Project Report

OVERVIEW OF INTERNATIONAL MARKETING.

In partial fulfilment of requirement for the

Award of Degree of M.com.

Subject:
INTERNATIONAL MARKETING.
Submitted by:
PRIYESH CHARANDAS YELAVE.
Roll No.702.
M.com. Part- II, Semester- III.

Under the Guidance of:

Prof. MANISHA GUR.

SMT. CHANDIBAI HIMATHMAL MANSUKHANI

COLLEGE.
ULHASNAGAR- 421003.

Submitted to:
UNIVERSITY OF MUMBAI
2016-2017

DECLARATION
I, PRIYESH CHARANDAS YELAVE, Student of SMT.
CHANDIBAI HIMATHMAL MANSUKHANI COLLEGE,
ULHASNAGAR-3, Studying in M.com Part- II, SemesterIII, Roll.no.702, hereby declare that I have completed this
project
on
OVERVIEW
OF
INTERNATIONAL
MARKETING
for
the
Subject
INTERNATIONAL
MARKETING in the academic year 2016-2017. The
Information and certificate submitted by me in the project
is true and original to the best of my Knowledge.

PRIYESH CHARANDAS
YELAVE,
( Signature of student)
( M.com, Part- II, semesterIII )

SMT. CHANDIBAI HIMATHMAL

MANSUKHANI COLLEGE.
Department of Commerce
Certificate
This is to certify that, PRIYESH CHARANDAS YELAVE,
Student of SMT.CHANDIBAI HIMATHMAL MANSUKHANI
COLLEGE of M.com. Part-II, Semester-III, Roll.no.702, has
successfully completed the project on OVERVIEW OF
INTERNATIONAL MARKETING. Under the guidance of
Prof. MANISHA GUR. The information submitted is true
and original to the best of my knowledge. In the academic
year 2016-2017.

Signature
Signature
Prof. Manisha Gur
Shamnani

Prof. Gopi

(PROJECT GUIDE)
Course)

(CO-ORDINATOR,M.com

Signature
Signature
Dr. Manju Lalwani Pathak
(EXTERNAL EXAMINER
( I/C PRINCIPAL )

ACKNOWLEDGEMENT
In this world that we are passing through, we sometimes
forget to say thank-you, so before this movement slips
away, there is just one thing I would like to say thanks a
million, I think that its great, for all you have done I
appreciated !
I would like to thank my Project Guide, Prof. MANISHA
GUR for guiding me in each and every step. I would also
like to thank my M.com Professors, my classmates and my
family members who kept on giving me relevant
information in successful completion of my project and
encouragement at every step.
To end with, I thanks the people who helped me directly or
indirectly but without their assistance this project would
not have been possible.

OBJECTIVES OF THE PROJECT

Objectives:
To Provide theoretical knowledge.
To do Product Research and Development.
To do Advertising in International Markets.
To facilitates and encourage social and cultural
exchange among different countries of the world.
To do free trade among the countries.
To
study
about
international
marketing
environment.

METHODOLOGY
This project is prepared with the blend of theoretical
knowledge and a mix of advices and suggestion imparted
by the guide of the project and various other relevant
people. The project started with sorting all the raw data
and arranging them in perfect order. Further, to
understand
the
OVERVIEW
OF
INTERNATIONAL
MARKETING, study of this secondary data has been
studied to actually understand the Overview of
International Marketing, in a better way.

SUMMARY
International trade can be a good beginning to venture
into international marketing. By developing international
markets for domestically produced goods and services a
company can reduce the risk of operating internationally,
gain adequate experience and then go on to set up
manufacturing and marketing facilities abroad. When
companies decide to go overseas with their products there
are many environmental forces that the marketer will have
to confront and adapt to. For example, the foreign
uncontrollable elements include political/legal forces,
economic, competitive
social and cultural forces, the
level of technology, physical
and geographical.
The
marketer may find it easier to deal with the marketing
controllable, i.e., marketing mix or 4 P's and domestic

uncontrollable as compared to the foreign uncontrollable.

