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58 Cards in this Set

  • Front
  • Back

Be able to define the term "adaptation" and explain why it is important in international marketing

The necessity for adapting to crucial differences. In international marketing they should be able to meet then basic criteria: (1) open tolerance, (2) flexibility, (3) humility, (4) justice/fairness, (5) ability to adjust to varying tempos, (6) curiosity/interest, (7) knowledge of the country, (8) liking for others, (9) ability to command respect, and (10) ability to integrate ones into the environment. aka They add the quality of adaptability to the qualities of a good executive for a composite of the successful international marketer

Know the definition and be able to identify cultural imperatives, cultural electives, and cultural exclusives

Cultural imperatives are the business customs and expectations that must be met and conformed to or avoided if relationships are to be successful. Cultural electives relate to areas of behavior or to customs that cultural aliens may wish to conform to or participate in but that are not required. Cultural exclusives are those customs or behavior patterns reserved exclusively for the local and from which the foreigner is barred.

Be able to list the ideas on which normative US cultural concepts are based e.g., having a "master of destiny" viewpoint, etc

"Master of destiny" viewpoint, independent enterprise as the instrument of social action, personnel selection and reward based on merit, decisions based on objective analysis, wide sharing in decision making, never-ending quest for improvement, competition produces efficiency.

Be able to define and describe "master of destiny" viewpoint

fundamental to US management thought. Simply stated, people can substantially influence the future; they are in control of their own destinies.

Know and be able to explain the belief that business decisions should be based on objectives analysis and that managers strive to be scientific

The very strong belief in the U.S. that business decisions are based on objective analysis and that managers strive to be scientific has a profound effect on the U.S. manager's attitudes toward objectivity in decision making and accuracy of data. Most U.S. managers believe decisions must be supported and based on accurate and relevant information. Thus, in U.S. business, great emphasis is placed on the collection and free flow of information to all levels within the organizations and on frankness of expression in the evaluation of business opinions or decisions.

Be able to explain what it means to say that US business is on a "never-ending quest for improvement"

The US has always been a relatively activist society; in many walks of life, the prevailing question is "Can it be done better?" Thus, management concepts reflect the belief that change is not only normal but also necessary, that nothing is sacred or above improvement.

Be able to explain what it means to say that "competition is crucial for efficiency" and how the "invisible hand" notion relates to the normative US cultural concept

Competition is crucial for efficiency meaning there is improvement and regeneration. "Greed is good" The invisible hand notion justifies competitive behavior because it improves society and its organizations

Know what "PDI" stands for and how it is related to employer-employee relationships when it comes to authority and decision-making

Business size, ownership, public accountability, an cultural values that determine the prominence of status and position. In high PDI countries understanding the rank and status of clients and business partners is much more important than in more egalitarian(low PDI) In high PDI countries, subordinates are not likely to contradict bosses, but in low PDI countries, they often do.

Know and be able to discuss the three typical authority and decision-making patterns (top-level management decisions, decentralized decisions, and committee or group decisions) and be able to give examples of each

Top level management decision making is generally found in situations in which family or close ownership gives absolute control to owners and business are small enough to allow such centralized decision making. In European businesses such as france, decision making authority is guarded jealousy by a few at the top who exercise tight control.

Decentralized decision making allows executives at different levels of management to exercise authority over their own functions. This approach is typical of large scale businesses with highly developed management systems, such as those found in the US

Committee or group decisions making is by group or consensus. Committees may operate on a centralized or decentralized basis, but the concept of the committee management implies something quite different from the individualized functioning of the top management and decentralized decision making arrangements mentioned above.

Know and be able to define and explain what "lubrication" means

Lubrication: involves a relatively small sum of cash, a gift, or a service given to a low - ranking official in a country where such offerings are not prohibited by law

In the text, Lester Thurow introduces the term "communitarian" Know and be able to explain what that term means

A philosophy that emphasizes the connection between the individual and the community

Know where the US and EU turned to when they got into a trade dispute over bananas. Why was the US involved in a trade dispute over bananas when the US does not grow bananas? Who won?

Europe. Settlement reached that involved high tariffs on Latin American bananas and quotas. The European Union cut import tariffs on bananas grown in Latin America by US firms

Know the definition of "sovereign state" and be able to explain give its characteristics.

An independent and free from all external control; enjoys full legal equality with other states; governs its own territory; selects its own political, economic, and social system, and has the power to enter into agreements with other nations

Know what is "at the top of the list" (i.e., most important) of political issues concerning foreign business

The ideal political climate for a multinational firm is a stable, friendly government. At the top of the list of political issues concerning foreign businesses is the stability or instability of prevailing government policies.

