MODULE 5

GLOBALISATION

5.1.1 Explain globalization

It refers to the interconnectedness and interdependence of nations and people across the
world in terms of economic, cultural, political, technological, and social aspects.

OR

The process by which countries, businesses, and people around the world become integrated
and interconnected in terms of trade, communication, technology, and cultural practices
across international borders.

5.1.2 Explain factors influencing globalization

• Technological Advancements: Innovations in communication and transportation

technologies, such as the internet, smartphones, and air travel, have made it easier and
faster to connect with people and businesses globally.
• Economic Policies: Trade liberalization, deregulation, and the establishment of
international trade agreements (like SACU, the SADC, and the WTO) have reduced
barriers to trade and investment, encouraging cross-border economic activities
• Market Demand: The growing demand for goods and services from around the
world has encouraged companies to expand their operations internationally, seeking
new markets and opportunities.
• Political Stability: Countries with stable political environments are more attractive to
foreign investors and businesses, facilitating international trade and cooperation.
• Cultural Exchange: The spread of cultural products, such as movies, music, and
fashion, through media and tourism promotes shared cultures and lifestyle.
• Labor Mobility: The movement of people across borders for work, education, and
better living conditions has led to cultural exchange and spread of skill..
• Environmental Factors: Global challenges such as climate change and pandemics
require international collaboration, highlighting the interconnectedness of nations and
the need for collective action.
• Social factors like cultural exchange, education, and migration foster global
understanding and cooperation
• Legal factors such as international trade laws, intellectual property rights, and
environmental regulations shape the rules and standards for global interactions.

5.1.3 Discuss the impact of globalization on businesses

Advantages
1. Access to New Markets: Globalization allows businesses to sell goods and services to the
whole world worldwide. As a result, businesses can achieve higher profitability and market
presence.
2. Economies of Scale: By operating on a global scale, businesses can produce goods and
services more efficiently, reducing costs per unit. This cost advantage enables competitive
pricing and higher profit margins. Hence, businesses can enhance their competitiveness and
sustainability.
3. Innovation and Knowledge Sharing: Globalization fosters the exchange of ideas and
technologies across borders; hence businesses can stay ahead of industry trends and maintain
a competitive edge.
4. Diverse talent pool: Globalization enables businesses to tap into a diverse talent pool from
different regions. As a result, businesses can drive innovation and adapt to changing market
demands.
5. Lower production cost: Companies can reduce costs by outsourcing production to
countries with cheaper labour or resources. This helps businesses stay competitive in pricing

Disadvantages
1. Increased Competition: Globalization exposes businesses to intense competition from
international players. As a result, businesses may struggle to maintain their market share and
profitability.
2. Cultural Challenges: Operating in multiple countries requires businesses to navigate
different cultural norms and practices. Misunderstandings or cultural insensitivity can harm
brand reputation, leading to customer dissatisfaction and loss of business.
3. Complex Regulatory: Businesses must adhere to various regulations and standards in
different countries. Leading to an increase in operational costs and legal risks.
4. Supply Chain Vulnerabilities: Globalization can make businesses reliant on international
supply chains, which are susceptible to disruptions such as political instability or natural
disasters. These disruptions can lead to delays and increased costs.
5. Environmental impact: Increased production and transportation contribute to
environmental degradation, which businesses may be criticized or charged for.

5.1.4 Outline Botswana's trade agreements/ associations

World Trade Organization (WTO)

It aims to ensure that trade flows as smoothly, predictably, and freely as possible. Botswana
became a member of the WTO in 1995 following its accession to the General Agreement on
Tariffs and Trade (GATT). The WTO has 164 member countries.

Functions:
• Implementation of Trade Agreements: It administers and oversees the
implementation of various trade agreements among member countries.
• Trade Negotiations: It provides a platform for member countries to negotiate trade
agreements.
 • Dispute Settlement: It has a dispute resolution mechanism to address trade conflicts
between member countries.
• Trade Policy Review: It conducts regular reviews of member countries' trade
policies to ensure transparency and adherence to agreed-upon rules.
• Capacity Building: It supports developing countries by providing technical
assistance and training to help them build trade capacity.
• Promoting Sustainable Development: This includes addressing environmental
concerns and promoting practices that support long-term economic growth and
development

Southern African Customs Union (SACU)

Botswana is a founding member of SACU, which was established in 1910 and reconstituted
in 1969 and 2002. SACU consists of 5 member countries: Botswana, Lesotho, Namibia,
South Africa, and Eswatini.

