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Domestic Environment

The main aspects of domestic environment within the limitation of which a firm has to carry out its foreign marketing activities, consist of a large variety of factors their relative importance of which keeps on changing form country to country and from one point of time to another. These factors are broadly related to domestic, economic and political conditions, including country’s existing and potential resources endowment and prospects of augmenting resources from external sources; level and brand of economic growth, industrial base and structure; marketing infrastructure and logistics system and existence of facilitating and supporting agencies for the conduct of foreign trade, size and trend of domestic demand and availability of surpluses for export. Government polices and plans, monetary and fiscal policy, and foreign exchange regulations, import-export policies and procedures and several other allied matters have a direct bearing on the conduct of foreign marketing by an enterprise.

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