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BIB 3339
INTERNATIONAL MARKETING
BIB 3339 INTERNATIONAL
MARKETING
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CHAPTER 1:
MARKETING AND INTERNATIONAL
ECONOMY
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Today, however, the business environment is changing
and firms cannot afford to ignore international markets.
International markets are important because most firms
are geared towards growth and so must seek new
opportunities in foreign countries as their domestic
markets mature.
Thus as global competition intensifies, local companies
that never thought of foreign competitors suddenly find
these competitors in their own backyards.
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The firm that stays at home to play it safe not only
misses opportunity to enter markets, but also risk losing
its home market.
For example, Japanese victories over Western
producers in many sectors such as motorcycles, cars,
cameras, electronic products etc, that used to be
stronghold of Western producers.
However international marketers must study each
country’s economy. Two economic factors reflect the
country’s attractiveness as a market:
The country industrial structures and,
Its income distribution.
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The country industrial structure shaped its product and
service needs, income levels and employment levels.
Four types of industrial structure should be considered:
Subsistence economies – majority engage in simple
agriculture, so fewer market opportunities.
Raw-material-exporting economies – Countries that
are rich in one or more natural resources but poor in
other ways. These countries are good market for
large equipments, tool supplies and trucks. Big
number of rich people will create market for luxury
products.
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economies – manufacturing accounts
for 10% to 20% of the country’s economy. Therefore,
the country needs more imports of raw material and
semi-finished items. Industrialization typically creates
new rich class and middle class that possibly demand
for imported goods.
Industrializing
economies – large exporters
manufactured goods and investment funds
Industrial
of
• The second economic factor is country’s income
distribution.
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• The international marketer might find countries with one
of five different income distribution patterns:
Very low family incomes;
Mostly low family incomes;
Very low/very high family incomes;
Low/medium/high family income; and
Mostly medium family incomes.
• Consider the market of Lamborghini, a car costing over
RM 700 000, the market would be very small in
countries with the first or second income pattern.
Therefore most Lamborghinis are sold in large markets
like USA, Europe and Japan.
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CHAPTER 2:
INTERNATIONAL ENVIRONMENT
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2.1 UNDERSTANDING THE GLOBAL ENVIRONMENT
Before deciding to sell abroad, a company must
understand the international marketing environment
thoroughly.
That environment has changed a great deal in the last
two decades, creating both opportunities and new
problems.
The following are the environmental forces of the host
country that need to be taken into deep consideration by
international marketers.
 The social-cultural background of the population.
 The political environment.
(both will be discussed in the next chapter)
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 The
legal framework of the country.
 The economic system and development of the
county.
 The technological development of the country.
• A careful assessment and examination of the SLEPT
factors is of utmost importance before the firm decides
which markets to enter.
• Figure in the next slide indicates the environmental
influences on international marketing activities.
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Socio/cultural
Legal
Political
Language Religion
Aesthetics
Value
& attributes Social
organization Material
culture
Local domestic law
International law Home
domestic laws
Operational restrictions
Discriminatory restrictions
Physical actions
Environmental
influences on
international
marketing
Economic
Technological
Developed economics
Emerging economics
Less
developed economics Currency
movements
Satellite communication
ISDN, Internet, WWW The
electronic superhighway
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2.2 LEGAL ENVIRONMENT
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• International marketer have to abide by individual
countries’ laws governing their operations in each
national market.
• Countries have their own legal system and national
laws. There are three main types of legal system that a
country can adopt.
 Common law – originated from England, mostly
found in about 26 countries, generally Britain and its
former colonies.
 Code law – derived from Roman law, adopted by
most countries formerly colonized by Spain and
France. Being used by about 70 countries.
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law – based on the holy Koran, is practiced in
varying degrees by about 27 Muslim countries.
• The common law and code law system affect
international marketer’s operations because they differ
in the recognition of intellectual property rights which
include patents, copyrights, trademarks, brand names
and logos etc.
