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29 Cards in this Set
- Front
- Back
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Nationalism
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intense feeling of national pride and unity, an awakening of a nation’s people to pride in their country.
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Animosity
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It is important for marketers not to confuse nationalism with a widespread fear or animosity directed at a particular country.
Toyota in the U.S. (1980s) http://www.youtube.com/watch?v=S9hphx1x124 Animosity toward the United States in France It is important to appreciate that no nation-state, however secure, will tolerate penetration by a foreign company into its market and economy if it perceives a social, cultural, economic, or political threat to its well-being. Trade Disputes |
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Political Risks
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Confiscation
the seizing of a company’s assets without payment. Expropriation where the government seizes an investment but some reimbursement for the assets is made. Domestication when host countries gradually cause the transfer of foreign investments to national control and ownership through a series of government decrees Nationalization Government takes control of some or all of the enterprises in particular industry. |
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Economic Risks
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Exchange controls
Stem from shortages of foreign exchange held by a country. Local-content laws Require a portion of any product sold within the country to have local content. Import restrictions Selective restrictions on the import of raw materials to force foreign industry to buy more supplies within the host country |
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Political Sanctions
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Stopping all trade between the countries, or may issue sanctions against the trade of specific products.
U.S. boycotts of trade with Cuba/Iran |
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Political Vs. Social Activist
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Can range from those who seek to bring about peaceful change to those who resort to violence and terrorism to effect change.
Worldwide boycott of Nestle products http://www.youtube.com/watch?v=gZ2b99jxKW4 The Internet has become an effective tool of PSAs to spread the word on whatever cause they sponsor. Protest rallies against the U.S. – Iraq War http://www.youtube.com/watch?v=Pz9ekYNjaKQ&mode=related&search= |
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Common Law
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seeks “interpretation through the past decisions of higher courts which interpret the same statues or apply established and customary principles of law to a similar set of facts.”
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Islamic Law
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A complete system that prescribes specific patterns of social and economic behavior for all individuals.
Property rights Economic decision making Types of economic freedom The prohibition against the payment of interest. |
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Marxist-Socialist Tenets
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Under the premise that law is strictly subordinate to prevailing economic conditions, such fundamental propositions as private ownership, contracts, due process, and other legal mechanisms have had to be developed.
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International Dispute Resolution: Conciliation
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A nonbinding agreement between parties to resolve disputes by asking a third party to mediate differences.
Sessions are private Not legally binding; thus an arbitration clause should be included in all conciliation agreements |
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International Dispute Resolution: Arbitration
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Select a disinterested and informed party or parties as referee to determine the merits of the case and make a judgment that both parties agree to honor
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International Dispute Resolution: Litigation
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The best advice is to seek settlement.
Deterrents to litigation: Fear of creating a poor image and damaging public relations. Fear of unfair treatment in a foreign court. The relatively high cost and time required when bringing legal action. Loss of confidentiality. |
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Counterfeiting and Piracy
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Lost sales from the unauthorized use of U.S. patents, trademarks, and copyrights amount to more than $100 billion annually.
