MKT 474- Exam 2 chs.6-12

US and Canada had the world's largest bilateral trade agreement. each was the other's largest trading partner. Despite this unique commercial relationship,, tariff and other trade barriers still hindered an even greater commercial activity. They established the _____ , designed to eliminate all trade barriers

(CFTA) - U.S.-Canada Free Trade Area

When ____ was ratified and became effective in 1994, it became a single market of 360 million people with a $6 trillion GNP. _____ required the three countries (US, Canada, and Mexico) to remove all tariffs and barriers to trade over 15 years. And in 2008, all tariff barriers were officially dropped.

(NAFTA)- North American Free Trade Agreement

• When doing business in more than one country, a firm must comply with different marketing laws • All countries have laws regulating marketing activities in promotion, product development, labeling, pricing, and distribution channels • In ____, premium offers, free gifts, or coupons are considered as cash discounts and are prohibited • Premium offers in ____ are allowed as long as the word free is not used • ____ law permits sales only twice a year, in January and August

- Austria - Finland - French

International disputes can be resolved by: ____ (also known as ___) is a nonbinding agreement between parties to resolve disputes by asking a third party to mediate difference. _____ - procedure calls for the parties involved to 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. decisions are enforceable under the law. ______ - deals with filing a lawsuit to settle commercial disputes

- conciliation -arbitration - litigation

NAFTA (North American Free Trade Agreement) purpose was to: - -

- generate income and employment gains -enhance global competitiveness of NAFTA firms

In the US, a common law country, ownership of intellectual property rights is established by ___ In many code law countries, ownership is established by ___ rather than ^. For example- a trademark in Jordan (in Asia) belongs to ____

- prior use - registration whoever registers it first

what are the recent changes that are driving the new economic growth?

- transitions from socialist to market driven economies -liberalization of trade policies in developing countries -public sector enterprises being transferred to private sectors

demographics of the bottom of the pyramid

-4 billion people living on less than $2 per day -the aspirational poor make up 3/4 of the world's population -$14 trillion in purchasing power

Radical shifts in government philosophy can occur when:

-An opposing political party ascends to power -pressure from nationalist and self-interest groups -weakened economic conditions -bias against foreign investments or conflicts between governments

Which of the following countries are part of the Dominican Republic-Central America FTA (CAFTA-DR)?

-Honduras

theories of comparative advantage theory:

-absolute adv -comparative adv -commodity terms of trade -factor endowment theory

primary global marketing research: -for qualitative and quantitative data -sampling

-focus groups, survey methods for cross cultural marketing research, questionnaire design, equivalence (like Likert scale) -sampling unit, sample size, sampling procedures

Once the Maastricth Treaty was ratified it allowed - - -

-free movement of goods -common currency -cooperation between police and other authorities on crime terrorism and immigration issues

market disruption: disturbing equilibrium what does marketing do?

-innovation -quality -niche markets -differentiation -cost/price advs

Benefits of international joint ventures (IJVs):

-reduce political and economic risks -are less risky way to enter markets -separate legal entity -differ from minority holdings

patterns of multinational cooperation 5 levels:

-regional cooperation groups -free trade area -customs union -common market -political union

Global competitiveness strategic essential- -companies are : - strategy and planning must be built around ___ and _____ strategies

-revamping business processes to become more competitive -focusing on key competitive positioning opportunities -comparative and competitive

problems with primary research:

-sampling in field surveys -language and comprehension

____- taxes imposed on imports. ____ - form of government payment to a producer. such as low interest loan, cash grants. ____ and _____ - are two strategies to limit the amount of imports into a country. ______- governments may limit the convertibility of one currency into others, in effort to limit imports

-tariffs -subsidies -quotas and Voluntary export restraints (VER) -currency controls

what is true about state owned companies?

-they control more than 75% of all crude oil prod. -keep profits from oil production -largest oil companies are all state run

stages through which all countries go through to be developed: ____ - This stage is characterized by a subsistent, agricultural based economy, with intensive labor and low levels of trading, and a population that does not have a scientific perspective on the world and technology. ____ - Here, a society begins to develop manufacturing, and a more national/international, as opposed to regional, outlook. ___ - this stage as a short period of intensive growth, in which industrialization begins to occur, and workers and institutions become concentrated around a new industry. ____ - This stage takes place over a long period of time, as standards of living rise, the use of technology increases, and the national economy grows and diversifies. ____ - most notably the United States, occupied this last "developed" stage. Here, a country's economy flourishes in a capitalist system, characterized by mass production and consumerism.