• The effects of law on the marketing mix:
 Product – most countries have laws and regulatory
bodies to control product policies. E.g. ‘Halal’
recognition only being awarded by authorized body in
Muslim countries.
 Islamic
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– Law on pricing include price control laws
such as floor and ceiling prices etc.
 Promotion – promotional activities are heavily
regulated in many countries such as prohibition of
alcoholic drinks in Muslim countries.
 Distribution – this may be the least regulated of the
4P’s. However, in some countries protection may be
given to local enterprises or company in their dealing
with foreign firms.
• Legal implications extend far beyond the marketing mix.
Countries’ legislation may cover areas such as export &
import; monopoly; ownership; tax etc.
 Pricing
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2.3 ECONOMIC ENVIRONMENT
There are economic factors that help the international
marketers to decide either to enter or not to enter a
particular country.
We shall look at two of the major factors that are the
stage of economic development and the purchasing
power of the target market.
The stage of economic development:
 Generally, economists and marketers classify
countries into four to five types. Each type
comprises of some consistent characteristics that
can be used as indicator as to what types of
product will be demanded by the countries at that
point in time.
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 The
measures commonly used to classify countries
are infrastructure; education and literacy level; living
standard and; GDP.
• Classification of economic development:
 Less developed countries (LDC’s) – rely heavily on
primary activities, low GDP and lacking of
infrastructure. E.g. Zambia, Somalia, India etc.
 Developing
countries – focusing efforts on
developing service and secondary sectors, improving
literacy and standard of living, growing infrastructure
and slow emergence of middle class. E.g. Thailand,
Indonesia, Brazil, Chile etc.
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 Newly
industrialized countries (NICs) - attained significant
growth in services and secondary sectors, rising affluence
and education, well developed infrastructure and a large
middle class. Eg. The Asian Tigers - Hong Kong, Singapore,
Taiwan and South Korea.
 Developed countries – primary sectors are insignificant,
secondary and service sectors dominate the economic
activities, high literacy, affluence and sophisticated
infrastructures. Eg. USA and western Europe.
• The stage of economic development are very significant in
determining the potentials of a wide variety of products. Eg.
LDCs would not be good for semi-luxury and luxury product.
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2.4 TECHNOLOGICAL ENVIRONMENT
The technological advancement of this era has
changed the way people do business these day.
The growth of internet, satellite TV fax transmission
video conferencing have contributed to better and
faster business transactions.
Information can be disseminated across the world
within a short span of time.
Air travels also contributed to a shrinking world.
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CHAPTER 3:
SOCIO-CULTURE AND POLITICS
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3.1 THE SOCIAL – CULTURAL ENVIRONMENT
The major objective of studying the social – cultural
environment is because of our consumption and buying
behaviour are influenced culturally.
Culture consists of the way of living of members of a
society and is passed on from generation to
generation.
Characteristics of culture:
 It is prescriptive – it prescribes the kind of
behaviour considered acceptable in the society.
 It is purposeful, learned, shared, enduring,
subjective and dynamic.
 It also facilitates communication.
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Components of culture:
Material culture
and technology
Language
Aesthetics
Cultures
Politics and legal
system
Religions
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Education
Social institution
Values and
attitudes
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3.2 THE POLITICAL ENVIRONMENT
The political environment of the international markets
can be looked at in three different perspectives:
 The environment within the firm’s foreign market.
 There are several issues of political interest to the
international marketers operating in a foreign
market place.
 The stability of the government.
 The
ideology of the government. Eg.
Malaysian government intervene to protect
local firms through tariff and quota that are
being charged to foreign firms.
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 Change
of political ties/relationship between
countries can also constraint the international
marketers. Eg. In Malaysia we have experienced
situations where the Malaysian government banned
British firms from public sector contracts in response
to misrepresentation of facts published by UK media.
 The environment in the home country can also affect
the firm’s overseas operation. E.g. Malaysia prohibits
business relationship with Israel.
