International Marketing 2.0

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Sovereignty

Back 1

refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members

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Sovereign State

Back 2

Independent and free from all external control.

EX: Governs own territory, Selects own Social Systems, and Full legal equality with other states

Front 3

Theocratic Republic

Back 3

The religious leader controls government and all governmental decisions

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Nationalism

Back 4

Targets all foreign countries

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Animosity

Back 5

Targets specific nations

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Confiscation

Back 6

the most severe political risk, is the seizing of a company's assets without payment

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Expropriation

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the government seizes an investment, but some reimbursement for the asset is made; often nationalized to become government entitiy

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Domestication

Back 8

occurs when the government mandates local ownership and greater national involvement in a foreign company's management

Front 9

Jurisdiction is determined on the basis of...

Back 9

1. Jurisdictional clauses included in contracts

2. where contract was entered into, or

3. where the provisions of the contract were performed

Front 10

Conciliation

Back 10

A third party mediates differences, statements are confidential, not legally binding

Front 11

Arbitration

Back 11

Parties select a disinterested and informed party as a referee to determine the merits of the case and make a judgment both parties agree to honor

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Litigation

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Fear of creating poor image and being treated unfairly in foreign court, cost and time, loss of confidentiality

Front 13

Marketing Researchis

Back 13

traditionally defined as the systematic gathering, recording, and analyzing of data to provide information useful to marketing decision making

Front 14

International Marketing Complications

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1. Information must be communicated across cultural boundaries

2. The environments in which the research tools are applied are often different in foreign markets

Front 15

International Marketing 3 Types

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1. General Information

2. Information necessary to forecast

3. Specific market information

Front 16

Problems with Secondary Data

Back 16

Availability, Comparability, Reliability, Validation

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Availability of Data

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There is a lack of language skills in the country the firm is operating in

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Reliability of Data

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Data could be biased, stats could be unrealistic and overly optimistic

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Comparability of Data

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Old and outdated or lack of historical data

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Validating Secondary Data

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Checking consistency of data against another form of data

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Back Translation

Back 21

Done in English then translated and then translated back to English

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Parallel Translation

Back 22

Developed in English and Other Language consecutively and revised until equivalent

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Decentering

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Translated and retranslated each time by a different translator

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Types of Biases

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Non-response

Courtesy Bias

Yea or Nay

Social-desirability

Taboo

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More Developed Countries

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Industrialized countries with high per capita incomes.

Ex: Canada, France, England

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Less Developed Countries

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Industrially developed, just entering world trade

Ex: Asia & Latin America

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Least Developed Countries

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Industrially underdeveloped, low per capita income, little world trade involvement

Ex: Asia & Central Africa

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Newly Industrialized Countries

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1. Countries that are experiencing rapid economic expansion

2. Instituted significant free market reforms

3. They attract both trade and foreign direct investment

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Newly Industrialized Countries Economic Growth Factors

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Planning, Political stability, Economic reforms, Factors of production, Entrepreneurship

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The Traditional

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rural/ agricultural sector

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The Modern

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urban/high-income sector

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Transitional Sector

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Large and usually represented by low-income urban slums

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Traits of Big Emerging Markets

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Geographically large, Large populations, sizable markets, strong growth rates or potential, economic reform

Ex: India, China, Brazil, Mexico, Poland, Turkey

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Mercosur

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Created to promote free trade and movement of goods, people, and currency. wanted to adopt a common trade policy.

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NAFTA

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Purpose:

Generate income and employment gains

Enhance global competitiveness of NAFTA firms

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Latin American Integration Association

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Latin American common market

The provision that permits members to establish bilateral trade agreements among member countries

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Caribbean Community and Common Market

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Goal of a common currency for all members