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International Business College - Essay Example

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Globalization opens new opportunities for domestic companies to go global and expend their business activities. Asian countries represent the most attractive and fast grow market for European countries and Great Britain. High rates of economic development and political stability in Asia attracts British companies and opens opportunities for market penetration…
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Download file "International Business College Essay" to see previous pages... The great layer of research studies discusses the problems and threats of consumer ethnocentrism and importance of strategic approach to marketing. Balabanis et al (2001) and Klein (2002) examine perception of foreign products by consumers in developing countries. they pay a special attention to product image and consumer aversion to goods.
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these researchers underline that at a deeper level it comprises their notions of 'right' and 'wrong', their norms, and their notions about what is 'good' and 'bad', their values. Managers tend to see international market as societies in microcosm with their own specific cultures and ways of transmitting these cultures to their members. Samiee et al (2005) and Verlegh (2007) examine the impact on home country and unique brand image of the product on perception and buying patterns in targeted markets. They find that national stereotypes and buyer attitudes toward countries of origin influence buying process and profitability of the company. Another layer of literature is based on theoretical materials and concepts aimed to discuss and evaluate business strategies and international marketing trends around the world. ...
They examine the impact of culture on the formulation and the application of an international marketing strategy.
The home country and the host country environment constitute an open interaction system. The strategies of the firm play the primary role in the interaction; secondary roles are played by a number of other players. A special attention should be given to such countries as Malaysia, Thailand and Philippine affected by strong national culture and traditions. The results of the interaction may be more or less successful from the point of view of the firm, the host country, or other institutions or organizations involved (Balabanis et al 157). The host country environment presents another set of macro and micro environmental factors. On the macro environmental level cultural forces need to be evaluated. On the micro environmental level, the factors become more specific; they include (1) buyer-seller relationships, (2) nature of supply and demand, (3) market price mechanism, (4) nature of competition, (5) barriers to market entry, and (6) nature of distribution. At the operational level, factors such as (1) soft versus hard currency, (2) exchange rate fluctuations, (3) inflation, (4) tariffs and quotas, and (5) invisible barriers become extremely important (Doole and Lowe 82). Research suggests that "cultural distance" also presents a major challenge to an entrepreneur assessing the potential of the host market. The notion of "cultural distance" comprises the differences of the host country relative to the home country regarding social values and styles of life, income distribution, attitudes to foreign products, language, legal system, and any other relevant artifacts of culture.
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