Question 1

International Marketing

Accepted Answer

The performance of business activities designed to plan, price, promote, and direct flow of a company\'s goods and services to consumers or users in more than one nation for profit.

Question 2

Differences between domestic and international marketing,

Accepted Answer

The difference is the environment in within which marketing plans must be implemented.

Question 3

Uncontrollable Elements

Accepted Answer

are competition, legal restraints, government controls, weather, fickle consumers, and natural disasters.

Question 4

Domestic Uncontrollable Elements

Accepted Answer

Competitive structure Political/legal forces Economic climate

Question 5

Foreign Uncontrollable Elements

Accepted Answer

Competitive structure Political/legal forces Economic climate Cultural forces Geography and infrastructure Structure of distribution Level of technology

Question 6

Controllable Elemets

Accepted Answer

Can be altered in the long run and usually in the short run to adjust to changing market conditions, consumers\' taste or corporate objectives.

Question 7

Controllable Elements EX.

Accepted Answer

Firm characteristics Price Promotion Product Channels of distribution (Place) Research

Question 8

Adoption

Accepted Answer

in order to adapt marketers must be able to interpret effectively the influence and impact of each of the uncontrollable environmental elements on the marketing plan for each foreign market, which they hope to do business in.

Question 9

Self-reference criterion

Accepted Answer

The primary obstacle to success in international marketing. Is an unconscious reference to one\'s own cultural values, experiences, knowledge as a basis for decisions. (impede the ability to assess a foreign market in its true light)

Question 10

Examples of SRC

Accepted Answer

McVitie\'s chocolate biscuits  Unilever washing detergent  McDonald\'s in India

Question 11

Ethnocentrism

Accepted Answer

is the notion that people in one\'s own company, culture, or country know best how to do things. (impede the ability to assess a foreign market in its true light)

Question 12

To be globally aware is to have:

Accepted Answer

Tolerance of cultural differences and  Knowledge of cultures, history, world market potential, and global economic, social, and political trends

Question 13

The stages of international marketing involvement

Accepted Answer

1: No direct foreign market  2:Infrequent foreign marketing  3: Regular foreign Marketing  4: International Marketing  5: Global Marketing

Question 14

Balance-of-payments

Accepted Answer

a system of recording all of a country\'s economic transactions with the rest of the world over a period of one year. Its record is maintained on a double-entry bookkeeping system that must always be in balance. It is a record of condition, not a determinant of condition. It presents an overall view of its international economic position and is an important economic measure used by treasuries, central banks, and other government agencies whose responsibility is to maintain external and internal economic stability.

Question 15

Tariff

Accepted Answer

A tax imposed by a government on goods entering at its borders to generate revenue or to discourage the importation of goods. They may be used as revenue-generating taxes or to discourage the importation of goods, or for both reasons.

Question 16

Non-Tariff

Accepted Answer

Other non-tax measures used to protect local industry and minimize imports (quotas, boycotts, monetary barriers, and market barriers)

Question 17

Tariff Barriers tend to INCREASE...

Accepted Answer

1) inflation  2) Special interests\' privileges  3) Government control in economic matters  4) The number of tariffs on the home country due to reciprocity

Question 18

Tariff Barriers tend to WEAKEN...

Accepted Answer

1) Balance-of-Payments positions  2) Supply-and-Demand Patterns  3) International Relations (they can start trade wars)

Question 19

Tariff Barriers tend to RESTRICT...

Accepted Answer

1) Manufacturer\' supply sources  2) Choices available to consumers  3) Competition

Question 20

Types of Non-Tariff Barriers

Accepted Answer

1) Quotas  2) Import licensing requirements  3) Voluntary Export Restraints (VER)  4) Boycotts 5) Embargoes 6) Monetary Barriers

Question 21

Quotas

Accepted Answer

a specific unit or dollare limit applied to a particular type of good

Question 22

Predatory pricing

Accepted Answer

A practice by which a foreign producer intentionally sells its products in another country for less than the cost of production to undermine the competition and take control of the market.

Question 23

GATT

Accepted Answer

A forum for member countries to negotiate a reduction of tariffs and other barriers to trade. It became part of the world trade organization in 1995 and its 117 original members moved into a new era of free trade.

