International Marketing Report: Comparing the US and UAE Markets

This report provides a comprehensive comparative analysis of international marketing strategies, focusing on the United States (US) and the United Arab Emirates (UAE). It delves into various crucial factors impacting market entry and success, including geography, infrastructure, historical events, demographics, economic conditions, and political landscapes. The report highlights the significant cultural differences, business etiquette norms, and marketing practices prevalent in both countries. It examines how these elements influence consumer behavior, business operations, and the overall approach to marketing goods and services. The analysis covers aspects like language, religion, cultural values, family structures, and gender roles to provide a nuanced understanding of the marketing environment. Furthermore, the report explores specific marketing practices, including advertising, intellectual property rights, and labeling regulations. By comparing and contrasting these elements, the report offers valuable insights into the challenges and opportunities of international marketing in the US and UAE, aiding businesses in tailoring their strategies for effective market penetration and sustainable growth.

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INTERNATIONAL MARKETING
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2-9-2019

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Contents
Introduction......................................................................................................................................2
Geography and infrastructure..........................................................................................................3
United States................................................................................................................................3
United Arab Emirates..................................................................................................................4
Historical events..............................................................................................................................5
United States................................................................................................................................5
United Arab Emirates..................................................................................................................5
Demographics..................................................................................................................................6
United States................................................................................................................................6
United Arab Emirates..................................................................................................................6
Economy..........................................................................................................................................7
United States................................................................................................................................7
United Arab Emirates..................................................................................................................7
Political issues.................................................................................................................................8
United States................................................................................................................................8
United Arab Emirates..................................................................................................................8
Cultural factors................................................................................................................................9
United States................................................................................................................................9
United Arab Emirates................................................................................................................10
Marketing practices.......................................................................................................................11
United States..............................................................................................................................11
United Arab Emirates................................................................................................................12
Common business etiquette...........................................................................................................12
United States..............................................................................................................................12
United Arab Emirates................................................................................................................13
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

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Introduction
International marketing is market the product of the company in another nation, that is
selling goods across the borders, which is a major decision to be made, and this majorly depend
on the nation the company would like to market their goods and major traits of the nation
(businessjargons, 2018)
The scope for the companies to go international has been increased according to today’s
scenario. But before going international, it is relevant to understand the major difference in
various factors among the two countries to conduct business. The factors like political factors,
economic factors, cultural factors, and business etiquettes of a nation are different to one another,
and in case of entering a nation and conducting marketing practices in the host nation, it is
important to go through and abide with a major difference in these factors. This report will focus
over the major differences in the United States (UK), and United Arab Emirates (UAE), while
considering three major factors that are the cultural difference, business etiquette, and marketing
practices for research.

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Geography and infrastructure
United States
Figure 1:( Source: (cia.gov, the-world-factbook/geos/us, 2019)
Considering the geographical aspect of the US, the country is situated in North America
and bordering north Pacific and the Atlantic Ocean between Mexico and Canada. Considering
the area, it is a total of 9833517 sq. km, which is very much than that of UAE, which means the
marketing would be a challenging aspect to conduct due to the larger area. The climate of the
nation is temperate to the cooler side. Low winter temperature is there in the North West. The
climate is to be considered while marketing goods especially in the case of the fashion industry,
which must offer the clothes according to the climate. Infrastructure in the US is well developed,
as the nation is considered to be one of the developed nations of the globe.

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United Arab Emirates
Figure 2:( Source: (cia.gov, the-world-factbook, 2019)
Considering the geographical aspect of UAE, it can be said that it is a small nation, which
is parts of the Arab world on the eastern side, surrounded by the Arabian Sea and the Persian
Gulf. The facts provided by the CIA’s world factbook, the country has 83,600 sq. kilometers the
total surface area. The country lies within Arabian Peninsula’s northern desert belt, which is
popular for unpredictable rain, humilities, and high temperature, and long periods of sunshine.
Moreover, the nation is prone to the harsh desert climate, which is mostly humid and hot.
Although maintaining region are quite cool (cia.gov, 2019). This could affect the trade, which
means the marketing of goods that are not suitable for the climate would be waste, like heaters.
This aspect is to consider before offering the goods to the residents. Considering, the
infrastructure, according to the world economic forum, in transport infrastructure UAE has to
outperform the US, which means that it would be easy to market goods to good infrastructure
(thenational.ae, 2019).