-traditional society -preconditions to take off -take off -drive to maturity -age of high mass consumption

Marketing Research process (6 steps)

1. Define the research problem & make objectives 2. determine source of information to fulfill objectives 3. consider costs/benefits of research effort 4. gather relevant data (primary/secondary) 5. analyze interpret, summarize results 6. effectively communicate results to decision makers

4 primary regional economies within China

1. Northeast China: longtime industrial heartland (Dalian) 2. beijing-Tianjin 3.Shanghai and Yangtze Delta 4. pearl river delta they make up 300 mm (1/2 GDP and 2* ave. income) Then the are the other billion that make up 1 billion (1/2 GDP)

three regional trading area define by time zones

1. The Americans 2. Europe, Africa, Middle East 3. Asia Pacific common time zones give europeans advs in both africa and middle east

Bottom of the Pyramid marketing requires: 1 2 3 4 5

1. advanced technology -ITC sets up PC kiosks for farmers -cell phones under $50 2. creative financing -personal internet communicators $100-185 -micro-finance groups (teaching ppl how to save, invest and lend in groups) 3.effective distribution -network marketing and riverboat distribution 4. affordable packaging 5. health benefits -selling soap promotes hygiene -1.8 million die from diseases preventable by hand washing

Big Emerging Markets (BEM) share a number of important traits:

1. are all geographically large 2. significant populations 3. represent sizable markets for wide range of products 4. strong rates of growth 5. are of major political importance

Jurisdiction is generally determined in one of three ways:

1. basis of jurisdiction clauses included in contracts 2. basis of where a contract was entered into 3. basis where provisions of contracts were performed

International commercial disputes have to be settled under the laws of one of the countries, which of the following ways is used to determine jurisdiction?

1. clauses included in contracts 2. where contract was entered into 3. where the provisions of the contract were performed

3 aspects involved in political risks of global business:

1. confiscation 2. expropriation 3. domestication

Planning for Global Markets "planning is a systemized way of relating to the future" -structurally, planning may be examined at 3 levels of the organization:

1. corporate 2. strategic 3. tactical

exporting can be either 1. 2.

1. direct exporting 2. indirect exporting

Five common economic effects of Information communications technology (ICT):

1. direct job creation 2. contribution to GDP growth 3. emergency of new services 4. workforce transformation 5. business innovation

benefits of SWOT analysis:

1. encourages realistic planning 2. improves ability to forecast future events

6 economic risks:

1. exchange controls 2. local content laws 3. import restrictions 4. tax controls 5. price controls 6. labor problems

advantages of using secondary research disadvantages of using secondary research

1. expense of gathering info from secondary is usually a fraction of the cost 2. less time to collect 1. info may be somewhat dated 2. rarely collected for precisely the some reasons that you are conducting your research project 3. doesn't address your exact problem

Estimating market Demand through 1. expert opinion 2. analogy

1. experts are polled for their opinions about market size and growth rates. triangulation is comparing estimates produced by different expert sources. 2. assumes that demand for product develops in much the same way in all countries, as comparable economic development occurs in each country. Example: DVD player demand in Poland = DVD player demand in Hungary

four modes of foreign market entry:

1. exporting 2. contractual agreements 3. strategic alliances 4. direct foreign investment

3 alternative organizational structures:

1. global product divisions 2. geographical divisions 3. matrix organizations

examples of political risks

1. gov't imposing capital controls and preventing importers from obtaining foreign currency 2. country unexpectedly raises corporate taxes 3.act of war or military coup cuts companies off from global revenue

critics of BOP approaches note two crucial challenges:

1. governance 2. sustainability

The four Asian tigers- a major influence in the east

1. hong kong 2. S. Korea 3. Talwan 4. Singapore

marketing research process: (5)

1. identify problem 2. develop research plan 3. conduct research (secondary/primary data) 4. analyze and report findings 5. take action

Within each trading area are: 1. 2. 3.

1. industrialized countries -US -Germany -Japan 2. emerging markets -BRIC's (rapidly industrializing countries) -Brazil -Russia -India -China 3.big emerging markets (BEM) or Newly industrialized countries (NIC) -countries that are achieving rapid economic development rates

Competitive strategy: a few strategic models: 1. 2. 3.

1. industry- Porter 5 forces Model 2. Corporate-SWOT analysis model 3. consumer- consumer value model

Lessening political vulnerability: Strategies to minimize political vulnerability and risk: (6)

1. joint ventures 2.expanding investment base 3. licensing 4. planned domestication 5. bargaining 6. political payoffs

there are three different ways that international disputes can be resolved:

1. mediation 2. arbitration 3. litigation

The United Nations classifies a country's stage of economic development on the basis of its level of industrialization, the 3 categories are:

1. more developed countries (MDC) 2. less developed countries (LDC) 3. least developed countries (LLDC)

4 aspects involved in International Law:

1. no single, uniform international commercial law governing foreign business transactions exists 2. international marketers must comply with the laws of each country within which it operate 3. legal systems of different countries are so complex 4. best to get expert legal advice when doing business in another country

7 different uses for the internet in international research:

1. online surveys 2. online focus groups 3. web visitor tracking 4. advertising measurement 5. cust identification sys 6. email marketing lists 7. embedded research

what are a part of the combination of efforts which creates a marketing information system?

1. overseeing market research activities 2. using customer insights to guide marketing decisions 3. people

which of the following conventions is part of the group that protects intellectual property rights?

1. paris convention 2. international american convention 3. madrid arrangement

Economic growth factors NIC (newly industrialized countries) growth factors: (9)

1. political stability 2. economic and legal reforms 3. entrepreneurship 4. planning 5. outward orientation 6. factors of production 7. industries targeted for growth 8. incentives 9. privatization

governments intervene in trade for a combination of reasons: 1. ____ - protect jobs or specific industries 2. _____ - intervene in trade.protect young industries or preserve local consumer markets for domestic firms 3.____ and ____ - might also impact government's intervention in trade

1. politically 2. economically 3. cultural and social factors

phases of planning process

1. preliminary anlysis and screening 2.adapting marketing mix (4 P's_ to target market 3. develop marketing plan 4 implementation, evaluation, control

why promotes and protect intellectual property? 1. 2. 3.

