International Marketing || very Flawless.

How can the increased interest in international marketing on the part of the U.S. firms be explained? correct answers Increased interest has been brought about because of changing competitive structures, coupled with shifts in demand characteristics throughout the world. The U.S. market has reached saturation levels for many products and services and increasing numbers of firms are faced with surpluses which must be sold. Also, many firms find that return on investment may be higher in foreign markets than in domestic markets. Finally, more and more firms realize that tomorrow's markets will be world markets and it is imperative that they establish world market positions early. Discuss the five phases of international marketing involvement. correct answers The first phase includes those domestic firms which have no foreign business activity except those sales made to foreign customers who come directly to the firm. The second phase includes domestic firms which have temporary surpluses which are sold abroad. Therefore, sales are made on an availability basis with little or no intention for continuing market representation. The third phase includes the domestic firms that have permanent productive capacity which is utilized to produce goods which are sold on a continuing basis in at least one foreign market. The fourth phase includes firms that regularly sell and often produce their products in a number of foreign markets, often around the world. The fifth phase includes the international company that produces a product for the world market Differentiate among the three international marketing concepts or levels of involvement correct answers 1.Domestic Market Expansion Concept (that is, No Direct Foreign Marketing, Infrequent Foreign Marketing, and Regular Foreign Marketing)2. International Marketing (sometimes referred to as multi-domestic marketing) 3. Global Marketing Discuss the three factors necessary to achieve global awareness. correct answers The three factors necessary to achieve global awareness are: 1) objectivity; objective in assessing opportunities, evaluating potential, and responding to problems. Too often mistakes are made because companies are swept away with generalities and make investments only later to find out that their commitment or abilities were not sufficient to succeed, 2) tolerance toward cultural differences; tolerance is understanding cultural differences and accepting and working with others whose behavior may be different from yours, 3) knowledgeable; knowledgeable about cultures, history, world market potentials, and global economy and social trends is critical for a person to be culturally aware. To be successfully in international business and globally aware, a person needs to keep abreast of the enormous changes occurring throughout the world. The 21st century will usher in great change and opportunities. The knowledgeable marketer will identify those opportunities long before it becomes evident to others. Balance of Payments correct answers When countries trade, financial transactions among businesses/consumers of different nations occur. Products and services are exported and imported, monetary gifts are exchanged, investments are made, cash payments are made, and cash receipts received, and vacation and foreign travel occurs. In short, over a period of time, there is a constant flow of money into and out of a country. The system of accounts that records a nation's international financial transactions is called its balance of payments.