This will explain what international marketing is, its task
and how to deal with the marketing controllable and
domestic and foreign uncontrollable. Also addressed is
the issue of adjusting to the environment and the effective
use of the CSR. Internationally company also discussed on
how a company becomes international and how to make
the marketing effort successful.
Even though the marketing concepts are the same in
marketing domestically or internationally, the environment
is extremely important because it is changing within each
country, as well as from country to country. The
international marketer's main task or concern is to
understand and deal with the problems created by these
changing environments. There are many similar
uncontrollable elements common to many countries, as
well as unique uncontrollable pertaining to each foreign
country. It is the marketer's job to be able to recognize
these uncontrollable and implement an appropriate plan in
relation to them.A company with long term interest in a
foreign market may establish fully owned manufacturing
facilities. Factors like trade barriers, cost differences,
government policies etc. encourage the setting up of
production facilities in foreign markets. Manufacturing
abroad provides the firm with total control over quality
and production. International companies allocate a high
budget to the development of their marketing strategy and
tactics, usually adapting this to incorporate emergent
trends in the market, such as the increased focus on
digital media. With this in mind, it is clear why many
global companies sustain that the ability to maintain a
standard approach to marketing irrespective of the region
targeted ensures lower costs and higher profitability.
However, taking into account macro-environmental factors
impacting the businesses operations, such as the
technological advances specific to a country can indicate
that standardization of marketing may be counterproductive in the long term.

Information Communication Technologies(ICT) have

resulted in converting the whole World into a Global
Village, where the distance is not a barrier for trading.
Though the International trade helps the buyers and
sellers in getting new businesses from all around the
World but which mode or method of payment should be
used while doing the international trade, is always a
debatable issue between the exporters and the importers.
As the profit making is the soul motive of the buyers and
the sellers, the mode and the terms of payments are very
crucial to them. Some of the safer and widely
recommended and accepted modes of payment for
International trades. The World Trade Organization is
therefore the organization which was set up out of the
Uruguay Round of General Agreement on Tariffs and
Trade negotiations in 1995 and which became the
successor to and replacement of the General Agreement
on Tariffs and Trade [GATT] and it inter alia regulates
trade and tariffs worldwide and settles trade disputes
amongst members. The
contained a charter for a
Multilateral Trade Organization [MTO] aimed at providing
an institutional framework within which the results of the
Uruguay Round could operate. Within the MTO was
established a new dispute settlement mechanism and a
Trade Policy Review Mechanism [TPRM].

INDEX

SR.NO.

TOPICS

PAGE.NO.

1.

Introduction to
International
Marketing.

01.

2.

Scope of
International
Marketing.

03.

3.

Factors that
affecting
International
Marketing
Environment.

05.

4.

Methods of
payment in
International
Trade.

10.

5.

Role of WTO in
International
Trade.

13.

6.

Conclusion.

17.

7.

Bibliography and
Wibliography.

18.

PROJECT TOPIC ON:- OVERVIEW OF INTERNATIONAL

MARKETING.

OVERVIEW OF INTERNATIONAL MARKETING

PAGE NO.1

INTRODUCTION TO INTERNATIONAL MARKETING:Today, more and more businesses are exporting, importing
and/or manufacturing their goods with other countries.
The companies that are not involved in international
business also feel the effects of their customers and
competitors that are doing business overseas.
As
competition continues to increase, the number of
companies doing business with the United States will
only continue to decrease. There are many companies
that sell a large portion of their goods overseas and
depend on those profits to survive. Now companies do not
look at the United States as their only opportunity for
business but look at the whole world as a possible place
for their business activities.
When companies decide to go overseas with their products
there are many environmental forces that the marketer
will have to confront and adapt to. For example, the
foreign uncontrollable elements include political/legal
forces, economic, competitive social and cultural forces,
the level of technology, physical and geographical. The
marketer may find it easier to deal with the marketing
controllable, i.e., marketing mix or 4 P's and domestic
uncontrollable as compared to the foreign uncontrollable.
This will explain what international marketing is, its task
and how to deal with the marketing controllable and
domestic and foreign uncontrollable. Also addressed is
the issue of adjusting to the environment and the effective
use of the CSR. Internationally company also discussed on
how a company becomes international and how to make
the marketing effort successful.

