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International marketing creates a new level of complexity. In order to face this challenge, firms must consider staffing and allocating responsibilities across marketing units in different countries, and deciding which decision to decentralize or to control from headquarters, whether to develop standardized campaigns and plans, and how much local responsiveness is appropriate.
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As firms attempt to market in the international arena, they not only face challenges from different competitors, but need to cope with cultural and economic differences that exist in the marketing infrastructure, such as the financial regulations imposed b local governments, and the impact of government policies, especially protectionist and other policies that may unfairly benefit competitors and create difficulty in market entry. To level the playing field, a firm may decide to begin manufacturing overseas to lower its costs and match the lower prices of strong international competition. Very often, a firm may not find it feasible to go alone into foreign markets. In this case, its international marketing endeavor becomes more complex as it joins with a local partner that has specialized knowledge of a specific market and its customers. Some firms find that local partners can force them to change the way they do business. A local partner may insist that the firm accept payment in kind: orange juice or wine in return for machinery, which means a firm has to peddle orange juice or wine around the world.
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