Test 7,8,12

All countries have laws regulating marketing activities in

--Countries have unique laws in marketing: promotion, product development, labeling, pricing, and channels of distribution •Laws vary in strictness by country and industry •Discrepancies create challenges for marketers and sellers --Laws regarding healthcare marketing differ substantially around the world

Problems of Gathering Primary Data

Ability to communicate opinions Willingness to respond Sampling in field surveys Language and comprehension

what are some advantages and disadvantages of the market entry of direct investment

Advantage- enhanced control, existing infrastructure disadvantage-complexity, greater economic and political risk, greater uncertainity

what are some advantages and disadvantages of the market entry of licensing

Advantage- increased profitability, extended profitability disadvantage- inflexibility , competition

what are some advantages and disadvantages of the market entry of strategic alliance and joint ventures

Advantage- quick market entry, access to materials and tech disadvantage- shared ownership

what are some advantages and disadvantages of the market entry of importing and exporting

Advantage- small cash outlay, little risk, no adaption necessary disadvantage- tariffs, taxes, high transportation cost, government restriction

Identify a true statement regarding the application of U.S. laws in host countries.

Businesses that operate outside of their home country are not exempt from home-country laws.

Identify a feature of code law.

It is usually divided into three separate codes: commercial, civil, and criminal.

Identify the features of the U.S. antiboycott law.

It requires U.S. companies to report any requests for participation in a boycott. It prohibits U.S. companies from taking part in foreign boycotts not sanctioned by the U.S. government.

Identify a step that multinational companies must take in order to be successful in the world marketplace.

They need to take adequate steps to legally protect their intellectual property.

The extraterritoriality of U.S. laws can cause disputes when _______.

U.S. law conflicts with the economic or political interests of a host country

Which country has the highest quantity of marketing-related secondary data available?

United States

Identify a problem related to the protection of intellectual property.

Counterfeiting

Identify an accurate statement about marketing research.

Cultural differences can mean people will be unwilling to respond to research questions.

_____ allows an exporter to submit online requests for commodity classification to the Bureau of Export administration.

ERIC (Electronic Request for Item Classification)

Identify the deterrents to litigation.

Excessive loss of money and time. The loss of confidentiality. The fear of creating a negative public image.

Shari'ah law mandates social and economic behavior based on interpretation of the ____

Qu'ran

Qualitative research

Questions are asked--they are almost always open-ended or in-depth--and unstructured responses, including storytelling, that reflect the person's thoughts and feelings on the subject are sought.

Identify the remedies available to American companies to combat violations of intellectual property rights.

Register a complaint with the U.S. government and World Trade Organization. Register IP with appropriate agencies in the host country. Notify the local authorities. Negotiate and pursue alternative methods of resolving disputes.

Which problems do market researchers face when collecting primary data in foreign countries?

Respondents may be unwilling or unable to communicate. They forget to take into account cultural differences among countries. Questionnaires may be translated improperly.

Why is it difficult to conduct marketing research in foreign countries?

Respondents' answers cannot always be translated exactly.

_____ can give exporters authority to export goods with unconditional licenses.

STELA (System for Tracking Export License Applications)

Which type of marketing research is focused on domestic operations?

Specific market information used to make decisions about the marketing mix

cyber law

The EU Commission has adopted an e-commerce directive that will permit online retailers to trade by the rules of their home country unless the seller had enticed or approached the consumer by way of advertising. Establishing the validity of contractual law for e-commerce is making substantial progress also. India, for example, recently passed a law that recognizes e-mail as a valid form of communication, electronic contracts as legal and enforceable, and digital signatures as binding.

The three major international conventions include:

The Paris Convention for the Protection of Industrial Property, commonly referred to as the Paris Convention, includes the United States and 100 other countries The Inter-American Convention, includes most of the Latin American nations and the United States The Madrid Arrangement, which established the Bureau for International Registration of Trademarks, includes 26 European countries

Which of the following is a reason for the low level of reliability of secondary data?

The fear of tax collectors adversely affects data reporting.

Identify a wrong assumption made by multinational companies.

The rightful ownership of property can be easily established because their company has established rights in the United States.

Planning allows for...

rapid growth of the international function, changing markets, increasing competition, and the turbulent challenges of different national markets.

The World Intellectual Property Organization (WIPO) of the United Nations is

responsible for the promotion of the protection of intellectual property and for the administration of the various multilateral treaties through cooperation among its member states. Three major conventions: 1. the paris convention 2. the inter-american convention 3. the madrid agreement

intellectual property

such as global brand names and trademarks used to symbolize quality of product or company and entices consumers to buy good or service. Intellectual property can be registered as: patent, trademark, copyright.

what is commercial law in marxist economies

the Marxist-socialist economies of Russia and the republics of the former Soviet Union, Eastern Europe, China, and other Marxist-socialist states. As socialist countries become more directly involved in trade with non-Marxist countries, it has been necessary to develop a commercial legal system that permits them to engage in active international commerce.

U.S. law may conflict with the economic or political aims of a host country when _______.

the U.S. government restricts joint ventures in a foreign country due to concerns over anticompetition laws

Secondary data is considered valid if it is

internally consistent with known data sources or market factors.

Unlike code law, common law _____.

is not all-inclusive

if informal settlement fails, what are the three ways of deal with international disputes

-Conciliation: the track record for the conciliation process is excellent, with a majority of disputes reaching settlement and leading to the resumption of business between the disputants. Considered especially effective in resolving disputes with the Chinese as it is nonthreatening. -arbitration is conducted under the auspices of one of the more formal domestic and international arbitration groups. These groups have formal rules for the process. In most countries, decisions reached in formal arbitration are enforceable under the law. -Litigation is the last resort and not a preferred option in most disputes, especially in countries where it is considered public humiliation. For all of the above reasons, disputes are best resolved through conciliation or arbitration.

The keys to successful planning are as follows:

1)Company objectives and resources: The lack of well-defined objectives has found companies rushing into promising foreign markets only to find activities that conflict with or detract from the companies' primary objectives. One market may offer immediate profit but have a poor long-run outlook, while another may offer the reverse. International commitment: A company uncertain of its prospects is likely to enter a market timidly, using inefficient marketing methods, channels, or organizational forms, thus setting the stage for the failure of a venture that might have succeeded with full commitment and support by the parent company. 1)A planning process: planning process is important for both companies that are planning to enter a foreign market for the first time and companies that are already committed in foreign countries.

Research can be divided into three types on the basis of information needs

1)General information about the country, area, and/or market 2)Information necessary to forecast future marketing requirements by anticipating social, economic, consumer, and industry trends within specific markets or countrie 3)Specific market information used to make product, promotion, distribution, and price decisions and to develop marketing plans

Devising one standard organization is difficult with many variables. There is no "best" solution.But there are 3 main types

1.Global product divisions- •responsible for product sales throughout the world 2.Geographical divisions- •responsible for all products and functions within a given geographical area 3.A matrix organization- •either centralized sales and marketing w/a centralized functional staff, or a combination of geographic and global product management

§The three keys to successful international marketing research:

1.Inclusion of natives of the foreign culture on research teams 2.Use of multiple methods and triangulation 3.Inclusion of decision makers, even top executives, who must on occasion talk directly to or directly observe customers in foreign markets

describe the three types of planning

1.International corporate planning is essentially long term, incorporating generalized goals for the enterprise as a whole. 2.Strategic planning is conducted at the highest levels of management and deals with products, capital, and research, and long- and short-term goals of the company. 3.Tactical planning, or market planning, pertains to specific actions and to the allocation of resources used to implement strategic planning goals in specific markets. Tactical plans are made at the local level and address marketing and advertising questions.