The piracy industry has grown so sophisticated that many counterfeit goods are almost impossible to distinguish from the original. A pharmaceutical manufacturers association indicates that 2% of the $327 billion worth of drugs sold each year are counterfeit. |
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Breadth and Scope of International Marketing Research
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Research can be divided into three types based on information needs:
General information about the country, area, and/or market Information necessary to forecast future marketing requirements by anticipating social, economic, consumer, and industry trends within specific markets or countries. Specific market information used to make product, promotion, distribution, and price decisions and to develop marketing plans. |
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The research Process
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Define the research problem & establish research objectives
Determine the sources of information Consider the costs & benefits Gather the relevant data from secondary or primary sources Analyze, interpret, & summarize the results Effectively communicate the results to decision makers |
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Licensing
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one company (i.e., licensor) offers a company’s know-how or other intangible assets to another company (i.e., licensee) in exchange for royalties, license fees, or some other form of compensation
The licensed asset may be a brand name, company name, patent, trade secret, or product formulation. |
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Franchising
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is a contract between a parent company (i.e., franchisor) and a franchisee that allows the franchisee to operate a business developed by the franchisor in return for a fee
the franchisee needs to pay initial fees to a royalty percentage on total sales to the franchisor |
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International Strategic Alliances
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business relationships established by +2 companies
3 major characteristics alliances must be horizontal, collaborative, and mutually beneficial to all parties |
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Joint Ventures
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an entry strategy that two or more retailers come together to create a new enterprise
why this strategy is attractive the sharing risk use joint venture experience to learn about a new market environment allow partners to achieve synergy |
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Japan
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Japan’s fast growth in the 1970s and 1980s amazed the world. Then came the early 1990s, and Japan’s economy produced a stunning surprise: it slowed, sputtered, and stalled
Four explanatory themes have emerged: Faulty economic policies Inept political apparatus Disadvantages due to global circumstances Cultural inhibitions |
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Four Asian Tigers
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Hong Kong, South Korea, Singapore, and Taiwan
Newly industrialized countries Rapid industrialization Economic leaders |
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India
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Economy: 11th largest GDP, 3rd largest purchasing power parity (PPP), G-20 member, BRICs
(+) the middle class consumer, labor force, manufacturing sector (-) tariffs, intellectual property rights, anti-business attitudes , delay on selling money-losing SOEs, corruption and bribery |
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Vietnam
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The mid-1980s: highly centralized planned economy socialist-oriented market economy
Normal Trade Relation(NTR): a manufacturing-based, export-oriented economy Foreign investment (-) poor infrastructure, onerous government restrictions, minimal industrial base, competition for resources with China, and a lack of capital technology |
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Asia Pacific Trade Association
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U.S. trading partner: Japan China or Southeast Asia
Three free trade associations in this region: Association of South East Asian Nations (ASEAN) ASEAN+3 (ASEAN members plus ministers from China, Japan, and South Korea) Asia-Pacific Economic Cooperation (APEC) |
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Patterns of Multinational Cooperation
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Regional cooperation groups
Governments agree to participate jointly to develop industries beneficial to each economy. Free trade area Agreement between two or more countries to reduce/eliminate customs duties and nontariff trade barriers among partners. Customs union Enjoys free trade area’s reduced or eliminated internal tariffs & adds a common external tariff on products from countries outside the union.Common market Eliminates all tariffs and other restrictions on internal trade, adopts a set of common external tariffs, and removes all restrictions on the free flow of capital and labor among member nations. Political union Involves complete political and economic integration, either voluntary or enforced. COMECON – enforced Commonwealth – a voluntary organization providing for the loosest possible relationship that can be classified as economic integration. |
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Strategic Implications for Marketing in Europe
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1. Opportunities
2. Market barriers 3. Reciprocity |
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Southern Cone Free Trade
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Mercosur includes Argentina, Bolivia, Brazil, Chile, Paraguay, and Uruguay
The success can be attributed to the willingness of the region’s governments to confront some very tough issues caused by dissimilar economic policies. |
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Africa
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Africa
Little actual economic integration Characterized by political instability in recent decades Unstable economic base All the countries on the continent (save Morocco) have joined a loosely defined African Union The efforts of the UN to bring about economic integration has been hampered by governmental inexperience, undeveloped resources, labor problems, and chronic product shortage Africa The Economic Community of West African States (ECOWAS) The Southern African Development Community (SADC) . |
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Middle East
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Middle East
Middle East has been less aggressive in the formation of successfully functioning multinational market groups A long history of border disputes and persisting ideological differences will have to be overcome Greater Arab Free Trade Area (GAFTA) Economic Cooperation Organization (ECO) Creation of the Organization of the Islamic Conference (OIC) Represents 60 countries and over 650 million Muslims worldwide Member countries’ vast natural resources, substantial capital, and cheap labor force are seen as the strengths of the OI Middle East Creation of the Organization of the Islamic Conference (OIC) Represents 60 countries & over 650 million Muslims worldwide Strengths: member countries’ vast natural resources, substantial capital, and cheap labor force |