1. the progress and well being of humanity rest on its capacity to create and invent new work in the areas of tech and culture 2 the legal protection of new creations encourages the commitment of additional resources for further innovation. 3. spurs economic growth

Nestle is a very dominate market how are 4 ways they stay dominate:

1. thing and plan long term 2 decentralize 3. stick to what you know, 4. adapt to local tastes

Porter 5 forces

1. threat of new entrants 2. power of buyer 3. power of supplier 4. threat substitutes 5.industry competitiveness

advantages of economic integration (arrangement among nations for reduce or elimination of trade barriers) fall into 4 categories:

1. trade benefits 2. employment 3. political cooperation 4. reduction in the cost of trade

estimating market potential (demand) in less developed countries involves challenges most of the difficulty is from the coexistence of 3 distinct kinds of markets in each country:

1. traditional rural/agricultural sector 2. modern urban/high income sector 3. very large transitional sector usually represented by low income urban slums

Rostow penned his classic "Stages of Economic Growth" in 1960, which presented five steps through which all countries must pass to become developed:

1. traditional society 2. preconditions to take off 3. take off 4. drive to maturity 5. age of high mass consumption

recent changes in marketing and economic development

1. transition from socialist to market driven economies 2. liberalization of trad policies in developing countries 3. public sector changed to private sector enterprises 4. development of regional market alliances

What is the maximum number of justices that can sit on one case for the World Court?

15

How many countries have united in the European Union to discuss free trade and other global issues?

27

Based on the article, Asia's Dynamic Economies Continue to Lead Global Growth, China's growth rate, although strong, was projected to decrease to _______ in 2017 and _______ in 2018.

6.6%; 6.2%

Which of the following organizations provides a formal structure for the major governments of the Asian-Pacific Rim, including the United States and Canada, to discuss their mutual interests in open trade and economic collaboration?

APEC

Recent global economic problems have not impeded the growth among _______ Ethiopia, Angola, and Malawi each experienced annual growth rates of greater than 8 percent between 2007 and 2011 However, Africa's _________ activities can be characterized as a great deal of activity but little progress Despite the large number and assortment of paper organizations, there has been little progress towards economic integration because of ________

African countries multinational market integration political instability

"The Big 10" - emerging as vast markets

Argentina, brazil, mexico, china, south korea, poland, turkey, india, vietnam, south africa, and russia

_____ has been the fastest growing area in the world for the past three decades Both as sources of new products and technology and as vast consumer markets, the countries of ____— particularly those along the Pacific Rim—are just beginning to gain their stride.

Asia

_____ - Primary Asian trade group _____ - Provides a formal structure for government interaction

Association of Southeast Asian Nations (ASEAN) Asia-Pacific Economic Cooperation (APEC)

____ - conflict between the US and Europe started out as a simple tariff dispute between France and US companies exporting bananas from Latin American countries to France

Banana Wars

_______ - term in economics that refers to the poorest two-thirds of the economic human pyramid, a group of more than four billion people living in abject poverty. More broadly, ____ refers to a market-based model of economic development that promises to simultaneously alleviate widespread poverty while providing growth and profits for multinational corporations (MNCs).

Bottom of the pyramid markets

_______ — consisting of the 4 billion people across the globe with annual incomes of less than $1,200 -These markets are defined not by national borders but rather by pockets of poverty across countries. These 4 billion consumers are, of course, concentrated in the LDCs and LLDCs.

Bottom-of-the pyramid markets (BOPMs)

The ___ created a single, continental commercial market for all goods and most services. Shortly after it, Mexico announced that it would seek free trade with the U.S. as well.

CFTA -U.S.- Canada Free Trade Area

second largest trading corporation

Canada

______is a group of twenty developing countries in the Caribbean that have come together to form an economic and political community that works together to shape policies for the region and encourages economic growth and trade. -It has a goal of common currency for all members -the intro of a common external tariff structure was a major step toward that goal

Caribbean Community and Common Market (CARICOM)

_____ agreement 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 It is a unified economy and lacks only political unity to become a political union

Common Market

Difference between competitive and comparative advantages

Comparative advantages- are resources such as capital, labor, suppliers, trade secrets, patents, knowledge competitive advantage- is advantage in the marketplace such as manipulation of inputs and value added outputs

_____ represents the next stage in economic cooperation. It enjoys the free trade area's reduced or eliminated internal tariffs and adds a common external tariff on products imported from countries outside the union. The European Union was a customs union before becoming a common market Customs unions exist between France and Monaco, Italy and San Marino, and Switzerland and Liechtenstein, to name some examples.

Customs Unions

When did United States, Mexico, and Canada sign the NAFTA?

