International Marketing Research Analysis

This assignment delves into the complexities of international marketing research. It examines key theoretical frameworks, such as cultural intelligence, transaction cost economics, and the anchor contraction effect. The focus is on understanding how these concepts influence international marketing strategy, adaptation, and performance in emerging markets. The provided reading list guides the analysis, encompassing influential works from renowned scholars like Coviello, De Langhe, Fletcher, Gilligan, Hilmersson, Magnusson, Moon, Parsons, Seggie, Smith, Terpstra, Tian, Turnbull, Zhou, and more.

International
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
1) Concerns of members countries in trade liberalization under SAFTA...................................1
2) Recommendations to address the concerns of stakeholders for implementation of SAFTA 3
3) Products and services with high marketing potential under FTA...........................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
SAFTA or South Asian Free Trade is known as an agreement held in Islamabad, Pakistan
on 6th January 2004. this came into existence on 1st January, 2006. one of the main objective of
this is to promote good competition and to provide equitable advantages to all the countries
involved in the contract (Akaka, Vargo and Lusch, 2013). Further, this also aim to provide
benefit to all individuals of countries by bring integrity and transparency among nations. Overall
this came into force to enhance the economic cooperation and level of trade among all the
nations included into agreement by reduce all barriers and tariff. One of the main objective of
this is to promote welfare of individuals. Concerns of members countries involve in the trade
liberalization in SAFTA is detailed in this report. Further, recommendations to address the
major concerns of stakeholders during implementation of SAFTA is also given in this. In
addition to this, various products and services of India having high marketing potential is all
described in this report.
1) Concerns of members countries in trade liberalization under SAFTA
Mainly, SAFTA (South Asian Free Trade Area) in an agreement reached on 6 January
2004. It developed a free trade area of 1.6 billion individuals in Bangladesh, Bhutan,
Afghanistan, India, Maldives, Pakistan, Sri Lanka and Nepal. In this, foreign ministers of region
sign on a written agreement on SAFTA to decrease the customs duties of traded products to Zero
by the year 2016. This engagement came into force on 01 January 2006 and follow by the seven
governments (Coviello, McDougall and Oviatt, 2011). One of the main objective of SAFTA to
bring down duties of developing of such as South Asia, Sri Lanka, India and Pakistan, to twenty
percent in the starting phase of ending of two year period in year 2007.
Concerns of various countries involve in trade liberalization in SAFTA are as follows:
 Bangladesh: Both India and Bangladesh have the mutual shared objective which was to
fostering economic integration with South Asia region. Bilateral trader between these two
countries has growing since the year 1990 exports of Bangladesh from India was much
more then India's imports form Bangladesh. All this give rise to a trade gap. This
indicate the pick up of exports in Bangladesh and all this happen due to concession of
tax and tariffs from India and because of removal of various trade barriers with help of
mutual agreement. Signing of SAFTA in year 2006 enhance the possibility of trade
agreement with development of bilateral FTA (free trade agreement).
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Major critical concerns involve from the Bangladesh's side consists the huge trade defect
with India and huge amount of informal imports from India which was across the border which
avoid import duties of Bangladesh. Trade with Bangladesh for India is small and all this
highlight the Bangladesh's potential be an emerging market on borders of India all this indicate
great interest and investment communities and for the business (De Langhe and et. al., 2011) .
Further, economic tie ups with Bangladesh seen as a significant way to reduce both political and
economic isolation of all Indian eastern from rest of the nation. Trade deficit of Bangladesh with
India, consistently offset by trade surpluses with other country. It is argued in Bangladesh that
trade deficit is intense due to protectionist policies of India related with exports to Bangladesh.
This issue highlights that what is likely to take place in free trade between Bangladesh and
India.
 Bhutan: Trade of India with Bhutan has increased on a speed. Bilateral agreement
between Bhutan and India provide free commerce and trade. India provides its support to
Bhutan to expand its trade in new areas and this remain the same for a long time period.
 Afghanistan: India and Afghanistan both have very close in economic, political, cultural
and technical relations. Recently, relations has strengthened by the strategic partnership
agreement signed by two countries. Afghanistan was going through three transition in
year 2015 such as security, political and economic transitions. For India, Afghanistan has
a huge strategic potential. India given material and economic help to Afghanistan for its
well being. India made large amount of investments in Afghanistan from infrastructure to
development of human resources. Strategically, Afghanistan is essential for India.
