Don Honorio Ventura State University

College of Business Studies

Bacolor, Pampanga
Globalization is the ongoing process that deepens and broadens the relationships and
interdependence among countries.
International business is a mechanism to bring about globalization.
International Business consists all commercial transactions – including sales, investments, and
transportation – that take place between two or more countries.
Increasingly foreign countries are a source of both production and sales for domestic
companies.
Economic Globalization
Economic globalization is an Irreversible Trend Economic globalization refers to the
increasing interdependence of world economies as a result of the growing scale of cross-border
trade of commodities and services, flow of international capital and wide and rapid spread of
technologies. It reflects the continuing expansion and mutual integration of market frontiers, and
is an irreversible trend for the economic development in the whole world at the turn of the
millennium. The rapid growing significance of information in all types of productive activities
and marketization are the two major driving forces for economic globalization. In other words,
the fast globalization of the world’s economies in recent years is largely based on the rapid
development of science and technologies, has resulted from the environment in which market
economic system has been fast spreading throughout the world, and has developed on the basis
of increasing cross-border division of labor that has been penetrating down to the level of
production chains within enterprises of different countries.
Globalization of the financial sector has become the most rapidly developing and most
influential aspect of economic globalization. International finance came into being to serve the
needs of international trade and investment activities. However, along with the development of
economic globalization, it has become more and more independent. Compared with commodity
and labor markets, the financial market is the only one that has realized globalization in the true
sense of ‘globalization’.
1.2 International Market Traits
International marketing can be described as the various activities designed in the planning
process. Activities such as fixing pricing structures to suit local needs, formulating promotional
offers and assuring that the products and services are available to customers residing in the home
country as well as the foreign country. Identifying and satisfying the consumer needs globally
are the major functions to be taken care of.
Given below are some points that describe the basic characteristics of international marketing −
Broader market is available
A wide platform is available for marketing and advertising products and services. The market is
not limited to some precise local market or for people residing in a particular place, region or
country but is free for all. People from different nations sharing different cultures and traditions
can actively participate in it.
Involves at least two set of uncontrollable variables
By uncontrollable variables, we mean the geographical factors, political factors prevailing in
different countries. At the global level, all the companies have to face uncontrollable variables
from different countries. While establishing business globally, a company has to learn to deal
with these variables.
Requires broader competence
International market requires more expertise and special management skills and wider
competence to deal with various circumstances and handle different situations like changes in the
strategies of the government, the mindset of the people and many other such factors.
Competition is intense
Competition is very tough in international market, as the organizations at the global level have to
compete with both competitors in their home countries and also in the foreign lands. Competition
is high because the clash is between developed & developing countries and both have different
standards and are unequal partners.
Involves high risk and challenges
International marketing with its own advantages is also prone to different and tangible risks and
challenges. These challenges come in the form of political factors, regional and cultural
differences, changing fashion trends, sudden war situation, revision in government rules and
regulations and communication barriers
The nature of international marketing is dependent on various factors and conditions and above
all, it is dependent on the policies framed by different countries which are active participants in
international marketing. International marketing tends to ensure balanced import and export to
all countries big or small, rich or poor, developed or developing.
Management of international market is tough and requires thorough market research. It is a
predefined process which is directed towards designing and delivering products based on the
demands from the overseas customers. Proper management also helps the company attain its
objectives.
Large-scale operation
Large-scale operations involve relative amount of labor and capital to cater to the needs such as
transportation, and warehousing.
Domination of multinationals and developed countries
International marketing is highly dominated by multinational corporations due to their
worldwide reach. These organizations apply efficient and effective business practices to all their
business operations. They have a stable position and with their global approach find themselves
fitting into the arena of international marketing.
International restrictions
The international market needs to abide by different tariff and non-tariff constraints. These
constraints are regulated because different countries follow different regulations. All nations tend
to rationally abide by tariff barriers. All the imports and exports between the nations
participating in international marketing follow some restrictions in foreign exchange.
Sensitive character
International marketing is highly sensitive and flexible. The demand for a product in a market is
highly influenced by political and economic factors. These factors can create as well as decrease
the demand for a product. In fact, use of advanced technology by a competitor or the launch of a
new product by another competitor may affect the sale of a particular firm’s product worldwide.
Importance of Advanced Technology
International market is dominated by developed countries like the USA, Japan, and Germany as
they use highly advanced technology in production, marketing, advertising and establishing a
brand name. They provide admirable quality of products at reasonable prices. Presently,
Japanese products have got substantial existence in markets around the world. The Japanese
could achieve this only because of automation and effective use of advanced computer
technology.
Need for specialized institutions
Marketing at global level is highly prone to risks & is very complex and knotty. It undergoes
lengthy and time taking procedures & formalities. Competent expertise is required for handling
various sections of international marketing.
Need for long term planning
International marketing calls for long term planning. Marketing practices differ from nation to
nation influenced by social, economic & political factors.
Lengthy & Time Consuming
The activities in international marketing are very time-consuming and knotty or complex. The
main cause of these difficulties are the local laws and policies enforced on different nations,
issues in payment as different countries use different currencies, distance between the
participating nations and time taking formalities involved therein.
The current trend of globalization does not limit companies to their national borders and invites
them for marketing on a higher platform, i.e., international platform. Every nation is free to trade
with any nation. New markets are indicating signs of growth and are marking signs of
development in economies like China, Indonesia, India, Korea, Mexico, Chile, Brazil, Argentina,
and many other economies all over the world.
1.3 Protection against Unfair Competition
The imitation and exploitation of a competitor’s business may constitute unfair and
unlawful conduct, under various aspects, even if the damaged party does not hold industrial
property rights in the strict sense.