December 17, 1992

The _____, a provision of the Maastricht Treaty, established the parameters of the creation of a common currency for the EU, the euro -Established a timetable for its implementation -In 2002, a central bank was established, conversion rates were fixed, circulation of euro banknotes and coins was completed The 12 member states employed the euro beginning in January 1, 2001, some did not join voluntarily

Economic and Monetary Union (EMU)

______ - is an arrangement among nations that typically includes the reduction or elimination of trade barriers and the coordination of monetary and fiscal policies.often occurs among neighboring nations.

Economic integration

Explain the affects of Banana Wars

Europe imposed Quota and tariffs. Europe favored Caribbean over Latin American Bananas. US imposed 100% tariff retaliation on Europe products

The most successful one is the ____, the world's largest multinational market region and foremost example of economic cooperation.

European Union (EU)

______ Even though several member states are not fully implementing all the measures, they are making progress The proportion of directives not yet implemented in all 27 member states has fallen dramatically Taxation has been one of the areas where implementation lags and reform continues to be necessary The EFTA and the ____________ are different

European Union (EU)

Hybrid methodologies for markert research help when budgets and resources are low.

False

Information Communication Technology has created jobs and enabled development but has stifled innovation.

False

T/F In India they would rather do business with foreign countries than finding somebody internal.

False

t/f Based on lecture, ALL countries that are a part of the European Union are also part of the Economic and Monetary Union and the European Free Trade Association.

False

T/F Commercial legal systems were derived from English law and are found in England, the United States, Canada and other countries once under English influence.

False (common law did)

- The most rapidly growing economies in this region during the 1980s and 1990s were the group referred to as _________ - Often described as the _______ they were the first countries in Asia, after Japan, to move from a status of developing countries to newly industrialized countries.

Four Asian Tigers (or Four Dragons): Hong Kong, South Korea, Singapore, and Taiwan "East Asian miracle,"

_____ requires more cooperation and integration than the RCD. It is an agreement between two or more countries to reduce or eliminate customs duties and non-tariff trade barriers among partner countries Members maintain individual tariff schedules for external countries. An FTA provides its members with a mass market without barriers to impede the flow of goods and services

Free Trade Area (FTA)

Japan's ____ lags most other developed economies, and will likely continue to do so as the population slowly declines. But what matters for humans welfare is ____, and Japan is doing well on this front. it equals US and is better than UK

GDP growth DGP per capita

economic development is measured by

GDP- grosss domestic product GDI- gross domestic income

Many government agencies as well as nonprofits and other nongovernmental organizations collect and publish vast amounts of freely available data that may be useful for marketing research purposes.

Government and nongovernmental organization data (NGO)

______ growth had been constrained and shaped by policies of import substitution and an aversion to free markets Now however, times have changed, and ____ has embarked on the most profound transformation through privatization, growth in the telecom and petroleum industries, and a free trade agreement with the US

India

Many countries participate in ____ designed for mutual recognition and protection of intellectual property rights. 3 major ____ include:

International conventions 1. Paris convention- for protection of industrial property 2.inter-american convention- includes most latin americans and US 3. Madrid arrangement- established Bureau for International Registration of Trademarks , 26 European countries TRIPs- Trade related aspects of intellectual property rights. WTO (world trade organ has most comprehensive agreement to date)

_____ - encompasses religious duties and obligations. Koran forms the basis for the Shari'ah. It includes issues such as: -property rights -economic decision making -types of economic freedom Main objective of _____ is social justice. It prohibits the payment of interest. ____advocates risk sharing, individuals' rights and duties, property rights, and the sanctity of contract. Emphasis is placed on the ethical, moral, social, and religious dimensions to create equality and fairness for the good of society • Prohibits investment in activities that violate the Shari'ah, e.g., business dealing with alcohol, gambling, and casinos

Islamic Law

Supporting the elderly and attempting to stimulate the economy has led to very high levels of government debt in _______

Japan

Who is the test market to the world ? -Google's lab -fashion obsessed

Japan

_____ - is the third-largest economy in the world, behind the US and China. It's experience seems to foretell some of the key issues facing other high-income economies, like slow productivity growth, rapid aging, and rising government deficits.

Japan

When international commercial disputes must be settled under the laws of one of the countries concerned, the paramount question in a dispute is: Which law governs? ____________?

Jurisdiction

Determining whose legal system has ___ when a commercial dispute arises is another problem of international marketing Legal disputes can arise in 3 situations:

Jurisdiction 1. between governments 2. between a company and a gov't 3. between 2 companies

The long term goal of ______ is a gradual and progressive establishment of a latin american common market

Latin American Integration Association (LAIA)

_____ - organization that was established by the Treaty of Montevideo (August 1980) and became operational in March 1981. It seeks economic cooperation among its members. Original members were Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Uruguay, and Venezuela. Cuba joined in 1999. it replaced latin america free trade association

Latin American Integration Association, Spanish Asociación Latinoamericana de Integración (ALADI)

The Southern Common Market is one of the world's leading economic blocs and its fifth-largest economy. ____ is made up of four member countries—Argentina, Brazil, Paraguay, and Uruguay—

Mercosur

The ten most affected countries relative to the size of their economy are all conflict-affected states in ______.

Middle East, North Africa, Sub Saharan Africa, South Asian regions

The ongoing political turmoil in ______ region accelerated in 2011 and has resulted in economic disaster in several countries in the region The _______ set goals for free internal trade but has not really succeeded • The aim was to integrate the economies of the 22 Arab countries, but a long history of border disputes, and internal political turmoil will have to be overcome.