Other reasons for the increased international business is

the remarkable growth of the international economy after
World War II. For example, the international monetary
framework was developed and this facilitated the transfer
of goods and services between countries.
Also the
International Monetary Fund (IMF) was created which set
guidelines for the devaluation and reevaluation of
OVERVIEW OF INTERNATIONAL MARKETING
PAGE NO.2

currencies. Improvements in communication systems have

made it possible to travel all over the world (thus
encouraged face-to-face communication); information
systems have improved thereby increasing the ability to
transmit data electronically. International marketing is the
performance, in more than one nation, of business
activities that direct the flow of a company's goods and
services to consumers or users for a profit. It is the human
activity directed at satisfying consumer needs and wants
through an exchange process across national boundaries.
This differs from domestic marketing in that international
marketing involves marketing in more than one country.
The marketing processes and concepts are universally
accepted when marketing in a domestic or foreign country.
There are many uncontrollable elements that can affect
the outcome of marketing plans. Such elements as
competition, culture, legal, and government controls can
determine the outcome of the plan. Marketers cannot
control the uncontrollable elements, but must learn to
adapt to them or, in other words, must manage them.
International marketers find the challenge in dealing with
these uncontrollable elements by learning to mold the
controllable elements - price, product, promotion and
place (distribution) - within the framework of the
uncontrollable elements. More about the controllable and

uncontrollable elements will be discussed later on. Even

though the marketing concepts are the same in marketing
domestically or internationally, the environment is
extremely important because it is changing within each
country, as well as from country to country. The
international marketer's main task or concern is to
understand and deal with the problems created by these
changing environments. There are many similar
uncontrollable elements common to many countries, as
well as unique uncontrollable pertaining to each foreign
country. It is the marketer's job to be able to recognize
these uncontrollable and implement an appropriate plan in
relation to them.
OVERVIEW OF INTERNATIONAL MARKETING
PAGE NO.3

SCOPE OF INTERNATIONAL MARKETING:International Marketing constitutes the following areas of

business:1]Exports and Imports:
International trade can be a good beginning to venture
into international marketing. By developing international
markets for domestically produced goods and services a
company can reduce the risk of operating internationally,
gain adequate experience and then go on to set up
manufacturing and marketing facilities abroad.
2]Contractual Agreements:
Patent licensing, turn key operations, co-production,
technical and managerial know how and licensing
agreements are all a part of international marketing.
Licensing includes a number of contractual agreements
whereby intangible assets such as patents, trade secrets,
know how, trade marks and brand names are made
available to foreign firms in return for a fee.

3]Joint Ventures:
A form of collaborative association for a considerable
period is known as joint venture. A joint venture comes
into existence when a foreign investor acquires interest in
a local company and vice versa or when overseas and local
firms jointly form a new firm. In countries where fully
owned firms are not allowed to operate, joint venture is
the alternative.
4]Wholly owned manufacturing:
A company with long term interest in a foreign market
may establish fully owned manufacturing facilities. Factors
like trade barriers, cost differences, government policies
etc. encourage the setting up of production facilities in
foreign markets. Manufacturing abroad provides the firm
with total control over quality and production.

