International business is a relatively new discipline, it is very dynamic.Â Customization and price from the low-cost production base from the competition in international competitors, the competitive pressure on the local challenges of international companies. These companies make a choice between a standardized product to the location of the lower manufacturing costs and the cost advantage through customer and the establishment if customized products plants in different countries, no matter which may involve high cost. (International Business, 2010)
International marketing is usually not as simple as marketing. The product is more than one country.Â This is the performance of commercial activities, direct the flow of goods and services companies in several countries, the consumers or users profitnternational marketing. In this case, this is the concept of planning and execution, pricing, promotion, and of ideas, goods and services, distribution, create exchanges that satisfy individual and organizational goals in the process include multinational companies. Furthermore, companies must consider their position in the market is close to the language barrier, ideals, and customs.Â This strategy uses a state in a strong domestic technology used in the promotion. (International Marketing, 2010)
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International business is a relatively new discipline, it is very dynamic. International business is different, because of domestic enterprises from the political system, economic system, legal system and cultural differences any be in any country.
Political system is the system of government in a nation. Political system can be assessed according to two related dimension which are collectivism opposed individualism moreover democracy and totalitarianism. These dimensions are interrelated because the systems that emphasize collectivism tend to be totalitarian while systems that place a high value on individualism tend to be democratic.
The term collectivism refers to a system that stresses the primacy of collective goals over individual goals. Individualism is the opposite of collectivism. In political sense, individualism refers to a philosophy that an individual should have freedom in his or her economic and political pursuits.
Democracy and totalitarianism in the political level, for different purposes. Democracy is a political system is the people's government, to exercise directly or through elected representatives. It's a totalitarian form of government in which political parties exercise one or all areas of human life, absolute control, opposition parties were banned.
Political system may be affect International business because of different function play role in political system performance, democratic and totalitarian political regimes was compared and how its can influence the managerial functions. (The Political and Legal Environment Facing Business, 2010)
Economic system can be identified into three broad of types which are market economy, a command economy and a mixed economy.
In a pure market economy, the goods and services a country produces, and the quantity in which they are produced, is not planned by anyone. It is determined by the interaction of supply and demand and signaled to producers through the price system. If demand for a product exceeds supply, prices will rise, signaling producers to produce more. If supply exceeds demand, prices will fall, signaling producers to produce less. In this system consumers are sovereign. It is the purchasing patterns of consumers, as signaled to producers through the mechanism of the price system, that determines what is produced and in what quantity.
In a pure command economy, the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold, are all planned by the government. Consistent with the collectivist ideology, the objective of a command economy is for government to allocate resources for "the good of society."
In between market economies and command economies can be found mixed economies. In a mixed economy, certain sectors of the economy are left to private ownership and free market mechanisms, while in other sectors there is significant state ownership and government planning.
In general, the more developed countries are rich countries, poor countries with less developed and newly industrialized those who move from poverty to prosperity. Â These differences are usually in the per capita gross domestic product (GDP / per capita) basis. With better education, infrastructure, technology, health care, etc., are often related to their higher level of economic development may be affected international business. (International Business, 2010)
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A country's legal system or legal system of rules is accompanied by a specification which country's laws are enforced through the complaint process and the behavior of a remedy.
Property refers to the use of resources is a bundle of legal rights and more than any possible gains achieved by the use of resources. In International business, the countries differ in terms of how their legal system define and protect property rights. Property rights can be violated through private actions and public actions.
Contract is a document that took place under the conditions and details of the exchange of rights and responsibilities of the parties.Â Contract law is the law of the institution, governing the contract execution. The different types of legal systems and the legal relationships that exist between countries may be affected International business. If a behavior is not good, it may direct affect the relationship between each other, so in International business also same. The major legal issue is also very important for International business. While the legal issue is occurs, the problem need to be solved. (The Political and Legal Environment Facing Business, 2010Â )
Culture is a values and norms. Values can be refers to an abstract ideas about what a group believes to be good, right, and desirable. Norms can be defined as the social rules and guidelines that prescribe appropriate behavior in particular situations. Values and norms are shared by the society. Society refers to a group of people who share a common set of values and norms.
Language is the source of culture may be affect International business. Language is one of the way how the people communicate with each other. Different countries speak in the different languages. For example, Mexico's people speak Spanish, if Malaysia and Mexico do International business, Malaysian need to know how to speak Spanish, so that they can communicate with each other.
The marketing mix will affect in the international marketing. The marketing mix consists of 4P's which is product, price, place and promotion. The 4P's are the parameter; the marketing manager can control, subject to market conditions, internal and external constraints. The goal is to make the decision in the center of the 4P's target markets cognitive customers to create assessment and produce an optimistic reaction.
If the input costs, pricing, advertising and distribution may be in different countries, selection of a company to sell their goods or services significantly common marketing problems. Therefore argued that the key to a successful business consultant international marketing of any business. Whether it is a multinational company or small start-up companies, it is the ability to adapt, manage and coordinate in a strange foreign environment, well-designed plan.
Product is the physical product or service offered to the consumer. Product is a material product or service to the consumer. In the case of physical products, it is also means that any services or facilities, is part of this release. These examples are the brand name, function, shape, quantity, safety, packaging, maintenance and support, warranty, accessories and services.
Language should be consider whether the national culture is not primarily a high-context cultures and low context culture between the concepts involved in verbal and nonverbal communication balance. It carries the low-context culture and language of communication focus. However, the high-context culture and language is often not the direct exchange of information.
Religion in the international marketing is different from religions which may be encountered. Companies need to ensure that their products and services are not offensive, illegal or offensive to the local country. This includes marketing and branding.
Values and attitudes between countries and even within countries are different.Â In addition, the adoption of a product or service overseas, to ensure a good grasp of the locality before entering the market.Â This means that subtle changes in materials or branding message.Â There may also have a problem, when the management of local staff. For example, workers in France tend to have vacation for the whole month of August, but for the United States, they prefer to take a couple of weeks for vacation throughout the whole year.
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Pricing decisions should take into account the profits and the possible reaction of competitors pricing. Pricing includes not only pricing, but also discounts, financing, leasing and other options. For example for price, pricing strategies, the suggested retail price, quantity discounts and wholesale prices, cash and early payment discounts, seasonal pricing, bundling, price elasticity and price discrimination.
The decision is to place those with the distribution channels for products as a means to target the customers. For example placing decision-making is sales channels, market coverage, the specific channel members, inventory management, warehousing, distribution center, order processing, transport and reverse logistics.
Promotion decisions are the relationship between sales and communications to potential consumers. As the cost price in a large fraction of products, break-even analysis, decision-making should be promoted. This is very useful to know the assessment of customers to establish whether they should be more customer acquisition costs. For example of promotion is a promotional strategy for promotion decisions, advertising, personal selling and sales promoters, public relations and publicity and marketing communications budget.
In the year of 2007, the pig year, all advertising, including the pig image is prohibited for one year. This is to maintain the country's Muslim population of about 2% of the harmony. The ban included with pork sausage, or even advertisement, including animated images of pigs.
Each level of education and international markets will naturally be different.Â This may affect the type of message, and even the media you employ. For example, in countries with low literacy levels, advertisers will avoid a written copy of the communication depends upon, and in favor of the billboard with the audio information or visual media such as radio advertising. The labeling of products may also be a problem.
To made the International business to be successful, we need to know how political system, economic system, legal system and cultural affect the International business. Moreover, we also need to know how political system, economic system, legal system and cultural affect the product, price, promotion and place.