Lavin Grace Lobaton BSA-2A

Financial Markets comprises the following:

1. Stocks market – a place where buyers and sellers trade equity shares of public
corporations. Most of these shares are called common stocks and preferred stocks
which are rarely commercialized. These stocks are traded on a stock exchange or
over-the-counter and are verified with a stock certificate. The stocks which are
also called equities represent a company’s fractional ownership and the stock
market is a marketplace where investors can buy and sell ownership of such
investable assets.
2. Bond market – there are also other words for this, it is called debt market, fixed
income market, or credit market. It is usually issued by the government or public
corporations. This is where loan investments and debt securities are bought and
sold. There is a so-called bond certificate that represents a debt of the issuer, and
which states that a company has obligation to its buyers that they needed to be
responsible for. The bond market is just like lending money to companies where
it can help them raise capital or funds for intended uses.
3. Currency – in simple terms, it is called money. Currency is a form of payment for
goods and services. It is money in the form of paper and coins that is usually
issued by a government and is generally accepted as a form of payment at the
original cost. It replaced bartering as means of trading goods and services and is
now a primary medium of exchange in present times. And in our generation
now, there is the so-called cryptocurrency, a virtual currency that exists
electronically and can also be a form of payment for some goods and services.
4. Derivatives – an efficient type of financial security that is agreed upon by two or
more parties. Traders use derivatives to gain access to specific markets and trade
various assets. Derivatives are commonly regarded as a type of advanced
investing. Derivative prices are determined by increases and decreases in the
underlying asset. These financial securities are most often used to obtain access
to specific markets and may be traded to reduce risk.
5. Commodity – these are basic inventories, basic goods used in trading that can be
exchanged for similar goods. Commodities are tangible products that are
purchased, sold, and traded in markets as compared to stocks and bonds which
are only financial contracts.
6. Money – a medium of exchange, a commodity, and a principal measure of
wealth. If you have this, you can buy goods and services. It can pay for goods
and services which has a value that is used for it. It is used to purchase anything
in the present times. It is essential for living in modern times because without it,
it will be difficult for us to take charge of our expenses in everyday life.
Role of International Marketing
 The role of international marketing is to improve global free trade and aim to
bring all countries together for trading purposes. Through international marketing, we
can now trade with other nations. It develops, communicates, transmits, and exchanges
value-added goods for stakeholders and society. It also supports social and cultural
exchange within and between countries. By having this in our generation, we can have
the freedom to easily receive and send products to those people willing to trade also.

Barriers of International Marketing

 Cultural and social barriers – international trade can be hindered by cultural and
social forces. These forces are affecting our country in trading with other nations.
 Political barriers – the country’s state has a significant impact on international
trade. Governments have distinct approaches to international trade. The
country’s political conflict can change attitudes toward the other country at some
point. And its effect can develop an unwanted environment for international
trade from one country to the next.
 Tariffs and restrictions – this is difficult for the people in this field. These are tariffs
that can keep foreign competitors out of a digestive market, quotas that can limit
the number of products that can cross the country, and embargoes that can
hinder or ban certain imports and exports.
 Boycotts – an absolute forbid on the acquisition and distribution of certain foreign
goods. If this happens, it is not good for the producers of the product that they
will have no sale in an area because the people there boycotted their goods.
 Standards – if the standards of a country for importing products don’t match the
quality of the product, it will be a barrier to those countries that export their
products. This happens often. We as consumers have a basis or standard when
choosing a certain product. That is why there are standards in order to fulfill
what quality the people wanted to have in the products they intend to purchase.
 Anti-dumping penalties – happens for producers who intentionally sell low-cost
products to take lead in competitions. This is not a good way to be a producer in
this kind of strategy. You will most likely generate a not-so-good profit in your
business.
 Monetary barriers – these include blocked currency, differential exchange rate,
and government approval for securing foreign exchange. These will be a handful
of work for the traders, and also takes time.
 Administrative policies – some countries have too many formalities, bureaucratic
rules, and administrative procedures that exporters and importers have to
follow. This takes some time for the traders, with so many things to follow for.
 Considerable diversities – the unique culture and civilization of some countries
need to be considered. Also, social and cultural diversities such as language and
 religious diversities. Everyone has different needs, preferences, etc. so it is better
to have considerable diversity.
 Norms and ethics challenge – the norms and ethics reflected in formal regulations
that the international business players have to observe. A barrier since the moral
principles and codes of conduct differ.
 Terrorism and racism – the threat of attacks is risky for the life of international
business players and racism restricts activities in international trade. The fear of
terrorism as a worldwide problem affected the risk of trading with other
countries.
 Other difficulties such as climate change, global warming, calamities, the inadequate role
of international agencies supporting and regulating international trade, differences in
currencies and marketing methods, protectionist approach, and economic crisis across the
globe.