International Marketing Plan

The description of the international marketing plan is presented in seven separate discussions. These discussions address issues related to (1) type of business, (2) product line, (3) mode of participation, (4) market evaluation, (5) competition, (6) functional issues, and (7) environmental scanning.

The type of business selected was food processing. This business type was selected because the foodstuffs category is one of the four major product areas of Cuban imports (Paxton, 1990). The other major import product areas are (1) raw materials, which are not suitable for export through a Canadian subsidiary of an American company, (2) fuel, which would require access to Canadian natural resources, and (3) major transportation equipment, such as locomotives, automobiles, trucks,

1 2busses, and tractors, which involves an industry which has been internationalized between Canada and the United States since the Auto Pact of 1965, and wherein the production of components in each country would complicate problems of Cuban export (Rudolph, 1987). Minor items of transportation equipment, such as bicycles, are manufactured with ef

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have comparative advantage in all commodities. Initially, the theory was based on laborcost differentials. In the 1990s, it is recognized that both supply and demand factors are at work in the determination of relative prices which establish a basis for a mutually advantageous exchange between countries. Cuba does not have a strong dairy industry. Canada, by contrast has an excess supply of dairy products, with respect to domestic consumption demand. The Carnation Company has, over a period of almost 100 years, developed a particular expertise in the processing of canned milk. A Carnation subsidiary located in Canada, thus, would hold a comparative advantage of some significance in the context of exporting canned milk products to Cuba. The product line for export to Cuba from a Carnation Canadian subsidiary would not be restricted to canned whole milk. The product line would also include evaporated milk, 4condensed milk, condensed sweetened milk, and baby formula products. MODE OF PARTICIPATION The mode of participation for Carnation in Canada would be the direct foreign investment in a whollyowned subsidiary. Such a subsidiary would be under the direct control of Carnation, but would be subject to the export
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Some common words found in the essay are:
Cuba Canadian, TYPE BUSINESS, Auto Pact, Cuba United, Carnation Canadian, Organization American, Carnation Company, President Bush, ISSUES Carnation, Third Carnation, rudolph 1987, canned milk, american law, canadian subsidiary, paxton 1990, comparative advantage, american company, product line, theory comparative advantage, organization american, marketing plan, commercial trade cuba, canadian subsidiary american, mutually advantageous trade, law beyond american,
Approximate Word count = 1301
Approximate Pages = 5 (250 words per page)

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