 Maldives: Political issue is one of the major one which face by Maldives. Trade between
Maldives and India is regulated by the terms included in bilateral agreement signed in
1981.
 Pakistan: Volume of trade between Pakistan and Bangladesh is not much significant.
However, Pakistan enjoy a favourable balance of trade. In case of India, Pakistan and
India share a relation of long border along with history of their not so good relations.
Both India and Pakistan are the largest economies of South Asia. Various activities are
involved in SAARC that help in kept the Pakistan positively involve in South India
especially with India. Mainly Pakistan considers the SARRC as a step to introduce an
improvement in the people of future. In 1998, a programme held with aim to fulfil the
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basic requirements of individuals including, food, shelter, cloth, education and literacy.
It was the Pakistan which introduced 1993 as SAARC year for Disabled individuals.
 Sri Lanka: Major consideration of Sri Lanka to develop political and economic tie ups
with different countries. Sri Lanka is highly dependent on FDI (Foreign direct
investment) and on its export sector to achieve economic growth. Protectionist policies of
Sri Lanka hamper competitiveness of its enterprises and the country require to diversify
its investments in export and expand more beyond its domestic markets. Export of Sri
Lanka from India has increase on continuous level while import of India from Sri Lanka
remain less as compare to the export.
 Nepal: Goods having origin in Nepal were allowed entry in India without any kind of
duty. All this was because a special privilege given to the Nepal. All this encourage the
duty free import in India.
2) Recommendations to address the concerns of stakeholders for implementation of SAFTA
One of the main objective behind formulation and implementation of SAFTA is to
promote encourage fair competition in free trade area and to offer equal benefits to all the
countries. Another aim of this is to offer various benefits to local people by bring and keep
transparency in all trade agreements. For get all these benefits implementation of SAFTA in an
effective way is very essential. Stakeholders of SAFTA face various issues, for ensure effective
implementation of SAFTA following are the main recommendations:
 Barriers related with trade should be eliminated as this facilitate cross border movements
of products between the territories.
 Conditions of fair competition should be promoted in free trade areas and it must be
ensure that benefits are offer to all countries in equal and fair manner. Economic
development and level of countries should be consider by firms during all this.
 Effective mechanism should be create and develop for effective application and
implementation of agreement as this help in effective administration and provide grounds
for solving the disputes.
 Framework for regional cooperation should be established to expand an promote the
mutual advantages of agreement.
 Every country involve in the SAFTA should do efforts to remove the deficit of balance
of payment.
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 One of the main issue which take place during implementation of SAFTA is that other
countries face issues related with prices due to existence of custom duties in this
situation, guidelines issue by WTO (World Trade Organisation) should be use.
 For remove the grounds of rising conflicts, a written agreement contain all terms and
conditions should be signed by all the parties.
 Products having high growth potential should be promoted to get maximum benefits of
SAFTA.
 Free Trade Area (FTA) should be promoted by countries.
 All the countries involve in agreement should review the EXIM policy in order to carry
out transactions as per the et standards and to remove barriers from trade process.
 Reforms should take place in trade policies on continuous basis as this ensure effective
transaction among enterprises and at the same time provide maximum benefits to the
countries involve in process of export and import.
 All the major issues face by enterprises at time of trade should be consider during
formulation of policies related with trade.
 Agreement should be based on mutual benefit in a way that offer advantage to all the
countries participating in nation.
 Principle of transparency, most favoured nation, national treatment and all should be
apply to all countries.
 Special needs and requirements of least developed country should be recognise clearly
and measures in their benefit should be agreed upon.
 Principle of bring transparency and offer benefit to local individuals of country should be
consider by the nation before participate in any trade contract.
 All efforts should be done to enhance economic development and bring cooperation
among the parties involve in trade agreement.
 New areas for promote trade should be explore and appropriate measures for enhance
cooperation among all parties should be develop.
 Major issues and problems which take place at time of trade agreement should be
consider at time of formulate better policies so all these can be handle by the countries
involve in agreement.
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 Review and evaluation of various terms and processes involve in EXIM policy should be
done on continuous basis in order to introduce any changes and improvements.
Further in order to deal with the concerns of stakeholders following are the main tools to
be use for implement the SAFTA:
 Trade liberalisation programme
 Rules of origin
 Institutional arrangements
 Dispute settlement procedures and consultations
 Safeguards measures
 Any other significant instrument that may be agreed upon.
