International Marketing Practices

One way to think about the entry mode to a foreign market is the framework proposed by Punnett [22], which depends on three factors: the perceived level of attractiveness of the foreign market, the firm’s ability to engage in international operations (capacity), and the perceived risk of the foreign market in consideration. If conditions are promising — meaning the attractiveness of the foreign market is high, the risk is perceived as low, and the firm’s ability to enter that market is high — then maximum firm involvement is favored, which may translate in direct foreign investment in distribution infrastructure, personnel, and marketing efforts. On the opposite end, when the conditions are unfavorable — with low perceived market attractiveness, high risk, and the firm’s low capacity to serve that market — the company may want to minimize risk and use intermediaries instead. Cultural and Political Differences and Their Importance for International Trade Varying cultural, legal, political, and geographic environments stand among the international marketer’s primary concerns, often associated with high uncertainty surrounding consumer receptivity to marketing actions [19]. Cultures differ vastly between regions, countries, and cities and can change over time. It is vital to consider cultural differences when investing in international trade, as culture directly impacts the political climate and, in turn, the economy and trade. This section of the guide delves into how to address cultural differences in foreign countries. A business that plans to enter foreign markets needs to make a conscious effort to understand cultural differences, specifically those that influence consumer behaviors and how business is done, effectively gaining cultural intelligence or cross-cultural literacy [20, 21]. Cultural intelligence can be defined as “ a multifaceted competency consisting of cultural knowledge, the practice of mindfulness, and the repertoire of behavioral skills ” [20]. The need to cultivate awareness of cultural differences is often overshadowed by logistics, financing, and other such business requirements; however, overlooking the importance of gaining cultural intelligence is often detrimental to companies entering a foreign market. Examples of firms that failed foreign market entrance are plentiful in business literature, typically associated with, in part, the implementation of marketing campaigns that failed to consider cultural differences and, as a result, were not well received by the foreign consumer base [20]. Especially as economies and business ventures become more dependent on foreign trade, it is vital to embrace foreign business customs. Elements of business culture that can vary between countries include relationships, language, body language, religion, values and attitudes, laws and legal environment, education, technology, and social organization [23]. The most effective way to address these stark cultural differences is to “do your homework,” delving further into specific cultural practices

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