Benefits of Global Marketing

1.Knowledge helps scale production and marketing efforts for multinational businesses 2.Global diversity in marketing talent leads to new approaches across markets 3.Improved coordination and integration of marketing allows for transfer of knowledge across countries 4.Gives marketers access to toughest customers 5.Financial benefits from diversity of markets

The following questions should be asked to effectively judge the reliability of secondary data sources

1.Who collected the data? Would there be any reason for purposely misrepresenting the facts? 2.For what purposes were the data collected? 3.How (by what methodology) were the data collected? 4.Are the data internally consistent and logical in light of known data sources or market factors?

Legal disputes can arise in three situations:

1.between governments (resolved by the world court) 2.between a company and a government (handled by a court in one of the countries involved or through arbitration) 3.between two companies (same as above)

what is the timeline for Global Marketing Management:

1970s "standardization versus adaptation" 1980s "globalization versus localization" 1990s "global integration versus local responsiveness." today companies are answering "global" as the way to go

Quantitative research

A large number of respondents are asked to reply either verbally or in writing to structured questions using a specific response format (such as yes/no) or to select a response from a set of choices

Match the following levels in the Arab League Boycott of Israel with the corresponding bans

A primary boycott matches - It bans direct trade between Arab states and Israel. It bans direct trade between Arab states and Israel. A secondary boycott - It bans Arab governments from doing business with companies that engage in trade with with Israel. It bans Arab governments from doing business with companies that engage in trade with with Israel. A tertiary boycott - It bans Arab governments from doing business with companies that have relationships with companies engaged in trade with with Israel. It bans Arab governments from doing business with companies that have relationships with companies engaged in trade with with Israel.

What are the three types of market research?

General information about a country, area, and/or market Specific market information used to make decisions about the marketing mix Information necessary to forecast future marketing requirements

Match each type of export license (in the left column) with the corresponding feature

General license ----- It permits manufacturers to export products that are not subject to EAR restrictions. It permits manufacturers to export products that are not subject to EAR restrictions. Validated license----- It authorizes, with limitations, the exportation of goods controlled by the EAR

The _____ protects established intellectual property rights across most of Latin America and the United States.

Inter-American Convention

Identify a feature of litigation.

It involves lawsuits in public courts.

Planning is a systematized way of relating to the future and ...

It is an attempt to manage the effects of external, uncontrollable factors on the firm's strengths, weaknesses, objectives, and goals to attain a desired end.

Which of the following laws apply to U.S. businesses regardless of where they operate?

Laws against participating in an unauthorized boycott Laws against accepting bribes Laws against trading with the enemy

The _____ protects intellectual property rights across 26 European countries and created the Bureau for International Registration of Trademarks.

Madrid Agreement

Which of the following is a reason why secondary foreign data may be unreliable?

Official statistics may reflect pride rather than practical reality.

Which of the following is a reason why secondary foreign data may be unreliable? Multiple choice question.

Official statistics may reflect pride rather than practical reality.

Organizational Structure and locus decision

Part of organizational strategy: •Where decisions will be made •Who will make decisions •What method will be used to make decision Company must clearly define: corporate, strategic, tactical

International Planning Process

Phase 1: Preliminary Analysis and Screening Phase 2: Defining Target Markets and Adapting Marketing Mix Accordingly Phase 3: Developing the Marketing Plan Phase 4: Implementation and Control

In international marketing research, primary research is successful when a researcher gathers

accurate data that adequately addresses research goals.

In international marketing research, primary research is successful when a researcher gathers Multiple choice question.

accurate data that adequately addresses research goals.

