IM at Universität Göttingen

– home market is saturated
– overproduction
– customers expect global presence
– reducing dependency on one market
– foreign competitors could enter home market

–potential demand in foreign countries
–worldwide markets and “global village”
–removal of trade barriers

–scale effects in production and marketing

–Tax benefits
–Technology competence
–Managerial usage

–limited understanding of foreign customer preferences
–limited understanding of business customs in foreign country
–unexpected costs, unknown regulations
–lack of managers with international experience
–economic, legal and political instability
–consumer resistance
–incumbents fight back

• Tariffs
• Non tariff barriers 
  • quotas
  • voluntary export restraints
  • boycott 
  • monetary barriers
  • standards

• BRIC countries ( Brazil , Russia , India and China) are gaining significance --> Economic activity will shift from West to East
• At the same time, countries such as the US, Germany, Japan and France still are among the leading merchandise traders --> Ceta and TTIP, for example , are attempts to remain relevant

Culture is everything that people have think and do as members of their society

–the members of a group share a set of ideas and values
–these are transmitted by symbols from one generation to another
–culture is an outcome of past actions of a group or its members
–culture is learned
–culture shapes behavior and our perception of the world
–it is reinforced by components such as language, behavior and ‘nation’

– local products
– international products
– global products

– local products: available in a portion of a national market

– international products: offered in multinational, regional markets

global products: offered in global markets, global products are guided by the same strategic principles, are
similarly positioned, but have a marketing mix that varies from
country to country

–product cost: the price should not be lower than the costs
(however, pricing below cost can be part of a strategy to achieve a leading market position which will be profitable in the long term)
– competition: competitive prices for comparable products create a price ceiling, or upper boundary
– demand and value: the price can never be higher than the demand for the product/service, and demand is a function of perceived product value