International Marketing Essay Example | Topics and Well Written Essays - 1000 words - 7

International Marketing - Essay Example While marketing goods and services to the various countries, there are instances whereby adaptation may be necessary, like when we want the new market to become acclimatized with our new products. At other times, we may opt to employ a standardization strategy, especially if the product being marketed has a national appeal, or in a known global brand. This is a term that is used in reference to the practice of importing unauthorized products that ideally should be sold at a lower price, with the intentions of selling these at a higher market price. The implication of a grey market is that to some extent, the company is question is offering competition to own products in the market (Cateora & Graham 2002). A grey market shall have an effect both the manufacturers and the distributors in different ways. For the manufacturer, there is the risk of having their brand value lost in the market. This is in addition to the ensuing competition that the products in the grey market give to a manufacturer’s own products. Moreover, the manufacture is forced to redesign his/her pricing strategy on a global scale, with the intention of containing this new competition that appears to ape the existing price strategy. This is in addition to the manufacturer having to spend so that he/she may be able to solve this problem of parallel import (Terpstra & Sarathy 2002). To the distributors, the effect of a grey market is that a competition n incentive comes into effect. This is because now, we have competition that is offering to the market a similar product to that being offered by the distributors, but alt a lower price. Another effect of the grey markets to the distributors is a potential loss of customers and consequently, their market shares for a given region. In addition the revenues generated by a distributor plummet, along with the associated profits (Cateora & Graham 2002). What this means is that the distributors shall

International finance coursework Example | Topics and Well Written Essays - 750 words

International finance - Coursework Example (2 marks) False, only silver will be able to circulate because the equilibrium ratio will be raised by the increase in supply of silver and everyone would hoard gold and spend silver since there is no free coinage (Ghosh & Clark, 98). Question 2: The graph below is the exchange rate of Japanese Yen to US dollar ( ¥/$) between August to November 2010. On 15th Sept, Yen moved from 83 to 85.7 yen per dollar due to the Japanese authorities’ intervention in the foreign exchange markets to weaken the value of the yen against the dollar, a day after the yen hit a 15-year high against the dollar. Japanese central bank intervened by setting aside or creating a substantial amount of Yen currency (printing money) which is used in buying several billions of  US dollars. This is then invested in in the US securities thereby increasing the supply of Yen in the market. This then weakened the value of the Yen against the dollar thereby improving exports thus lifting the country out of a deflationary period. The weakening Yen against Us dollars had to be strengthened and to be stabilized as well so as to increase market confidence. The intervention was also carried out to correct the rates of exchange so as to avoid overshooting in any given direction. The government wanted to weaken the value of the Yen against the dollar so as to improve their exports so as to lift the country out of a deflationary period. Yes, it weakened the Yen against the dollar. The exchange rate of Yen reduced considerably thereby favouring the country’s exports. The intervention was able to correct the rate of exchange thereby avoiding overshooting of either direction. Additionally, Japan was able to improve their exports hence lifting the country out of a deflationary period (HüFner, 128). Show how you can make a triangular arbitrage profit by