HARAMAYA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

Assignment on the course international Marketing

No Name ID

6
1. What relationship, if any, exists between the worldwide growth in mass production that has
occurred over the past twenty years and the current emphasis on international marketing?

 The worldwide growth in mass production over the past twenty years has significantly
influenced the current emphasis on international marketing. Mass production has enabled
companies to produce goods at lower costs, leading to increased supply and competition in
global markets. Consequently, companies are now more focused on international marketing
to reach larger consumer bases and capitalize on economies of scale. Additionally,
globalization and advancements in communication and transportation have made it easier for
companies to expand their reach to international markets, further driving the emphasis on
international marketing.
2. How globalization of world economy promotes development of the international
marketing? How does this influence the adaptation of products and marketing strategies?
 Globalization of the world economy promotes the development of international marketing
in various ways. Here are a few key points:

 1. Increased Market Access: Globalization breaks down barriers to trade, allowing

businesses to access new markets and reach a larger customer base.

 2. Diverse Consumer Base: International markets offer a diverse consumer base with
different preferences and needs, requiring companies to tailor their marketing strategies
accordingly.

 3. Innovation and Competition: Globalization fosters innovation as companies compete on a

global scale, leading to the development of new products and marketing techniques.

 4. Market Expansion: Companies can expand their reach beyond domestic borders, tapping
into untapped markets and opportunities for growth.

 Overall, globalization creates a dynamic environment for international marketing,

challenging companies to adapt and thrive in a global marketplace.
 To adapt products and marketing strategies based on influences, companies often conduct
market research to understand consumer needs, preferences, and behavior. By analyzing
trends, competitor strategies, and consumer feedback, businesses can tailor their products
 and marketing messages to better suit their target audience. This can involve product
modifications, pricing adjustments, targeted advertising, and communication strategies to
effectively reach and engage customers in a competitive market landscape.
3. The marketer’s task is the same whether “doing business in London, Amsterdam or Addis
Ababa” Discuss. Does the marketer really control the elements of the marketing mix (product,
promotion, price and distribution)? Defend your position.
 The marketer’s task can vary based on the location and market conditions in London,
Amsterdam, or Addis Ababa. While the fundamental principles of marketing remain the
same, there are unique cultural, economic, and regulatory differences that can impact the
implementation of marketing strategies in each location.

 Regarding the elements of the marketing mix (product, promotion, price, and distribution),
marketers have varying degrees of control over each element. Here is a breakdown:

 1. Product: Marketers have some control over product development, branding, packaging, and
positioning. However, factors like consumer preferences, technological advancements, and
regulatory requirements can also influence the final product.

 2. Promotion: Marketers can control promotional strategies such as advertising, public

relations, sales promotions, and social media campaigns. However, the effectiveness of these
strategies can be influenced by cultural norms, media availability, and competitors’ actions in
the market.

 3. Price: Marketers can set prices based on costs, competition, and consumer demand. Pricing
strategies may vary based on market conditions, purchasing power, and perception of value
in different locations.

 4. Distribution: Marketers have control over distribution channels such as wholesalers,

retailers, e-commerce platforms, and direct sales. However, logistical challenges,
infrastructure limitations, and regulatory requirements can impact the efficiency of
distribution efforts.

 In conclusion, while marketers have a significant level of control over the elements of the
marketing mix, external factors beyond their control can also play a crucial role in shaping
 marketing strategies. Adaptability, market research, and understanding local nuances are
essential for successful marketing campaigns in diverse locations.
4. What are the types, forms of foreign investment and what is their role in the development of
the international market?
 Foreign investment can come in various types and forms. Some common types include:

 1. Foreign Direct Investment (FDI): This involves a company from one country making a
physical investment into building a factory, office, or acquiring a company in another
country.

 2. Portfolio Investment: This refers to the purchase of stocks, bonds, or other financial
instruments in a foreign company without actively managing or controlling the company.

 3. Foreign Institutional Investment (FII): This involves investment in securities in another

country by institutional investors like mutual funds, insurance companies, pension funds, etc.

 4. Foreign Aid: Countries or international organizations providing financial assistance to other

nations for various reasons, such as humanitarian aid or economic development.

 These forms of foreign investment play a significant role in the development of the
international market by:

 1. Economic Growth: Foreign investment can boost a country’s economic growth by bringing
in capital, technology, and expertise. This can create new jobs, improve infrastructure, and
boost productivity.

