International Marketing ch 1,2,4,5 – Flashcards
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Which regions belong to the Big Emerging Markets (BEMs)?
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BRIC (Brazil, Russia, India, China) ASEAN (Indonesia, Brunei, Malaysia, Thailand, Philippines,Vietnam) CEA (China, Hong Kong, Taiwan)
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What is imperative for global marketing?
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Global competition (competitors may not have gone abroad yet) Saturation of domestic markets (mature market) Global cooperation (companies work together to minimize government regulations) Internet revolution (most companies have a website)
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What is the convergence of the globalization of markets?
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People with higher incomes have similar consuming behavior across nations
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What is the divergence of the globalization of markets?
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Consumers have a wider choice of goods and services to choose from
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What is international trade?
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Exports and imports
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What is global reach?
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Extensive international penetration
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International business includes...?
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International trade and foreign production
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Who manages international trade?
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Intrafirm trade: trade between multinational corporations and their foreign subsdiaries
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What is marketing?
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Planning and execution of the 4 P:s. Customer satisfaction. Companies move forward reactively and proactively
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What are the five stages in the evolution of global marketing?
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Domestic marketing Export marketing (direct/indirect export) International marketing Multinational marketing (ways to standardize to reduce costs) Global marketing (similarities in global customers)
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Global Marketing refers to marketing activities that emphasize the following:
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Standardization efforts Coordination across markets Global integration
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Which are the top 5 merchandise exporting countries 2012?
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China, EU, USA, Germany, Japan
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Which are the triad regions?
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North America, EU, Japan
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What is foreign direct investment (FDI)?
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Investment in manufacturing and service facilities in a foreign country. Ex. call centers
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What is the affect of intertwined world economy?
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All nations are exposed to the fluctuations in the currency markets which affect how expensive exports/imports are.
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What is country competitiveness?
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The productiveness of a country, its firms' domestic and international productive capacity
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What is GATT (General Agreements on Tariffs & Trade)?
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A global trade agreement that was successful in lowering trade barriers
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What is WTO (World Trade Organization)?
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WTO has statutory powers to adjudicate trade disputes among nations and has its own secretariat. WTO is the new legal and institutional foundation for a multilateral trading system.
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What is WTO's ninth round - "Doha Development Agenda" (Doha Round)?
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It allowed China and Taiwan to get membership in the WTO
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What is Trade Related Aspects of Intellectual Property Rights (TRIPS)?
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It ensured patent protection does not block developing countries' access to affordable medicines
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What is The United Nations Commission on International Trade Law (UNCITRAL)?
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It has formed a Working Group on Electronic Commerce to reexamine vague regulations regarding e-commerce
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What types of regional economic agreements are there? Give one example on each type.
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Free Trade Areas: NAFTA Customs Union: ASEAN Common Market: EU Monetary Union: EU Political Union: British Commonwealth
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What is the definition of culture in a business setting?
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A learned, shared, compelling, interrelated set of symbols whose meanings provide a set of orientations for members of society
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What are the elements of culture?
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Material life (technologies that are used to produce, distribute, and consume goods and services) Language (the spoken and the silent language) Social Interaction Aesthetics (asians want fair skin, westerners want tanned skin) Religion Education Value System (what is important)
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What does high-context cultures mean?
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Interpretation of messages rests on contextual cues like China, Korea, Japan.
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What does low-context cultures mean?
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most emphasis on written or spoken words like USA, Scandinavia, Germany. They say what they mean
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What are Geert Hofstede's 6 Cultural Classification schemes?
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Power distance (low=not formal, high=formal) Uncertainty avoidance (risk willingness) Individualism (I get rewarded for my work, selfish) Collectivistic (the group shares credit for my work) Masculity (success, competitive drive) Long-term vs short-term focus
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What is Project GLOBE (Global Leadership and Organizational Behavior Effectiveness)?
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A large-scale ongoing research project that explores cultural values and their impact on organizational leadership (uncertainty avoidance, power distance, and collectivism, collectivism II, gender egalitarianism, assertiveness, future orientation, performance orientation, and humane orientation)
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What is the World Value Survey?
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The WVS encompasses two broad categories: traditional versus secular values, and the quality of life
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What is self-reference criterion (SRC)?
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Refers to the people's unconscious tendency to resort to their own cultural experience and value systems to interpret a given business situation. Ex. a stork brings babies in USA but in Japan a peach brings the babies
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What is ethnocentrism?
