INTERNATIONAL MARKETING

International Marketing Report for Soreen Malt Loaf

International Marketing Report for Soreen Malt Loaf

Political Issues

Over the previous decade, Brazil's political stability and sound government arrangements have upheld the country's financial development. While high duties are expanding the cost of products and administrations generated in Brazil, the interest rates have smothered the development of the land and car divisions, around others. This head represents the government policies for example, degree of government involvement in the economy. What product and services government is willing to provide to their people. Brazil is one of the biggest democratic countries where government influence is very high. The type of government prevailing in Brazil structure is the federal republic where all policies making come from government bodies.

Political environment includes the environment in which companies operate. In recent years, Brazil has developed a lot. There have been many important changes in recent years that have changed the behaviour in which the firms operate. Different rules and regulation have been passed by the government for the FMCG industry product like fruity malt bread (Shenkar, 2004, 161-171).

Political factors can be national or international, Many Governments take parts and get involve. For example, Soreen got interruption in supply due to political issues between Britain and Colombia. Political factor is sometimes in favour at Brazil.

Imposition of high taxation on the farmers in the countries would definitely entail that Soreen would have to pay an increased price for purchasing the raw material. The fluctuating levels of taxation in the industry are eventually passed on to the customers almost certainly. Trade issues would impact Soreen in a predominant manner while importing and exporting goods. When a tariff is imposed by the government of some other country, then, apart from just resulting in a loss in efficiency for Soreen, rather large transfers of income may also become contradictory to equity.

Soreen must meticulously examine the political stability of any nation where they intend to expand. Changes in the government of a country may result in legislation and taxation. The elections conducted in the country might pose an impact on Starbucks for the fact that taxes may be brought in by the existing or the new government or the new legislation. In addition, the countries going through a civil war or a political turmoil must be approached with exceeding prudence while taking new ventures into consideration. The global economy should be considered since it may impact the markets and sales of Soreen fruity malt bread (Christmann, 2004).

Economic Issues

This head represents taxation, interest rate and exchange rate. Brazil government is very inclined to welcome foreign companies to start a business in their country so that more and more foreign money involves in their economy that eventually strengthen their economy. As a part of economic reforms, India government has announced various industrial polices. From an economic perspective, Brazil emerges as one of the most stable and prosperous countries in Latin America with a $2.47 trillion GDP in ...