International Marketing Analysis

This article discusses the absolute and comparative advantage theory, risks related to operating in a foreign country, cultural differences between the US and Japan, and more.

Running head: INTERNATIONAL MARKETING ANALYSIS
INTERNATIONAL MARKETING ANALYSIS
Name of the Student
Name of the University
Author Note

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INTERNATIONAL MARKETING ANALYSIS
Answer to Question 1
The absolute advantage theory can be defined as the ability that is possessed by a
country, company, region or individual of producing the services or goods at low cost per
unit as compared to another organization which offers the same products. The entities that
have absolute advantage in the market are able to produce services or products with the help
of smaller inputs and with the help of a more efficient method as well. This is a theory of
international trade which states that the country is able to produce goods in a more efficient
manner compared to the other countries (Almog, Squartini & Garlaschelli, 2015).
Comparative advantage can be defined as the economic ability of an organization to
produce the services and goods at lower opportunity costs as compared to the trade partners.
This advantage provides the company with the ability to sell the services and goods at lower
prices than the competitors. The company also aims at gaining greater margins in the sales
with the application of this advantage. Comparative advantage is considered to be an
important economic which is used in international trade related operations (Baylis, Smith &
Owens, 2017).
Answer to Question 2
The risks related to the country in which organizations wish to operate is quite high
and it consists of different factors which are, political factors, economic factors, social
factors, technological factors, legal factors and environmental factors.
Political factors – These factors are based on the number regulations and policies that
are developed by the government which affect the operations of the organization.

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Economic factors – This consists of the buying ability of the consumers in the country
and the economic situation that prevails. This will have an effect on the revenues of the
organization in the country.
Social factors – The social factors are further based on the ways by which the
consumers behave towards the products or services that are offered by the organizations. The
needs of the consumers and their status in the society is also an important factor in this case
(Cohn, 2017).
Technological factors – The changes that take place in the technological environment
of the country affects the ways by which the organization will operate.
Legal factors – The legal factors are further based on the laws that are formulated by
the government in the country which are to be followed by the organizations.
Environmental factors – The environmental factors are based on the ways by which
the organizational operations can affect the environment of the country (Feenstra, 2015).
Answer to Question 3
The two countries which can be compared for analysing the cultural differences are
the United States of America and Japan. The cultures that are followed in these two countries
are considered to be totally different from each other in case of the power distance that has
been observed in the organizations. The individualist culture is followed in the United States,
whereas, the society of Japan is collectivist in nature. The society of Japan has depicted more
masculine nature as compared to that of the United States. The US has also scored low in the
dimension of uncertainty avoidance as compared to Japan which is considered to be highly
efficient in uncertainty avoidance. The team structure in Japan will be more collective in
nature in comparison to that of the United States (Gandolfo, 2014). The tolerance levels of

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ambiguity will also be higher in case of the Japan than the United States. The decision
making process in the United States is affected by the low power distance where the
employees of the organization are involved in the different processes. On the other hand, the
decision making in Japanese society is based on the hierarchy that is present in the
organizations.
Answer to Question 4
The international organizations take implement the direct or indirect exporting
strategy need to devise promotional strategies in such a manner which can help in creating
the awareness of the products in the country in which the products are imported. Licensing is
based on the development of a new area of operations in a country. This requires aggressive
promotional strategies related to print media and television advertisements and many more.
The organizations which use franchising strategies need to create advertisements that are
based on the ways by which the company can increase the operations in the different areas of
the country where it is planning to enter (Gilpin, 2016). The joint venture based strategy is
based ways by which the company can join its operations with other organizations in the
country. The promotional activities are mainly based on increasing the revenues of the
company with the help of an existent organization.
Answer to Question 5
Globalisation or foreign investment is based on the expansion of free markets in
different countries. This is also related to the expansion of political democracy. However, the
future effects of globalisation are mainly based on the ways by which political democracy
and free market economy can collaborate with each other. The consolidation of the
democratic activities is based on the fulfilment of economic expectations of the citizens. The
foreign direct investment based activities have thereby been able to affect the democratic

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situation of the countries. The host country which is selected for the purpose of foreign direct
investment is based on the various political and economic factors that are present in the
country already (Hill, Smith & Vanhoonacker, 2017). The democracy of developing countries
is said to be punished by the multinational corporations as the remaining factors that are
related to the countries are sometimes unfavourable for the global organizations. The
democratic principles of the country are not always able to fulfil the economic demands of
the country. The response that is provided by the foreign direct investment to democracy is
not strong. This has been able to create immense pressure on the ways by which the markets
respond to the foreign direct investment based activities of the global organizations (Jackson
& Sørensen, 2016).
Answer to Question 6
The marketing strategies that are developed by the international organizations to
expand their operations in different countries have been quite complicated in nature. The
complications are based on the ways by which the companies are able to create awareness of
the products in the different areas of operations. The European Integration has further
implemented some major laws and regulations that need to be considered by the companies
when they the European countries. The companies need to consider these regulations so that
they are able to formulate the policies for operations based on this. The EU integration is able
to affect the global company polices which further result to the development of appropriate
advertisements (Komar, Uniiat & Lutsiv, 2016).
Answer to Question 7
Comparative advantage theory is based on the process by which the country is able to
produce a service or good for lower prices at lower opportunity costs as compared to the
other countries. The opportunity cost is mainly used to the measure the trade-off. The nation

