Page 222 - DMGT545_INTERNATIONAL_BUSINESS

Unit 11: Basics of International Marketing

Examples of service companies with international involvement abound. McDonald’s now gets notes
close to 20 percent of its revenues from foreign operations, and almost 40 percent of its new
outlets are foreign.
With some 7,000 restaurants in the United States and tough competition from other domestic
chains, McDonald’s expects most of its future growth to come from abroad.

11.6.3 exporters

Exporters are firms that market products abroad but produce largely in their home country.
Most large exporters have evolved into multinational companies. However, multinational
companies, by shipping products between subsidiaries, have maintained some of the largest
export operations.

11.6.4 importers

As described earlier, importing is as much an international marketing decision as exporting.
Companies that neither export nor have multinational status may still participate in international
marketing through their importing operations. Many of the largest U.S. retail chains maintain
import departments that are in contact with suppliers in many overseas countries. Other
major importers are MNCs which source products from their own plants abroad or from other
clients. Among the largest U.S. importers are oil companies and subsidiaries of foreign MNCs,
particularly those of European and Japanese origin.
For the purpose of this subject, we will use international company or international firm as
umbrella terms that may include MNCs, exporters, importers and service companies.

Note MNCs, exporters, importers and service companies operating on global scale
are termed as “International Firms”.

self assessment

Fill in the blanks:

8. .................... is the execution of a company’s marketing operation.
9. .................... is a subset of international business, which is defined as the performance of all
business functions across national boundaries.
10. .................... can have a profound effect on international marketing strategy.

11. .................... also greatly affect international marketing strategy.
12. .................... often vary by country since products frequently are in varying stages of the
product life cycle.

13. .................... also require consideration for the development of an international marketing
strategy.
14. .................... are companies that manufacture and market products or services in several
countries.
15. Importing is as much an international marketing decision as .................... .

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