 2. Globalization: Foreign investment promotes the interconnectedness of economies, leading

to the exchange of goods, services, and knowledge across borders.

 3. Technology Transfer: Foreign investment can bring new technologies and best practices to
a country, facilitating innovation and upgrading local industries.

 4. Market Access: Foreign investment can help businesses access new markets and expand
their customer base globally.
 5. Diversification: Foreign investment allows investors to diversify their portfolios, spreading
risk across different markets and industries.

 Overall, foreign investment plays a crucial role in driving economic development, fostering
international cooperation, and promoting global prosperity.
5. Which are the different types and features of the creation of international prices? And
which kind of world prices in addition to affecting foreign trade pricing?
 The creation of international prices involves various types and features, including:

 1. Market-based Pricing: Prices are determined by supply and demand forces in the global
market, influenced by factors such as production costs, currency fluctuations, and
geopolitical events.

 2. Cost-based Pricing: Prices are set based on the production costs, including raw materials,
labor, and overhead expenses, with markup for profit.

 3. Competitive Pricing: Prices are set in response to competitors’ pricing strategies, aiming to
maintain market share or gain a competitive advantage.

 4. Dynamic Pricing: Prices fluctuate in real-time based on market conditions, demand, and
other factors, often seen in industries like airline tickets and hotel bookings.

 5. Government Intervention: Some prices are regulated or influenced by government policies,

such as tariffs, subsidies, or price controls.

 6. Exchange Rate Impact: Fluctuations in currency exchange rates can affect international
prices, especially for commodities traded in foreign currencies.

 7. Quality and Branding: Premium pricing strategies may be employed based on the perceived
quality or brand reputation of the product or service.

 8. Transportation Costs: Prices may include transportation expenses, such as shipping and
handling fees, especially for goods traded across borders.
 9. Tariffs and Duties: Import/export tariffs and duties imposed by governments can impact the
final price of goods and services traded internationally.

 10. Cultural and Legal Factors: Prices may vary based on cultural preferences, legal
requirements, or standards specific to different countries or regions.

 These factors interact in complex ways to determine international prices across various
industries and markets.
 In addition to affecting foreign trade pricing, world prices can also influence:

 1. Domestic Prices: Changes in world prices can impact domestic prices for imported goods,
as well as domestically produced goods that compete with imports.

 2. Inflation: Fluctuations in world prices, especially for key commodities like oil and food, can
contribute to inflationary pressures in domestic economies.

 3. Export Revenue: Countries heavily reliant on exporting commodities or goods may

experience fluctuations in export revenue due to changes in world prices.

 4. Government Revenues: Export taxes or royalties tied to world prices can affect government
revenues in exporting countries.

 5. Terms of Trade: Shifts in world prices relative to domestic prices can influence a country’s
terms of trade, affecting its ability to purchase imports with its exports.

 6. Investment Decisions: Industries and sectors sensitive to changes in world prices may see
shifts in investment patterns based on expectations of future price movements.

 7. Income Distribution: Changes in world prices can impact the income distribution within
economies, particularly in countries with significant export sectors or reliance on imported
goods.

 8. Political Stability: Sudden or prolonged changes in world prices, especially for essential
 commodities, can affect political stability, as they may lead to social unrest or government
interventions.

 Overall, world prices play a crucial role not only in shaping foreign trade pricing but also in
influencing various aspects of domestic economies, including inflation, government
revenues, investment decisions, and political dynamics.
6. Explain in detail the forms of entry in to the foreign market? And discuss the advantages
and dis advantages of the mode of entry.
 Entering foreign markets can be achieved through various forms, each with its own
advantages, risks, and levels of control. Here are some common forms of entry:

 1. Exporting:
 - Direct Exporting: Selling products directly to customers in foreign markets without
intermediaries. It requires establishing distribution channels, handling logistics, and
managing export documentation.
 - Indirect Exporting: Using intermediaries such as export agents, distributors, or trading
companies to sell products in foreign markets. This approach reduces the exporter’s
involvement in foreign market operations but may also decrease control over distribution and
pricing.

 2. Licensing and Franchising:

 - Licensing: Granting a foreign entity the right to use intellectual property (such as patents,
trademarks, or technology) in exchange for royalties or fees. This allows the licensor to
generate revenue without significant capital investment but entails the risk of loss of control
over product quality and brand image.
 - Franchising: Allowing a foreign entity (franchisee) to operate under the brand name and
business model of the franchisor. Franchising provides a rapid expansion opportunity with
minimal capital investment, but maintaining consistency in brand standards across different
markets can be challenging.