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CHAPTER 4:
INTERNATIONAL MARKETING
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International marketing is the performance of business
activities that direct the flow of a company’s goods and
services to consumers or users in more than nation for
a profit.
Basically, the marketing concepts, processes and
principles are universally applicable, and marketer’s
task is the same like in domestic marketing.
The difference between domestic and international
marketing lies with the environment within which
marketing plan must be implemented.
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The uniqueness of foreign marketing comes from the
range of unfamiliar problems and the variety of
strategies necessary to cope with different levels of
uncertainty encountered in foreign markets.
Key factors differentiating domestic and international
marketing.
Factors
Domestic
Social &
Cultural
Relatively homogeneous
market
“Rules of the game”
understood
Similar purchasing habits
International
Fragmented, diverse
markets
Rules diverse,
changeable & unclear
Diverse purchasing
habits
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Economic
National price
Uniform financial
climate
Stable business
environment
Diverse national prices
Variety of financial
climates, ranging from
very conservative to
highly inflationary
Multiple business
environments, some
unstable
Competitive
Competitors’ products, Many more competitors,
prices, costs and plans but little information about
usually known
their strategies.
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Political legal
Technological
Relative freedom
from government
interference
Political factors
relatively
unimportant
Use of standard
production and
measurement
systems
Involvement in national
economic plan
Political factors often
significant
Training of foreign
personnel to operate
and maintain equipment.
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CHAPTER 5:
INTERNATIONAL MARKETS
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5.1 ECONOMIC DEVELOPMENT STAGES AS REV 01
SIGNIFICANT FACTOR TO DETERMINE POTENTIAL
MARKETS
The stage of economic is very significant in determining
the potentials for a wide variety of goods and services.
Eg. The less developed countries would not be good
markets for semi-luxury and luxury products like motor
cars, jewellery, cosmetics, health foods, exercise
equipment, computers and microwave oven etc.
What is basic and necessity for rich country (eg. A
washing machine) is possibly luxury item for a poor
country.
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The poor nations, however, may be good markets for
products like motorcycle, bicycle, and sewing machines.
The stage of economic development of the market also
indicates to the international marketers the need for
product simplification and modification.
The products may need to be stripped down to very
basic features and functions, down graded the quality
and lowered the price levels if they are to be sold to the
LDC’s.
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5.2 THE PURCHASING POWER OF THE TARGET
MARKET
The level of economic development may indicate the
purchasing power of the target market roughly. The
purchasing power may vary from country to country.
In developed nations the purchasing power among the
population are more homogeneous because the
majority of the population are enjoying high standard of
living.
However, in the LDCs, extreme variations among the
rich and poor is not uncommon. Luxury cars like
Mercedes or BMW may be found in some very less
developed countries because of the existence of a few
wealth-status conscious social elites.
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In addition, other economic information useful to
international marketer determine potential markets are
rate of growth of GDP, ratio of investment to GDP,
exchange rate, balance of payment, foreign currency
reserves, external debt and price inflation indices.
Furthermore, structure of the economy showing outputs
of various sectors such as primary, secondary and
tertiary sector, distribution of employment, rate of
unemployment,
economic
development
plans,
budgetary provisions and policy relating to investment
are all useful information for marketing planning in
foreign markets.
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5.3 EMERGING MARKET SEGMENTS
With the prosperity that results from economic growth,
markets grow and distinct segments begin to emerge.
A review of the literature suggests that within many
markets there are identifiable groups of consumers with
similar wants and needs.
A European research company conduct an annual
survey of consumer lifestyles, attitude and purchasing
patterns of over 15 000 customers in 14 countries.
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Their research suggest that in these country consumers
can be classified into six distinct categories:
 Strivers (28% global average) – young people on the
run who push hard to achieve success, who are
materialistic, and who seek instant gratification.
 Achievers (22%) – the opinion leader and style-setter
which are older than strivers, more affluent, more
sensitive, more assertive and on the way up.