The use of an independent third party to render a judgment that both disputing parties agree to honor is known as the _____ procedure.

arbitration

Identify a way in which multinationals can make money in developing countries while still protecting their intellectual property rights.

by adjusting their prices based on the comparative income levels in developing countries

Centralized vs Decentralized Organizations:

centralized- •experts at one location •centralized records and information •high degree of control for planning and implementation regionalized-•usually based on key environmental factors (economic, geographic, political, legal, cultural) decentralized- •direct day-to-day contact with the market •local brands, people, and controls •lack a broad company view

______ law is built around a comprehensive collection of written rules.

code

____law is built around a comprehensive collection of written rules.

code

what are the three basic types of legal systems

common law code law islamic law (marxist socialist economies is important to)

Match the legal system with the corresponding law governing intellectual property rights

common law - ownership is established by prior use code law - ownership is established by registration

A country considers an individual to be the rightful owner of intellectual property if he or she can prove that he or she was the first person to use it. This country is most likely a _____ country.

common-law

The basic difference between domestic and foreign market research is

is the broader scope needed for foreign research, necessitated by higher levels of uncertainty. In domestic operations, most emphasis is placed on the third type, gathering specific market information, because the other data are often available from secondary sources.

explain the market entry of exporting

is usually the first type of international business in which a firm gets involved Early motives for exporting often are to skim the cream from the market or gain business to absorb overhead. Exporting is also a common approach for mature international companies with strong marketing and relational capabilities. Initially, Internet marketing focused on domestic sales. However, a surprisingly large number of companies started receiving orders from customers in other countries, resulting in the concept of international Internet marketing

Four broad modes foreign market-entry are

exporting contractual agreements strategic alliances direct foreign investment

True or false: All socialist countries have the same pattern for the development of a commercial legal system.

false

True or false: Due to the Foreign Corrupt Practices Act (FCPA), U.S. businesses must resort to bribery in order to survive in the most corrupt societies.

false

Carlos is asked about a product that he has never seen or used before. In this scenario, Carlos is likely to

find it difficult to communicate meaningful opinions.

give global examples of a joint venture and a strategic alliance

joint- Starbucks and PepsiCo in Latin America Starbucks wants to sell RTD coffee and energy beverages to consumers in new markets. PepsiCo wants to increase sales and leverage network and experience across the region. Starbucks provides coffee expertise PepsiCo has an established sales and distribution in LA strategic- Northwest Airlines, a US company & KLM, a Dutch company began a strategic alliance in 1993. Deregulation of transatlantic flights led to increased traffic but lower ticket prices, meaning a decrease in revenue. Strategic sharing of several aspects of their operations, including ticketing and reservations, catering, cargo, and airport slots.

every business firm operates within the _____ of the legal system

jurisdiction

jurisdiction generally determined by:

jurisdiction clauses included in contracts where a contract was entered into where the provisions of the contract were performed

When people in foreign countries are unwilling to respond, marketing researchers should use _____ to gather data.

local students professionals locally prominent people

Antitrust enforcement protects American consumers by _____.

making sure that they have access to the products and ideas of foreign and domestic competitors

In the context of international dispute resolution, conciliation is also known as _____.

mediation

Data that is gathered specifically for a particular research project is known as ______ data. Multiple choice question.

primary

Data sources are

primary (•Facts and figures specifically collected for particular project; secondary data may not be enough!) and secondary sources (already sources)

the legal environment deals with two broad issues:

problems with international commercial law or international commercial cotracts and settling disputes concerns the common law bases for the US legal system which creates problems for US companies when interpreting the laws in countries whose legal systems are based either on code, socialist, or Islamic law.

An accurate statement about secondary data in less developed countries is that

the data gathered previously may use categories that are too broad or too narrow.

In the context of the Foreign Corrupt Practices Act (FCPA), most experts agree that _____.

the majority of U.S. firms are operating within the law

In the the context of the Foreign Corrupt Practices Act (FCPA), most experts agree that _____.

the majority of U.S. firms are operating within the law

One of the difficulties associated with defining a research problem in foreign markets is that

the problem may be clouded by researchers' self-reference criterion.

Respondents usually find it difficult to formulate needs and opinions about products when

they do not understand the use of those products.

