Over the past 40 years the number of multinational corporations in the world's fourteen richest countries has gone from 7,000 to 24,000 (Alden, p. 6-7). While many companies have marketed internationally for years, more and more companies are looking to enter the arena of global competition. .
In today's business world, often companies simply cannot stay domestic and expect to maintain and increase their markets. A company must initially decide if it is beneficial to go international, then define its international marketing policies and objectives to create an effective promotional campaign. .
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The Decision Whether to Market Internationally.
A global industry is defined as "an industry in which the strategic positions of competitors in major geographic or national markets are fundamentally affected by their overall global positions- (Porter, 1980, p. 275). Though some U.S. businesses would prefer to eliminate foreign competition through restrictive legislation, a more effective way to compete is to continuously improve products and to contemplate marketing abroad (Kotler, 2000, p. 366). .
There are several factors that attract more and more companies into the global marketplace, according to author Philip Kotler (2000, p. 367). For instance, global companies that offer superior products for lower prices can threaten a domestic company's market. This is often a force that attracts companies to enter the global marketplace. Another example is when a company realizes that some foreign markets offer a higher profit prospect than the domestic market. Also, the need for more customers often persuades a company that they must start to market their product internationally. Strategically, an international company is generally given more credence by buyers and partners than one who has conquered only the domestic market.