Overall, in order to achieve effective implementation of SAFTA and to get all its
benefits, all conditions and terms should be clear to all the partners. In order to encourage all
players to play fairly and to encourage their participation mutual benefits should be set. Further,
changes and reforms carry out in policies related import and export should be adopted by
participants (Fletcher and Crawford, 2013). Areas such as free trade should be promoted to and
all benefits and should be offer to all the participants. It is very essential to develop a effective
solution in order to deal with the major barriers take place during transaction of trace agreement.
Further, it is very essential to bring cooperation among all members involve in agreement to get
maximum advantage of trade transactions. All the available tools and measures should be
effectively use to for find the solution of problem. Procedures given by WTO and guidelines
offer to carry out trade transaction should be followed by participants in order to ensure effective
execution of trade transaction and to get maximum benefits of it. Further, products having high
growth potential should be promoted to get more benefits. In addition to this effective
mechanism should be develop and implement by to offer all benefits to every participant and to
remove biasness in actions and decisions.
3) Products and services with high marketing potential under FTA
Development of Asia Free Trade Area open up huge marketing opportunities for Indian
products. Number of products and services are there having high marketing potential major
products include under this are Engineering goods, chemical related products, manufactured
goods and many more (Gilligan and Hird, 2012). Major product of India having high marketing
potential was engineering goods. Bangladesh exported approx 20% engineering goods during
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2003 and along with this, Bangladesh buy 14% textiles. Further, Sri Lanka buy 28 percent
engineering goods from India and 12 percent textiles. Nepal also purchase engineering goods
form India. Approx 34 percent engineering goods was sold by India to Nepal in the year 2003.
Pakistan buy chemical related products from India approx 31 percent and manufactured goods in
21 percent. After that, Bhutan purchase 71 percent engineering goods from India. Maldives
purchase 20 percent manufactured goods from India and 18 percent engineering goods from
India. Formulation of trade agreement remove custom duties which increase opportunities for
India to offer its products and services. Enforcement of SAFTA from 1 January 2006, give rise to
strategic sense for Indian enterprises to identify marketing opportunities and develop their
strategic plan. Mainly engineering products of India have high marketing potential. As India is a
labour intensive market so engineering products have enormous marketing opportunities.
Increase sale of Indian products to various countries provide number of benefits to India. One of
the major benefit of this is that it provide surplus in balance of payment and all this contribute in
economic development of country.
Development of SAFTA remove all excise and custom duties which encourage the sale
of various products of India. All this provide an opportunity to India to earn foreign exchange
and contribute in its economic development.
India is the most developed region from all among other regions of Asia like Bangladesh, Sri
Lanka, Bhutan, Pakistan, Maldives. Due to having good condition in India, large number of
opportunities are available regarding increase the sales of their products and improve their
exports. This provides that large number of opportunities are available among the industries of
India to use modern tools of marketing to promote their different products among different
countries of Asia. The market research helps in determination of the potential high market for
the products and services of Indian industries under FTA which are define below:
Bangladesh
It is considered as the largest trading partner of India which has 43% share in India's
export. It is observed that the growth rate of exports of India to Bangladesh is 13.44%. The
revenue which is earned by India through their exports in 2003 from the export of their products
and services to Bangladesh is US$1179. There is huge amount of increase in revenue from 1993
to 2003 which is around US$ 845. There are large number of products are exported by India to
Bangladesh which includes Engineering goods, textiles, non basmati rice, sugar and molasses,
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wheat, chemical related products, coal etc. All the products have their different share in exports.
It is noticed that the product which has most amount of share in export to Bangladesh is
Engineering goods. These goods having their 20% share which is highest from all other goods.
This provides that there is huge opportunity in front of India to adopt effective policies and
approaches which helps in development of export of such products. They also have the
opportunity to focus on other goods and improve their share which increases the overall revenue.