Middle East/North Africa (MENA) Arab Common Market

countries that are experiencing rapid economic expansion and do not exactly fit as a LDC or MDC. show rapid industrialization of targeted industries. They have high per capita incomes.

Newly Industrialized countries (NICs)

______ is the most fully integrated form of regional cooperation It involves complete political and economic integration, either voluntary or enforced

Political Union

____, an arabic word meaning "the right path" refers to traditional Islamic law

Sharia

____ (including Argentina, Bolivia, Brazil, Chile, Paraguay, Uraguay) is the 2nd largest common market agreement in the Americas after NAFTA -the treaty of Asuncion, was formally inaugurated in 1995 -calls for common market that would eventually allow for free trade movement of goods, capital labor

Southern Cone Free Trade Area (Mercosur)

Based on the article Time is Money: How Time Zones Impact International Business which country should switch from the Central European time zone to Greenwich Mean Time (GMT)?

Spain

SWOT Analysis

Strengths, weaknesses, threats, oportunities

Which of Rostow's stages of economic growth is marked by a few key industries driving economic growth?

Take-off

_____ - is a group of twenty developing countries in the Caribbean that have come together to form an economic and political community that works together to shape policies for the region and encourages economic growth and trade.

The Caribbean Community and Common Market (CARICOM)

_____ - is the first free trade agreement between the United States and a group of smaller developing economies: our Central American neighbors Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, as well as the Dominican Republic. The CAFTA-DR promotes stronger trade and investment ties, prosperity, and stability throughout the region and along our Southern border.

The Dominican Republic-Central America FTA (CAFTA-DR)

reason for banana war

The European union imposed new sanctions on imported bananas favoring Caribbean

______ refers to both the People's Republic of China (PRC) and the Republic of China (ROC) or Taiwan Aside from the United States and Japan, there is no more important single national market in the Asia Pacific-rim Region than the ______

The Greater China PRC

_____ - at The Hague and the International Court of Justice resolve international disputes between sovereign nations of the world rather than between private citizens. ____ - can judge disputes between governments, but disputes in other situations must be handled in the courts of the country of one of the parties involved or through arbitration.

The World Court

Infrastructure represents those types of capital goods that serve the activities of many industries.

True

The form of law found in England is primarily classified as Common Law, whereas in the United States the forms of law are both Civil Law and Common Law.

True

pressure from nationalist and self-interest groups affect the stability of a government

True

U.S. vs Japan in patent law U.S. Japan

U.S. - operates under "first to invent" rule -protects individual inventors -patent applications secret -granted in up to 24 months -valid for 17 years from date issued JAPAN -operates under "first to register" rule -promotes tech sharing -patent application is public -granted in 4-6 years -valid 20 years from date issued

In 2005, Bush signed into law a free trade agreement among Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and U.S. The agreement includes a wide array of tariff reductions aimed at increasing trade and employment among the seven signatures

United States-Central American Free Trade Agreement- Dominican Republic Free Trade Agreement (DR-CAFTA)

consumer value mode

V=P*Q V=value p=price q=quality consumer value is a tradeoff between price and quality

_____ economy and infrastructure were in shambles after 20 years of socialism and war, However, this country of more than 88 million people is poised for significant growth. A bilateral trade agreement between the United States and ____ led to NTR status for them. It could become another Asian Tiger.

Vietnam's

Two major events that occurred in 2000 are having a profound effect on China's economy: • admission to the _____ and • the United States' granting normal trade relations (NTR) to China on a permanent basis (PNTR).

World Trade Organization

What are some of the issues Japan faces as an economic entity in the market?

aging, budgets, and productivity

Evolution of marketing process

agriculture-> manufacturing -> marketing

which of the following are included in a country's infrastructure? -seaports -communication networks -financial networks

all

Which of the following is a mode of foreign market entry? 1. exporting 2. contractual agreements 3. strategic alliances

all of above

Which of the following is a benefit of global marketing? 1.better economies of scale 2. transfer of knowledge and experience across countries makes better marketing activities 3. gain access to toughest customers

all of the above

Which of the following are principles of conflict laws? 1. parties are free to choose the law governing their contracts 2. respect, consideration, adoption and enforcement by one country of the laws of another country 3.a state or government is free from external control of other states or governments

all of them

______ - contends that individuals should control political activities and public government is both unnecessary and unwanted

anarchism

The first Soviet republics to declare independence were the _________ The remaining 12 republics of the former USSR, collectively known as the Newly Independent States (NIS), regrouped into the __________

baltic states commonwealth of independent states

_____ - is an economic system in which the means of production are owned and controlled privately. _____ - is one in which the government or state directs and controls the economy, including the means and decision making for production

capitalism planned economy

Code law is also known as _____.

civil law

three main kinds of legal systems: ___ - based on detailed set of laws that constitute a code and focus on how the law is applied to the facts. most widespread legal system _____- based on traditions and procedures _____- religious guidelines, most common example

civil law common law religion law-Islamic law (most widely accepted religion around the world)