Know the fundamental forms of government put forth by the ancient Greeks as well as the common terms for those in use today

1.Rule by one = monarchy (or dictatorship)
2.Rule by few = aristocracy (or oligarchy)
3.Rule by many = democracy

Know and be able to describe the definition of "nationalism."

Nationalism: an intense feeling of national pride and unity, an awakening of a nation's people to pride in their country.

In the section on "Political Risks of Global Business," be able to define confiscation, expropriation, and domestication and be able to describe each. Know which political risk is the most severe

Confiscation: Most severe. The seizing of a company's assets without payment

Expropriation: Where the government seizes an investment but makes some reimbursement for the assets

Domestication: Occurs when host countries gradually cause the transfer of foreign investment to national control and ownerships through a series of government decrees that mandate local ownership and greater national involvement in a company's management

Know and be able to explain the various economic risks of international marketing

Exchange Controls: Stem from shortages of foreign exchange held by a country.

Local-Content Laws: In addition to restricting imports of essential supplies to force local purchases, countries often require a portion of any product sold within the country to have local content, that is, to contain locally made parts.

Import Restrictions: Selective restrictions on the import of consumer products, raw materials, machines, and spare parts are fairly common strategies to force foreign industry to purchase more supplies within the host country and thereby create markets for local industry.

Tax Controls: Taxes must be classified as a political risk when used as a means of controlling foreign investment

Price Controls: Essential products that command considerable public interest, such as pharmaceuticals, food, gasoline, and cars, are often subjected to price controls.

Labor Problems: In many countries, labor unions have strong government support that they use effectively in obtaining special concessions from business

Know what an NGO is and examples of NGOs given in the text

Nongovernmental Organizations are increasingly affecting policy decisions made by governments. Many are involved in peaceful protests, lobbying, and even collaborations with governmental organizations.

Know what kind of American companies seem to be most vulnerable when it comes to political sensitivity in foreign markets.

Products that have or are perceived to have an effect on the environment, exchange rates, national and economic security, and the welfare of people (and particularly children) or that are more publicly visible, subject to public debate, or associated with their country of origin are more likely to be politically sensitive.

Know the activities involved in "Forecasting Political Risk," e.g., political risk assessment

An attempt to forecast political instability to help management identify and evaluate political events and their potential influence on current and future international business decisions.

Be able to list and explain the US government's policy toward MNCs that are confronted with bribery situations

used to lessen the negative effects of a variety of problems. Paying heads of state to avoid confiscatory taxes or expulsion, paying fees to agents to ensure the acceptance of sales contracts, and providing monetary encouragement to an assortment of people whose actions can affect the effectiveness of a company's programs are decisions that frequently confront multinational managers and raise ethical questions.

Know which US agency is the principle one that supports US business abroad

The Department of Commerce (DOC) is the principle agency that supports US business abroad. The International trade Administration (ITA), a bureau of the DOC, is dedicated to helping US businesses compete in the global marketplace.

Be able to list the four heritages that form the bases for the majority of the legal systems of the world

Common Law, derived from English law and found in England, the US, Canada, and other countries under English influence.

Civil or Code Law, derived from Roman law and found in Germany, Japan, France, and non-Islamic and non-Marxist countries

Islamic Law, derived from the interpretation of the Koran and found in Pakistan, Iran, Saudi Arabia, and other Islamic states

A Commercial legal system in the Marxist - socialist economies of Russia and the republics of the former Soviet Union, Eastern Europe, China, and otherMarxist - socialist states whose legal system countered on the economic, political, and socialist legal system with Chinese characteristics.

Be able to explain what "common law" is all about (including tis unique aspects), what are they based on, and give examples of countries that use them

Common Law, derived from English law and found in England, the US, Canada, and other countries under English influence

Be able to explain what "civil" and "code" law are about (including unique aspects), what are they based on, and give examples of countries that use them

Civil or Code Law, derived from Roman law and found in Germany, Japan, France, and non - Islamic and non - Marxist countries

Be able to explain what "islamic" law is all about (including its unique aspects), what is it based on and give examples of countries that use it.

Islamic law, derived from the interpretation of the Koran and found in Pakistan, Iran, Saudi Arabia, and other Islamic states.

Be able to explain what "Marxist-Socialist" tenets are all about, what it is based on, and give examples of countries that use it

The set of views in which law is subordinate to prevailing economic conditions. Marxist - socialist tenets influenced the legal systems of Russia and other republics of the former Soviet Union, as well as China, forcing these nations to revamp their commercial legal code as they become involved in trade with non - Marxist countries

Know what sorts of entities that the World Court can adjudicate disputes for

The world court can adjudicate disputes between governments, whereas the other two situations must be handled in the courts of the country of one of the parties involved or through arbitration. Unless a commercial dispute involves a nation issue between nation states, the Internal Court of Justice or any similar world court does not handle it.

