5. Natural Environment
5.1 Natural Resources 5.2 Climate, Topography and Access to Markets---Look at Mini-Case 3.3. 5.3 Hydrology

6. Demographic Environment
2.1 Home Country Environment (1) Promotional Activities Sponsored by Governmental Organizations (2) Information Service (3) Export-facilitating Activities
Look at Mini-Case 3.6

Religion

Christianity Islam Buddhism Impact of Religions on International Business



Religious holidays Consumption pattern

7.3 Cultural Influence on Business Customs
6.1 Population Size and Growth 6.2 Urbanization 6.3 Age
7. Cultural Environment
Cultural
difference is one of the major differences between domestic marketing and international marketing. In international markets, culture is pervasive in all marketing activities—pricing, promotion, distribution, products design and manufacturing. also has a general influence on the communication between the multinational companies and local government, local suppliers, channel members, etc.
(3) What examples of cultural difference can you think of that affect international marketing activities? How did companies overcome these differences?

2.2 Host Country Environment

Political Risk

Import Restrictions Market Control Labor Restrictions Expropriation/Nationalization Risks Related to Terrorism
Measures to Minimize Political Risks

Joint Venture and Localization Insurance Promotion of Public Relationship---Look at Mini-Case3.2
Trade and Non-trade Barriers

Skill Training 3.1

1. Do you think there are any possibilities that the notebook computer will be replaced by its substitute? Why?
2. Is the buyer’s bargaining power strong or weak in PC industry in China? Why?
Look
(2)
Non-Verbal Language
Values
Western
cultures place more stress on individual achievement and competitiveness, prefer flat organization structures in which power distance is short cultures focus more on harmony and collectivism and adopt the hierarchical organizational structure in which the senior executives have more authority than the ordinary employees.
Low-Income Countries

Influence of Economic Organizations on Marketing Activities

The World Trade Organization (WTO)
The China-ASEAN Free Trade Area European Union

Language
Language
(1)
Verbal Language Verbal language is important in information collection and evaluation efforts.
Lack
of language knowledge may lead to problems in translation. at Mini-Case 3.5
4. Analysis of Technological Environment
The more a country spend on technological innovation, the more advanced its technology will be.


For example, the wide use of webs makes it possible for Chinese consumers to buy products in US online and facilitate direct marketing.
Culture
includes systems of values, and values are among the building blocks of culture.
7.2 Elements of Culture and Their Influences on International Marketing
Task Three
Analysis of the International Marketing Environment
I Importance of International Business Environment Analysis
II Analysis of International Business Environment



North American Free Trade Agreement (NAFTA)
2 Political/Legal Environment

The political /legal environment consists of two primary parts: the home country environment and the host country environment.

Culture
Look
at Mini-Case 3.4
7.1 Definition of Culture
Culture
refers to the continuously changing totality of behaviors, arts, beliefs, customs and attitudes shared and learned by a group of people.
Eastern
Aesthetics

Aesthetics refers to the attitude towards beauty and good taste in art, music and folklore of a culture.

When companies sell products to foreign markets, it is important for them to evaluate such aesthetic factors as product appearance, package design, color, brand name and symbols.

3. Brainstorm a new technology that emerges in today’s market (it can be not related to PC industry). What older technologies may be replaced by this new option? What can the marketers selling products that used outdated technology do to maintain their share of market?

3 Analysis of International Competition Environment

Generally, the analysis of a country’s competitive environment usually use Porter’s Five Forces framework, which includes: