Political and Economic Factors Affecting Marketing (Essay Sample)

Political and economic factors affecting marketing
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Executive summary
New markets tend to draw different companies domestically, especially the competitors, adding the magnitude of the medium class and increasing the population density. Though, there is nothing assured in terms of development or succeeding in the upcoming markets. Mostly, new issues markets are due to the hostile environment of business. The common problems to the developing markets manifest primarily when the multinational companies have decided to venture into the new markets. Surveys show that nations, especially BRICS, conducted their operations concerning business with companies based in countries that have developed. China is number 87, Brazil 120, India 139, etc. these facts are according to the World Bank report conducted in 2002.
Introduction
Recently, scientifically advanced countries like Europe, the U.S, and Japan have testified deliberate development eras. These countries' markets have an equilibrium alteration that is likely to continue. Rates of consumption in these countries have reduced, with the highest number of consumers retiring, and their access to credits being limited. With the present condition, it is hard for companies dealing with multinational corporations to reach their customers. Influential forces have changed the developing market economies; they are making outstanding performances. The literature illustrates methods in which corporations and firms did their business have changed because of people, goods and organizations moving across the borders. Long ago, military rebellion, hyperinflation and foreign arrears conquered the news of developing countries. For example, China and India became the famous dragons and tigers that signified the image of emerging markets. Likewise, Brazil was a nation that represented the future. The last span created massive and prominent changes in economic and political power stability. In the international economy, developing markets are essential to market players.
Body
In today's market, the societal fabrication and structure can be changed by presenting charged up -to -date with progressive featured products to put up with extremely competitive today's' market. In a situation where the Indians and Chinese are not confident with a varying range of products, Chinese people can become obliged to disprove; stop others from introducing new products in the market. (Rottig, D., 2016).
Political
The type of government found within itself is called regime, which entails communist, democratic, or any other kind. The kind of governance dramatically affects every aspect of development, either personal or nationwide. In a democratic country, business people can acquire loans and be able to invest, which later on may thrive depending on the effort put in. However, it's different from what happens in a communist nation; loans are provided and shared equally; this impact business operations. It also lowers interest rates; all this may slow down the growth rate of an economy and at large the nation. (Doppelt, B., 2017).
Political instability or stability usually determines the firmness of the government structure. More businesses will operate and thrive in a country that is politically stable since the market will face less exposure to risks. Internal wars or terrorism threats cause states to be less stable. The situation will make it difficult for operating businesses, and also the cost of living will increase. When the war began, it affects the circulation of money in the economy, and it lowers the currency value that a specific country since their would-be currency exchange taking place. Besides, in less stable nations, the chances of their economic sabotage are high because even investors lack something to motivate them. (Huang, T. et al., 2015).
Administrative management is how fine the government enforces and monitors international and national laws or policies. Ignoring piracy and copyright laws makes business to be unfavourable failure to enforce piracy or copyright laws leads to the company being unable to make profits, which raises the danger of working in that area. For instance, a company that wants to make profits from selling music may change their mind because people can illegally download music for free, so this idea will not be profitable. (Tabassam, A. H., et al., 2016).
The level of bribery shows the level of illegal, dishonest, and unethical practices imposed on individuals and businesses in that particular area. Fraud includes bribing local companies for resources, bribing politicians in need of a favour, paying to stop competitors from incoming the market. In a case where a company bribes the government to keep a competitor out, there is no economic growth, and this can lead to a monopoly, which, besides, makes products and services more costly. (Nurudeen, A. et al., 2015).
Trade laws were the international and local rules that influenced the exportation and importation of goods. These laws are a political feature because politicians and governments make policies concerning trade. Trade includes fees, taxes, and tariffs levied on certain exports and imports. Some trade agreements between nations can decrease trade tariffs. Nevertheless, this mostly occurs between two developed countries, whereas developing or undeveloped countries encounter high levies that can stop them from taking part in international trade. Technology meets primarily protecting situations from arising in the markets; high illiteracy levels, weak judicial systems, trademark insurance plus nominal patent and low technological growth, and absence of commercial rules. (Betz, T., 2017)
Economic
The forces of trade liberalization and globalization have caused high competition among all sectors worldwide. For industries in the BRICS groups of countries, trade liberalization comes with limitations, and they should be able to deal with high competition. Since the firms above are not well prepared to deal with competition caused by trade liberalization, other competitors can come into their markets, leading to an increase in demands. Presence of trade liberalization shows the importance of institutional preparations in the economy. They assist various actors in adventure opportunities, and