Theory question 103
International MarketingJoan Ltd, a producer of cosmetic products, has decided to engage in international marketing of its products.
(a) State five factors that may have influenced Joan Ltd's decision to go international.
(b) State five rules and regulations the company would observe while selling its products in other countries.
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(a) Any five: saturated home market; demand for its products abroad; to increase sales and profit; excess production capacity; to spread risk; to earn foreign exchange; government export incentives; trade agreements (ECOWAS, AfCFTA); to gain economies of scale.
(b) Any five: obey the host country's laws and registration rules; meet product standards and labelling rules of the country (e.g. ingredients, approvals); pay customs duties and taxes; obtain import/export permits and documents; respect quotas and import restrictions; follow foreign exchange regulations; respect local culture and advertising rules; avoid contraband; respect trademarks and intellectual property.
Give each point as a full sentence, with an example where possible.