International Marketing

1. How are emerging markets, frugal innovation and new management paradigms poised to redefine global competition and global markets in the coming years?

As more emerging markets come into play with international marketing, new paradigms in business are surfacing. Products are being manufactured and marketed at significantly lower prices than in the past few decades. Countries such as India and China are booming due to the fact that they can produce goods and services at substantially lower prices. Recently, these countries are trying to put more money into research and development as opposed to solely manufacturing. With this change in their focus, these countries have the ability to increase the profits considerably.

2. What are the basic economic arguments in favor of globalization and what forces are moving nations away from globalization in the current economic environment?

There are several arguments that support globalization. Economies of scale in production and marketing have shown to be important competitive advantages for multinational companies. For example, when Ford unified product development, purchasing, and supply activities across several different countries, they reported to have saved up to $3 billion a year. Another benefit that has been established through globalization is transfer of experience and know-how through improved coordination and integration of marketing activities. Some companies have found that as opposed to sending U.S. workers over to their joint-venture and subsidiary companies to “keep an eye on things”, they’re now sending people to foreign locations to seek out new techniques and processes.

3. Outline why the culture of a country influences the costs of marketing and doing business in that country. Illustrate your answer with examples.

The culture of a country differs significantly across the globe. The costs of marketing in different countries can rise due to various marketing laws. For...