Functions:
• Facilitate Cross-Border Movement of Goods: It ensures free movement of goods
between member states by eliminating customs duties and quantitative restrictions.
• Equitable Revenue Sharing: It facilitates the equitable sharing of revenue from
customs, excise, and additional duties among member states.
• Promote Fair Competition: This includes implementing common policies and
strategies to enhance the competitiveness of member states
• Increase Investment Opportunities: By creating a stable and predictable trade
environment, It attracts both domestic and foreign investments
• Economic Development and Diversification: It promotes the economic
development, diversification, industrialization, and competitiveness of member
states.
• Global Integration: SACU works to integrate member states into the global
economy through enhanced trade and investment.

Southern African Development Community (SADC)

Botswana is a founding member of SADC, which was established in 1980.

SADC has 16 member countries: Angola, Botswana, Comoros, Democratic Republic of
Congo, Eswatini, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia,
Seychelles, South Africa, Tanzania, Zambia, and Zimbabwe.

• Functions
• Economic Integration: This includes creating a common market, enhancing trade,
and improving infrastructure to facilitate the movement of goods and services
• Political Cooperation: SADC works to foster peace, security, and political stability
in the region.
 • Social and Human Development: SADC aims to improve the quality of life for the
people in the region by addressing issues such as health, education, and gender
equality.
• Infrastructure Development: SADC focuses on developing and maintaining
efficient, integrated, and cost-effective cross-border infrastructure networks.
• Environmental Sustainability: It supports initiatives that address climate change,
disaster risk management, and conservation of biodiversity

5.1.5 Discuss the impact of free trade agreements on businesses

A free trade agreement (FTA) is an agreement between two or more countries to reduce
or eliminate trade barriers such as tariffs, quotas, and other non-tariff barriers to trade.
tarrifs tax on import, qoutas a limited number of goods that are allowed to
inter a particular country
Advantages
• Market Expansion: Free trade agreements (FTAs) allow businesses to access new
markets by reducing or eliminating tariffs and trade barriers. Leading to increased
revenue.

• Cost Reduction: Reduction in costs allows businesses to offer more competitive

prices, leading to increased demand for their products and services.

• Enhanced Supply Chains: This efficiency improves the reliability and speed of
sourcing materials and delivering products, leading to better operational
performance.

• Innovation and Collaboration: It allows businesses to partner with foreign

companies and access new technologies and expertise. leading to a competitive edge
in the market,

Disadvantages
• Increased Competition: It exposes businesses to greater competition from foreign
companies that can enter the domestic market more easily. leading to potential market
share loss.

• Regulatory Compliance Complexity: This complexity can increase compliance

costs and operational challenges, leading to potential legal risks and inefficiencies.

• Dependence on Foreign Markets: This dependence can create vulnerabilities to

economic fluctuations and political instability in other countries, leading to potential
disruptions in business operations.
 • Negative Impact on Local Industries: It can negatively affect local industries that
are unable to compete with cheaper or higher-quality foreign products. This impact
can lead to job losses and reduced economic activity in certain sectors.

• Loss of government revenue: Reduced tariffs can lower government income

possibly affecting public services or support for local industries.

5.1.6 Describe the international business environment

It refers to the complex network of economic, political, legal, and cultural factors that
influence how organizations conduct business across borders.

Economic
It encompasses the economic conditions and factors that influence how businesses operate
globally.

• Currency Exchange Rate

It is the value of one currency to another.

• Purchasing Power
It refers to the amount of goods and services that can be bought with a unit of currency.

• Competition
It means rivalry between companies operating in the same market.

Physical Environment
It refers to the natural and built surroundings that can impact how businesses operate
globally.

• Distance
It refers to the geographical separation between markets.

• Infrastructure
It means the physical and organizational structures needed for the operation of a society or
enterprise.

• Climate Conditions
It refers to the weather patterns and environmental factors that can affect business activities.

• Population Distribution
It refers to the way people are spread out across a specific area or region.

Social & cultural practices

It refers to the habitual activities, traditions, and behaviours that shape the lives of
communities and groups.

• Language
The method of human communication, either spoken or written, consists of the use of words
in a structured and conventional way.

• Education Level

It means the extent of formal learning and training that individuals in a society have
completed.

• Aesthetic
It means the principles concerned with the nature and appreciation of beauty, especially in art
and design.