OVERVIEW OF INTERNATIONAL MARKETING

PAGE NO.4

5]Contract manufacturing:
When a firm enters into a contract with other firm in
foreign country to manufacture assembles the products
and retains product marketing with itself, it is known as
contract manufacturing. Contract manufacturing has
important advantages such as low risk, low cost and easy
exit.
6]Management contracting:
Under a management contract the supplier brings a
package of skills that will provide an integrated service to

the client without incurring the risk and benefit of

ownership.
7]Third country location:
When there is no commercial transactions between two
countries due to various reasons, firm which wants to
enter into the market of another nation, will have to
operate from a third country base. For instance, Taiwans
entry into china through bases in Hong Kong.
8]Mergers and Acquisitions:
Mergers and Acquisitions provide access to markets,
distribution network, new technology and patent rights. It
also reduces the level of competition for firms which either
merge or acquires.
9]Strategic alliances:
A firm is able to improve the long term competitive
advantage by forming a strategic alliance with its
competitors. The objective of a strategic alliance is to
leverage critical capabilities, increase the flow of
innovation and increase flexibility in responding to market
and technological changes. Strategic alliance differs
according to purpose and structure.

OVERVIEW OF INTERNATIONAL MARKETING

PAGE NO.5

FACTORS THAT AFFECTING INTERNATIONAL

MARKETING ENVIRONMENT:International companies allocate a high budget to the
development of their marketing strategy and tactics,
usually adapting this to incorporate emergent trends in

the market, such as the increased focus on digital media.

With this in mind, it is clear why many global companies
sustain that the ability to maintain a standard approach to
marketing irrespective of the region targeted ensures
lower costs and higher profitability. However, taking into
account macro-environmental factors impacting the
businesses operations, such as the technological advances
specific to a country can indicate that standardization of
marketing may be counter-productive in the long term. To
exemplify, the budget allocated by an MNC to digital
media marketing in the UK has an excellent return on
investment (ROI), whilst the same efforts in a country like
Peru, where a small percentage of the population has
access to social media, may be a waste of time and money
for the marketing department. The PESTLE analysis aids
companies to take into account all of the macroenvironmental factors that can have a significant impact
on the international marketing. Its variables will be
critically examined in the following paragraphs, referring
specifically to the expansion of large global corporations.
The analysis of the PESTLE variables will outline the
barriers international firms can encounter due to each
macro-environmental factor and the potential benefits that
companies can enjoy from implementing a promotional
strategy that adapts to the regional markets.
Factors that affect International Marketing Environment
which are as follows:
1]Political factors:
The region where a business is expanding has a political
background that can influence the desire of a company to
expand their operations within a particular country. The
tax policies, controlled by the government, can tempt a

particular business to expand into regions where the taxes

paid by businesses are significantly lower than the ones in
their country of origin. Political
OVERVIEW OF INTERNATIONAL MARKETING
PAGE NO.6

stability of a region can also influence the success of

international business in a particular country. In terms of a
multinationals marketing tactics in a new region,
companies must invest time and effort into uncovering the
sensitivity of the local customer base to particular
messages, when it comes to words with concealed political
meaning. For instance, marketing campaigns of Nike
promote the fight for freedom and, in areas where political
freedom is a sensitive subject; Nikes intended message
might be interpreted in the wrong way given the political
background of the region.
2] Economic Factors:
One of the most important elements of the PESTLE microenvironmental analysis tool, economic factors have a
considerable influence on the marketing techniques of
MNCs. Customer behavior and their purchase intention
are often linked to the consumers financial status, their
emotional relationship with certain products and the
ability to preserve or build upon their social status.
Marketing and advertising in any context rely on
emotional response to certain messages and the potential
of customers to associate an individual lifestyle with their
products. Luxury brands, from apparel to automobile or
cosmetics firms, design their marketing to appeal to
financially potent target audiences. However, this
approach has to be adapted to the region that a brand is
penetrating. In affluent countries, these brands rarely

advertise their products relying instead on their wellestablished name and loyal customers, whilst in emerging
markets the need to invest in the marketing and
advertising techniques increases, as the potential target
audience for these brands are less brand-conscious.
Product placement in local television and local celebrity
endorsement are just two of the marketing techniques that
international companies must take into account when
launching their product into an emerging market.
3] Social Factors:
The socio-cultural factors present in a region influences a
great deal of the local customers behavior. Demographics,
the level of education and the age distribution all
contribute to the marketing
OVERVIEW OF INTERNATIONAL MARKETING
PAGE NO.7