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that has a comparative advantage is capable to making the trade-off worth it. The major
benefits that are related to buying the services or goods can outweigh the disadvantages that
are related to this process. The services or goods are produced at lower opportunity costs
which helps the other countries to import them. For example, the nations which produce oil
have gained a comparative advantage in the chemical manufacture (Low, 2016).
The absolute advantage theory is based on the ability of the country, company or
individual of producing the services or goods at lower costs per unit than the other entities.
The countries that have absolute advantage are produce the service or products with the help
of smaller inputs which proves to be an efficient process than the other entities. The absolute
advantage provides great opportunities of international trade to the country as it is able to
produce the goods in a more efficient manner. The countries which have this advantage
specialize in the production and selling of the specific service or product from the other
countries. For example, China, along with some other Asian countries has gained the absolute
advantage in manufacturing of products due to the lower labour costs in these areas (Mah,
2015).
Answer to Question 8
The standardisation of products in the international markets is based on different
factors that include, cost reduction, high cost of adaption and the economies of scale. The
importance of the country in which the product originates is also an important factor based on
product standardisation. The global customers require specification of the products that are
offered to them by the multinational organizations which further relates to the process of
product standardisation.
The product adaptation based theory is further based on the differences that have
occurred in the skills and the standards of production. The variations can also occur in

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affordability and consumer needs in different countries which is based on the adaptation of
products. The host governments of organizations are also capable of influencing the products
that are offered to the customers. The local environment of the country can affect the ways by
which products adapt to the needs of the consumers in different areas (Moon, 2018).
The customization of goods is based on the ability of delivering the wide-market
services and goods which mainly customized or modified to satisfy the needs of the
customers. This process helps the companies to customize some specific features of the
products that help in keeping the costs closer to products that are produced for most of the
customers. This is helpful for the customers to combine various options for the purpose of
creating a final product.
Globalization is based on the ways by which the services or products are prepared so
that it can be offered to the markets all over the world. The various products are the prepared
by taking into account various aspects related to business operations in the multiple countries
(Rugman & Verbeke, 2017).
Answer to Question 9
The four important factors that affect international promotional strategies of global
organizations are as follows,
Availability of media – The availability of appropriate media for the purpose
of advertising the products is an important factor that influences the strategies
of the multinational organizations.
The entry mode that is selected by a global organization affects the level of
advertising and the ways by which the company promotes its products. The

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strategies that are used for promotion are based on the ways by which the
company enters the market.
The characteristics of the products that are offered by the company also help
the company to decide the ways of promoting them in the new market areas
(Yarbrough & Yarbrough, 2014).
The availability of enough funds is also an important factor for formulating the
promotional activities of the companies. The organizations are thereby able to
develop promotional activities with the help of appropriate funds.
Answer to Question 10
Social marketing is considered to be a marketing concept that is related to the
marketing decisions that are made by the company based on the wants of consumers. The
concept further holds that it is the duty of an organization to determine the wants and needs
of the target market so that it is able to deliver desired level of satisfaction to them (Rugman
& Verbeke, 2017).
Answer to Question 11
The marketing technology landscape has been affected by the shift that has recently
taken place in the industry from physical stores to app based stores. This has further been
able to affect the ways by which the products of the organizations are promoted in the
market.
The trends in advertising have also changed as the companies are becoming more and
more customer oriented in nature. The companies are also able to create a position in the
market with the help of different types of advertisements that are based on the satisfaction of
customers (Jackson & Sørensen, 2016).

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Answer to Question 12
The impact that has been created by the EU general data protection based regulation
on the international activities of marketing of companies is based on the ways by which the
advertisements are developed which can help the company to attract the customers. The
advertisements are thereby designed by considering the regulations that have been formulated
by the European Union (Gilpin, 2016).

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References
Almog, A., Squartini, T., & Garlaschelli, D. (2015). A GDP-driven model for the binary and
weighted structure of the International Trade Network. New journal of
physics, 17(1), 013009.
Baylis, J., Smith, S., & Owens, P. eds. (2017). The globalization of world politics: an
introduction to international relations. Oxford University Press.
Cohn, T. H. (2017). Governing global trade: International institutions in conflict and
convergence. Routledge.
Feenstra, R.C. (2015). Advanced international trade: theory and evidence. Princeton
university press.
Gandolfo, G. (2014). International Trade and Growth: Dynamics. In International Trade
Theory and Policy (pp. 321-327). Springer, Berlin, Heidelberg.
Gilpin, R. (2016). The political economy of international relations. Princeton University
Press.
Hill, C., Smith, M., & Vanhoonacker, S. eds. (2017). International relations and the
European Union. Oxford University Press.
Jackson, R., & Sørensen, G. (2016). Introduction to international relations: theories and
approaches. Oxford university press.
Komar, N., Uniiat, A., & Lutsiv, R. (2016). Efficiency of the North American Free Trade
Zone.
Low, P. (2016). International trade and the environment. UNISIA, (30), pp.95-99.

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Mah, J.S., 2015. R&D Promotion Policies of Developing Countries and Fairness in
International Trade Relations. Journal of Economic Issues, 49(1), pp.179-
196.
Moon, B.E. (2018). Dilemmas of international trade. Routledge.
Rugman, A., & Verbeke, A. (2017). Global corporate strategy and trade policy. Routledge.
Yarbrough, B.V., & Yarbrough, R.M. (2014). Cooperation and governance in international
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University Press.