Never has the challenge been so huge in marketing. The marketer today has immense opportunity beyond his borders. They must be able to capitalize on these opportunities. The crux of International Marketing is to teach students how to trade beyond borders and what are the adaptions and adoptations they will have to make to succeed in foreign markets.
The objective of this course is as follows: -
1. Bring out the difference between domestic and international mareketing
2. Understand how the Four Ps of marketing undergo a change in the foreign markets.
3. To understand the dynamics of International Trade
4. The role of pacaging in International Trade.
5. Impact of Multinationals on marketing efforts.
I would like to bring to the notice of the students that the first two units of the syllabus would be taken by me whereas the remaining two units will be taken by Prof. Swapna.
While undertaking this subject keep a open mind and make full attempt to grasp the dynamics of this subject.Wishing you all the best on your international journey.
Today it was 1st lec of mona mam, she is teachin us 2 units of international marketing.
ReplyDeleteIt was about international marketing in which mam briefed it with defination of MARKETING, its 3 variables which are markets, needs and wants, and process which is in all most important which is different from others. Then Mam discussed the FACTORS which are controllable that is MARKETING MIX (4ps) and uncontrollable that is ENVIRONMENT (PEST). And it was Followed by features and difference B/w DOMESTIC AND INTERNATIONAL MARKETING, and it was end of LEC......
As mona mam gave us clear meaning and concepts were also well cleared and it was not hard to get it but easy to understand.
OVERALL IT WAS A GOOD LEC..
Lecture II - 24/11/2010(Wednesday)
ReplyDeleteThe lecture started from where we had stopped yesterday i.e. DIFFERENCE BETWEEN INTERNATIONAL AND DOMESTIC MARKETING(last topic of Chapter I-International Marketing). This has got a total of Seven points -
1. Sovereign Political Entities
2. Different Legal Systems
3. Different Monetary Systems
4. Lower Mobility of factors of Production
5. Difference in Market Characteristics
6. Differences in Procedures and Documentation
7. Greater Degree of Risk
The reason I write these points is that THIS IS A VERY IMPORTANT QUESTION IN UNIT I!
Next we started with chapter II-Basis of International Trade. This chapter includes around 7 Theories of International Trade. The first one was completed today - THEORY OF COMPARATIVE COST(ADVANTAGE).
The difference between Absolute Advantage and Comparative Cost Advantage is the former means being best in the world and the latter means where the cost in one country is lower than in other countries. To explain this,an example of 2 Country 2 Commodity Model that was made famous by Ricardo was used.
In this model, England produces Cloth at 100 & Wine at 120 and Portugal produces Cloth at 90 & Wine at 80. There are Six Inferences we draw from this model.
The reason why Portugal will trade in Wine with England is for 1 Wine they are getting 1.20 Cloth from England. Whereas, in the home country it is only 0.89. England will trade with Portugal in Cloth as it gives 0.89 Cloth for 1 Wine to Portugal. However in the home country, it is 1.20
This Comparative Cost Advantage leaves both the countries better-off. The only limitation of this theory is that the Ricardian Model of Comparative Cost is only based on one factor of Production-Labour.
THEORY OF COMPARATIVE COST IS A SURE 10 MARK QUESTION!
Feedback: We understood the seven points of difference very well due to all the examlpes given by Ma'am. The way she relates her examples to the topic is fantastic. The theory was tricky to understand at first but, as always Ma'am made it simpler for us.
Lecture III - 30/11/2010(Tuesday)
ReplyDeleteToday we continued with 2nd chapter i.e BASIS OF INTERNATIONAL TRADE. In the last lec we started with THEORIES OF INTERNATIONAL TADE. we completed the first theory-THEORY OF COMPARATIVE COST.
Today, we continued with the following theories:
2.FACTOR PROPORTION(ENDOWMENT THEORY):By Hecksher and Ohlin. It is a 2 country, 2 commodity and 2 factor i.e. is capital and labour model.
LEONTIEF tested the theory and found that US being capital based company uses more labour than capital.he said that US labour is 3 TIMES more efficient than foreign labour.Lec ends here
3.HUMAN CAPITAL APPROACH(SKILL THEORY OF INTERNATIONAL TRADE):By Becker, Kennen and Kaessing.Here labour is divided on the basis of SKILLED and UNSKILLED.