Question 24

The GATT Covers 3 Basic Areas

Accepted Answer

1) Trade shall be conducted on a nondiscriminatory basis  2) Protection shall be afforded domestic industries through customs tariffs, not through such commercial measures as import quotas  3) Consultation shall be the primary method used to solve global trade problems

Question 25

WTO

Accepted Answer

World Trade Organization. The organization formed in 1994 that encompasses the GATT structures and extends it to new areas that had not been adequately covered previously. The WTO adjudicates trade disputes. All member countries have equal representation.

Question 26

The World Bank Group has 5 institutions, each of which performs the following services

Accepted Answer

1) Lending money to the governments of developing countries to finance developing projects in education, health, and infrastructure 2) Providing assistance to governments for developmental projects to the poorest developing countries  3) Lending directly to help strengthen the private sector in developing countries with long-term loans, equity investments, and other financial assistance  4) Providing investors with investment guarantees against \"noncommercial risk,\" such as foreign investment  5) Promoting increased flows of international investment by providing facilities for the conciliation and arbitration of disputes between governments and foreign investors.

Question 27

World Bank

Accepted Answer

AKA the International Bank for Reconstruction and Development. It was created to aid countries in financing their balance of payment difficulties and maintaining a relatively stable currency, the World Bank was initially intended for the financing of postwar reconstruction and development, and later for infrastructure building projects in the developing world.

Question 28

International Monetary Fund

Accepted Answer

the stabilization of foreign exchange rates and the establishment of freely convertible currencies to facilitate the expansion and balanced growth of international trade.

Question 29

Anti-dumping

Accepted Answer

They were designed to prevent foreign producers from \"predatory pricing,\" a practice whereby a foreign producer intentionally sells its products in the US for less than the cost of production to undermine the competition and take control of the market.

Question 30

Geography

Accepted Answer

the study of Earth\'s surface, climate, continents, countries, peoples, industries, and resources, is an element of the uncontrollable environment that confronts every marketer but that receives scant attention.

Question 31

Sustainable development

Accepted Answer

An approach towards economic growth that has been described as a cooperative effort among businesses, environmentalist and others to seek growth with\" wise resources management, equitable distribution of benefits and reduction of negative efforts on people and the environment from the process of economic growth.

Question 32

Culture

Accepted Answer

A society\'s accepted basis for responding to external and internal events.The human-made part of human environmentâthe sum total of knowledge, beliefs, arts, morals, laws, customs, and any other capabilities and habits acquired by humans as members of society.

Question 33

Acculturation

Accepted Answer

The process of how a person learns and adjusts to a new culture. Ex: Michele Phillips has just begun to understand French culture, even though she has lived in France for two years. She is nearly fluent in French. However, learning to live in France will take some time.

Question 34

Socialization

Accepted Answer

a continuing process whereby an individual acquires a personal identity and learns the norms, values, behavior, and social skills appropriate to his or her social position. Ex: Socialization Means- growing up

Question 35

Innovation

Accepted Answer

An idea perceived as new by a group o people; when applied to a product, an innovation may be something completely new or something that is perceived as new in a given country or culture.

Question 36

Hofstede\'s elements of culture

Accepted Answer

He found that a wide variety of business and consumer behaviors patterns are associated with three of the four demensions. 1) Individualism/Collectivism Index (IDV)  2) Power Distance Index (PDI) 3) Uncertainty Avoidance Index (UAI)  4) Masculinity/Femininity Index (MAS)

Question 37

Individualism/Collectivism Index (IDV)

Accepted Answer

Focuses on self-interest. The Individualism/Collective Index refers to the preference for behavior that promotes one\'s self-interest  High IDV cultures reflect an \"I\" mentality and tend to reward and accept individual initiative  Low IDV cultures reflect a \"we\" mentality and generally favor the group over the individual Collectivism pertains to societies in which people (from birth) are integrated into strong, cohesive groups, which protect them in exchange for unquestioning loyalty.

Question 38

Power Distance Index (PDI)

Accepted Answer

Focuses on authority orientation. The Power Distance Index represents the extent of hierarchy in a society (relationship between superiors and subordinates). Cultures with high PDI scores tend to be hierarchical and value power and social status. High PDI cultures think that those who hold power are entitled to privileges. Cultures with low PDI scores value equal opportunity and reflect egalitarian views.