Sri Lanka
It is observed that Sri Lanka is second largest partner of India in terms of export of the
different products and services. The revenue which is generated by Indian from their export
activities in 2003 is US$923 million. The growth rate from which the exports are increase from
1993 to 2003 is 14.75%. There are also large number of products which are exported to Sri
Lanka which are textiles, sugar, vegetables, wheat, spices etc. From all of the above products the
largest share is of engineering good which is around 28%. This shows there is huge opportunity
for India to increase the amount of exports of their engineering goods by improving the quality
and reduction of the prices. There is also need to implement effective strategies regarding
different product for improvement of their share in exports. There are different advantages and
benefits in the region. International marketing is very important and essential for the company to
maximise their sales and revenues in limited time period. With the help of internet, referred firm
easily maintain their long lasting relationship with target and potentials customers in limited time
period. In Sri Lanka, this is India's second biggest trading partner which exports 233 million
from US in 1993. They manufactured their goods and services about 11% which is good for the
company to increase their turnover. In Bangladesh, it is the biggest trading partner which having
approx 43% share in order to exports their goods in India. They produce different products such
as non-basmati rice, chemical, sugar, molasses, coal and many other products to the customers
which can maximise growth and development of the country in an effective and efficient
manner. In other nation such as Nepal which is third biggest market, they export different
products and services approx $68 million in 1993. In 2003 they included different products such
as engineering goods approx 34%, manufacture goods about 9%, Textiles by 3% and many
other. In Bhutan, grew of exports at 34 percent CAGR which is good for them to accomplish
predetermined goals and objectives of the company in limited time period. Imports of this
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country also grown and develop quickly. In Maldives, India export their goods and services to
the region in the year 2003 which grown in 1993 by $ 7.22 million to US.
CONCLUSION
From the above information it can be summarised that the main aim behind development
of SAFTA is to bring transparency among trade transaction take place between various countries.
This provide number of benefits to countries involve in that agreement but at the same time give
rise to various concern of its stakeholders. For overcome with the issues take place during trade
transaction and to address the concern of stakeholders, it is very important to develop some
effective mechanism as in order to ensure smooth execution of trade transaction. Free trade areas
should be encourage and all the regulations formulate and issue by WTO should be follow by
the countries involve in SAFTA. In order to make the situation a better one and provide all
benefits of SAFTA to local people of countries better policies should be formulate and
implement. In addition to this, all the major barriers which arise during process of trade
agreement all should be remove with help of proper measures.
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REFERENCES
Books & Journals
Akaka, M. A., Vargo, S. L. and Lusch, R.F., 2013. The complexity of context: A service
ecosystems approach for international marketing. Journal of Marketing Research. 21(4).
pp.1-20.
Coviello, N. E., McDougall, P. P. and Oviatt, B.M., 2011. The emergence, advance and future of
international entrepreneurship research—An introduction to the special forum. Journal
of Business Venturing. 26(6). pp.625-631.
De Langhe and et. al., 2011. The anchor contraction effect in international marketing research.
Journal of Marketing Research. 48(2). pp.366-380.
Fletcher, R. and Crawford, H., 2013. International marketing: an Asia-Pacific perspective.
Pearson Higher Education AU.
Gilligan, C. and Hird, M., 2012. International marketing: strategy and management (Vol. 17).
Routledge.
Hilmersson, M. and Jansson, H., 2012. Reducing uncertainty in the emerging market entry
process: on the relationship among international experiential knowledge, institutional
distance, and uncertainty. Journal of International Marketing. 20(4). pp.96-110.
Magnusson, P., and et. al., 2013. The role of cultural intelligence in marketing adaptation and
export performance. Journal of Marketing Research. 21(4). pp.44-61.
Moon, T. W. and Park, S. I., 2011. The effect of cultural distance on international marketing
strategy: a comparison of cultural distance and managerial perception measures. Journal
of Global Marketing. 24(1). pp.18-40.
Parsons, T. R., Takahashi, M. and Hargrave, B., 2013. Biological oceanographic processes.
Elsevier.
Seggie, S. H., 2012. Transaction cost economics in international marketing: a review and
suggestions for the future. Journal of International Marketing. 20(2). pp.49-71.
Smith, P. R. and Zook, Z., 2011. Marketing communications: integrating offline and online with
social media. Kogan Page.
Terpstra, V., Foley, J. and Sarathy, R., 2012. International marketing. Naper Press.
Tian, K. and Borges, L., 2011. Cross-cultural issues in marketing communications: An
anthropological perspective of international business. International Journal of China
Marketing. 2(1). p.110.
Turnbull, P. W. and Valla, J. P. Eds., 2013. Strategies for international industrial marketing.
Routledge.
Zhou, L., Wu, A. and Barnes, B. R., 2012. The effects of early internationalization on
performance outcomes in young international ventures: the mediating role of marketing
capabilities. Journal of International Marketing. 20(4). pp.25-45.
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