Different Term Of International Marketing

Favorable Logistics:
A favorable ratio of sales value to transportation cost increases the ability of global firms to concentrate
production in certain countries and take advantage of economies of scale. Other logistic factors that have a
bearing on global strategy development are non-perishability of products, absence of time urgency, and little
need for location close to customer facilities.
Difference in Country Costs:
This is based on the classical theories of differences in factor costs that do exist and can be exploited by firms
to achieve comparative advantage. Beside factor cost differences, exchange rate differences also have a
significant bearing on the absolute costs and the stability of costs.
High Product Development Costs:
High product development costs relative to the size of national markets act as a driver to globalization. These
costs can be reduced by developing few global or regional products.
Fast-Changing Technology:
Fast-changing technologies in products or processes lead to high product development costs, which increase
their globalization potential.
Government Globalization Drivers - Rules set by national governments can affect the use of global
strategic decision-making. Governments around the world adopt policies, formulate regulations and
implement programs to support local businesses sell abroad and to affect their international trade. These
rules/policies include the following:
Favorable Trade Policies:
Import tariffs and quotas, non-tariff barriers, export subsidies, local content requirements, currency and
capital flow restrictions, ownership restrictions, and requirements on technology transfer are some means
governments can use to influence firm behavior. These policies can have a significant negative impact on
standardization of products and programs.
Compatible Technical Standards:
Differences in technical standards among countries also affect the extent of product standardization.
Common Marketing Regulations:
Restrictions on various marketing activities can also act as a barrier to the use of uniform marketing
approaches. For example, restrictions on the use of certain kinds of media for advertisements, differences in
ad content like the use of gender and comparative advertising, and so on.
Government-Owned Competitors:
The presence of government-owned competitors spurs the development of global plans as a means of
counteracting the advantages of protected home markets.
Government-Owned Customers:
Presence of government-owned customers could provide a barrier to globalization since such customers
usually favor national suppliers.
Competitive Globalization Drivers - Competitive drivers raise the globalization potential of any industry
and spur the need for a response on the global strategy levels. The common competitive drivers include:
High Exports and Imports:
The level of exports and imports of final and intermediate products and services, i.e., the extent of interaction
between countries, has a significant bearing on the use of a global strategy.