• Religious Beliefs
It means the faith-based principles and practices followed by individuals or communities.
They shape ethical standards, consumer behaviour, and business practices.

• Attitudes and Values

It means the collective mindset and priorities of a culture, including beliefs about what is
important, right, and desirable.

Legal environment
It refers to the framework of laws, regulations, and legal systems that govern business
operations.

• Trade Agreements
It refers to formal agreements between countries that determine the rules of trade, aiming to
reduce barriers like tariffs and quotas to facilitate smoother international commerce

• Trade Laws
It refers to regulations governing international trade, including import/export rules, tariffs,
and trade restrictions, ensuring fair and legal trading practices

• Employment Laws
It refers to regulations that dictate how employees should be treated, covering aspects like
wages, working hours, workplace safety, and non-discrimination

• Competition Laws
It refers to Laws designed to prevent anti-competitive practices like monopolies and cartels,
ensuring fair competition in the market

• Intellectual Property Rights

It refers to Legal protections for creations like inventions, designs, and artistic works,
allowing businesses to safeguard their innovations and creations

• Quality Standards
It refers to established criteria that products and services must meet to ensure they are safe,
reliable, and fit for purpose

• Packaging and Labelling Requirements

It refers to regulations that dictate how products should be packaged and labelled, including
information on ingredients, usage instructions, and safety warnings

Technology
It refers to the influence of technological advancements and innovations on how businesses
operate globally
• E-Commerce
It refers to the buying and selling of goods and services over the internet.

• E-Marketing
It means the use of digital channels such as social media, email, and search engines to
promote products and services.

• Communication
It means the exchange of information between individuals or groups.

• Information Availability
It refers to the ease of access to relevant data and information.
• Innovation
It refers to the process of developing new products, services, or processes.

Political Environment

• Forms of Government
It refers to the structure and system by which a country is governed, such as democracy,
monarchy, or dictatorship. It influences business regulations and policies

• Type of Leadership

It refers to the style and approach of those in power, such as authoritarian, democratic, or
laissez-faire leadership.

• Extent of Leadership Changes

It refers to the frequency and impact of changes in leadership, such as elections or coups.
Frequent changes can lead to instability and unpredictable policies

• Government Stability
It refers to the degree to which a government is stable and predictable.

5.2. PRODUCT ADAPTATION AND STANDARDISATION

5.2.1. Explain product adaptation and standardization

Product Standardization
It refers to the process of maintaining uniformity and consistency in the design, quality, and
features of a product across different markets.

Product Adaptation
It refers to the process of modifying an existing product to better suit the needs, preferences,
and regulations of different markets.

5.2.2. Outline factors that influence product adaptation

Environment and Health Requirements: Products must meet local environmental standards
and health regulations, such as restrictions on certain chemicals or materials
Technical Requirements: Adaptations may be necessary to comply with local technical
standards, such as electrical voltage differences or metric measurements
Legal Requirements: Products must adhere to local laws and regulations, including
labelling, safety standards, and intellectual property laws
Socio-Cultural Factors: Cultural norms, values, and preferences can dictate changes in
product design, packaging, and marketing to better resonate with local consumers
Economic Factors: Local economic conditions, such as purchasing power and income levels,
can influence product pricing and features
Climate: Products may need to be adapted to withstand local climatic conditions, such as
humidity, temperature extremes, or specific weather patterns
5.2.3. Suggest ways of adapting products in a given situation
Packaging: Modifying the packaging to meet local preferences, regulations, or
environmental conditions. This can include changes in materials, design, and size to
appeal to local consumers
Labelling: Adjusting labels to comply with local laws and to provide information in
the local language. This includes ingredient lists, nutritional information, and usage
instructions
Trademarks: Ensuring that trademarks are legally registered and protected in each
market. This may involve adapting the trademark to avoid conflicts with existing local
trademarks
Brand Names: Changing the brand name to better suit the local language and
culture. This can help in avoiding negative suggestions and making the brand more
relatable to local consumers
Size: Adapting the size of the product to meet local preferences and purchasing
power. For example, offering smaller sizes in markets with lower income levels
Language: Translating product information, instructions, and marketing materials
into the local language to ensure clear communication with consumers
Cultural: Modifying the product to align with local cultural norms and values. This
can include changes in design, colour, and functionality to better fit local tastes
Product Features: Adjusting product features to meet local needs and preferences.
This can involve adding or removing features based on local usage patterns and
preferences
After Sales Services: Providing after-sales services that meet local expectations and
standards. This can include offering local customer support, warranties, and repair
services
INTERNATIONAL BUSINESS LOGISTICS
5.3.1 Explain international business logistics

It refers to managing the flow of goods, information, and resources across international
borders to ensure efficient and cost-effective movement of products from origin to
destination.