Although not absolutely imperative for cooperating members of a customs union, such ______ facilitates the functioning of a common market - More important than physical distance are differences across _____ - trade tends to travel more easily ____ to _____ directions than it did in ancient times

closeness time zones north - south

______ - based on all-inclusive system of written rules of law. Under ___, the legal system is generally divided into 3 separate codes: 1.commercial 2.civil 3.criminal

code law

____ - centered on the economic, political, and social policies of the state. As each country moves toward its own version of a free market system and enters the global market, a _________ is also evolving from Marxist-socialist tenets.

commercial legal system (in Marxist Economies)

____ - is tradition, past practices, and legal precedents set by the court through interpretations of statutes, legal legislation, and past rulings. "interpretation through the past decisions of higher courts which interpret the same statutes or apply established and customary principles of law to a similar set of facts"

common law

____ - which of the following is based on past practices and legal precedents?

common law

Heritage of legal systems: ___ - derived from English law and found in England, US, Canada, and some other English influence countries _____ - derived from Roman Law found in Germany, Japan, France,non-islamic countries _____ - derived from Koran adn found in Pakistan, iran, saudi arabia, other islamic states ____- Russia and Eastern Europe, China, whose legal system is based on the economic, political, social policies of the state

common law civil(code) law islamic law commercial legal system

difference between common law and civil law

common law -uncodified -judicial precedent are binding -main sources of law 1. case law more than legis 2. custom and practice civil law -codified -judicial precedent is not binding -main sources of law 1. legislation/constitution

______ - adopts a set of common external tariffs, and removes all restrictions on the free flow of capital and labor among member nations

common market

Which of the following is the concept that states a certain good can be produced more efficiently than others due to a number of factors, including productive skills, climate, natural resource availability, and so forth?

comparative advantage

_______ - The concept that a certain good can be produced more efficiently than others due to a number of factors, including productive skills, climate, natural resource availability, and so forth.

comparative advantage

resources: marketplace position: micro level: macro level:

comparative advantage competitive adv (firm level) superior financial perf (economy level) superior quality, efficiency, and innovation

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

confiscation

_____ - is a phrase used when the laws of different countries on a specific topic are dissimilar. When this happens, courts need to decide which law will be followed.

conflict of laws

________ - are similar to joint ventures and could be classified as such except for two unique characteristics: 1. 2.

consortia 1. large number of participants 2. operate in a country or market in which none of the participants is currently active -consortia are developed to pool financial and managerial resources and to lessen risks

______ - are long-term, non-equity associations between a domestic company and foreign company

contractual agreements

_____ - enjoy free movement of goods ____ - shares currency and allows works to move freely across borders

customs union economic union

_____ - is any law that applies to the internet and internet-related technologies. ____ is one of the newest areas of the legal system. This is because internet technology develops at such a rapid pace. ______ provides legal protections to people using the internet. This includes both businesses and everyday citizens.

cyber law

On 7 November, the government of the People's Republic of China passed the much-anticipated ________ , which came into force 1 June 2017.The Chinese government has stated that its key goals in passing the new law were to better combat online fraud and to protect the nation against Internet security threats and risks.

cyber security law of China

____ - the most common form of government around the world. derive their power from the people of their country, either by direct referendum or elected representatives of the people

democracy

The euro is used as a unit of exchange for all EU member states except ________

denmark, sweden, UK

Time zone change syndrome. importance of time zones for trade relationships and marketing operations

desyncronosis

_______ - the company sells to a customer in another country _____- the company sells to a buyer in the home country who in turn exports the product

direct exporting indirect exporting

fourth means of foreign market development and entry is _______: -companies may manufacture locally -firms may either invest in or buy local companies -establish new operations facilities

direct foreign investment

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

domestication

Most __________ countries are privatizing state-owned enterprises Establishing free market pricing systems Relaxing import controls But struggling with inflation The very different paths taken toward market economies have resulted in different levels of progress

eastern european

_____ - refers to the positive money flow created when a region's production of goods or services outpaces the local needs of the community in question. To create this surplus, a community could implement a variety of tactics, such as creating new jobs or encouraging new businesses to develop within the region.

economic base

_____ - the process by which a country improves the well-being of its citizens through political or economic means, is influenced by a variety of factors, including marketing.

economic development

What is the term which refers to an increase in the ability of an economy to produce goods or services over time?

economic growth

The _____ of a country is the most important environmental influence

economic level

_____ - is an agreement between two or more nations to allow goods, services, money and workers to move over borders freely. The countries may also coordinate social and financial policies to support this common market.

economic union

75% of the world's total growth in the next two decades comes from ______

emerging markets

When a government seizes an investment of a foreign investor but some reimbursement for the assets is made, the government is following a process called: (taking property from its owner for public use or benefit)

expropriation

is where the government seizes an investment, but some reimbursement for assets is made; often the ___ investment is nationalized to become a government run entity

expropriation

The EU (european trade union) is ________

free trade

____ - is a word that is used to refer to issues and concerns of the entire world while _____ - is a term that is used to refer to issues and concerns of two or more countries. "______"- has a smaller scope encompassing only two or more countries while "_____-" has a much larger scope which includes the whole world.