 Adapters (18%) – like traditional, are older and
embody the oldest values of their countries but are
not shocked by the new. They respect new ideas
without rejecting their own standards.
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(16%) – conservative and tied to the past.
They prefer the tried and true, the good old ways of
thinking, eating and living their lives.
 Pressured (13%) – those whose life-styles are
constantly pressured by time. It is more difficult to
introduce a new product successfully to these
people. They tend to stay with brands they know
because they lack the time or energy to take risks on
the unfamiliar.
 Unassigned (3%).
• All these classes were found to exist in almost all of the
country, even the countries as culturally dissimilar as
US and Japan are known to have the same six
segments.
 Traditional
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CHAPTER 6:
INTERNATIONAL MARKETS
CUSTOMERS
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6.1 TYPES OF CUSTOMERS
International marketers must study its customer
markets carefully.
Similar like domestic marketing, international markets
consist of buyers in other countries, including
consumer, producers, resellers and government.
International customer markets are divided into five
categories.
 Consumer markets – consist of individuals and
households that buys goods and services for
personal consumption.
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Business markets – buy goods and services for
further processing or for use in their production
process.
 Reseller markets – buy goods and services to resell
at a profit.
 Institutional markets – made up of schools,
hospitals, nursing homes, prisons and other
institutions that provide goods and services to
people in their care.
 Government markets – made up government
agencies that buy goods and services in order to
produce public services or transfer goods and
services to others who need them.

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CHAPTER 7:
INTERNATIONAL MARKETING
RESEARCH (IMR)
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7.1 OBJECTIVES OF IMR
To identify new attractive markets.
To increase profitability by looking out for opportunities
and threat.
To study general market trends.
To monitor changes in consumer needs and
preferences.
To spot new product opportunities and to delete
unprofitable ventures.
To stay competitive by studying competitors’ strategies
and plans.
To monitor the macro-environment forces such as the
economic, social, technological trends.
To gather market intelligence and data for tactical and
strategic planning of business.
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7.2 DIFFERENCES BETWEEN IMR AND DOMESTIC
RESEARCH
Differences in the international marketing environment
call for new and different ways of obtaining market
information.
Some concepts and frameworks such as market
segmentation, which constitutes an important concept
for decision making in domestic marketing, may not be
applicable in international marketing.
Cultural differences among nations is another significant
factors that affect international marketing research.
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7.3 SCOPE OF IMR
The types of information to be collected may cover the following
areas:
 General background about the country.
 Specific information used to solve business problems
concerning the 4P’s while marketing a product or service.
 Forecasting studies on environmental trends.
• Using marketing research to evaluate market opportunity:
 According to Wayne Walvoord, choosing among alternative
international markets involves collecting data and passing
alternative country choices through a 4-stage series of filter to
eliminate less-promising marketing opportunities.
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Step1 – macro level look at general market potential
using economic statistics, political environment
information, social structure and geographic factors.
Step 2 – looks at general market to the product to be
sold and includes growth trends and cultural acceptance
for similar products, availability of market data, market
size, stage of development and taxes and duties.
Step 3 – involves micro-level research on specific
factors affecting the product, i.e. competitions, ease of
entry, sales projection, etc.
Step 4 – considers the target markets now identified and
corporate factors affecting the implementation of
marketing plans in those markets.
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7.4 TYPES OF RESEARCH
Exploratory research
 Low cost, informal and preliminary research used before the
firm commit significant effort and cost to IMR.
 It help the firm to decide whether there is a need for further
research in a market.
• Secondary research
 Sources of secondary data:
 International company records and company personnel.
 Public libraries and university libraries.
 Ministry
of International Trade and other foreign
embassies.
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Major international organizations such as UN,
IMF, WB, WTO, EU, APEC etc.
 Various
relevant indexing and abstracting
services.
 Directories
and other sources such as,
government other official statistics; trade
directories; trade associations and chamber of
commerce; online data sources and internet; etc.
 Problems of secondary data in LDCs
 Unavailability of data.