Question 39

Uncertainty Avoidance Index (UAI)

Accepted Answer

Focuses on risk orientation. The Uncertainty Avoidance Index measures the tolerance of uncertainty and ambiguity among members of a society. High UAI cultures are highly intolerant of ambiguity, experience anxiety and stress, believe a high level of authority is a means of avoiding risk. Low UAI cultures are associated with a low level of anxiety and stress, a tolerance of dissent, and a willingness to take risks.

Question 40

Masculinity/Femininity Index (MAS)

Accepted Answer

Focuses on assertiveness and achievement.

Question 41

Rituals

Accepted Answer

Patterns of behavior and interaction that are learned and repeated. Ex - Marriage ceremonies and Funeral

Question 42

Linguistic distance

Accepted Answer

The measure of di?erence between languages; an important factor in determining the amount of trade between nations.

Question 43

Aesthetics

Accepted Answer

Philosophically, the creation and appreciation of beauty; collectively, the arts, including folklore, music, drama, and dance ex.Aesthetic differences affect design, colours, packaging, brand names and media messages

Question 44

Cultural sensitivity

Accepted Answer

an awareness of the nuances of culture so that a culture can be viewed objectively, evaluated and appreciated; an important part of foreign market.

Question 45

Cultural borrowing

Accepted Answer

The phenomenon by which societies learn from other cultures ways and borrow ideas to solve problems or improve conditions.

Question 46

Cultural congruence

Accepted Answer

a marketing strategy in which products are marketed in a way similar to the marketing of products already in the market in a manner as congruent as possible with existing cultural norms.

Question 47

Planned change

Accepted Answer

a marketing strategy in which a company deliberately sets out to change those aspects of a foreign culture resistant to predetermined marketing goals.

Question 48

Similar but Different

Accepted Answer

creates illusions of similarity that usually do not exist. Several nationalities can speak the same language or have similar race and heritage, but it does not follow that similarities exist in other respectsâthat a product acceptable to one culture will be readily acceptable to the other, or that a promotional message that succeeds in one country will succeed in the other.

Question 49

\"Many in the US see globalization as a negative. The text highlights a number of positives. What are concerns here for citizens opposed to foreign trade?\"

Accepted Answer

\"As noted in the group, globalization sparks many fears among US citizens. The losses of jobs and, in fact, entire industries have been discussed endlessly in the media. How the US competes in the world has been called into question. Additionally, we see other countries prospering at the expense of our interests. Compounding this is the fact that we hear that some countries manipulate their currency or subsidize their manufacturers giving them an unfair advantage in trade relations. All of these factors \"add up\" to make many citizens want to somehow distance themselves from globalization and protect the country\'s interests.\"

Question 50

\"The marketer\'s task is the same whether applied to Dimebox, Texas, or Dar es Salaam, Tanzania. .\"

Accepted Answer

The group\'s comments were well target and quite informative. I agree with the group that the marketer\'s task of managing and delivering value is important both here and worldwide. This part is universal and makes the marketer\'s task the same. Still, we must keep in mind that more factors need to be considered and perhaps adapted to in foreign markets in order to accomplish this task. So, the \"correct\" answer here is one that recognizes both sides of the argument. Good!\"

Question 51

\"What is the likely impact the worldwide recession will have on global marketing?\"

Accepted Answer

The recession could also be looked upon as both a negative and a positive for global marketing. On the negative side, fewer buyers might mean fewer sales for all firms. As such, there are fewer jobs. Communities might \"buy local\" to preserve whatever wealth nearby. On the positive side, less demand may force firms to understand markets in greater detail in order to maintain their competitive footing. In such markets, it is important for firms to control costs yet at the same time remaining active to meet competitive moves as well as seek out (relatively risk-free) opportunities on the global stage. In strategy, theorists sometime write about firms engaging in \"active waiting\". That is, they poise themselves to remain nimble, watching for not for \"golden opportunities\" or \"dire threats\" (both of which happen infrequently) but rather small adjustments that can provide continued growth and add to the firm\'s competitive capacity. Good work!\"

Question 52

\"What myths do you think many students have about global marketing?\"

Accepted Answer

\"This question often generates a lot of thoughts. Students\' comments fall along the lines of several themes. First, many students believe that you can market a product or service the basically the same way worldwide. Coupled with this belief is the notion that global marketing is relatively \"easy\" as a result. There is a lot of research required to understand how foreign markets are different and may require revisions to the firm\'s business model. Also, with some diligence, trade barriers and obstacles can overcome. Often these barriers and obstacles are overstated by those not familiar with global trading. Second, many students fail to appreciate how cultural differences impact global (sales) marketing efforts. One needs to \"do their homework\" to anticipate how to position a product as well as conduct business with other professionals worldwide. Good!\"

