MKG 3134INTERNATIONAL MARKETING

Department of Marketing University Of Jaffna

Group - 01

GROUP MEMBERSK.Ketharan 2011/BAD/033V.Puvintharaj 2011/BAD/205E.Thanesh 2011/BAD/261T.Lokana 2011/BAD/319R.Parajasingam

2011/BAD/230N.Kirushaanthy 2011/BAD/303

Contents What is international marketing Environmental Factors Political & Legal factor Impact of Political & Legal FactorsHow to implementation Conclusion

International Marketing • It refers to marketing carried out by

companies overseas or across national borderlines.

• The performance of the business activities that direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit.

Environment• Geographical environment• Political environment• Legal environment• Economic environment• Technological environment• Cultural environment

Political environment includes the characteristic and polices of the political parties, the nature of the constitution and government system and policy

Regulation of the quality , price packaging labeling

forces concern the influence of political parties, leaders and pressure groups such as civil society organization and trade unions. These forces negotiate or dictate policies that may change the course of marketing in your industry. Escalation of rivalry between political parties may result in disastrous outcomes.

• Political system• Changes of the government• Political philosophy• Possible problems with respect to the

property: - Confiscation - Nationalisation - Expropriation - Domestication

Cont...

Legal EnvironmentLegal Systems: It’s important to know the rules you must play

by. There are four major bases for legal systems:• Common law: found in the UK, the US, Canada

and other countries under English influence• Islamic Law: Derived from the Koran and found

in Islamic States• Commercial legal system: Found in Marxist-

socialist economies and states like China, and the former Soviet Union

• Civil or Code law: found in Germany, France, Japan and non-Islamic and non-Marxist countries

Laws of foreign countryRegulations related productPackaging and labeling

Regulations Regulation of price Regulation of promotion Regulation of trade practices

Political risks may arise from policy changes by governments to change controls imposed on exchange rates and interest rates. Moreover, political risk may be caused by actions of legitimate governments such as controls on prices, outputs, activities, and currency and remittance restrictions. Political risk may also result from events outside of government controls such as war, revolution, terrorism, labor strikes, and extortion.

Political risk can adversely affect all aspects of international business from the right to export or import goods to the right to own or operate a business

U.S banded some products Export from Russia

Australia is spending a significant amount, suggested as being almost half a billion dollars, as host of the G20 this year.

Some examples for political risk

GSP & GSP+The EU's "Generalised Scheme of

Preferences" (GSP) allows developing country exporters to pay less or no duties on their exports to the EU. This gives them vital access to EU markets and contributes to their economic growth.

The reformed GSP, which applies as from 1 January 2014, focuses support on developing countries most in need.

1977 in Srilanka

The Government of J. R. Jayawardene swept to power in 1977. Jayawardene introduced a new constitution, together with a free market economy and a powerful executive presidency modelled after that of France.

It made Sri Lanka the first South Asian country to liberalise its economy. Since 1977, the Sri Lankan government has been implementing privatization and an open economy for global competition thereby encouraging foreign investments. Subsequent to the quelling of the leftist Janatha Vimukhti Peramuna (JVP), privatization and reforms received a major boost and stress on export oriented growth further assisted in reviving the economy's performance escalating GDP growth to 7% in1993.Realising Sri Lanka's growth potential major international companies like NTT, Shell and Caltex have made huge investments.

Fruit and vegetable traders protest against plastic-basket rule in Sri Lanka,

15 December, 2011

A rule that fruit and vegetables be transported in plastic baskets rather than sacks. The government says it wanted to stop colossal food waste when perishable produce is damaged in transport.The traders say the baskets hold less produce, take up too much space in their shops and raise their transport costs, and they want the rule withdrawn. Some transport trucks already have been fined for using sacks.

 the U.S. imposed a trade embargo on Cuba in 1959 soon after the country embraced socialism and politically allied itself to the then-Union of Soviet Socialist Republics. Iran has also been subject to U.S.-led international sanctions due to its pursuit of nuclear weapons.

http://smallbusiness.chron.com/political-legal-forces-impact-industries-77244.html

How to protect against the political Legal risks?• Good selection of the country• Good selection of the industry• Good selection of the partner• Licensing or franchising?• Planned domestication

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