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Figure 3: (Source: (cia.gov, the-world-factbook, 2019)
Historical events
United States
One of the most horrible movements in the history of the nation was 9/11 terrorist attack
in 2011, which was like a turning point for the nation, and has changed various rules and
regulation around the nation. Another such event was tech revolution, which has changed the
generation and working style, which indicates that the marketing must involve technology in the
product, and process to deliver goods (businessinsider, 2019)
United Arab Emirates
Some of the major milestones in historical events include the opening of the world’s
tallest tower in Dubai on 4th Jan 2010, which has led to an increase in tourist to the nation.
Another milestone includes the inauguration of the world’s largest solar power plant in 2013
(gulfnews, 2019).

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Demographics
United States
The demographic factors also affect the marketing decision often company. It includes
the population, which was 329,256,465 until July 2018. Moreover, considering the age
distribution includes 22,119,340 male and 21,082,599 female for age 15-24 year. Moreover, in
terms of percentage, 18.62% of the population is 0 to 14 years, 13.12% is 15 to 24 years, 39.29%
is 25 to 54 years, 12.94% is 55 to 64 years, and 16.03% were 65 years or above until 2018. The
urban population is 82.3% to the overall population, which means the marketing would be
majorly focused on the urban population (cia.gov, the-world-factbook/geos/us, 2019) (dubai-
information-site, dubai-economy, 2018)
United Arab Emirates
The demographic factors for the UAE include the population, which was 9,701,315 until
July 2018. Moreover, considering the age distribution includes 408,376 male and 332,986 female
for age 15-24 year. Moreover, in terms of percentage, 14.39%of population is 0 to 14 years,
7.64% is 15 to 24 years, 70.45% is 25 to 54 years, 6.05% is 55 to 64 years, and 1.47% were 65
years or above until 2018. The urban population is 86.5% of the overall population. This factor
would affect the target market decision in marketing goods (Cabral & Mathiason, 2015)
Economy
United States
Economic factors are another important external environment factor which would include
aspects like GDP per capita income, was $59,800 for 2017, which indicates2.2% growth rate in
GDP. The unemployment rate is 4.4% until 2017, which was reduced by 0.5% since the previous

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year. Moreover, considering the export data the major export partner include Canada as 18.3%,
Mexico as 15.7%, China as 8.4%, and Japan as 4.4 % until 2017. Export commodities include
industrial supplies, consumer goods, and capital goods, agricultural products like soybeans, corn,
and fruit. Moreover, the inflation rate was 2.1% in 2017 which is increasing and it can be a threat
to the company trading in the nation. The private firms and individual are more liable to make
decisions than the state government or federal regarding the need for services and goods
predominantly (thenational, 2019).
United Arab Emirates
Economic factors for the UAE includes aspects like GDP per capita income, was $68,600
for 2017, which indicates a 0.8% growth rate in GDP, which is very less than that of the US. The
unemployment rate is 1.6% until 2016, which was reduced by 2% since the previous year.
Moreover, considering the export data the major export partner include India as 10.1%, Japan as
9.3%, Iran as 9.9%, Oman as 5%, South Korea as 4.1%, China as 5.4%, and Switzerland as 4.4%
until 2017. Export commodities include natural gas, crude oil, dried fish, and dates. Moreover,
the inflation rate was 2% in 2017 which is increasing and it can be a threat to the company
trading in the nation. It is an open economy, with the offering of hundred percent zero tax and
foreign ownership as the country’s free trade zones, which is attractive for the foreign investors
(cia.gov, the-world-factbook, 2019) (Dubai.ae, 2018)
Political issues
United States
Government plays an important role while investing in any nation. Constitutional federal
republic type of government is responsible for the nation. Considering the international business,

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the country’s international participation includes ABD, ASEAN, AfDB, APEC, ARF, and many
more, which indicates that the nation is friendly towards the international business. Moreover,
considering the taxes, it includes 17% of the GDP until 2017, which excludes social security
contributions. In case of any social contribution were included, the taxes amounted to be around
22% of GDP. Moreover, the corporate tax rate was stable for the nation till 2017 that was 40%,
which as reduced to 27% in 2018, which would be beneficial for the company to invest
(theglobaleconomy, 2019).
United Arab Emirates
Federation of monarchies type of government is responsible for the nation, with a mixed
legal system of civil and Islamic law. Considering the international business, the country’s
international participation includes ABEDA, ICC, GCC, ISO, WTO, and many more, which is
different from the US but indicates that the nation is friendly towards the international business.
Moreover, considering the taxes, it includes 28.8% of the GDP until 2017, which is higher than
that of the US. Moreover, the corporate tax rate was stable for the nation since 2006 that is 55,
which is more than the US, which is not beneficial for the company to invest (theglobaleconomy,
United-Arab-Emirates/corporate_tax_rate, 2019) (dubai-information-site, dubai-legal-system,
2018)
Cultural factors
Culture plays a very important role while understanding the international business, and
related marketing decisions for the company (Alvesson, 2016).