4.NATURAL RESOURCES: By Vanek. Country exports those products which are ample in their country.
5.R&D AND PRODUCT LIFE CYCLE THEORIES: By Vernon. Industrial countries uses R&D to produce new products and becomes the monopolist in the foreign markets. later, other countries copies their products.
6.SCALE ECONOMIES: Here ,Large scale production is done which will reduce cost per unit resulting into economies of scale.
7. IDENTICAL PREFERENCES: By Linder. This theory says that countries with similar level of economic development trades.
8.THE OPPORTUNITY COST THEORY: This theory says that while trading with one country, the opportunity to trade with another country, which may be more profitable, is lost.
New chapter was started after that named, INTERNATIONAL BUSINESS ENVIRONMENT with the definition of environment.
FEEDBACK: Everything taught by Ma'am was understood thoroughly by us.She made it very easy to understand and remember all theories.
Lecture 4-1/12/10(wednesday)
ReplyDeleteWe continued with with International Business environment today.we learnt what all constitutes a Business Environment.
1.Social Environment-this environment influences the consumer buying behaviour and differs from country to country.
2.Demographic Environment-it includes size of the family,nature of family,growth rate of the family,age composition,income levels
3.Economic Environment-this is divided into 3 parts.
a)economic conditions in the market-talks about the demand and supply factors.
demand factors indicates the purchasing capacity and the willingness to buy a product or service.indicates how competitive the market is
supply factors-indicates how competitive the market is.
b)economic policies-it includes the industrial policy,the monetary policy, the fiscal policy and the export-import policy
c)economic systems of the country-it includes free market economy or capitalist economy.egUNITED STATES
socialist or communist economy eg CHINA
mixed economy eg.INDIA
The following are some general points for economic environment.
1.the marketers problem is not absence of data
but abundance(lots of dats there so confused the marketer)
2.most profound change in the economy is the emergence of global market and global competitors(all countries are competing with each other)
3.the integration of the world has increased(all contries are dependent on each other)
4.capital movement rather than trade have bcome the driving force of the world economy(transfer of money than products)
5.employment in manufacturing remains steady or declined, production continous 2 grow(labour takenover by machines)
6.uncoupling of the primary products economy from the industrial economy
7.emergence of the world economy as the dominant economic unit.(no country rules the world the world economy rules)
8.communism as eco n political system have been overthrown by the success of capital market system(democracy wins)
then there are 5 major changes in the economy
those 5 points are in the above statement itself FEEDBACK-todays lecture was amazing.maam gave examples and what i love about maam examples are that they are from the current affairs which we can relate to.
These Are Some Of The Benefits Of Trading Blocs.
ReplyDelete•It helps in Free Trade Among Its Member Countries.
•It Helps in Optimum Utilisation Of Various Resources.
•It provides better Efficiency And Lowers Prices.
•It Facilitates Economic Co-operation Among Fellow Member Countries.
Important Trading Blocs.
•ECM/EEC/EU.
•NAFTA-North American Free Trade Area.
•ASEAN-Association of South-East Asian Nations.
•SAARC-South Asian Association of Regional Co-operation.
•OPEC-Organisation Of Petroleum Exporting Countries.
EU-European Union.
•Consists Of 27 European Countries Consisting Of 500 Million People.
•It Is The Most Successful Economic Group Formed Till Now.
•Rome Treaty 1957-Main Objective Was To Accelerate Economic Growth Within Member Countries.
•U.K,Ireland,Denmark,Spain,Greece And Portugal Joined Later On.
•It Came To Be Known As European Union From 1st January 1993.
•EU Is The Most Developed Consumer Market In The World.
•Only European Countries Which Are Democratic Can Join EU.
•EURO The Common Currecy Was Introduced In 1999.
•All The Members Of EU Have:
Common Economic Policies.
Common Agriculture Policies.
Common Fisheries.
Common Transportation.
Presently There are 27 countries in EU
There is no policies or customs check at border between most of the EU countries.There is more corporation between policies from different EU countries.You can buy and bring back any goods for personal use when you travel between EU countries.EU is consider as a major trading power this is because EU has the highest share in case of trade of goods and service
Trading blocs and growing intra regional trade
1.Intra regional trade means trad e carried on within the members countries
2.Some of the advantages of this include:
1.removal of trade barriers
2.transfer of capital and labours is allowed
3.uniformity in political and economic policies