Chapter 19, Problem 19.1DQ

Summary Introduction

To discuss: The environmental factors which need to be considered by the international marketers before entering the foreign markets.

Explanation of Solution

The environmental factors which need to be considered by the international marketers before entering the foreign markets:

Environmental factors are of 3 factors they are as follows:

• Economic environment
• Political and legal environment
• Social and cultural environment

Social and cultural environmental factors:

The entering marketers need to consider the economic environmental factors. It plays a vital role in international marketing. They marketer need to focus on the language, taste and preference, regional values, and consumer habits.

Economic environmental factors:

Economic factors to be considered as follows:

• Per capita income,
• Supply and demand,
• Relative class structure.
• Financial banking and transactions

Political and legal environmental factors:

Political and legal factors to be considered as follows:

• Laws
• Taxes
• Licensing and permits
• Fees
• Taxes
• Tariffs
• Currency risks.