International Business Agricultural Marketing Management

Question: Describe about the International Business for Agricultural Marketing Management. Answer: Country Data Chile Mexico Population 17.8 million 120 million Area of country 756,096 km 1.973 million km GDP US$ billions 240 1,161 GDP per capita US$ 13 300 US$ 9 592 GDP per capita PPP US$ 23 563 US$ 18 335 Inflation 4.4% 2.8% Unemployment 6.6% 4.3% Urbanisation 90% 79% Gini Index Income equality Poorest 20% Wealthiest 20% .52 4.77% of nations income 56.7% of nations income .50 4.19% of nations income 54.6% of nations income Major exports Copper, fish, wine, chemicals Paper and pulp Manufactured goods, oil and oil products, silver, fruit, vegetables Major imports Petroleum, electronics, telecom equipment, natural gas, industrial machinery Industrial and agricultural machinery, electrical equipment, aircraft Adults 25-64 who completed upper secondary education 71% 34% Human development Index .832 (Very High Category) .75 (High Category) Conclusion 1 On the basis of the present data, it can be said that the economic condition of Chile is much better than Mexico in spite of being a highly populated area. This shows that the household income of Chile is more than Mexicos income, which means the people residing in Chile is getting higher compensation than the people living in Mexico. While comparing both the countries, it is evident that Chile has most responsible macro-economic policies and effective legal system when compared with all other Latin American countries. The internal market of Mexico is unfavorable due to its geographical positions. Conclusion 2 On the other hand, the inflation rate, urbanization and unemployment are also higher in Chile in comparison to Mexico. The higher rate of inflation is the indicator of decreasing purchasing power of citizens. The higher rate of unemployment shows negative effects on the economy while the higher rate of urbanization shows positive effects on the economy. It is because of the reason that degree of freedom in Chile is much higher than in the other countries. It has the highest ranked infrastructures, institutions and macro-environment. The market of Chile is much efficient than the other countries market. Conclusion 3 The income equality and the literacy rate of Chile are higher than Mexico. The income equality and growth go hand in hand. Greater income inequality is the indicator of poor life expectancy and happiness. But the economy, where the income equality is higher, the people gets more selfish, breaks the laws and rules, and is less concerned about others. Higher income individuals loss their privilege positions that in turn lead to the lower economic standings. The transparency in the system of Chile has led to lower corruption. This has led to the investment of overseas businesses leading to the creation of the stable economy. Conclusion 4 Human development index is higher in Chile in comparison to the index of Mexico. Another thing that supports the exporting and importing business of Chile is the stronger fiscal and monetary policies that have been established due to cooperation of financial institutions. Mexico is the major exporter of oil and oil products, manufactured goods, vegetables, fruits and silver and major importer of electrical equipment, aircraft, Industrial and agricultural machinery. Mexico is ranked among 12th largest export economy of the world due to its strongest trade partners. First-mover advantages In the context of business, the first mover advantage is referred to the benefits enjoyed by the firms while facing the consequences of early entry in the market. The major benefit is the economic profit, but some of the studies have suggested that measures for survival in the market or higher share of market are the major advantage(Isa, 2016). For the Australian Char Heat Beat, early entry in the market means the adoption of higher-risk strategies. Often, it is found that first movers of the market prove to be successful in comparison to the rivalry firms entering into the market later on(Suarez Lanzolla, 2005). It is because of the reason that established firms like Australian Char Heat Beat were advised to track the early market development and chase the fast follower strategy. The potential existence of the first movers was appreciated for choosing optimal timings for entry. The firm that enters into the evolution of market later were characterized as followers(Ettington, 2016). If Australian Char Heat Beat will enter into the market, then they will be able to differentiate among the entrants by categorizing them as late followers and fast followers. First-mover disadvantages The first movers also pertain to some disadvantages like first movers require that they should develop such products that are unique in market and that require higher investment(Gurumurthy, 1998). For Australian Char Heat Beat, there is need of higher investment so that a product should not get imitated with other products that already exist in a market. For getting necessary information about the tastes of consumers and products market positioning, a heavy expenditure on advertisement and promotion is required. Moreover, the fruits of pioneer labour are also enjoyed by the second entrants(Fernandez, 2016). By taking the advantage of newer technology, second mover develops their enhanced products(fao, 2016). It may also be possible that Australian Char Heat Beat will bear the economic burden for the development of new market. References Ettington, D. R. (2016). First-Mover Advantage. Retrieved August 26, 2016, from referenceforbusiness: https://www.referenceforbusiness.com/management/Ex-Gov/First-Mover-Advantage.html fao. (2016). Global agricultural marketing management. Retrieved August 26, 2016, from fao: https://www.fao.org/docrep/w5973e/w5973e0b.htm Fernandez, R. (2016). The competitive effect of entry in mobile markets. Gurumurthy, G. K. (1998, July 01). strategy+business. Retrieved August 26, 2016, from Strategy-business: https://www.strategy-business.com/article/18881?gko=64116 Isa, C. M. (2016). Advantages and Disadvantages of the Entry Timing Choices in International Market Expansion by Malaysian Construction Firms. Suarez, F., Lanzolla, G. (2005). The Half-Truth of First-Mover Advantage. Retrieved August 26, 2016, from hbr: https://hbr.org/2005/04/the-half-truth-of-first-mover-advantage