Question 53

\"The text holds that being globally aware is important in order to take advantage of business opportunities worldwide. Assume that you are applying to work for a major corporation. What indicators would you look for or notice as you \"size up\" your potential employer that they are \"globally aware?\"

Accepted Answer

\"You would get a sense of how global a company is on your first visit by seeing how many foreign nationals were working there as well as how international marketing efforts were organized (e.g., is there an international division?). If their brands were selling well overseas you would have some reason to assume that the company was \"globally aware\" and able to work well in other cultures worldwide. This cultural/global awareness might help guide any social responsibility efforts to give back to the diverse communities that have helped make the company a worldwide success.\"

Question 54

\"How globally aware should a student be at this point in their training and career development? What practical advice (given time and financial restraints that most students face) would you have for someone who wants to make their resume more \"global?\"

Accepted Answer

\"Admittedly, it is hard to globalize your resume given the time and money constraints that many students face. Still, technology nowadays provides students with ready access to the world. As such, you can learn about markets and economic developments that are shaping the work world that you will be entering in upon graduation. Other ideas included in the discussion were studying abroad and enrolling in language classes. In some way you are trying to create \"evidence\" that you have global interests and ambitions. You might, for example, list the global courses/electives you took in college on your resume as a testimony to your interest and readiness to work in an interconnected world.\"

Question 55

\"Given that there are many advantages for regional economic integration, why don\'t we see more integration in the world economy?

Accepted Answer

\"Your group noted a number of obstacles that prevent countries from engaging in trade. One noted in your discussion was the tension often found between countries who question if they will come out ahead in any trading agreements may stifle integration. Also, there are a large number of factors that have to line up (e.g., develop a common currency or banking system) in order to (fully) integrate economies. Even dropping some trade barriers is dependent upon countries being close by each other (physically) as well as sharing some common cultural or history. Even when these factors are shared, the process of negotiating other differences and giving up some political sovereignty in the process can be daunting. Also, to begin such a process of integration we need to find economies that are poised to complement each other (e.g., one supplies capital, the other supplies other factors of production like skilled labor, land...) to ensure that all develop economically over the long haul. Still, despite the number of obstacles involved we find hundreds of trade agreements in place worldwide. Some have been successful, others less so.\"

Question 56

Many people in the US and other countries as well believe that nations should protect their economies from the uncertainties of global commerce. Discuss how practical this is and the merits of this thinking.\"

Accepted Answer

\"During tough economic times nations want to protect themselves. Doing so, however, does have its costs in terms of consumers paying more for goods and restraining domestic growth (which may cut into job growth/opportunities). Perhaps the strategic thinking that is needed here is to somehow to simultaneously plan to protect key industries in the short term while taking steps to make them more competitive in open world markets ASAP. Doing so might strike a balance here between \"stopping the bleeding\" and \"taking some necessary (at times painful) steps to mend the economy.\"

Question 57

\"Are tariffs and quotas fair? Remember that fair requires one to balance the benefits and burdens of some action (e.g., a tariff) on all affected parties.

Accepted Answer

\"The group\'s overall consensus was that tariffs and quotas are somewhat fair. The rationale was that these maneuvers if used properly may balance out the benefits and burdens of all involved parties. Of course, this may be difficult to do or convince all parties that the tariff or quota in question works and that all are burdened and profit to the same degree. Tariffs and quotas might be justified to the degree that they \"level the playing field.\" That is, they remove any unfair advantages a nation may enjoy at the time to get all trading on the same footing or basis. Think of it as a handicap in bowling or golf. Still, quotas and tariffs are often used for political reasons like retaliating for human rights violations and lose sight of somehow balancing out economic benefits and burdens. As such, often these measures are seen as unfair. In sum, tariffs and quotas have mixed impacts for different parties and as such generate a lot of discussion.\"

Question 58

\"Explain to a small business manager how the GATT and/or WTO have changed his/her industry or market over time. Each student might discuss one gain or challenge that these institutions have had on the average business person.\"

