. International Marketing -- When a company identifies
and fulfills need and wants of customers abroad through suitable products or services at profit for company, it is called International Marketing.
2. International Investment – When a company applies
capital beyond home country for production and/or other functions to earn profit, it is called International Investment.
1. International Trade ( Foreign Trade ) -- Comprises of imports and exports i.e., buying and/or selling products and services abroad to fulfill needs and objectives of company. Opportunities
-- Firms go global broadly because of TWO reasons :
1. Pull Factors -- it comprises of proactive reasons that pull the firm to foreign transactions for
* Profit -- Generally international marketing is more profitable compared to domestic.
* Top-line Growth -- At times of domestic recession, foreign sales keeps company going.
* Economy of Scale in operations.
* Spreading of risks -- Foreign markets reduce dependence of firm on domestic market, as China is thriving now on U.S. and Europe market.
* Uniqueness of product or service -- Unique attributes may offer enormous opportunity and very less competition abroad, e.g. Indian herbal medicines, Chinese Tiger-balm etc.
* Cheaper cost of factors of production -- like cheap raw material, labour, land etc.
2. Push Factors -- drives the firm to explore opportunities like * Home & Host Govt. Policies – Tax benefits, subsidies etc. * Spin-off Benefits – Success in foreign markets boost company’s image in home market, also helps in introducing newer products and services with enhanced brand image.
* Sharing of R&D costs -- MNCs can embark into ambitious R&D projects compared to single-country companies as their research...
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