INTERNATIONAL BUSINESS ASSIGNMENT NO: 1

1. How would economic, political, legal, cultural, and geographic factors require you to change your marketing strategy for the following products from one country to another: Automobiles? Clothing? Beverages? A) Automobiles

Political

Political climate in different countries producing an buying automobiles regarding policies on import, export and manufacture of automobiles and automobile components. This will also include policies on allowing setting up of manufacturing plants by foreign companies. Stability of governments. This may affect the future conditions in a country. Taxation policies. Economical

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The population figures and automobile buying capacity of people. Level of economic activity that affects need for commercial use of automobiles Cultural

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Lifestyle and preferences of people, which impact their choice of types of automobiles. Social norms that impact the decision to own and use automobiles versus other means of transport.

Geographic

Physical conditions effecting ability to use automobiles of different types. This will also include state infrastructure such as roads for driving vehicles. Legal

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Legal provision relating to environmental population by automobiles. Legal provisions relating to safety measures.

This can cause delays for retailers in getting spring or fall fashions on time. recessions have the opposite effect. This negative publicity may impact small clothing retailers' sales and profits. Also. Consumers often shop for cheaper brands when they have less disposable income. they may buy more clothing. decreases in birth rates in some areas will lower the demand for baby clothes.   . For example. Sales for these various clothing entities may be significantly lower. wholesalers and retailers avoid creating too many clothing items that fall outside the norms of society. many people become more sedentary when they get into their 40s and 50s. people have more disposable income. However. norms. lifestyle. especially if those cultural groups represent large enough segments of its market. And they may have to sell the clothing at substantially reduced prices. An aging population may increase the demand for larger jeans and pants sizes. especially if their wages or medical benefits are less favorable than workers in comparable industries.   Cultural Factors  Cultural factors include cultures. such as styles worn 100 years ago. wholesalers and retailers. Activists who are not employed by the companies may also picket retailers who purchase clothing from countries known for violating child labor laws. Clothing manufacturers and retailers may also need to sell lower-priced clothing brands to compete with more generic brands. These factors affect the clothing industry in different ways. Workers picketing their clothing employers impacts production. The industry has repeatedly been affected by issues such as workers' rights and child labor laws. Consequently. During economic boom periods. Also.   Legal and Political Factors  A number of legal and political factors affect small businesses in the clothing industry. clothing manufacturers. Hence. demographics and population changes. such as relaxed or loose-fitting styles. Consumers' waistlines expand so they need larger sizes and more room for comfort. a trade embargo against another company's imports would force clothing wholesalers to find different suppliers. increasing sales for clothing manufacturers. a small clothing manufacturer needs to create styles that appeal to those of different cultures.B) Clothing Economic  Economic factors can have both positive and negative impacts on the clothing industry. Contrarily. retailers may be stuck with large amounts of inventory. Union workers in clothing manufacturing plants may picket their employers. Generally.

MERCOSUR. CAN. world trade and capital flows have risen substantially. consequently have more production and higher production efficiency due to economies of scale. or any other of a variety of dynamics and domains ». Saskia Sassen (2006) writes that « a good part of globalization consists of an enormous variety of micro-processes that begin to denationalize what had been constructed as national — whether policies. The positive effects of global economic integration are the main reason for its development. capital. The main positive effect of economic globalization is the improvement of efficiency in the economy. but also its negative effects... Which are the major regional Trading groups?       European Union North American Free Trade Agreement The Americas: CARICOM. Recently. contributing to see the world as globalised. political subjectivities. urban spaces.. Countries can specialize on the basis of comparative advantage and this will raise the efficiency in production. global economic integration has intensified. services and factors of production are increasingly becoming parts of a global market. and production of goods and services is increasingly controlled by multinational corporations. LAIA ASEAN APEC The African Union How does it impact the integration of the world economy? International trade has always existed between countries around the world.2. temporal frames. As global economic integration is becoming deeper. countries’ market sizes become larger and. . but between 1870 and 1913 and since 1945 economic links between countries become more evident. This economic integration can be defined as the process whereby the markets of different countries for different goods. questions arise related to its actual benefits. By trading with other nations.

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