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United States
The major religion of US residents includes the majority of protestant, roman catholic,
Jewish, Mormon, Christians, and some other. Considering the language, the maximum language
used in the nation include English to 78.2%, and Chinese and Spanish are some other languages
found to be used in the nation. The culture of the country include food lovers, that is the nation
loves to have a lot of food, due to which the obesity rate is also found too a high of the country
that is 60%, which the marketers must consider. Junk food consumption is part of their culture,
and coffee drinking culture also exists. Moreover, the contribution of humanities and art are
contributed by the nation residents, moreover, the culture also includes the love for sports that
include baseball, American football, basketball. Most importantly, Olympics are taken on higher
priority and are traditionally well in those. The marketing strategies can depend on these aspects
while considering their cultural preferences.
Considering the customs related to meeting and greeting includes casual and informal
American greetings, moreover, incorporate greetings, handshakes are commonly used at the time
when meet or leaving. Some of the cultural values for the residents include independence, which
means the nation believe in individualism to a large extent. Equality, which indicates that
societies believe in equal when it comes to gender. Informality, that is the behavior is more
informal with people, it should not be misinterpreted to rudeness or irreverence. Directness, that
is more open culture or frankness are value to the people of the US (internationalstudent, 2019).
United Arab Emirates
Culture is very relevant in Middle East nations. The nationality of UAE is Emirati, where
the majority are of the Muslim religion, although other religion like Christianity and others also

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exist to a smaller extent. The languages preferred officially is Arabic, although Persian, English,
Urdu, and Hindi are also used.
The major aspect of the culture includes the family, which are the key for the society and
held strong values of tribal kinship. They are more closely knit families and would like to stay in
the same neighborhood. Moreover, large families are found, for instance having six children or
more are common in the culture. Moreover, the social class is very well defined in the society
which is divided between the immigrant population and Emirati nationals. The sheikh ruling
families are is the highest position considering socially and politically in society. Considering the
role of gender, the traditional culture depends upon patriarchal society, which encourages gender
equality, and rights for both sexes are equal. Although it is more of a male-dominated society, in
today’s scenario, women are increasing in the workforce (commisceo-global, 2019). Moreover,
eating food with hands are part of the culture, and are seen most commonly in the nation. These
factors have to be considered by marketers. As the nation is very much concern about their
culture, values, and beliefs (Emirates, 2018).
Figure 4:( Source: (commisceo-global, 2019)

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Marketing practices
This factor includes rules and regulations related to marketing practices like intellectual
property rights, advertising, and labeling
United States
In the US some of the federal legislation that influence marketers are Sherman act 1980,
which are for restraint trade illegal, Federal trade commission’s 1914 act, which is held
responsible to deal with unfair competition methods, Laham act of 1946, which was created and
held responsible for trademarks protection. Moreover, some of the laws are created to save the
customers from unethical practices of marketers like federal hazardous substances act (1960),
which provide laws related to labeling, which says it is essential to have warned labels on a
household chemical which can be hazardous. Public health smoking act 1970, which is
restricting the marketers to show any kind of advertisements of cigarette on radio or television
and must have the warning as part of labeling to the packaging. Child protection act 1990, which
provide laws related to the limited time of advertising on children channels. Moreover, for
considering the environmental issue, the National environmental policy act 1970 was created to
control the type of pollutions and deal with the corporates that are caused to an increase in
pollution. These laws regarding the marketing practices are to abide by the company to sustain in
the market (commisceo-global, country-guides/usa-guide, 2019).
United Arab Emirates
UAE has its own specifications regarding the advertisement and marketing practices, and
they are not regulated with the help of single regulations, they are regulated by many regulations
and laws like national media council regulations, printing and publication law, and cybercrime