5.3.2 Explain the role of forwarding agents

A forwarding agent, also known as a freight forwarder, is a person or company that

arranges the transportation of goods on behalf of shippers.

• Coordinating Shipments: Arranging goods transportation from the origin point to

the destination.
 • Customs Clearance: Handling the necessary documentation and ensuring compliance
with import/export regulations.
• Consolidation: Combining smaller shipments into a single larger shipment to
optimize costs and efficiency.
• Route Optimization: Selecting the most efficient and cost-effective routes and modes
of transport.
• Tracking and Documentation: Monitoring the shipment's progress and managing all
related paperwork

5.3.3 Outline the different modes of transport in international trade

• Water transport refers to the movement of goods, people, and information over
bodies of water such as oceans, seas, rivers, and lakes.
It's cost-effective for transporting large volumes over long distances, but it is slower
compared to other modes.
• Air Transport: This mode uses airplanes to move goods quickly over long
distances.
It's the fastest option, ideal for high-value or perishable items, but it's also the most
expensive.
• Road Transport: This involves the use of trucks and other vehicles to move goods
over land.
It's flexible and accessible, making it suitable for short to medium distances and last-
mile deliveries.
• Rail Transport: This mode uses trains to transport large volumes of goods over
land.
It's reliable and efficient but limited by the availability of rail networks.
• Pipeline Transport: This is used for transporting liquids and gases, such as oil and
natural gas, over long distances through pipelines.
• Intermodal Transport: This combines multiple modes of transport (e.g., rail and
road) to optimize efficiency and cost. Goods are transferred between different modes
without handling the cargo itself

5.3.4 Explain the uses of the various documents used in

international trade

Documents

Certificate of Origin
This document certifies the country where the goods were produced.
• It's used to determine tariffs and ensure compliance with trade agreements
• It helps customs authorities assess duties and verify the origin of goods.
Consular Invoice
It is issued by the consulate of the importing country.
• This document verifies the shipment's details and value
• It's used to control and regulate imports, ensuring that the goods meet the importing
country's standards and regulations.

Letter of Credit
A financial document issued by a bank guaranteeing that the seller will receive payment as
long as the delivery conditions are met
• It reduces the risk of non-payment in international transactions by ensuring that
payment is made once the terms are fulfilled.

Export Permit
This is an authorization from the government allowing the export of specific goods
• It's used to control the export of sensitive or regulated items, ensuring that they
comply with national and international regulations.

Packing List
A detailed document listing the contents of a shipment, including item descriptions,
quantities, and weights

• It's used for customs clearance and inventory management, helping to verify the
contents of the shipment and facilitate smooth processing

,
5.3.5. Explain the methods of payment for international traders
Methods of payment
Cash in Advance: The buyer pays the seller before the goods are shipped. This method
eliminates credit risk for the seller, but is less attractive to buyers due to the upfront payment
requirement
Letters of Credit: A bank guarantees the seller will receive payment from the buyer,
provided the terms of the letter are met. This method reduces risk for both parties and ensures
payment upon fulfilment of the contract
Documentary Sight Collections: The seller ships the goods and sends the shipping
documents to the buyer's bank. The buyer pays upon sight of the documents to receive the
goods. This method provides some security to the seller while allowing the buyer to inspect
documents before payment
Documentary Term Collections: Like sight collections, but the buyer is given a specified
period to make the payment after receiving the documents. This method offers the buyer
more time to pay, balancing the risk between both parties
Payment on Open Account: The seller ships the goods and invoices the buyer, who pays at
a later date. This method is the most favourable for the buyer but carries the highest risk for
the seller, as it relies on the buyer's creditworthiness.
 5.4 EXPORT TRADE
It refers to the process of selling goods or services produced in one country to buyers in
another country.

5.4.1 & 5.4.3. Explain the benefits, challenges, and possible solutions of
export trade in relation to the exporter.

