INTERNATIONAL MARKETING Business (Marketing) activities undertaken across national boundaries with / work on object to earn profit. Rational / why International Marketing Same need / wants ---- more saleHedging against loss Branding / better image Acquisition of resources (man, material, marketing, machinery, money)

1:Foreign direct investment (FDI) Home Country Host Country Multinational Companies Long term Commitment 2:Joint Venture Firm Joined hand with one country firm

3:Export Merchandise / good Leave physically

4:Turn key operation Home country Host country To set up a facilities

Contract Indirect +Equipment +Tools 5:Management contract

Home country Host country 6:Franchising / License7:Mix Venture

Home country Host country Contract with host country Govt. 8:Portfolio Investment

Investment in stock Exchange, debenture, bonds 9:Acquisition

Buy land, building and real estate 10:Merger

Home country Host country Merger Come with new identity 11:Hostile / take over

Without will take over other firm

POLITICAL ENVIRONMENT 4 types of political system 1. Democracy 2. Monarchy 3. Dictatorship 4. Communist Sorveign State Boundaries Capital H.SRecognized Embay relationship Expropriation An official seizure by the govt. of the host country of the assets of foreign investment

in the best interest of the public with two conditions attach to it. Compensation in accordance with the market value. Has to be paid in convertible legal tender. CONFISCATION:( same explanation as above add without with compensation.)Addition: Is register as legal (accordance to international law) Govt. be challenge is any court of

law.

Nationalization: Domestication: (Slow Poisoning)Hedging Against Expropriation / Domestication Vertical integration Size of Investment Joint Venture Expropriation vs. Domestication 1. International strange of the Govt is shattered. 2. Credit rating (affected). 3. Bilateral trade and other form of relationship and compromised. How to study the political prospective o the host country • Expropriation, domestication, Confiscation, Nationalization (History). • Types of Govt. • Govt. Economic Management • Conflict with other country • Political unrest assessment • Frequency of the change in Govt. • Role of opposition • Priority of Govt.

International Cultural Environment Family Individual:Market / Public Definition of Heroes Social Interaction Media Educational Institution Work place Worship placeSociety Important Characteristics Two way traffic (Interactive)Dynamic / transition Inter – related Definition of the culture Sum of all values Which are transmitted Into an individual as a member of society Through shared / interactive experience / exposure Is termed as culture

How to study the cultural aspect of host country point of view To launch the product as it is. To modify existing product than launch in international market. To develop an exclusive product and than launch in International market To incorporate all differences into one product than launch in international market (Global Product

Cultural Field

1:Material life: convenience , shopping , specialty goods E.g. House , car , Gold.2:Social Interaction: Festival (Eid ,Christmas , etc ) Rituals (certain norm follow by country no compulsory in culture e.g.. Death haqiqa birth) Ceremonies , CULTURAL EVENTS (Basant) General Implication /empowerment3:RELIGION : (core part of culture)

4: AESTETICS: (definition of that community. which type of community. community to community culture change)

5:FOLK/Drama/ART/ARCHITECTURE:(male/female===personality , professionals.)

6:VALUES + MORES: ( in it study the family system , old age system & professional of that country)

7:LANGUAGE: u must now about the language of that country.