Discuss how foreign governments can act as participants, facilitators and regulators and the impact of each on international marketing efforts.

Question

Quizplus · Accepted Answer

The Answer is Government involvement in the economy provides commercial opportunities but also challenges. Governments may choose to actively participate in the economy, creating their own companies (e.g. state trading companies) or statutory marketing authorities or by undertaking commercial activities themselves (e.g. defence or health). Governments are also major consumers (often the sole consumer). Governments facilitate domestic and international marketing through their national policies/economic plans and export incentives and concessions. Governments also act as regulators by imposing taxes, mandatory standards and so forth that may disadvantage international competitors.

Discuss How Foreign Governments Can Act as Participants, Facilitators and Regulators