initiatives carried out by individual MNCs into any

particular region. Analysis of cultural factors indicates
that cultural sensitivity is of paramount importance in the
business sphere, which extends to the marketing tactics of
international companies. Customers motivation for
purchases of products and services often stems from the
perceived importance of a product for their lifestyle. Close
examination of the traditions, values or social interactions
between customers within a region can lead to more
successful marketing messages and tactics developed by
the international company in a new area. If a customer
cannot identify the perceived benefits of a product or
service promoted by a company, the chances are that they
will not purchase those particular goods. There are very
slim chances that all cultures will perceive a product and
its benefits in an identical manner and cultural analysis of

distinct regions informs companies of the most significant

differences that international brands must keep in mind
when globalizing their business.
4] Technological Factors:
As, marketing efforts must take into account not only the
general market trends for a particular industry, but also
the extent to which the targeted audience has access to
certain technologies. The majority of businesses in the
Western world have focused on developing easily
accessible mobile sites, as the number of smart-phone
users in this region has seen an incredible surge over the
past decade. Enabling customers to make purchases via
their smart-phone contributes to the success and profits of
businesses in the UK or US, but this is not the result of the
number of users of smart-phones, but also the level of
confidence of customers in these regions in online
payment systems. Whilst companies may experience a
surge in sales through developing user-friendly smartphone applications and websites, investing time and effort
into this in some regions may be counterproductive, due to
the level of confidence in online shopping in these
particular countries. Access to modern technologies, as
well as the degree of trust in using these technologies
must precede the marketing efforts of international
companies in new regions in order to guarantee success.
Although international trends in marketing place an
increasing importance on social media promotional
techniques, a
OVERVIEW OF INTERNATIONAL MARKETING
PAGE NO.8

global brand must ensure that the customer base of a

region is prepared to respond to the digital media efforts
carried out by a particular brand.
5] Legal Factors:
Consumer protection, trade regulations and restrictions
are just some of the legal factors that companies must be
aware of in their international marketing efforts. To start
with an example; LOreal, the well-established global
cosmetics brand, must censor the marketing and
packaging of their products to comply with the rules and
regulations present in the Middle Eastern regions.
Although marketing and advertising in the Western world,
particularly in the fashion and beauty industries, relies
heavily on provocative imagery and messages, this would
not only go against the socio-cultural perception of
potential customers in Middle Eastern countries, it would
also be illegal. Altering their marketing tactics in these
regions is, therefore, a prerequisite for MNCs penetrating
this market from a legal perspective. Global companies
have often been accused of attempting to monopolies
certain industries, which negatively impacts on the overall
reputation of the firm and often influences the local
customers to perceive multinationals as a threat, rather
than healthy competition for existing competitors.
Monopoly of an industry is a threat to customers at large,
as the leader of the trade can set their prices and, without
any competition; they can decrease the quality of the
services or products offered. Although national and
international authorities that regulate the trade (i.e. the
Competition Commission) ensure that the monopoly of the
market will not take place through mergers and
acquisitions of a market leader, international marketing
has a significant role to play in maintaining a companys

reputation intact. The ability to communicate, through

marketing messages, that the pricing strategies and level
of customer services offered by a company is maintained
even after mergers and acquisitions ensures that the
customers can continue to perceive a company as ethical.

OVERVIEW OF INTERNATIONAL MARKETING

PAGE NO.9

6] Environmental Factors:
The extent to which a customers purchase decision is
influenced by the ethical behavior of a firm in relation to
the environment is often country-specific or, at least,
region specific. The level of education and awareness of
local consumers in relation to the importance of firms
corporate social responsibility (CSR) contributes to the
extent to which companies should be focusing on
promoting their ethical behavior in a particular region.
Whilst international trade regulations have, to a great
extent, imposed strict rules in relation to the impact of
businesses on the environment, marketing social
responsibility is only relevant in some regions. In other
words, whilst focusing the marketing efforts to change the
branding tactics of a company to reflect a more
environmentally friendly strategy may lead to success in
some countries, it may well be an ineffective tactic in
others. The attitude of consumers in the region towards
environmental impact must be first and foremost analyzed
before a company launches an extensive rebranding
campaign that focuses on the green approach of the
company in their operations. This is yet another piece of
evidence which proves that the standardization of

marketing strategies can be counter-productive in the long

run for any global business, as the awareness of what the
local customer desires to see and hear in the marketing
messages precedes any other previous research findings
that set the foundation for the marketing strategy and
tactics.

