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PROBLEMS IN INTERNATIONAL MARKETING


PROBLEMS IN INTERNATIONAL MARKETING

(1) Marketing Infrastructure: Marketing infrastructure varies from nation to nation. In developed countries, marketing facilities are available in a fine manner while poor marketing facility or infrastructure may be seen in the most of the developing nations. It also creates many problems in international marketing.

(2) Economic Difference: Economic environment of a nation affects international marketing to a large extent which may change country to country. In each nation different economic environment is found in which include the nature and development of the economy, economic resources, size of the economy system and policies, trade restrictions, economic condition, nature and trends in foreign trade.

(3) Language Difference: An international marketer often encounter problems arising out of the difference in language. Terpstra says that “language is the initial cultural difference that comes to mind when one think of foreign markets. At the minimum, language difference poses problems of expenses and communications.” He opines that translation is not the solution of communication problem.

(4) Cultural Difference: It is one of the most difficult problems in international marketing. Every country has its own culture, and people think, feel and generally behave different from country to country.

(5) Political Difference and Instability: The political and legal environment of foreign market are quite different from that of domestic market. These political-legal difference and instability discourage the spread on international marketing.

(6) Technological Pirating: Technological piracy has been a common practice in many developed and developing countries in which include copying the original technology, producing initiative products, initiating other areas of business operation.

(7) Entry Requirements: Domestic governments place many regulations on foreign firms in the context of entry requirement. For example, they might require joint venture with the majority share going to the domestic partner, a high number of nations to be hired, transfer of technology know-how and limits of profit repatriation.

(8) High Cost: High cost is involved in doing business abroad. A company going abroad must study each foreign market carefully, become sensitive to its economies, laws, political, and culture, and adopt its product and communications to each markets tastes.

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