 Inaccuracy and unreliability.
 Currency of information (out-dated)

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Data classification – data are lumped together
under broad category.
 Comparability of data – data are often not
comparable between one country and another.
 Ways to overcome problems in the use of
secondary data.
 Find out exactly what products are included under
the various statistical classifications.
 Who originally collected the data, for what
purpose, and whether there might be motive for
misrepresentation.
 From whom the data were collected, whether
respondents might have any reason for
misrepresentation.

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How the data were collected and reliable the
methodology might have been.
 How consistent the data are with local or
international statistics and whether any serious
inconsistencies can be satisfactorily explained.
• Primary research – also accompanied by a host of
problems:
 Definition problem – with respect to various countries
and cultures can be a real challenge to the
researchers.
 Non-response problem – can be of two kinds i.e.
unwillingness to respond or inability to respond.

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

Several reasons for unwillingness to respond:
 To evade tax payment.
 To prepare confidentiality.
 To conform to norms and cultural practices.
Reasons for inability to respond:
 Do not understand the questions.
 No experience using a particular product or
service eg. Most of poor people in LDCs are not
exposed to modern facilities like mobile phone.
They will not able to answer questions
pertaining to those products.
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Sampling problem – due to total absence of
economic, demographic and social statistic
especially in LDCs.
 Questionnaire problem – too technical, vague or
misleading.
 Language problem – eg. Differences in use of words,
idioms, phrases and slang.
 Personal interviewing – inexperience and not welltrained interviewer.

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7.5 TYPES OF RESEARCH AGENCY
A foreign agency based in the target country.
A domestic agency that have competent staff to
undertake a research in a target country.
A domestic agency which has associates or affiliated
members overseas.
An international agency which has subsidiaries
throughout the world.
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CHAPTER 8:
INTERNATIONAL MARKETING
STRATEGIES
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8.1 ALTERNATIVE MARKETING STRATEGIES
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Planning for international markets is much more
complex process than for domestic markets.
International marketing involves:
 Constantly
analyzing
development
in
the
international marketing environment.
 Reviewing the organization’s overseas performance
by market, parts of the market and by region.
 Analyzing how strengths have been utilized and
opportunities developed, as well as how threats have
been minimized and weaknesses corrected.
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

Relating decisions to overseas marketing objectives.
Indicating how international marketing programmes
have been coordinated and costs budgeted.
• The screening process helps an organization to analyze
how it can benefit from entry into each market. It will
use screening criteria against which to measure the
returns expected from each market. This will help it to:
 Identify the best overseas opportunities.
 Assess the potential of each market.
 Determine the extent of research required.
 Decide how the mix marketing should be adapted.
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• According to WJ Keegan, if a decision is made to
conduct the total business on an international basis, a
number of different approaches are available. He
suggests that would be:
 Strategy 1 – same product, same message
worldwide.
 Strategy
2
–
same
product,
different
communications.
 Strategy
3
–
different
product,
same
communications.
 Strategy 4 – dual adaptation.
 Strategy 5 – product invention.
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• Majaro suggest a global segmentation approach to
international marketing, which involves choosing
segments of global market in which to operate.
• By comparing information country to country, it is
possible to identify those where some degree of
standardization is possible.
• Two key question in international marketing are:
 Is there a market for the product?
 How far will it need to be adapted?
• The product most possess characteristics that make it
acceptable for the market – these may include features
such as size, shape, colour and design.
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• Organizations
also have to consider different
languages, customs and health and safety regulations.
• A business may wish to offer the product in an
undifferentiated, standardized form. The great benefit of
standardization is the competitive advantage of low
costs spread over a large output.
• However, others would argue that the success of many
product in international market has come about
because marketers have successfully adapted their
marketing mix local needs.
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• In most markets, there are barriers to standardization.
The marketing mix for a product might differ markedly
from one country to another. For example:
 Product – taste and habits differ between markets.
 Place – systems of distribution vary widely.
