International marketing is not as easy as domestic marketing.
The political and legal environment of foreign markets is different. The complexity generally increases as the number of countries in which a company does business increases.
The political and legal environment is not the same in all provinces of many home markets. For example, the political and legal environment is not exactly the same in all the states of India.
Cultural differences pose one of the most difficult problems in international marketing. It is essential to understand cultural differences to formulate successful marketing strategies.
However, many domestic markets, are also not free from cultural diversity. The currency unit differs from nation to nation.
This may sometimes cause problems of currency convertibility, besides the problems of exchange rate fluctuations. There may be differences also in the monetary system and regulations. An international marketer often faces problems due to language differences.
Even when the same language is used in different countries, the same words or terms may have different meanings.
However, the language problem is not something peculiar to international marketing. For example, the multiple languages in India.
The availability and nature of marketing facilities available in different countries may differ widely. For example, an advertising medium very effective in one market may not be available, or may be underdeveloped, in another market.
When the markets are far removed by distance, the transport cost becomes high and the time required for the delivery tends to become longer. Distance tends to increase certain other costs also.What make international business strategy different from the domestic is the differences in the business environment.
The important special problems in international business are as follows: grupobittia.comcal and legal differences: The political and legal environment of foreign markers is different from that of . International Business Problem # 6. Procedural Difficulties: Different countries have evolved different procedures, practices and documents in order to regulate the export trade.
What is an international company? | grupobittia.com While price setting and payment methods are major considerations, currency rate fluctuation is one of the most challenging international business problems to navigate.
Monitoring exchange rates must therefore be a central part of the strategy for all international businesses. Read the latest chapters of International Business Review at grupobittia.com, Elsevier’s leading platform of peer-reviewed scholarly literature.
However, if global business were easy, everyone would do it, and there are significant risks and challenges associated with going international.