 3. Joint Ventures:
 - Equity Joint Venture: Establishing a new entity with a local partner, with both parties
contributing capital, resources, and expertise. Joint ventures enable shared risk and local
market knowledge but require careful negotiation of ownership, control, and profit-sharing
 arrangements.
 - Non-Equity Joint Venture: Collaborating with a local partner on specific projects or
initiatives without forming a separate legal entity. This approach allows for flexible
cooperation but may lack long-term commitment and investment protection.

 4. Wholly Owned Subsidiaries:

 - Greenfield Investment: Establishing a new subsidiary in a foreign market, typically
through construction or acquisition of facilities. Greenfield investment provides maximum
control over operations, product quality, and brand image but involves significant capital
investment, regulatory compliance, and market entry risks.
 - Acquisition: Acquiring an existing local company or its assets to gain immediate access to
foreign markets, customers, and distribution channels. Acquisitions offer faster market entry
and reduced startup risks but require careful due diligence, integration planning, and cultural
alignment.

 5. Strategic Alliances and Partnerships:

 - Forming alliances or partnerships with foreign companies for joint product development,
marketing, distribution, or research and development. Strategic partnerships leverage
complementary strengths and resources of partner firms but require clear objectives, trust,
and effective collaboration mechanisms.

 Each form of entry into foreign markets presents unique opportunities and challenges, and the
choice depends on factors such as market characteristics, regulatory environment,
competitive landscape, resource availability, and strategic objectives of the entering firm.
Successful market entry strategies often involve a combination of these approaches tailored
to specific market conditions and business goals.

 Sure, let’s discuss the advantages and disadvantages of different modes of entry into foreign
markets:

 1. Exporting:

 Advantages:
 - Low initial investment: Exporting typically requires less capital investment compared to
other modes of entry.
 - Flexibility: Exporting allows for quick market entry and the ability to adapt to changing
market conditions.
 - Minimal risk: Exporting allows companies to test foreign markets without substantial
financial commitment.

 Disadvantages:

 - Limited control: Exporters may have limited control over distribution, pricing, and
marketing strategies in foreign markets.
 - Transportation costs: Shipping and logistics costs can erode profit margins, especially for
bulky or perishable goods.
 - Trade barriers: Exporting may face trade barriers such as tariffs, quotas, or import
restrictions imposed by foreign governments.

 2. Licensing and Franchising:

 Advantages:
 - Low investment and risk: Licensing and franchising involve minimal capital investment
and risk compared to other modes of entry.
 - Rapid expansion: Licensing and franchising allow for rapid market expansion by
leveraging local partners’ resources and market knowledge.
 - Revenue generation: Licensors and franchisors can generate revenue through royalties,
licensing fees, and franchise fees without directly managing foreign operations.

 Disadvantages:
 - Loss of control: Licensors and franchisors may have limited control over product quality,
brand image, and customer experience in foreign markets.
 - Dependency on partners: Success depends on the capabilities, commitment, and integrity
of local licensees or franchisees.
 - Brand dilution: Inconsistent standards or poor performance by licensees or franchisees can
damage the brand reputation globally.
 3. Joint Ventures:

 Advantages:
 - Shared risk and resources: Joint ventures allow for risk sharing, pooling of resources, and
access to local market knowledge and networks.
 - Local expertise: Partnering with a local firm provides insights into cultural nuances,
consumer preferences, and regulatory requirements.
 - Government acceptance: Joint ventures may be favored by host governments as they
promote technology transfer, job creation, and local economic development.

 Disadvantages:
 - Cultural differences: Cultural differences, divergent management styles, and conflicting
objectives can lead to operational challenges and conflicts.
 - Control issues: Disputes over decision-making, profit sharing, and strategic direction can
arise between joint venture partners.
 - Limited flexibility: Joint ventures require consensus-building and coordination between
partners, limiting the flexibility to adapt to changing market conditions.

 4. Wholly Owned Subsidiaries:

 Advantages:
 - Full control: Wholly owned subsidiaries provide maximum control over operations, brand
image, and strategic decision-making.
 - Operational efficiency: Integration of operations and centralized management can lead to
greater efficiency and alignment with global standards.
 - Long-term commitment: Wholly owned subsidiaries demonstrate a commitment to the
foreign market, enhancing credibility with customers, suppliers, and regulators.