Benefits of Export Trade for Exporters

• Market Expansion: Access to a larger, global market can increase sales and revenue
• Increased Profits: Higher demand in international markets can lead to higher profit
margins
• Risk Diversification: Reduces dependence on the domestic market, spreading risk
across multiple markets
• Economies of Scale: Larger production volumes can reduce per-unit costs
• Government Incentives: Many governments offer subsidies, tax benefits, and
support programs for exporters

Challenges and Solutions of Export Trade for Exporters

Regulatory Compliance:

Crossing different countries' regulations and standards can be complex

Solution

Implement compliance management systems to track and adhere to international

regulations. Consult with trade experts to ensure all documentation and labelling
meet the required standards

Cultural Differences:

Understanding and adapting to different cultural norms and consumer preferences

Solution

Invest in cultural training for your team and hire local representatives who
understand the market. Use professional translation services to avoid
miscommunication

Logistics and Shipping:

Managing international shipping, customs, and logistics can be challenging

Solution
Develop a robust logistics strategy that includes multiple shipping partners and
contingency plans. Utilize technology for real-time tracking and efficient supply chain
management

• Currency Fluctuations:

Exchange rate instability can impact profitability

Solution

Use financial instruments like hedging to lock in exchange rates. Price products
in stable currencies such as the U.S. dollar or the Euro to minimize financial risks

• High Initial Costs:

Significant upfront investment in market research, marketing, and establishing

distribution channels

Solution

Explore various financing options such as export credit agencies, trade finance
banks, and government grants. Maintain a strong credit history to improve your
chances of securing funding

• Market competition:

occurs when multiple sellers operate in the same market, striving to attract buyers by
differentiating their products or services based on price, quality, or other factors.

Solution

Conduct thorough market research to identify the best markets for your products.
Differentiate your offerings through quality, innovation, and customer service

5.4.2 Outline support services offered by various institutions to exporting

businesses in Botswana.

Botswana Investment and Trade Centre (BITC)

• Export Development and Promotion: Supports the growth of exports by promoting

locally manufactured goods to regional and international markets
 • Facilitation Services: Assists businesses with acquiring necessary government
authorizations and land leasing through the Botswana One Stop Service Centre
(BOSSC)

• Nation Branding: Manages the national brand to build and maintain a positive image
of Botswana locally and internationally

• Provides capacity-building interventions, enhances competitiveness, and links

exporters to new clients

Citizen Entrepreneurial Development Agency (CEDA)

• Financial Assistance: Provides funding for capital expenditure, stock, and working
capital for new and existing business ventures

• Technical Support: Offers training, mentoring, and business advisory services to

entrepreneurs

• Market Access: Facilitates access to markets, infrastructure, and technology for

businesses

Botswana Development Corporation (BDC)

• Private Sector Growth: Stimulates private sector growth and fosters linkages with
local industries

• Export Credit Guarantee Scheme (ECGS): Provides credit guarantees to exporters

facing payment risks from international buyers

• Debt and Equity Financing: Supports commercially viable projects that drive
diversification and export

5.4.4. Explain the factors to consider in selecting an external market

entry mode

External market entry mode refers to the strategy or method a company uses to
enter a foreign market

Market Size and Growth: Larger and growing markets may justify higher
investment
 Government Regulations: Some countries have strict regulations that may require
partnerships with local firms

Level of Competition: High competition might necessitate more aggression to

establish a strong market presence

Infrastructure: Adequate physical and institutional infrastructure can support more

resources.

Risk Levels: Political, economic, and operational risks in the target market.

5.4.5. Discuss the different methods of external market entry mode

Exporting
It involves selling goods or services produced in one country to customers in another.
Advantages:
• Low investment risk: Exporting requires minimal financial commitment in foreign
markets, hence reducing financial exposure.

• Access to new markets: It provides opportunities to reach new customers, leading to

increased sales and market diversification.

• Flexibility: Exporting allows businesses to adjust their strategies based on market

feedback, hence improving adaptability.
Disadvantages:

• Limited control: Companies have less control over marketing and distribution, which
can affect brand consistency.

• Trade barriers: Tariffs and quotas can increase costs, hence limiting market access.

• Logistical challenges: Managing shipping and customs can be complex, therefore

increasing operational difficulties.

Licensing

Licensing is an arrangement where a company (licensor) grants permission to another

company (licensee) to use its intellectual property, such as patents, trademarks, or technology,
in exchange for royalties or fees.
Advantages:

• Low-cost entry: Licensing allows for market entry with minimal investment, hence
reducing financial risk.
 • Revenue from royalties: Companies earn royalties from the licensee's sales, leading
to continuous income.

