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INTERNATIONAL
ENVIRONMENT
VTHN
ngocvth@uel.edu.vn
CONTENTS
The impact of international
01 environmental factors
02 Global trends
03 Environmental Analysis
Model
“For now, the world seems to be characterized by relatively strong
growth in the United States, disappointing but improving growth in
Europe and Japan, slowing growth in China and weakness in many
other emerging markets—the one big exception being India, where
growth is actually quite impressive” (Deloitte, 2016)
1.1 Overview
Need to understand
Pace of change increasing global trends & trends
within individual
Lack of familiarity with markets
international environment
Objective & experiential
Lack of knowledge about knowledge
foreign markets creates
uncertainty Constant scanning of
markets
1.2 Global environment
- Connected Africa
- Geo-political realignment
- US-China trade war
- Depopulation waves
- Xi-Putin relationship
- Power of global brands
- Growing transparency
- Cyber-insecurity
- Economic power shift – emerging markets
- Changing consumer demographics & expectations
1.3 Political forces
The role of the government
1. those that promote (i.e., encourage or facilitate) IM marketing
transactions;
2. those that impede such transactions;
3. those that compete with or replace IM transactions by private
business firms.
Government controls
- restrict the shipment of - requiring licenses that be - protective tariffs are high
defense products, protect the obtained before goods may be b/c it is designed to protect
domestic economy from a exported/ imported to regulate domestic industry
drain of scarce materials, & the nature of external trading - revenue tariffs are low b/c
enhance national security relationships it is designed to generate
- forms of protectionism or maximum revenue for the
trade barriers government
Government controls
3. operational/resource-based limitations.
State trading
- government engagement in commercial operations, directly
or through agencies under its control, either in place of or in
addition to private traders.
“Chinese consumers and companies save too much, while the West saves too little”
Roach, cited on BBC, 2012
Market development
WORLD BANK CLASSIFICATION Source - World Development Indicators 2018. World Bank
1. low-income economies (GNI per capita <US$955)
(Burundi, Tanzania, Rwanda, Chad)
2. lower middle-income economies (GNI per capita US$996 - US$3,895) (India, Egypt,
Nigeria, Vietnam)
4. high-income economies (GNI per capita >US$ 12,055) (Argentina, Croatia, Panama,
Bahrain, France, Israel, Japan)
- The US, the EU, Hong Kong, Japan and South Korea are the five top major
markets
- Latin America (Argentina, Chile, Mexico, Colombia, and Peru) – are growing rapidly and
economic conditions have improved significantly.
- Middle East and North African (MENA) region has lagged behind in economic
growth and globalization.
Infrastructure
“Sixty per cent of the global population lives in Asia (4.4 bill)”
(United Nations, 2016)
2.2 Tech trends
# 6 bn. Internet uses in 2022
# Take-up of tech products varies across countries
# Asia-Pacific region most growth in new internet users
# 6.65 bn smartphone users in 2022
# Use of social media
# Worldwide retail E-commerce sales will reach $4.2 trill. (Forbes, 2021)
“Facebook has roughly 2.89 billion monthly active users”
(Statista, 2021)
Helpful Harmful
Political Economic
Social Technological
PEST analysis vs SWOT analysis
Strengths Political
Weaknesses Economic
Opportunities Social
Threats Technological
International institutions
● WTO • APEC
● ASEAN • IMF
● AFTA • EVFTA
• …
Summary
• General lack of familiarity with markets
• Every market different – don’t make assumptions
• A wide range of factors to take into consideration
• Fast changing global marketplace
• Importance of continuous monitoring of international markets to identify
changes
• Very difficult to eliminate risk, but can manage it
?
What are today’s current issues potentially affecting international
marketing and what impact are they likely to have?
Useful Websites
journalofworldbusiness.com unctad.org
wto.org Internetworldstats.com
worldbank.org globaltrends.com
oecd.org Mckinsey.com