Page 32 - International Marketing

NPP

34 International Marketing BRILLIANT'S

product awareness relative to specific time horizon. The 5 step is to develop
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the organizational system to carry out the international marketing functions
and to make adequate resources available to make the functioning effective.
The 6 step involves the carrying out of the actual job of international
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marketing. The 7 step and the final step is to review, identify the mistakes
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if any, modify the system, if required and set new targets for the succeeding
period. 
CONCEPT OF FOREIGN TRADE
Q.6. What is International Trade? Discuss its importance.
OR
Explain the basis of International Trade.
OR
What is International Trade? Explain its basis.
International Trade

International market must be distinguished from international trade.
International trade is concerned with the flow of goods and capital across
national borders. The focus of the analysis is on commercial and monetary
conditions that affect balance of payment and resource transfers. This
economics approach provides a macro view of the market at the national
level, with no specific attention given to companies' marketing intervention.
The study of international marketing on the other hand, is more concerned
with the micro level of market and uses the company as a unit of analysis.
The focus of the analysis is on how and why a product succeeds or fails
abroad and how marketing efforts affect the outcome.
Importance of International Trade

No country has within its own boundaries resources for economical
production of all its requirements. Through international trade, it is possible
for a country to obtain goods it cannot produce or cannot produce as
cheaply as other countries. Hence a country's wellbeing is determined to
a great extent by the nature of its trade. That was recognized as early as
in 1628 when Thomas Mun wrote his book on England's Treasure by
Foreign Trade.!1. New products are being developed almost every year
and the existing ones are being improved upon and produced in greater
numbers. As a result standards of living throughout the world are improved
Every citizen is interested in foreign trade whether he is interested as
a consumer, producer, investor or taxpayer. The importance of foreign trade
to consumers lies in the fact that they can purchase from the cheapest
source. India depends upon foreign countries partially for capital equipment
and maintenance imports. US consumers depend upon imports for the