global international international global

Benefits of _____ ____ include: -economies of scale -unifying product development -transfer of experience -spreading the portfolio across markets

global marketing

contiguous countries (sharing a common border) =

good trade relations

Because of China's size, diversity, and political organization, it can be more conveniently thought of as a _______ rather than a single country

group of economic regions

How does marketing research help the marketer?

helps marketers to better understand who their customers are

____ and the ____ are major issues in China. Two other problems face China in the longer run: 1 2

humans rights and legal system 1. environmental decline associated with its fast growth 2. demographic disaster associated with its one child policy

what is the reason for most mistakes in marketing?

inadequate marketing research

____ - includes patents for inventions, trademarks, industrial designs and geographical indications. ______ - covers literary works (such as novels, poems and plays), films, music, artistic works (e.g., drawings, paintings, photographs and sculptures) and architectural design. Rights related to copyright include those of performing artists in their performances, producers of phonograms in their recordings, and broadcasters in their radio and television programs.

industrial property copyright

___ is the fundamental objective of most developing countries

industrialization

country's investment in ____ ____ is key to economic growth. WHY?

information technology (IT) -internet cuts transaction costs -internet speeds up the diffusion of new technologies to emerging economies -phones reduce need for telecom infrastructure

_____ represents capital improvements that serve the activities of many industries. Examples

infrastructure - included in country's infrastructure are paved roads, railroads, seaports, financial networks -infrastructure is a crucial component of the uncontrollable elements facing marketers

There are essentially two kinds of arbitration: An _______ is one that is entrusted to one of the major arbitration institutions to handle, while an _____ one is conducted independently without such an organization and according to the rules specified by the parties and their attorneys.____ or unadministered, arbitration is flexible, relatively cheap and fast way of dispute settlement - if the parties co-operate.

institutional arbitration ad hoc

________ rights are like any other property right. They allow creators, or owners, of patents, trademarks or copyrighted works to benefit from their own work or investment in a creation.

intellectual property

_____ - refers to creations of the mind: inventions, literary and artistic works; symbols, names, and images used in commerce. It is divided into 2 categories: 1. 2.

intellectual property 1. industrial property 2. copyright

The Islamic law prohibits the payment of _____.

interest

_____ - the process of resolving disputes between or among transnational parties through the use of one or more arbitrators rather than through the courts. It requires the agreement of the parties, which is usually given via an ______ clause that is inserted into the contract or business agreement. The decision is usually binding.

international arbitration

_____ - long term planning, incorporating generalized goals for the enterprise as a whole

international corporate planning

______ - the body of legal rules, norms, and standards that apply between sovereign states and other entities that are legally recognized as international actors

international law

What is it called when a domestic firm buys part of a foreign company or partners with a foreign company to create a new business?

joint venture

For developing countries where financing and lending services are often unavailable, ______________ can be a substantive benefit. It also helps guarantee better maintenance and service of overseas equipment. The revenue tends to be more stable over a period of time than direct sales would be.

leasing

The _____ roughly parallels the stages of economic development The more developed an economy, the more ___

level of market development sophisticated marketing efforts become -as countries develop, the distribution channel systems develop.

Variations in the global schedule and the resulting attitudes encourage businesses to choose between two general models: operating in a _____, or creating an automated system to handle the diverse international market.

localized market

The level of ______ roughly parallels the stages of economic development. The more developed an economy, the greater the variety of marketing functions demanded, and the more sophisticated and specialized institutions become to perform marketing functions.

market development

Companies are adjusting their ______ to reflect anticipated market changes in the single European market. • Price standardization due to parallel importation • Fairer competition due to single currency (EU) • Reduced number of brands due to standardization • Increased competition among retailers

marketing mix strategies

Which marketing process is a systematic way to link collected and analyzed marketing information of customer insights with marketing opportunities and solutions to marketing problems?

marketing research

____ - is a systematic process for identifying marketing opportunities and solving marketing problems, using customer insights that come out of collecting and analyzing marketing information.

marketing research

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

marketing research

In most economic models, it is assumed that consumers _____ utility, firms _____ profit, and governments _____ national welfare

maximize 3*

Once a dispute has been submitted to arbitration, arbitration can be combined with _____, a non-binding procedure in which a neutral intermediary assist the parties in reaching a negotiated settlement of the dispute. In a growing number of cases parties agree to first try to settle their dispute through _____, and to resort to arbitration only if the dispute has not been settled with a certain period of time. any party can withdraw at any time, unlike in arbitration

mediation

______ groups form large markets that provide potentially significant opportunities for international business

multinational market groups

_____ are groups of countries that seek mutual economic benefit from reducing trade barriers.

multinational market regions

identification with one's own nation and support for its interests

nationalism

___ refers to feelings of national pride and unity

nationalism Feelings of nationalism are manifested by: 1. call to buy our country's products only (buy American) 2. restrictions- on imports, tariffs, other barriers to trade

_______: -demand homogeneous -perfect information -homogeneity of products

neoclassical theory of perfect competition

The planning process- planning is a systematic guide with 4 phases:

phase 1: preliminary analysis and screening 2: defining market segments 3: developing the marketing plan 4: implementation and control