 Price – consumers have different incomes.
 Promotion – consumers’ media habits vary widely, as
do languages and level of literacy.
• With differentiated marketing, on the other hand, an
organization will segment its overseas markets and,
offer a marketing mix to meet the needs of each.
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• The answer to the standardization/adaptation dilemma
depends upon an organization’s view of its overseas
markets and the degree to which iti is prepared to
commit itself to meeting the needs of overseas
customers.
• Three different types of approach are usually quoted:
 Polycentrism – should be with this approach to
markets, organization usually establish subsidiaries
with their own objectives and marketing policies,
which are decentralized from the parent company.
Adaptation takes place in every market using
different mixes to satisfy customer requirements.
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Ethnocentrisms – here, overseas operations are
considered to be of little importance, and plans for
overseas markets are developed at home. There is
little research, the marketing mix is standardized and
there is no real attention to different customer needs
and requirements in each market.
 Geocentricism – with this approach, standardization
takes place wherever possible and adaptation only
where necessary.

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CHAPTER 9:
PLANNING
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9.1 STRATEGIC PLANNING
Strategic planning allows for rapid growth of the
international functions, changing market, increasing
competition, and the ever-varying challenges of
different national markets.
An international marketer who has gone through the
planning process has a framework for analyzing
marketing problems and opportunities and a basis for
coordinating information from different country markets.
The process of planning may be as important as the
plan itself because it forces decision makers to examine
all factors that affect the success of a marketing
program and involves those who will be responsible for
its implementation.
The process of international marketing planning is
shown in the next slide.
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For detail explanation please
refer to: International Marketing,
9th ed., Philip R. Cateora,
McGraw Hill.
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CHAPTER 10:
IMPLEMENTATION AND CONTROL
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10.1 ORGANIZING AN OPERATIONAL TEAM AND
IMPLEMENTING A MARKETING STRATEGY
The key to success in any marketing strategy is the
firm’s ability to implement the chosen strategy.
Because of the firm’s distance from its foreign markets,
international marketing strategy implementation is
particularly difficult.
The firm must have an organization structure that fits
with the international environment.
It has to be flexible to implement different strategies
for the various markets it operates in.
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Companies manage their international marketing
activities in at least three different ways.
Most companies first organize an export department,
then create an international division, and finally
become a global organization.
a) Export department
 A firm normally get into international marketing by
simply shipping out its goods.
 If its international sales expand, the company
organizes an export department with a sales manager
and a few assistants.
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 As sales increase, the export department can then
expand to include various marketing services so that it
can actively go after business.
 If the firm moves into joint ventures or direct
investment, the export department will no longer be
adequate.
b) International division
 Many companies get involved in several international
markets and ventures.
 A company may export to one country, license to
another, have joint-ownership venture in a third, and
own a subsidiary in a fourth.
 Sooner or later it will create an international division or
subsidiary to handle all is international activities.
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 International division are organized in a variety of
ways. Its corporate staff consists of marketing,
manufacturing, research finance, planning and
personnel specialists. They plan for and provide
service to various operating units.
 Operating unit may be organized in one of three ways:
 Geographical organizations – with country manager
who are responsible for sales people, sales
branches, distributors and licensees in their
respective countries.
 World product group – each responsible for
worldwide sales of different product groups.
 International subsidiaries – each responsible for its
own sales and profits.
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c) Global organization
 Several firms have passed beyond the international
division stage and become truly global organizations.
 They stop thinking of themselves as national
marketers who sell abroad and start thinking of
themselves as global marketers.
 The top corporate management and staff plan
worldwide manufacturing facilities, marketing policies,
financial flows and logistical systems.
 The global operating units report directly to the chief
executive or executive committee of the organization,
not to the head of an international division.
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 Executives are trained in worldwide operations, not
just domestic or international.
 The company recruits management from many
countries, buys components and supplies where they
cost the least, and invests where the expected returns
are greatest.
