Discuss the significance of economic development to international marketing.
1) Why is the knowledge of economic development of importance in assessing international business opportunity?
The knowledge of economic development is of importance in assessing international business opportunities because it helps companies to plan their marketing strategies. Marketing strategies must be tailored to the level of development in a country. Therefore it is important to know if a foreign country is stable, its growth potential, and knowledge of the average consumer's income before deciding to launch a product, how to package it, and ultimately how to market it in a foreign country. In developing countries, consumers have low income potential and therefore can't afford to buy large quantities of a product; by providing smaller packages a company can still sell their product in the market. Understanding consumer spending habits is also vital for a successful marketing plan.
2) The infrastructure is important to the economic development of an economy. Describe your agreement or disagreement.
Infrastructure is important for a country's economic development. It is the foundation for economic growth. Roads, bridges, railways, power and telecommunication lines are responsible for job creation and the sophistication of their Infrastructure is directly tied to their economic strength. More economically advanced countries have highly developed Infrastructures which are constantly being modernized for new emerging technologies and nations that invest in infrastructure are better positioned to attract foreign investment. The Political Economy Research Institute estimates that the United States must invest at least $87 billion to maintain their current economic status and these investments create 18,000 jobs per every billion dollars spent. Therefore, infrastructure is directly tied to economic development.
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