Answer to Question 1
When exporting products to business markets, companies can incur costs of modifying the products for the foreign markets. They can also incur operational costs involved in exporting the products. Finally, they can encounter tariffs, taxes, and other costs involved in entering a market. All of these factors can lead to differences in costs for products in different international business markets.
Answer to Question 2
Industrial markets share these basic characteristics: Classification-Industrial markets are often segmented by the types of products they produce or by how products are used in a business. Buyers-The motives, authority, and negotiating style of industrial buyers can differ across cultures. Such buyers are generally very value oriented. Relationship development-Sellers and buyers become very dependent upon each other, developing strong personal relationships. International orientation-Most industrial relationships are global. Raw materials and component parts are routinely shipped across borders. Uniformity-Industrial products have much less variation than consumer products.
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