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Refers to the feeling of one's own cultural superiority. Ex. an american saying that eating dogs in China is wrong.
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What does Product Policy mean?
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Certain products are more culture-bound than other products. Food, beverages, and clothing products tend to be very culture-bound.
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What are pricing policies driven by?
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Four Cs: customers company (costs, objectives, strategy), competition, collaborators (distributors)
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What are the 4 types of organizational cultures?
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Clan culture (family like structure with focus on consensus) Adhocracy culture (no formal structure) Hierarchy culture (top-down) Market culture (competitiveness)
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What is global account management (GAM)?
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The coordination of the management of customer accounts across national boundaries
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What is customer relationship management (CRM)?
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managing interaction between the company and its customers
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What are the benefits of CRM?
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Better understanding of customers' expectations and behavior Ability to measure the customers' value to the company Lower customer acquisition and retention costs Ability to interact and communicate with customers in countries where access to traditional channels is limited
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Successful CRM Implementation
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Make the program business-driven rather than IT-driven Monitor and keep track of data protection and privacy laws in those countries where CRM systems are being used or are in the planning stage A good database is the main pre-requisite. Rewards being sent out to customers are relevant, targeted, and personal.
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Home country is...?
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a country in which the company is based and from which it operates.
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Host country is...?
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a country in which foreign companies are allowed to do business
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What are the ideological structures of government?
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Communism (everything is shared) Capitalism (competitiveness) Socialism (mix between the two)
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What kind of political parties are there?
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Single-party-dominant country Dual-party system Multi-party system
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What ways are there to manage political environment?
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Expropriation (gov takes property with little compensation) Confiscation (gov takes property with no compensation) Nationalization (gov takes companies) Domestication Policy/Phase-Out Policy (gradually leaving the company to the locals) Countertrade (trading goods and services, not money)
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What is important regarding Social Pressures and Special Interests?
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Foreign companies also have to consider social factors as part of the political environment of host countries
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What is the G7?
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An economic policy coordination group made up of Canada, England, France, Germany, Italy, Japan and USA.
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What is the G8?
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G7 and Russia
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What is COCOM (The Coordinating Committee for Multilateral Controls)?
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Founded to stop the flow of Western technology to the former Soviet Union. Members countries: Australia, Japan and the NATO countries except Iceland
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International Law (the law of nations) comes from three main sources:
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Customs International treaties Court decisions
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Which 2 types of Intellectual Property Protection are there?
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TRIPs (Trade-Related Aspects of Intellectual Property Rights) Patent (first-to-file & first-to-invent principles)
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USA is isolated from foreign changes because...?
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USA has a big market and a lot of own resources
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The larger the country's domestic economy is the less...?
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independant it tends to be on exports and imports relative to its GDP
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What does countries generally export and import?
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A country exports its advantages and imports its weaknesses
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Companies who trade currencies affect what?
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the currency negatively
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What are low curriencies to investors?
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attractive
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What are high curriencies to investors?
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expensive so companies look elsewhere
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What are portfolio investments?
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withdrawable at short notice
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What are incentives used for?
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to control where businesses are set up and the price of products
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What are transition economies?
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Countries that are not capitalistic in nature. Risky.
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How can business trust be established?
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following some of the host country's norms
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What does secular-rational values mean?
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people think by themselves
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What does self-expression values mean?
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people are open minded
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What does traditional values typically mean?
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the country is religion dominated
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What are sanctions?
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a penalty for violating rules. Ex. prohibits trade
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What are embargoes?
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prohibits certain or all trade with a foreign nation
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What is the government's role?
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to promote a country's interests in the international arena for various reasons and objectives (such as national security, developing new industries, and protecting declining industries)
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What are the 3 types of risk regarding a country?
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Economic, financial, political
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6 types of legal systems are?
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Common Law (court decisions, traditions, laws can change) Code (written) Law (can't easily be changed) Islamic Law Socialist Laws Civil Law Commercial Law (laws for business)
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Free trade area:
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no internal tariffs each member can set its external tariffs.
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Customs union:
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no internal tariffs common external tariffs
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Common market:
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no internal tariffs common external tariffs free movement of products
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Monetary union:
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Common currency
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Political union:
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like the common market and monetary union common government
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Domestication policy:
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transfer knowledge to local economy. the government wants the locals to learn and manage business
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International law:
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does not work unless all countries agree and follow the laws. Geneve convention is the closest thing
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How does terrorism affect international trade?
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it disrupts international movement of supplies and merchandise and financial flows.