OVERVIEW OF INTERNATIONAL MARKETING

PAGE NO.10

METHODS OF PAYMENT IN INTERNATIONAL TRADE:Information Communication Technologies(ICT) have

resulted in converting the whole World into a Global
Village, where the distance is not a barrier for trading.
Though the International trade helps the buyers and
sellers in getting new businesses from all around the
World but which mode or method of payment should be
used while doing the international trade, is always a
debatable issue between the exporters and the importers.
As the profit making is the soul motive of the buyers and
the sellers, the mode and the terms of payments are very
crucial to them.
Some of the safer and widely recommended and accepted
modes of payment for International trades are :
1] Open Account Payments:

Open Account is a mode of payment in which the entire

products ordered by the buyers are being shipped and
delivered to him by the sellers and the sellers agree to
take payment after some period of the time. Mostly in
Open Account payment, the money is being pay to the
exporter after 30, 60 or 90 days from the day of the
delivery. This mode of payment is though risky for the
exporter because the importer will get control over the
products even before making any payment but it help
exporters in getting more and more buyers. It gives
competitive advantages over other exporters. The Open
account method of payment help the importer in
maintaining the case flow. The importer gets the time to
sell the products to the end consumers and recover money
and then to pay the exporter out of the recovered money
only.
2] Payment in Advance:
In this mode of payment, the entire value of the ordered
products is being paid by the buyer well-in advance. It is
the best mode of payment for an exporter because he gets
the value of his products even before making the delivery.
Any exporter will love to accept this mode of payment. But
is it a risky method for the importer as he
OVERVIEW OF INTERNATIONAL MARKETING
PAGE NO.11

cant get his payment back if the exporter fails to delivery

the products as described in the quotation or on
documents. Advance or prepayments are usually accepted
by the importers only if they need the products
immediately or when the importer blindly trust an
exporter with the product quality and on time delivery.
Wire transfers and credit cards are usually being used for
making advance payments.
3] Letter of Credit:

The most widely recommended and happily accepted

mode of payment is the Letter of Credit. The letter of
credit is a document issued by the bank of the importer,
where the importers bank act as a guarantor on the
behalf of the importer and gives the exporter a surety that
the importer will make the payment if the exporter will
fulfill the delivery terms as mentioned in the letter of
credit. Some of the points that an exporter must keep in
mind while selecting LC as a medium of payment are:

Make sure that the you will be able to delivery the

products on date as mentioned in the LC.

Finish all the negotiation with the importer before the

development of the LC.

Do not agree to any term which can lead to late or no

payment.

4] Documentary Collection:
In this mode of payment, both the buyers and the sellers
bank come into the picture. The exporter forward the
goods through shipping without getting any payment but
possesses control over the products through the shipping
documents that the buyer will be needing for getting the
products. After shipping the products, the exporter
submits all the relevant documents including the bill of
exchange, official invoice of the products and the shipping
documents to his bank. The exporters bank then send
these document to the buyers bank. Once the buyer
accepts the official invoice and signs the bill of exchange
and make the payment in his
OVERVIEW OF INTERNATIONAL MARKETING
PAGE NO.12

bank, he gets the shipping document against which he can

get the goods. This is known as Documents against
Payment. If the buyer accepts the bill of exchange and

legally agreed to make the payment on a fixed date and

collect the shipping documents and clear the goods, this is
known as Document against Acceptance. Here the
exporter and the sellers are likely to be in less risky
situations.
5] Consignment:
Consignment terms of payment are highly acceptable by
the importers. It is a moderated form of open account
payment. The seller receives the payment only when the
buyer sells the products to their end consumers. The
buyer only receives and manage the products but the
products are owned by the seller only till there are being
sold to the third party. The buyer or the importer have the
least risk in this method. The buyer have to pay only if the
products are being sold. After a fixed date, according to
the legal contract between the seller and the buyer, the
buyer can make the payment or can return the unsold
product to the exporter.

