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Unit 14: The Global Marketplace
Notes
Task A leather goods manufacturer has appointed you as the export manager.
Identify two countries and entry strategies, product standardisation or
adaptation for those countries.
Self Assessment
Multiple Choice Questions:
4. …………………… is selling products to one or more foreign countries.
(a) Exporting (b) Importing
(c) Contract manufacturing (d) Venture selling
5. …………………… is an appropriate approach, when a company wants to avoid a direct
involvement in global marketing.
(a) Exporting (b) Joint venture
(c) Direct ownership (d) Licensing
6. Which of these is not a ‘contracting’ or contract based mode of entry into global marketing?
(a) Licensing (b) Contract manufacturing
(c) Franchising (d) Joint venture
7. Strategic Alliance is a form of …………………….
(a) Licensing (b) Franchising
(c) Joint venture (d) Direct ownership
8. Virgin Group entered into an alliance with …………………… to launch its mobile services
in India.
(a) Aditya Birla Group (b) Tata
(c) Unitech (d) Reliance
14.3 Opportunity Analysis
Different foreign countries may present vastly different opportunities and risks in comparison
to what a company has been exposed to in the domestic market. The company should consider
in general terms factors such as political stability and cultural attributes to determine whether
a market merits further analysis. PEST framework (political/legal, economic, social/cultural,
technological) is useful to assess the potential opportunities of different foreign markets.
14.3.1 Political/Legal Considerations
At the national level, stability of political system and laws enacted by government determine
the legal and economic boundaries within which businesses will operate and influence marketing
opportunities for companies from other countries. Following factors need to be considered:
1. Unstable political systems generally make markets very risky and unattractive for firms
interested in foreign markets.
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