 Disadvantages:
 - High investment: Establishing wholly owned subsidiaries involves significant capital
investment, especially for greenfield investments or acquisitions.
 - Market entry risks: Wholly owned subsidiaries face risks related to market uncertainties,
regulatory changes, and competitive dynamics.
 - Local resistance: Host country resistance, protectionist measures, or cultural barriers may
 hinder the success of wholly owned subsidiaries.

 5. Strategic Alliances and Partnerships:

 Advantages:
 - Complementary strengths: Strategic alliances leverage partners’ complementary resources,
capabilities, and market access for mutual benefit.
 - Risk sharing: Strategic alliances allow for risk sharing in joint initiatives, reducing
individual firms’ exposure to market uncertainties.
 - Innovation: Collaboration with partners can foster innovation, knowledge exchange, and
access to new technologies or markets.

 Disadvantages:
 - Trust issues: Trust, compatibility, and alignment of interests are critical for successful
strategic alliances, which may be difficult to achieve.

 - Coordination challenges: Managing diverse partners, cultures, and objectives can lead to
coordination challenges and conflicts.
 - Dependency risks: Reliance on partners for critical activities or resources may expose
firms to dependency risks and vulnerabilities.

 Overall, the choice of entry mode depends on factors such as market characteristics, risk
tolerance, resource availability, strategic objectives, and the firm’s capabilities to manage and
mitigate the associated advantages and disadvantages. A careful assessment of these factors
is essential for devising an effective international market entry strategy.
7. Consider (select) one of your favorite international organization or one with which
you are familiar. How are changes in the macro-environment creating either
opportunities or threats for that international organization?
 One international organization with which I’m familiar and find particularly interesting
is the World Health Organization (WHO). Changes in the macro-environment have
created both opportunities and threats for the WHO:

 Opportunities:
 1. Global Health Awareness: Increasing global health consciousness has elevated the
 importance of organizations like WHO in addressing public health challenges.
Heightened awareness creates opportunities for WHO to advocate for health equity,
disease prevention, and universal healthcare access.

 2. Technological Advancements: Advances in technology, such as telemedicine, digital

health platforms, and data analytics, offer new opportunities for WHO to improve
healthcare delivery, surveillance, and response mechanisms. Embracing digital
innovation can enhance the organization's effectiveness and reach in addressing global
health issues.

 3. Collaborative Partnerships: Growing recognition of the interconnectedness of health

systems and the need for collaborative action has spurred partnerships between WHO
and other international organizations, governments, NGOs, and private sector entities.
Collaborative efforts enhance WHO’s capacity to mobilize resources, share expertise,
and implement comprehensive health interventions.

 Threats:
 1. Global Health Emergencies: Escalating frequency and severity of global health
emergencies, such as pandemics, infectious disease outbreaks, and humanitarian crises,
pose significant challenges to WHO’s capacity to respond effectively. Resource
constraints, logistical barriers, and political tensions can hinder WHO’s ability to
coordinate and lead emergency responses.

 2. Political Interference: Political interference and geopolitical tensions can undermine

WHO’s autonomy, credibility, and effectiveness in addressing public health issues.
Funding cuts, withdrawal of support, or pressure to prioritize certain health agendas
over others may compromise WHO’s impartiality and independence.

 3. Misinformation and Disinformation: Proliferation of misinformation and

disinformation, especially on digital platforms and social media, undermines public
trust in health authorities and exacerbates health-related crises. WHO faces the
challenge of combating false information, promoting accurate health messaging, and
maintaining credibility amidst an information overload.
 4. Health Inequalities: Persistent health inequalities within and between countries,
exacerbated by socioeconomic disparities, pose a fundamental threat to WHO’s goal of
achieving health for all. Addressing inequities in healthcare access, resources, and
outcomes requires concerted efforts to tackle structural determinants of health and
promote health equity.

 In navigating these opportunities and threats, WHO must remain adaptable, innovative,
and responsive to emerging global health challenges while upholding its core principles
of equity, solidarity, and evidence-based decision-making. Collaborative partnerships,
strategic advocacy, and leveraging digital technologies can strengthen WHO’s resilience
and effectiveness in promoting health and well-being worldwide.