OVERVIEW OF INTERNATIONAL MARKETING

PAGE NO.13

ROLE OF WTO IN INTERNATIONAL TRADE:In this increasingly globalized scenario, companies need to
be globally competitive in order to survive. Knowledge and
understanding of different countries economies and their
market is a must for establishing oneself as a global
player. Now the business has gone beyond the boundaries
of a nation and has turned into the international business.
Its quite necessary to understand the meaning of
international trade and the international organization
popularly known as World Trade Organization (WTO) and
its contribution towards the international business and
smooth trading between countries. International trade is
defined as a contract where two parties (These parties
may operate their business in different countries trading
in goods and services) enters into the transaction of
buying and selling of goods and services irrespective of
national boundaries. This involves the import and export
trade where one country either sells goods or service to
other country or buys goods and service from other
country. Followings are the five essentials for such
international trades .

The contract of sale of goods.

The contract of carriage of goods.
The contract of insurance for the goods.
The compliance with exports and imports authorities
in terms of formalities and documentation required.
The mechanism for payment set up by the buyer.
The World Trade Organization is therefore the
organization which was set up out of the Uruguay Round
of General Agreement on Tariffs and Trade negotiations in
1995 and which became the successor to and replacement
of the General Agreement on Tariffs and Trade [GATT] and
it inter alia regulates trade and tariffs worldwide and
settles trade disputes amongst members. The contained a
charter for a Multilateral Trade Organization [MTO] aimed
at providing an institutional framework within which the
results of the Uruguay Round could operate. Within the

MTO was established a new dispute settlement mechanism

and a Trade Policy Review Mechanism [TPRM]. There was
a framework which, provided annexes of the more
important areas such as the General Agreement on Trade
in Services [GATS] and The Agreement on
OVERVIEW OF INTERNATIONAL MARKETING
PAGE NO.14

Trade Related Intellectual Property [TRIPS] which were a

part of the Text. Contrary to the position of almost all
contracting parties to GATT for the retention of MTO, at
the insistence of the US, it was changed to WTO. GATS has
two parts, the short framework agreement which is
substantially similar to the GATT and the schedules of
national commitments which members have undertaken
and which form a part of the Agreement in the same way
that tariffs are part of the GATT.
However, in GATS, governments freely choose which
services to include in their schedules and in the committed
sectors, they are free to maintain limitations on the degree
of market access and national treatment they are prepared
to guarantee. Therefore, negotiations for further
liberalization will involve negotiators pressing their
partners to include more sectors in their schedules and to
remove some of the limitations they still maintain. The
Agreement provides for every means by which services
can be traded and supplied and is not limited to crossborder trade as with GATT, but also consumption abroad,
which means the freedom of shippers to use foreign
transport providers, the right to set up any type of
business to supply the service in the export market
[establishment trade], and the temporary movement
abroad of individuals to provide a service, all of which
show that GATS is also concerned with foreign direct
investment.
The role of WTO in international trade is as stipulated in
the Agreement establishing it (Article III of the Agreement
establishing WTO) and includes:

1. Facilitating the implementation, administration and

operation and furthering the objectives of the agreement
establishing it and other Multilateral Trade Agreements
and providing the framework for the implementation,
administration and operation of the Plurality Trade
Agreements. (Article III of the Agreement establishing
WTO).
2. Providing the forum for negotiations among its
Members concerning their multilateral trade relations in
matters dealt with under the agreements in the Annexes to
the Agreement setting it up and for the results of such
negotiations as may be decided by the Ministerial
Conference. (Article III of the Agreement establishing
WTO).
OVERVIEW OF INTERNATIONAL MARKETING
PAGE NO.15