Know how jurisdiction is generally determined when international commercial disputes arise

On the basis of jurisdictional clauses included in contracts

on the basis of where a contract was entered into

on the basis where the provisions of the contract were performed

Know how effective arbitration has been and what seems to drive its success

If conciliation is not use or an agreement cannot be reached, the next step is arbitration. procedure is for the parties involved to select a disinterested and informed party or parties as referees to determine the merits of the case and make a judgment that both parties agree to honor. Usually very successful

Know the various deterrents to ligation that are described in the text

time, cost, image, confidentiality, difficult judgement, unfair treatment in foreign court, delays, aggravation

Know what companies with registered trademarks in the US should learn from the McDonald's trademark case in Japan

A South Korean company legally used the Coach brand on handbags and leather goods. The company registered the Coach trademark first and has the legal right to use that mark in Korea. Microsoft and Safeway legally belong to people of Jordan. Nike in Spain

Know how ownership of intellectual property rights is established in a common-law country

Prior use - whoever can establish first use is typically considered the rightful owner

Know what the situation is regarding laws regulating marketing activities such as promotion, pricing, etc. in various countries, e.g., Do all countries have such laws? Do only a very few countries have such laws?

All countries have laws regulating marketing activities in promotion, product development, labeling, pricing, and channels of distribution.

Know what "green marketing" refers to and which country has enacted the most stringent "green marketing" laws regulating the management and recycling of packaging waste

Green marketing focuses on environmentally friendly products and it's product packaging and its effect on solid waste management

Know what principle of international law is relevant to the question of jurisdiction of US law over acts committed outside the territorial limits of the US. Be able to discuss that principle

The "objective theory of jurisdiction." This concept holds that even if an act is committed outside the territorial jurisdiction of U.S. courts, those courts can nevertheless have jurisdiction if the act produces effects within the home country.

Know which US act makes it illegal for companies to pay bribes to foreign officials, candidates, or political parties.

The Foreign Corrupt Practices Act (FCPA) makes it illegal for companies to pay bribes to foreign officials, candidates, or political parties.

Know the key component in developing successful marketing strategies and avoiding marketing blunders in the international marketing environment

Information is the key component in developing successful marketing strategies, avoiding major marketing blunders, and promoting efficient exchange systems.

Know the two distinct complications that impact international marketing research


First, information must be communicated across cultural boundaries. Second, the environments within which the research tools are applied are often different in foreign market. Within a foreign environment, the frequently differing emphases on the kinds of information needed, the often limited variety of appropriate tools and techniques available, and the difficulty of implementing the research process constitute challenges facing most international marketing researchers.

Know why it is that many firms engaged in foreign marketing do not make decisions with the benefit of all the pertinent information that is out there

Many firms engaged in foreign marketing do not make decisions with the benefit of all the information that is out there. Cost, time, and human elements are critical variables. Some firms have neither the appreciation for information nor adequate time or money for the implementation of research. As a firm becomes more committed to foreign marketing and the cost of possible failure increase, greater emphasis is placed on research.

Know the six steps to the research process - in order

1.Define the research problem and establish research objectives
2.Determine the sources of information to fulfill the research objectives
3.Consider the costs and benefits of the research effort
4.Gather the relevant data from secondary or primary sources, or both
5.Analyze, interpret, and summarize the results
6. Effectively communicate the results to decision makers

Know what "secondary data" is as well as he problems that are associated with such data obtained from many international markets and data sources.

Secondary data is data that has already been collected. The problems of availability, reliability and comparability of data and of validating secondary data are problems associated with data obtained from international markets and data sources. Another problem relating to the availability of data is researchers' language skills.

Know the questions that need to be asked and answered when it comes to effectively validating secondary data, e.g., Who collected the data

•Who collected the data? Would there be any reason for purposely misrepresenting the facts?
•For what purposes were the data collected?
•How were the data collected?
•Are the data internally consistent and logical in light of known data sources or market factors?

Know and be able to explain the term "primary data"

If, after seeking all reasonable secondary data sources, research questions are still not adequately answered, the market researcher must collect primary data - that is, data collected specifically for the particular research project at hand.

Know and be able to explain the difference between quantitative and qualitative data

In quantitative research, structured answers have a specific format (such as yes/no) or select a response from a set of choices. Questions are designed to obtain specific responses. In qualitative research, if questions are asked, they are almost always open-ended or in-depth, and unstructured responses that reflect the person's thoughts and feelings on the subject are sought.

