Page 66 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

Unit 3: EXIM Strategies

6. Differences in marketing infrastructure: For example, an advertising medium that is very Notes
effective in one market may not be available or may be underdeveloped in another
market.
7. Trade restrictions: Trade restrictions particularly import controls, are a very important
problem which an international marketer faces.

8. High cost of distance: When markets are far removed by distance, the transport cost
becomes higher and the time required for effecting the delivery tends to become longer.
Distance tends to increase certain other costs too.

9. Differences in trade practices: Trade practices and customs may differ between markets.

3.5.2 International Orientations

The EPRG framework identifies four types of attitudes or orientation towards
internationalization that are associated with successive stages in the evolution of international
operations. These four orientations are:
1. Ethnocentrism (home country orientation)
2. Polycentrism (host country orientation)
3. Regiocentrism (regional orientation)
4. Geocentrism (world orientation)

Table 3.1: Comparison of Different International Operations
Characteristics Ethnocentrism Polycentrism Regiocentrism Geocentrism
Management Home country Host country Regional orientation Global orientation
Orientation orientation orientation
Perception of Domestic market is Each national market Markets can be The entire world
the market superior. is distinctive. differentiated and is a single market
Opportunities are The differences delineated on the that can be
similar between the between the home basis of common effectively tapped
home and foreign and foreign markets regional by standardized
markets. are decisive. characteristics. marketing
Foreign markets are strategy.
extensions of home
market
Marketing Extension of domestic Localization Trade-off between Global
strategy strategy to foreign localization and standarisation.
markets standardisation
Merits No cost and effort of Adaptations to the Some of the Economics of
localization. market characteristics advantages of both scale and lower
An easy route to which helps better the localization and costs.
internationalization exploitation of the standardization Advantages of
when foreign markets/ market potentials. strategies. pace.
niches exist.
With characteristics
similar to domestic
market exist.
Demerits Limits the scope of High costs of Neglect of intra- Standardization
exploitation of adaptation. regional differences will not be
international business Delays associated in the business successful in
opportunities. with adaptation. environment. many cases.

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