Investigating Foreign Market Essay Example | Topics and Well Written Essays - 1000 words

Investigating Foreign Market - Essay Example In this regard the paper tends to evaluate the potential market for cheese and cheese products in Argentina produced by an Australian firm Nivedo. Political Factors in Argentina The political factors in Argentina have largely improved from the previous periods that have helped bring about a regulatory climate helping in the growth of imported food products market in the region. In fact it is found that the market for the imported products pertaining to dairy commodities like cheese has largely grown up in the region. The tariffs relating to import duty have largely been reduced to help in the expansion of the market for imported cheese products. It is held that in the coming years the region of Argentina would gradually turn out to be a growing market for milk products in comparison to the international market. The markets pertaining to the Latin American countries are held to become potential zones for the products derived from milk as consumption for such is found to have increased by around 15 percent within a span of six years ranging from 2000 to 2006. Thus the political climate of Argentina is held to encourage the rise of import for milk products (Organization for Economic Co-operation and Development, 2002, p.95-96). Economic Factors in Argentina Economic factors in Argentina reflected a rapid decline in the production of milk due to the rise of economic recession in the region. The production of milk in the region is found to have reduced by around 4 percent during the 2002 period. Rise of recessionary climate in the region had led to the closure of many small and big firms producing dairy products and thus the demand for the milk products in the Argentinean customers failed to get met. The dairy farming activities suffered a huge setback as it gradually became converted into a subsistence type of economy. The large dairy companies started closing down on account of the rising operational cost pertaining to such. Thus in order to largely meet the needs of the consumers the dairy products like cheese and others had to be largely imported from other countries (Organization for Economic Cooperation and Development, 2002, p.95-96). Thus it is found that the economic factors in the region can be viewed as a trigger that would help in the growth of demand for Australian cheese products. Socio-Cultural Factors in Argentina The socio-cultural factors in Argentina, a Latin American country are viewed to enhance the demand for the dairy products like cheese. With the rise and development in the state of living for the people the population belonging to Argentina started demanding more innovative foods that would help in meeting their appetites and flavors. Moreover the development of farming activities carried out in the region on a large scale also happens to escalate the demand for dairy food products. The people living in Argentina thus tend to largely demand innovative products imported from westernized countries to satisfy their desir es in an increasing manner. Further the people are also attracted by advertisements made in regards to cheese and cheese products through televisions and internet and thereby tend to purchase such products in an increased manner (Roest, 2000, p.257). Legal Factors in Argentina In terms of legal factors the production and marketing of cheese and cheese