Principles & Perspectives: Principles & Perspectives Author: Bearden, William O., Laforge, Raymond W. Copyright © 2004 The McGraw-Hill Companies