Maslow's Hierarchy of Needs Theory

physiological, safety, social, esteem, self-actualization

most countries have a combination of both extreme governments. the balance of which is often a reflection of the country's history, culture, religion. combination called ____, which asserts that both public and private groups are important in a well-functioning political system

pluralism

_______ - identifies the differential welfare effects of various policies and points out which of these will lead to the greatest overall utility or welfare

policy analysis

whenever we consider how the political process affects economic decision making, we call it ____

political economy

the economic instability found in Africa and the Middle East is due to what?

political instability

_____ ____ among countries is another basic requisite for the development of a market agreement. -typically, marketing arrangements are made in response to external political threats

political responsiveness (agreeability)

____ is a key part of government efforts to attract foreign investment to their country

political stability

a coordinated set of principle, laws,ideas, and procedures relating to a particular form of government or form of government itself

political system

Typical _____ include behavioral observation, in-depth interviews, focus groups, and social listening. The most common ______ research methods are surveys and experimental research.

qualitative methods quantitative marketing

_____ - explores ideas, perceptions, and behaviors in depth with a relatively small number of research participants. It aims to answer questions with more complex, open-ended responses. provides information that can help marketers understand the big picture of how customers perceive or experience something.

qualitative research

______ - collects information that can easily be counted, tabulated, and statistically analyzed. When organizations need to understand the exact percentage of people who believe or act in a certain way, quantitative research is necessary. Quantitative methods allow researchers to test and validate a hypothesis or what they believe is the best course of action.

quantitative research

The most basic economic multinational integration and cooperation is the ________ governments agree to participate jointly to develop basic industries beneficial to each economy. Each country makes an advance commitment to: • participate in the financing of a new joint venture • to purchase a specified share of the output of the venture

regional cooperation for development (RCD)

Ben Grissom has decided to use information collected by the U.S. government in his upcoming research project on cultural trends. This is an example of using a _____ data source.

secondary

A ___ ___ is independent and free from all external control. -enjoys full legal equality with other states -governs its own territory -selects its own political, economic, social systems -has power to into agreements with other nations

sovereign state

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

sovereignty

a self-governing state it is the monopoly of use on a legitimate force within a territory

sovereignty

______ is often responsible for marketing misfires like offensive marketing images, catastrophic naming, and product-design glitches. Its critics argue that ____ strategy overestimates how well any single, uniform product and marketing approach will succeed in markets all over the world.

standardization

If an organization wants to maintain strong centralized control and uniformity in its products and marketing activities, it is choosing a strategy called ____. If an organization wants to adjust products, messaging, and marketing activities to fit the needs and preferences of local markets around the world, it is choosing a _____strategy.

standardization localization

______ - is a business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective

strategic international alliance (SIA) - SIA shore up weaknesses - SIA offer opportunities for rapid expansion Example: OneWorld Alliance between airlines

_____- highest level (VP level) of management and deal with products, capital, and research, and long term and short term goals of the company, more resource allocation

strategic planning

An international marketing plan optimizes resources through: _____ - organizational arrangement and management processes ____ - deployment of the plan

structure strategy

_____- specific actions and to the allocation of resources used to implement strategic planning goals in specific markets

tactical planning

contractual agreements generally involve the transfer of ____, ____, ____, or _____ two types of contractual agreements: 1. _____ -granting patent rights, trademark rights, and the rights to use technological 2. ______ - a standard package of products, systems, and management services, market knowledge, capital, and personal involvement in management

technology, processes, trademarks, or human skills 1. licensing 2. franchising

the internet provides a vehicle for terrorist and criminal attacks. severe potential threats to stability of markets include:

terrorism and cyberterrorism -cyberterrorism is in its beginning stages

The most notable enforced political union was _________ , a centrally controlled group of countries organized by the Soviet Union Two new political unions came into existence in the 1990s: •___________, made up of the republics of the former Soviet Union, and • __________

the Council for Mutual Economic Assistance (COMECON) The Commonwealth of Independent States (CIS) European Union (EU)

scalar equivalents

the similarity among respondents in their interpretation of calibrations along a continuum. comparing average scores for consumer attitudes from one culture to the next

A region of the globe that observes a uniform standard time for legal, commercial, and social purposes

time zone

______ - contends that ever aspect of an individual's life should be controlled and dictated by a strong central government

totalitarianism

______is the most recognized agreement among nations concerning the recognition and protection of intellectual property rights. ____ is a model agreement promulgated and administered with the World Trade Organization (WTO). Most nation members of the WTO are signatories to the agreement. It provides standards for how intellectual property should be regulated within a country.

trade-related aspects of intellectual property rights (TRIPS)

Desynchronosis is when time zones make a difference and jet lag is an important problem?

true

Most countries have hybrid (combination) of legal systems for international marketing

true

T/F The EU is a good example of a free trade area

true

T/F arbitration today is most commonly used for the resolution of commercial disputes

true

The State of the Economic Unions, when ASEAN was first formed the nations in this union had an agreement not to interfere with each other's internal affairs.

true

Bottom of the pyramid (BOP), also called base of the pyramid, is a term in economics that refers to the poorest ________ of the economic human pyramid, a group of more than four billion people living in abject poverty.

two-thirds

Japan's fast growth in the 1970s and 1980s amazed the world. Japan's economy slowed abruptly in the 1990s Four reasons for this may be:

• faulty economic policies • inept political apparatus • global circumstances and • cultural inhibitions