T or F Leaving the boundaries of a home country does not exempt a business from home-country laws.

true

True or False: •No single, uniform international commercial law governing foreign business transactions exist

true

what are the 6 research processes

•1. Define research problem and establish research objectives: Unfamiliar environment tends to cloud definition, Must seek info on greater range of factors to offset unfamiliarity of environment •2. Determine sources of information to fulfill the research objectives: US data unmatched in terms of quality and quantity, Marketing data availability & reliability questionable - use local "experts" • 3. Consider costs and benefits of research effort: Success of research hinges on the researcher gathering correct and truthful information that addresses research objectives •4. Gather relevant data from secondary or primary sources, or both: Skeptical attitude in handling both primary and secondary data is helpful, Researcher must possess high degree of cultural understanding of market •5. Analyze, interpret, and summarize the results: Greater uncertainties and data limitations associated with foreign markets, Forecasting demand: expert opinion (use triangulation) and analogy (compare) •6. Effectively communicate results to decision makers: Info given to decision makers in a timely manner, Decision makers should be involved in the fieldwork -- see and hear for themselves

US laws that dictate that Marketers

•Cannot pay bribes •Cannot trade with enemies (deemed national security risk) •Cannot become a monopoly overseas; ensuring competitive pricing in the US •Cannot participate in foreign boycotts

what is the difference between common law and code law

•Common law is recognized as not being all-inclusive, whereas code law is considered complete as a result of catchall provisions found in most code-law systems. •Under common law, ownership is established by use; under code law, ownership is determined by registration. •In some code-law countries, certain agreements may not be enforceable unless properly notarized or registered; in a common-law country, the same agreement may be binding so long as proof of the agreement can be established. •Although every country has elements of both common and code law, the differences in interpretation between common- and code-law systems regarding contracts, sales agreements, and other legal issues are significant enough that an international marketer familiar with only one system must enlist the aid of legal counsel for the most basic legal questions.

International marketing research involves two challenges:

•Communication across cultural boundaries •Research tools are often different in foreign markets

explain the market entry of contractual agreements

•Long-term association between companies either through: •Nonequity; just a means to transfer knowledge or skills •Generally technology, processes, trademarks, skills Two main categories: •Licensing: an organization gives another organization the right to make or sell its products using its technology or product specifications. Although licensing may be the least profitable way of entering a market, the risks and headaches are less than those for direct investments. It is a legitimate means of capitalizing on intellectual property in a foreign market, and such agreements can also benefit the economies of target countries. •Franchising: Provides an effective blending of skill centralization and operational decentralization

in intellectual property rights: what is prior use versus registration

•Prior Use: In the United States, a common-law country, ownership of intellectual property rights is established by prior use. One of the more frequent errors is assuming that the company has established rights in the United States, so they will be protected around the world or that rightful ownership can be established should the need arise. Intellectual property should be registered in each country where business is conducted. Registration: In code-law countries, individuals can register a trademark (however famous the brand is) and sit on it and demand payment from the multinational company to release the trademark.

jurisdiction

•court's authority to rule on particular types of issues arising outside a nation's borders or to exercise power over individuals or entities from different countries

anti trust laws

•designed to fight restrictive business practices and to encourage competition

explain the market entry of direct foreign investment

•directly investing in a foreign country by setting up a separate and independent production facility or office. Firms may either invest in or buy local companies or establish new operations facilities. The local firms enjoy important benefits aside from the investments themselves, such as substantial technology transfers and the capability to export to a more diversified customer base.

what is market research

•systematic gathering, recording, and analyzing data to provide information useful to marketing decision making

explain the market entry of strategic alliances

•which is a partnership between an organization and a foreign company partner or partners in which both share resources and knowledge in developing new products or building production facilities •Firms enter SIAs for several reasons: Opportunities for rapid expansion into new markets, access to new technology, more efficient production and innovation, reduced marketing costs, strategic competitive moves, access to additional sources of products and capital •Joint Venture: Complexities of joint ventures: choice of partners, quality of relationships, institutional environments, marketing capabilities, experience, extent to which knowledge and control are shared.