• Organizing for effective international marketing is a
considerable challenge that besets multinational firms
of any size.
• The
tension
between
centralization
and
decentralization is a very tight one. On the other hand
, manager must agree upon key strategic decision and
activities to centralize.
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• On the other, they must give as much autonomy as
possible to local staff who are close to market
conditions.
• There is no one correct combination of centralizeddecentralized organization. It is important to heed the
maxim, ‘Think global, act local’.
• The organizational structure varies according to the
firm’s circumstances and over time.
• The firm must ensure that its structure fits with its
international environment , while at the same time
have the internal flexibility required to implement its
strategic goal.
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10.2 EVALUATE AND CONTROL OPERATIONS
Any number of problems can beset the marketing plan,
from unexpected competition to outbreak of war.
The firm must be sensitive to such occurrences. Its
flexibility to respond to environmental
shock
determines long-term success.
As such, the firm must evaluate the outcome of its
marketing plans, analyze progress and variances from
target goals and objectives, and take control actions
where needed.
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It is important to note that the model of planning
decisions taken by international marketing managers is
an iterative process.
The activities are continuous and must be undertaken
continually to ensure environmental sensitivity and
effective strategy implementation.
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CHAPTER 11:
FINANCING AND IMPORT-EXPORT
PROCESS
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11.1 CAPITAL NEEDS FOR INTERNATIONAL
MARKETING
Distance, time lags, tariff, taxes, financial participation
requirement,
exchange
restrictions,
fluctuating
monetary value and adequate local financial strength
are all elements differentiating the problem of
financing international marketing from those related to
domestic marketing.
International marketing activities frequently require
supplementary financing for working capital and
capital investment.
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Working capital requirements
 Because of time lags, shipping costs, duties, higher
start-up costs, inventory costs, market penetration
costs and increased financial needs for trade and
channel credit, foreign operations typically require
higher levels of working capital than domestic
activities operating at the same volume levels.
 Travel costs alone can consume working capital
funds; in one instance, a U.S. firm discovered it was
spending more on travel in a foreign market than on
salaries.
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Capital investment
 Some markets are closed to foreign business
unless they produce locally.
 In such cases, the production facility itself is a
crucial element to market entry and may be
considered part of the marketing system because
market
requirements
alone
dictated
the
expenditure.
 In addition, such marketing facilities as warehouses,
shipping docs, retail stores and sales offices require
significant capital investment in physical facilities.
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11.2 SOURCES OF GOVERNMENT FUNDS FOR
INTERNATIONAL MARKETING OPERATION
Sources of government funds for international
marketing operation are stated as follow:
 Export-import bank.
 Agency for international development (AID).
 Overseas private investment corporation (OPIC).
 Eurodollar market.
 Debt-equity swaps.
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11.3 REGULATIONS AND RESTRICTIONS OF
EXPORTING AND IMPORTING
There are reasons why countries impose some form
of regulation and restriction on the exporting and
importing of goods.
Export regulations can be designed to conserve
scarce goods for home consumption or to control the
flow of strategic goods to actual or potential enemies.
Import regulations may be imposed to protect health,
conserve foreign exchange, serve as economic
reprisals, protect home industry, or provide revenue in
the form of tariffs.
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To comply with various regulations, the exporter may
have to acquire license or permits from the home
country and ascertain that the potential customer has
the necessary permits for importing goods.
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The exporting process
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Various export controls:
 Types of export licenses
 General license permits exportation of certain
commodities with nothing more than a
declaration of the type of product, its value and
its destination.
 Validated
license, issued only on formal
application, is a specific document authorizing
exportation within specific limitations.
 Other export documents – certain shipment must
be supported with document supplied by the
prospective purchaser or the government of the
country of destination.
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
Other export documents - International import
certificate certifies that the exported product will be
disposed of responsibility in the designated
country.
• Import restrictions:







Tariff
Exchange permits
Quotas
Import license
Boycott
Standards
Voluntary agreement
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