• Expansion with less effort: Licensing enables businesses to expand without

managing operations directly, hence saving resources.

Disadvantages:

• Loss of control: Licensing agreements can lead to misuse or theft of intellectual

property, hence compromising brand integrity.

• Limited market presence: Licensing may not establish a strong brand identity in the
foreign market, therefore affecting recognition.

• Dependency on licensee: Success depends on the licensee's performance, hence

introducing uncertainty.

Strategic Alliance

It is a partnership between two or more companies to collaborate on specific projects or

business activities.
Advantages:
• Shared resources: Partners can leverage each other's strengths and resources, hence
enhancing capabilities.

• Faster market entry: Alliances can expedite entry into new markets through local
partnerships, leading to quicker penetration.

• Risk sharing: Risks are distributed among partners, therefore reducing individual
exposure.
Disadvantages:
• Potential for conflict: Differences in goals and management styles can lead to
conflicts, hence affecting collaboration.

• Shared profits: Profits must be shared with partners, therefore reducing overall
earnings.

• Complex management: Coordinating between partners can be challenging, hence

complicating operations.

Franchising

It is a business model where a company (franchisor) grants the right to operate a business
under its brand and business model to another party (franchisee)
Advantages:
 • Rapid expansion: Franchising allows for quick growth through franchisee
investments, hence accelerating market presence.
• Ongoing revenue stream: Franchisors earn ongoing fees and royalties from
franchisees, leading to sustained income.

• Brand consistency: Franchisees follow established guidelines, therefore maintaining

brand standards.

Disadvantages:

• High setup costs: Establishing a franchise system requires significant investment,

hence increasing initial expenses.

• Loss of control: Franchisees operate independently, which can lead to inconsistent

quality, therefore affecting brand reputation.

• Management complexity: Overseeing multiple franchisees can be challenging, hence

complicating operations.

5.4.6. Assess an organization’s readiness to export

• Strategic Vision: The organization must have a clear and well-defined strategic
vision for entering international markets, including long-term goals and objectives.
• Financial Resources: Adequate financial resources are essential to support the costs
associated with exporting, such as production, marketing, and distribution.
• Competitive Advantage: The organization should possess a unique competitive
advantage, such as superior products, services, or technologies, that can differentiate
it in the global market.
• Product Quality: High product quality is crucial to meeting international standards
and customer expectations and ensuring competitiveness in foreign markets.
• Technology Advancement: Advanced technology can enhance production
efficiency, product innovation, and overall competitiveness in the global market.
• Human Resource: Skilled and experienced personnel are necessary to manage export
activities, including market research, logistics, and customer service.
• Proven Business Model: A successful and scalable business model tested in the
domestic market can increase the likelihood of success in international markets.
• Export Experience: Previous experience in exporting can provide valuable insights
and knowledge, reducing the risks associated with entering new markets.
• Preparatory Work: Comprehensive preparatory work, including market research,
regulatory compliance, and risk assessment, is essential for successful export
operations.
• Health of Company: A financially stable and healthy company is better positioned to
handle the challenges and uncertainties of exporting.
 • Manufacturing Capacity: Sufficient manufacturing capacity is necessary to meet the
increased demand from international markets without compromising quality or
delivery times.
5.4.7. Prepare a simple export plan

Simple Export Plan

An export plan is a comprehensive strategy that outlines how a business intends to enter and
succeed in international markets.

• Product/Service
Product: Organic Herbal Teas
Description: A range of high-quality, organic herbal teas made from natural ingredients,
offering various health benefits such as relaxation, digestion support, and immune boosting.

• Pricing Strategy
Strategy: Competitive Pricing
Explanation: Set prices slightly lower than or equal to competitors in the target market to
attract price-sensitive customers while maintaining a healthy profit margin. Consider factors
such as production costs, shipping, tariffs, and local market conditions.

• Market Entry Strategy

Strategy: Direct Exporting
Explanation: Begin by exporting directly to selected retailers and distributors in the target
market. This approach allows for greater control over the distribution process and helps build
direct relationships with key partners. Initially focus on markets with high demand for
organic products and a growing health-conscious consumer base.

• Promotional Strategy
Strategy: Digital Marketing and Trade Shows
Explanation: Utilize digital marketing channels such as social media, search engine
marketing, and influencer partnerships to create brand awareness and engage with potential
customers. Participate in international trade shows and exhibitions related to organic and
health products to showcase the product, network with industry professionals, and gain
market insights.