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International marketing environment - Essay Example

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Often, governments have been found to promote their domestic manufacturers to export the goods by providing cash subsidies, interest free or low-interests loans, and numerous tax exemptions. Governments promote Free Trade…
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Download file to see previous pages Thus, governments play a highly influential role in promoting, restricting and regulating import and export of the goods. In a way, government interventions cause a tremendous impact on the firms marketing the goods internationally (Vorton, 2010).
Further, government’s role is crucial in formulating trade policies, negotiating trade agreements with other countries and preparing an environment that helps promote multilateral trade among the countries. For example, the Office of the US Trade Representative, a body under the US government, is fully responsible to develop trade related policies with the other countries. The office works as the presidents spokesperson, chief trade advisor, and finally as a negotiator with trade organizations of the other countries. It is pertinent to note here that the US has entered into free trade agreements with a total of 19 countries. The North American Free Trade Agreements (NAFTA) with Mexico and Canada is considered one of the largest of all the free trade agreements to promote bilateral trade among the member countries (NAFTA, 2012).
Economic factor is quite important and critical as environmental uncontrollable while going for international marketing operations. Markets differ worldwide significantly in their growth prospects, size and the current GDPs. Some of them are developed, while many are in the developing stages and therefore, they differ widely in terms of opportunities. Many of the countries or regions do not have adequate infrastructure to undertake a fast paced economic growth. Natural resources, minerals, water, energy, skilled manpower are the key ingredients that are needed for the growth and industrial activities. Thus, marketers need to consider individual regions and economies carefully before launching any marketing operations (The Economic Environment, 2012).
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