Relationship between International Marketing and the US Government Policy
The United States is one of the leading countries in international trade all over the world with its imports and exports ranking among the top three across the world. The country has succeeded in international trade and marketing due to the capitalist methods that the country employs while trading with other countries all over the world. The country has seen changes in its international marketing and trade policies over the years with the mandate being left to the Congress to make determination on the legislative action that needs to be taken. The US mainly imports the finished products while exporting raw materials from other countries all over the world. This offers the country a chance to develop the best practices that are critical in developing trade targets and goals and meeting its requirements as a nation. Whereas the country is open to international trade and marketing, proper controls have to be developed to ensure that the country mitigates any risks that may be involved in trade with other regions or countries globally. Issues such as Intellectual property rights and bureaucratic procedures that slow down international marketing have had to be controlled through the implementation of methods that meet the required targets in the country. This paper assesses the pros and cons of the relationship between international marketing and the US government policies.
One of the main advantages that the country stands to gain is the opening up to new and wider markets all over the world. The US benefits from gaining and trading with other countries through opening up to new markets that are spread globally thereby creating markets for their products. In the US there are many technological and service industries that have a large capacity and are now multinational companies spread all over the world. International marketing has meant that the company can engage and sell its products in other countries and markets. Companies such as Apple and Walmart benefit not only from the markets but also the labor that is solicited from these countries (Terpstra et al, 2012). International marketing therefore, aids in opening up the world to the massive potential by the US and its companies that have a massive capital incentive. One of the markets that have been identified over the last decade has been the Chinese market that is seen as the new hub for most of the major companies across the world. The US through its methods has ensured that it gains access to the markets especially in East Asia that have massive potential and are open to the new US products and services sold in the region.
Favorable regulations and policies that reduce the bureaucratic processes and foster international trade is also one of the main advantages. The US through the government policy actions that it has implemented through the years has made the country favorable for marketing and trade. The same is expected in other countries, and international marketing ensures that companies get favorable conditions to conduct their businesses in other countries. The US government policy softens the engagement with the other countries through outlining the pertinent conditions for engaging in international trade in these countries. One of the main examples is the intellectual property rights that were enforced in China which ensured that the US companies’ ideas and methods were not exploited in the country (Terpstra et al, 2012). This has further fostered the connections with these countries and improved trade methods and processes across the country accordingly. The changes in the market conditions have led to a stronger system and model that has been met by the US through its innovative models and culture across the country accordingly.
There have been improvements in the domestic market and development of innovative methods and attributes across the country. As companies engage with other companies and technologies in the world, they gain better knowledge and ideas to improve their products. This has been a major advantage to the US that has seen improvements and innovative methods being adopted by the companies across the country to be competitive in the global markets (Terpstra et al, 2012). The different tastes and preferences of individuals from different parts of the world have necessitated companies to improve and change their products or services to increase sales across the country. It is these attributes that have led companies to develop new strategies to position their entities perfectly in the global arena. The international marketing relationships with the US policies have led to the growth of the US and the methods and tools used in the country.
Gaining a source of raw materials for the US to manufacture its finished product is also a major advantage to the US. The US gains from the financial inclination and indication that ensures that the country gains from the individual position towards meeting its demands and for growth Terpstra et al, 2012). The open policy system in international marketing is to create a symbiotic model that meets the needs and demands of the US within the overall tools and methods that are used in the country in the long-run.
One of the main disadvantages of international marketing has been increased competition to the locally produced brands or companies. International marketing has led to companies from other countries setting up in the US that is leading massive competition across the country. The TOYOTA Company is a perfect example of increased competition to the country brands and products. TOYOTA and other Japanese motor vehicle manufacturing companies were allowed to set up in the US a factor that has led to massive competitiveness in the local brands (Nye at al, 2012). This may also be analyzed from a position of the number of jobs created or the prices of these products but, the policy methods adopted increase the level of competition in the domestic market. This has been identified to be a negative factor since it hurts the domestic companies and domestic growth since American companies are not benefitting from the sales made by these companies.
Financial risk is also another attribute that the country stands to face with the international marketing methods that are adopted. The problem of devaluation of currencies and being affected by economic downturns and risks in other countries is a major problem. The US stands to lose from the backdrop that it may face from international engagement and trade with other countries. The recent financial crisis serves as an indicator of the losses that the country can face with the open capitalist policies that are used by the US (Yarbrough and Yarbrough, 2014). Companies moving from the US to other parts of the country have been faced with problems of financial risk since the companies face massive problems in developing the same structures in new environments. Companies stand a massive risk in setting up in a new country especially since there are no guarantees of success in these countries (Nye at al, 2012). The entities may therefore, lose or see a decline in the level of factors and indicative attributes that are present in the new economy.
Cultural differences and financial positioning of the country also stands to be affected through the international marketing methods that are adopted. The US stands to lose from the balance of payments with the open international marketing methods and proper tools need to be established to create a proper change in the systems (Czinkota and Rainkonen, 2013). It is therefore, pertinent to engage in proper systems that outline and indicate a critical model of change that meets the demands of the individual culture thereby indicating a strong process of economic gains. The difference in the economic trends in the countries and policy models that are adopted affects the country.
The US government has been enriched through years of being drafted and amended to meet the demands of the country. The US is therefore, on the forefront towards gaining from the individual methods that the country uses thereby giving a chance for the country to expand as a result of the changes that are developed. The US however, stands to lose from these methods especially the financial risks that may lead to an economic meltdown that was witnessed in the last decade. It is these factors that make it essential to ensure that proper tools and processes are evaluated towards meeting the demands and models of a working international marketing policy.