Joan Ltd., a producer of cosmetic products, has decided to engage in international marketing of its products a) State five factors that may have influenced ...

(a) Five factors that may have influenced Joan Ltd's decision to go international

1. Saturated or limited home market: When the local demand for Joan Ltd's cosmetics has been fully met and cannot grow further, the company looks abroad to find fresh customers and sustain sales growth.
2. Desire for higher profit and increased sales volume: Larger overseas markets offer the opportunity to sell more units and earn more revenue than the domestic market alone can provide.
3. Excess production capacity: If the firm can produce more cosmetics than the home market can absorb, exporting allows it to use its plant fully and spread fixed costs over more units.
4. Favourable government incentives and trade policies: Export grants, tax reliefs, and trade agreements (such as ECOWAS or AfCFTA) reduce barriers and encourage the company to sell across borders.
5. Intense domestic competition: Heavy rivalry at home may push the firm to seek less crowded foreign markets where it can win market share more easily.

Other acceptable factors: to spread business risk across several markets, availability of cheaper raw materials or labour abroad, and the strong global reputation of the brand.

(b) Five rules and regulations the company would observe while selling in other countries

1. Product labelling and packaging standards: Cosmetics must carry ingredient lists, manufacture and expiry dates, and warnings in the language and format required by the importing country.
2. Product safety and quality certification: The goods must meet the health and safety standards of the destination country (for example, certification that no banned chemicals such as mercury are used).
3. Import tariffs, customs duties and documentation: The company must pay the required duties and provide correct export documents, bills of lading, and certificates of origin.
4. Advertising and consumer-protection laws: Promotional claims must be truthful and comply with the host country's rules against misleading or offensive advertising.
5. Foreign exchange and payment regulations: The firm must follow the rules governing the repatriation of sales proceeds and the currency in which transactions are settled.

Other acceptable rules: intellectual-property and trademark registration laws, environmental and packaging-disposal regulations, and respect for cultural or religious restrictions on products.