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NUMBER ONE IS REFERENCES BASED ON THE INITIAL DISCUSSION POST LET ME KNOW IF YOU NEED THE INITIAL DISCUSSION OR YOU HAVE
1-Hi,
How do we identify political instability when its about to become unstable? Is this part of a normal environmental scanning most companies do in the course of business?
NUMBER 2,3,4 ARE SEPERATE
2-Hello class,
To be successful, companies must adapt to ongoing trends and developments in their macro and micro environments. Therefore, it is in the interest of organizations to scan their marketing environment to deal with any possible threats from the market and to capitalize on any available opportunities. Companies should consistently monitor their marketing environment because it is continuously changing, as it consists of a number of unpredictable forces which surround the company. Experienced international businesses engage in political risk assessment, as they need to carry out ongoing systematic analyses of the political risks they face in foreign countries. Political risks are any changes in the political environment that may adversely affect the value of any firms business activities. Most political risks may result from governmental actions, such as; the passage of laws that expropriate private property, an increase in operating costs, the devaluation of the currency or constraints in the repatriation of funds, among others. Political risks may also arise from non-governmental actions when there is criminality (for example: kidnappings, extortion and acts of terrorism, et cetera). Political risks may equally affect all firms or may have an impact on particular sectors. Non-governmental political risks should also be considered, like protests, which could turn violent, and may even force firms to shut down their operations, in particular contexts (Camilleri, 2018).
International marketing takes place in more than one country and it can dramatically change from one region to another one. Government instability affects marketing because of the risks that are inherent in foreign marketing. Much can be lost if a company invests money in a plant or operation within a foreign country and is later subjected to restrictions, controls, or expropriation by the present or new government. While growth and stability reinforce each other in terms of economic development, stability seems to be a necessary condition for investments from a business point of view. Large investments are often made by multinational companies in the process of entering the foreign market. Such investments are usually made with different objectives, which are important to differentiate because of the differing ways that political stability plays into the decision making. Any policy or governmental change can negatively as well as positively affect operations. Political risk is thus intrinsic to international marketing (Doole & Lowe, 2012)
References:
Camilleri, M. A. (2018). The Marketing Environment. In Travel Marketing, Tourism Economics and the Airline Product (pp. 51-68). Springer, Cham, Switzerland.
Doole, I., & Lowe, R. (2012). International marketing strategy. Cengage Learning.
3-International marketing has posed as a lot of opportunities and threats. Between the culture, politics, and the technological environment, society has agreed that these are the determinant factors in entrepreneurial success in the global market (Agwu & Onwuegbozie,2018). The political environment has always had an impact whether with the cultural dynamic aspect of it, or in global marketing. For nearly 150 years, environmental concerns have been part of the U.S political agenda. The political environment has impacted the cultural dynamics by using the snowball effect. When a country opens its doors to international trade, goods designed for a global customer and arrives on its market, this raises the welfare of people who are responsive to this type of product and conversely lowering the incentives of parents to transmit the local cultural traits to their offspring (Olivier,2020) Throughout time, the supply of globalized products further increase to meet the demand, and this leads to the conclusion of a self-sustaining cycle. I believe now with the pandemic we are experiencing; many government organizations and countries may be hesitant to open their borders for non-economic reasons even though once a market has opened, its quite difficult to back pedal with new restrictions, especially when it comes to international trade because of the cultural impact and trade restrictions (Olivier,2020). The biggest political environment that has impacted the culture and global markets I believe is the whole Black Lives Matter movement. In the years since its creation, the Black Lives Matter organization has had many notable impacts that have worked to better society. By the public awareness, Black Lives Matter has undoubtedly changed the dynamic of modern society regarding embedded racism. The organization has been the topic on virtually all media outlets throughout time and has also gained the attention from powerful government leaders such as former President Obama who invited representatives of the group to the White House in 2016. Black Lives Matters allows for more people to become aware of what is going on globally and take part in working to solve the issue by not tolerating the unjust aspects of everyday culture (Iorio,2017). How has this changed society? Many if not all such as the NFL, NBA, WNBA recognize the movement as well as celebrities throughout their social media finding ways to make a difference. Many entreprenuers have created clothing to make sure its being worn and shown as a movement to be known globally.
Agwu, M. E., & Onwuegbuzie, H. N. (2018). Effects of International Marketing Environments on Entrepreneurship Development. Journal of Innovation and Entrepreneurship, 7 (1).
Iorio, D. (2017). The True Impact of Black Lives Matter. Retrieved March 18, 2021, from https://digitalrepository.trincoll.edu/cgi/viewcon…
Olivier, J. (n.d.). Culture and the economy: Understanding the dynamics of globalization. Retrieved March 18, 2021, from https://www.hec.edu/en/knowledge/articles/culture-…
4-Hello Dr. and Classmates,
The political environment has a monumental impact on cultural dynamics as well as global markets, whether it is apparent in the everyday lives of consumers and businesses or not. In domestic and global markets, cultural dynamics play a role in consumer perception and purchasing behavior depending on personal beliefs and social norms. This is especially true as it relates to its impact on the economy, and the social, financial, and cultural class of individual consumers (Morgan et. al, 2018). If individuals took a moment to analyze, it would be apparent how politics in a peaceful environment can be conducive to unity, peace, harmony, and understanding. In times of political unrest and instability, it results in cultural disharmony, segregation, and resentment.
In my personal opinion, this plays to personal peace and contentment resulting in flourishment and growth. This can be directly applied to the impact of the political environment and cultural impact in a global market. As with the latest tensions over the past year, right here within the United States, the same applies in the global marketplace, between regions, countries, cultures, races, etc. In the same way, political peace in the domestic/global environment can bring about a unified and flourishment effect among these same elements.
As it relates to business, the dealings of an organization can impact the view of the consumer, and directly result in whether the customer continues business with a corporation (Morgan et. al, 2018). For example, without mentioning any organizations, in particular, businesses that openly support one political party over another will undoubtedly cause resentment in the consumer of opposing political viewpoints. This highlights the importance of organizations being extremely careful in participating in politically motivated activities.
Czinkota & Ronkainen (2013) identify three areas in which marketing managers should consider when forming an international marketing plan and strategy. This would include political and legal policies of the home country, those of the foreign country, and be laws that govern the relationship between both. However, this becomes significantly more complex whenever government instability exists domestically and/or internationally. The reason is that as laws, policies, procedures, and trade barriers change, organizations must remain agile in remaining compliant (Czinkota & Ronkainen, 2013). As a marketing manager, the element of remaining agile is complex in itself, but it also detracts from an organizations resources that would be best allocated towards growth and opportunities. Government instability can also create unrest amongst consumers, which makes the role of the marketing manager that much more interesting.
References:
Czinkota, M. R., & Ronkainen, I. A. (2013). International marketing. Cengage Learning.
Morgan, N. A., Feng, H., & Whitler, K. A. (2018). Marketing capabilities in international marketing. Journal of International Marketing, 26(1), 61-95.