3. Administering the Understanding on Rules and

Procedures Governing the Settlement of Disputes or the
Dispute Settlement Understanding which is Annex 2 to the
agreement setting it up. (Article III of the Agreement
establishing WTO).
4. Administering the Trade Policy Review Mechanism in
Annex 3 of the agreement setting it up. (Article III of the
Agreement establishing WTO).
5. Cooperating as appropriate with the International
Monetary Fund and the International Bank for
Reconstruction and Development [a.k.a. the World Bank]
with a view to achieving greater coherence in global
economic policy making. (Article III of the Agreement
establishing WTO).
This is aimed at building better understanding and
coordination between a trade organization like WTO and
monetary institutions like IMF and World Bank. It may be
said in passing that these are two financial institutions
without good reputation with developing countries and
that are seen by them to have been recommending
economic reforms and structural adjustment programmers

that destroy, rather than rebuild, their economies. The

ultimate goal of the multilateral institution of GATT and
WTO is the provision of free global trade and economic
relationship among members and that GATT is designed to
achieve free trade and to improve market access by(a) Having all protection take the form of tariffs;
(b) Holding multilateral negotiation at which those tariffs
are lowered and bound;
(c) Ensuring that these agreements are implemented by
requiring that any increase in a bound tariff must be
compensated by the reduction of another;
(d) Providing a mechanism by which signatories can settle
disputes.
The success of WTO in its role of increasing world trade is
measured in accordance with the volume and growth of
world trade and although this went up by 25% in the last 8
years, the benefits of that increase are not equitably
shared among member states. For instance, only 0.03% of
the world trade represented by the least
OVERVIEW OF INTERNATIONAL MARKETING
PAGE NO.16

developed countries which accounts for 20% of the worlds

population. By 2003, the WTO had 145 members,
including China which joined at the end of 2001. Another
25 countries, including the Russian Federation and Saudi
Arabia, were negotiating for membership into the
organization. Since its formation, the WTO has remained
at the forefronts of efforts to promote global free trade. Its
creators expressed the hope that the enforcement
mechanism granted to the WTO would make it a more
effective policeman of global trade rules than the GATT
had been. The great hope was that the WTO might emerge
as an effective advocate and facilitator of future trade
deals, particularly in areas such as services. The
experience so far has been encouraging, although the
collapse of WTO talks in Seattle in late 1999 raised a

number of questions about the future direction of the

WTO. (Frances Williams, 1997)
The WTO is an international body which not only takes are
of the international trades but also actively participates on
business improvisation. It always put required effort to
keep the peaceful trans-boundary trades and to solve the
disputes if arises among the member countries. We cant
think of international trade happening in absence of WTO
and all the members are following the protocols set by
WTO. Although there are various views on role of WTO but
as far as my view is concerned, WTO plays an important
positive role for the international trades and its always
beneficial for the countries to trade trans-boundary being
the member of the WTO.

OVERVIEW OF INTERNATIONAL MARKETING

PAGE NO.17

CONCLUSION:From the above project it is concluded that, to study

overview of international marketing is very important, the
companies that are not involved in international business
also feel the effects of their customers and competitors
that are doing business overseas.
As competition
continues to increase, the number of companies doing

business with the United States will only continue to

decrease. There are many companies that sell a large
portion of their goods overseas and depend on those
profits to survive. Now companies do not look at the
United States as their only opportunity for business but
look at the whole world as a possible place for their
business activities.

OVERVIEW OF INTERNATIONAL MARKETING

PAGE NO.18

BIBLIOGRAPHY AND WIBLIOGRAPHY: Bibliography:Book I referred to study this project is:-

International Marketing, by authors, Michael Vaz, Meeta

Seta.
This book is published by Manan Prakashan.

Wibliography:www.google.com