Unfair competition may specifically involve the copying of a shape or distinctive sign, as well as
the theft of confidential resources and know-how, the imitation of advertising communications,
as well as any other undue association with the success of a competitor’s product.

Unfair competition also often occurs via the internet, such as in cases of on-line defamation
campaigns and the creation of cloned pages on social networks.

Perani Pozzi Associati actively oversees all the legal aspects relating to unfair competition,
specifically those regarding slavish, misleading imitation and look-alike phenomena, assisting
its clients in defending against any unlawful, parasitic conduct, even irrespective of the breach of
industrial and intellectual property rights.

Protection in the area of unfair competition includes disputes concerning misleading and
comparative advertising in legal and administrative proceedings and before the jury of the
Italian Advertising Standards Authority.

Intellectual Property Office

SECTION 1. Title. ‑ This Act shall be known as the “Intellectual Property Code of the
Philippines.”

SECTION 2. Declaration of State Policy. ‑ The State recognizes that an effective intellectual and
industrial property system is vital to the development of domestic and creative activity, facilitates
transfer of technology, attracts foreign investments, and ensures market access for our products.
It shall protect and secure the exclusive rights of scientists, inventors, artists and other gifted
citizens to their intellectual property and creations, particularly when beneficial to the people, for
such periods as provided in this Act.

The use of intellectual property bears a social function. To this end, the State shall promote the
diffusion of knowledge and information for the promotion of national development and progress
and the common good.
It is also the policy of the State to streamline administrative procedures of registering patents,
trademarks and copyright, to liberalize the registration on the transfer of technology, and to
enhance the enforcement of intellectual property rights in the Philippines. (n)

SECTION 4. Definitions. ‑ 4.1. The term “intellectual property rights” consists of:

a) Copyright and Related Rights;

b) Trademarks and Service Marks;

c) Geographic Indications;

d) Industrial Designs;

e) Patents;

f) Layout-Designs (Topographies) of Integrated Circuits; and

g) Protection of Undisclosed Information (n, TRIPS).

Article 2: Causing Confusion with Respect to Another's Enterprise or Its Activities.

Article 3: Damaging Another's Goodwill or Reputation
Article 4: Misleading the Public
Article 5: Discrediting Another's Enterprise or Its Activities
Article 6: Unfair Competition in Respect of Secret Information
International Trade refers to the exchange of products and services from one country to
another. In other words, imports and exports. International trade consists of goods and services
moving in two directions: 1. Imports – flowing into a country from abroad. 2. Exports – flowing
out of a country and sold overseas.
Visible trade refers to the buying and selling of goods – solid, tangible things – between
countries. Invisible trade, on the other hand, refers to services.
Most economists globally agree that international trade helps boost nations’ wealth.

When a person or company purchases a cheaper product or service from another country, living
standards in both nations rise.

There are several reasons why we buy things from foreign suppliers. Perhaps, the imported
options are cheaper. Their quality may also be better, as well as their availability.
The exporter also benefits from sales that would not be possible if it solely sold to its own
market. The exporter may also earn foreign currency. It can subsequently use that foreign
currency to import things.

The term ‘commerce’ is often (not always) used when referring to the buying and selling of
goods and services internationally.

What Is an Import?
An import is a good or service bought in one country that was produced in another. Imports and
exports are the components of international trade. If the value of a country's imports exceeds the
value of its exports, the country has a negative balance of trade (BOT), also known as a trade
deficit.
What Is an Export?
Exports are goods and services produced in one country and sold to buyers in another. Exports,
along with imports, make up international trade.
 REFERENCES
https://www.un.org/en/development/desa/policy/cdp/cdp_background_papers/bp2000_1.
pdf
https://www.tutorialspoint.com/international_marketing/international_marketing_charact
eristics.htm
https://www.2pt.eu/en/intellectual-property/protection-against-unfair-competition/

https://marketbusinessnews.com/financial-glossary/international-trade-definition-
meaning/amp/?fbclid=IwAR0mhP3KlSHoP7BTkS9v8lBfujTFlF8ROrcWKw-mgxsXcUX9SrLLBtKMLI4

https://www.officialgazette.gov.ph/1997/06/06/republic-act-no-8293/

https://www.investopedia.com/terms/e/export.asp

https://www.investopedia.com/terms/i/import.asp