International
Marketing MKT630
VU
Lesson
# 16
DETERMINING
EXPORT POTENTIAL IN INTERNATIONAL
MARKETS
Preliminary
Screening of Countries
International
marketers may use a three
stage analysis to determine which foreign
countries offers best
potential
for exports from their
companies.
Stage
One: Preliminary Screening -
involves
defining the physical, political,
economic, and cultural
environment
of the countries
Demographic/Physical
Environment:
Population
size, growth, density
·
Urban
and rural distribution
·
Climate
and weather conditions
·
Shipping
distance
·
Product-significant
demographics
·
Physical
distribution and communications
network
·
Natural
resources
·
Political
Environment
System
of government
Political
stability and continuity
Ideological
orientation
Government
involvement in business
Government
involvement in communication
Attitudes
towards foreign business (trade
restrictions, tariffs, non-tariff
barriers, bilateral trade
agreement)
National economic and
development priorities
Economic
Environment
Overall
level of development
Economic
growth: GNP, industrial
sector
Role
of foreign trade in economy
Currency,
inflation rate, availability, controls,
stability of exchange rate
Balance
of payments
Per
capita income and distribution
Disposable
income and expenditure
patterns
Social/Cultural
Environment
Literacy
rate, educational level
Existence
of middle class
Similarities
and differences in relation to home
market
Language
and other considerations
The
export marketer will eliminate
some foreign markets from
further consideration on the basis of
this
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International
Marketing MKT630
VU
preliminary
screening. An example would be the
absence of comparable or linking products
and
services,
a deficiency that would
hinder the potential for
marketing products
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