Accepted Answer

\"The group did a great job of identifying a number of trade initiatives championed by the GATT and WTO to assist small business owners to more readily enter global markets. The harmonization of product standards, the promotion of intellectual property rights, restricting dumping, and lowering of excessive tariff barriers make it possible for small business to enter foreign markets, earn a profit and protect their competitive position as well. Often students will note that the opening up markets may advantage large multinational firms more and thus place small businesses at a disadvantage in their home markets. This is true also. In sum, the plight of a small business in the more expansive global marketplace depends more now than ever on the strategic thinking and maneuvering of the small business owner.\"

Question 59

\"Examine exhibit 2.2 on page 28 of your text. Knowing that many countries contribute to building some products, discuss the challenge of using trade barriers (e.g., nontariff and tariff) to protect the US economy from any given foreign economy/nation.\"

Accepted Answer

\"The group had a lively and quite detailed debate focusing on the tension that may exist between trading partners who are all working together to bring a product to market. Missed in the discussion, however, was the notion that it is difficult at times to see the \"roots\" of any trade imbalance (which may prompt the use of tariffs and quotas) since a product may require many nations to contribute to its production (e.g., Ipads and Iphones). Typically, the last country to \"touch\" the product and export it to the US gets \"tagged\" as the product\'s country of origin. A tariff or quota levied against the \"tagged nation\" may work for its intended purposes but we may lose sight of who are real competitors are and how to deal more effectively with them.\"

Question 60

\"Nontariff and tariff trade barriers will become obsolete soon as a means to protect economies and direct trade.

Accepted Answer

\"Most believe that in time the use of trade barriers will decline some as markets develop and the trading field levels out over time. As such, firms will compete increasingly on the merits of their marketing offers and less on some temporary advantage (e.g., lower wages in a developing economy). How and when this will come about is anyone\'s best guess.\"

Question 61

Why study geography in international marketing?\"

Accepted Answer

All agreed that geography was important. Marketers need to know where they are at in order to know what might be sold and how. Weather conditions, for example, effects how a product is packaged, stored and made available for retail. Geography also influences what products may be in demand in a given area (e.g., high powered bug sprays in the tropics) as well as what products might be manufactured or produced there as well (e.g., rubber from the tropics). Good work!

Question 62

What role does sustainable development play in international marketing now and in the future as well?\"

Accepted Answer

\"As discussed by your classmates, sustainable development delivers a \"win-win\" solution for businesses and consumers alike. Companies employing sustainable development will make wiser use of resources (driving down product costs). This makes it more likely that they will be able to make their products affordable to more markets. Also, many emerging economies (e.g., China) are beginning to require companies to be more ecologically-minded to protect citizens and the environment. In the near-term, entry and access to foreign markets may be dependent upon a firm not only having a product demanded by consumers but also one that wisely incorporates sustainable development in its design.\"

Question 63

\"Can marketers act as cultural change agents? How? To what degree are marketers responsible for the consequences that result from the introduction of an innovation into a market that does change lifestyles and social patterns?\"

Accepted Answer

Marketers act as change agents. They do so by introducing new products and services that change consumption patterns in the host country. Marketers need to be \"Out in front of the changes.\" That is, marketers must do some up front work to anticipate how some new product or service will be received in the foreign market. Some of this is simply a part of the job of doing business. Marketers are always trying to understand and predict consumer demand. Marketers may also want to understand reactions beyond sales figures. That is, how might other stakeholders in the market react as well? Might some new product threaten the community in some way and prompt the media or legislators to react? Still, one side of the argument often overlooked involves positive cultural changes. Do marketers ever get praise or recognition when they change a culture for the better (e.g., introduce exercise products to increase the overall health of some segment of the population)? The community (e.g., consumers and the government) also have a responsibility to assess the impact of new product and services. Thus, the responsibility is \"shared\" though often students feel that marketers bear the bulk of load here.\"

Question 64

\"\"It is stated that members of a society borrow from other cultures to solve problems that they face in common. What does this mean? What is the significance to marketing?\"

Accepted Answer

\"Cultures represent \"solutions\" to problems in living faced by its members. Other cultures may face similar difficulties and in addition to \"trial and error\" might turn to neighboring nations for solutions. Thus, cultures have borrowed from each other for centuries. Along these lines, marketers might frame new product introductions as \"solutions\" that others facing similar difficulties have used. This way, consumers\' resistance to change could be anticipated and encourage them to try out the innovation. Still, cultural borrowing and sharing requires the marketer to continue to be sensitive and responsive to important cultural differences.\"

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