There are many difficulties when engaging in international market research. Know the biggest problem in sampling that researchers need to be aware of

The greatest problem in sampling stems from the lack of adequate demographic data and available lists from which the draw meaningful samples.

Know and be able to completely describe the various techniques that researchers can use to find translation errors before sending out a survey

The obvious solution of having questionnaires prepared or reviewed by a native speaker of the language of the country is frequently overlooked. Marketers use three different techniques, back translation, parallel translation, and decentering, to help ferret out translation errors ahead of time. In back translation, the questionnaire is translated from one language to another, and then a second party translates it back into the original, and the two original languages are compared. In parallel translation, more than two translators are used for the back translation; the results are compared, differences discussed, and the most appropriate translation selected. Decentering is a hybrid of back translation. It is a successive process of translation and retranslation of a questionnaire, each time by a different translator.

Know the two methods of forecasting demand that are particularly suitable for international marketers.

Expert opinion and analogy are two methods of forecasting demand that are suitable for international marketers. With expert opinion, experts are polled for their opinions about market size and growth rates. Another technique is to estimate by analogy. This method assumes that demand for a product develops in much the same way in all countries, as comparable economic development occurs in each country.

Know the key in using expert opinion to help a marketer engaged in forecasting demand

The key in using expert opinion to help forecast demand is triangulation - comparing estimates produced by different sources.

Know and be able to describe the underlying assumption about "analogy" when it comes to forecasting demand

First, to use analogy, a relationship must be established between the item to be estimated and a measurable variable in a country that is to serve as the basis for the analogy. Analogy must be used with caution because it assumes that factors other than the variable used are similar in both countries, such as tastes, taxes, prices, selling methods, availability, etc.

Know and be able to explain the four kinds of company-agency-customer relationships that might be used to bridge the cultural barrier that is present in most international marketing research.

1.Company - Agency - (Cultural Barrier) - Customers
2.Company - Agency -(Cultural Barrier) - Local Agency - Customers
3.Company -(Cultural Barrier)- Subsidiary - Agency Customers
4.Company -(Cultural Barrier) -Foreign Agency - Customers

Be able to discuss differences between countries (as described in the text) when it comes to management objectives and aspirations of job security and mobility

Job security and mobility relate directly to the basis of human motivation and have widespread economic and social implications.

Know where a country would be along Hall's high - context/low-context continuum and be able to describe what Exhibit 5.2 shows

Hall's high would be the top right corner of Exhibit 5.2. The Exhibit shows the low(Explicit, Emphasis, on Content of Communication) vs high context (Implicit, Emphasis on Context of Communication) style

Know and be able to explain differences between P-time and M-time, and give examples of each

P - time or polychromic time is Latin America, MidEast, and Indonesia. Dominate in high context culture, characterized by the simultaneous occurrence of many things, allows for relationships to build and context to be absorbed as parts of high context cultures

M - time or monochromic time is North Americans, Swiss, Germans, and Scandinavians. Tend to concentrate on one thing at a time, divide time into small units and are concerned with promptness, most low context cultures operate on M time

Read and be able to summarize the point of the "Corruption Define" paragraphs e.g., what sort of things are considered normal and appropriate by Americans might be viewed as corrupt in other countries

The meaning of the word corruption varies considerably around the world. Profits can be seen as a kind of corruption in formerly communist countries where Marxism was prevalent. The individualism so important to Americans can also be seen as a kind of corruption. Rampant consumerism, R-rated American movies, missionaries, intellectual property laws(that prevent treatment of AIDS for millions), currency speculation, homogenization of Barbie

Know the definition of "bribery" and "extortion"

Bribery: Voluntarily offered payment by someone seeking unlawful advantage

Extortion: Payments are extracted under duress by someone in authority from a person seeking only what he or she is lawfully entitled to

Know and be able to describe the types of action that international marketers have available to them (e.g., conciliation, arbitration, etc.) when things go wrong in a commercial transaction.

The first step is to try to resolve the issue informally. If that fails, international marketers can:
• Conciliation (also known as mediation) is a nonbinding agreement between parties to resolve disputes by asking a third party to mediate differences. This is especially effective when resolving disputes with Chinese business partners
• If conciliation is not used or an agreement cannot be reached, the next step is arbitration. The usual arbitration procedure is for the parties involved to select a disinterested and informed party of parties as referees to determine the merits of the case and make a judgment that both parties agree to honor. In most countries, decisions reached in formal arbitration are enforceable under the law.
• Litigation is the process in which a dispute between parties is contested in a formal judicial setting; commonly instigated by a lawsuit asset one party's version of the facts