The Foreign Goods Demand, Cultural Beliefs and Consumer Choices: A Microeconomics Note

Abstract

Consumers react to opportunities. So, given that free trade allows them more alternative goods, ¿How come that foreign goods shape consumer choices?. Is it either because of its price, consumer`s income, or their cultural beliefs?. How do it all influence business strategic decisions in international markets? The aim of this paper is to analyze the microeconomic relationship between utility maximization, and cultural values. In particular, its influence in the consumer decisions framework as well as its role for shaping business strategic decisions concerning international markets. The methodology is an inductive desk research. It begins with the theoretical background about consumer behavior and foreign good demand, as well as cultural values impact on business strategy in foreign markets, to conclude that as incomes rises and needs step up, consumers get involve in wider social interaction, such that it shapes the boundaries of rationality which make cultural values part of the marginal utility of income.