International Marketing 17th Edition

Chapter 01 - The Scope and Challenge of International Marketing Chapter 1 The Scope and Challenge of International Marketing Teaching Objectives As an introductory chapter, the broad goal is to provide a view of international marketing that sets the boundaries and scope of the course. The teaching objectives are to: 1. Provide students with a

Chapter 01 - The Scope and Challenge of International Marketing Discussion Questions 1. Define: International marketing Foreign uncontrollables Controllable elements Marketing relativism Uncontrollable elements Self-reference criterion (SRC) Domestic uncontrollables Global awareness 2. . . . the marketers task is the same whether applied in Dime Box, Texas, or Dar es Salaam, Tanzania. Discuss. The only difference between domestic

Chapter 10 Europe, Africa, and the Middle East Teaching Objectives The two most important trends in international marketing today are the emerging markets discussed in Chapter 9 and the creation and growing importance of the multinational regional market alliances. The EU has continued to evolve despite serious wrangling among its members but more far

Chapter 10 Europe, Africa, and the Middle East Discussion Questions 1. Define: Multinational market regions Free-trade area European Parliament Customs unionSingle European Act Common marketPolitical unionMaastricht treatyTreaty of Amsterdam European Parliament Customs unionSingle European Act Common marketPolitical unionMaastricht treatyTreaty of Amsterdam European Parliament Customs union Single European Act Common market Political union Maastricht treaty Treaty of Amsterdam 2. Elaborate on the

Chapter 11 The Asia Pacific Region Teaching Objectives Because more than half the people on the planet live in this region it deserves a chapter focused on it characteristics. The Asia Pacific Region is also the fastest growing area of the world, particularly lead by China. Also, because great poverty is part of the

Chapter 11 The Asia Pacific Region Discussion Questions 1. Define: The Greater China Bottom-of-the-Pyramid Markets Purchase price parity (PPP) Four Asian Tigers ASEAN+3 APEC The Greater China Bottom-of-the-Pyramid Markets Purchase price parity (PPP) Four Asian Tigers ASEAN+3 APEC The Greater China Bottom-of-the-Pyramid Markets Purchase price parity (PPP) Four Asian Tigers ASEAN+3 APEC 2.

Chapter 12 Global Marketing Management: Planning and Organization Teaching Objectives An issue facing many multinationals today is how to compete in an increasingly competitive global market. Whether a small company or one of the giants, staying competitive means constantly re-accessing marketing strategies. How product, promotion, distribution, and pricing strategies evolve in international marketing is dependent

Chapter 12 Global Marketing Management Discussion Questions 1. Define: Licensing Corporate planning FranchisingDirect exporting Joint VentureStrategic planningIndirect exporting SIATactical planning Corporate planning FranchisingDirect exporting Joint VentureStrategic planningIndirect exporting SIATactical planning Corporate planning Franchising Direct exporting Joint Venture Strategic planning Indirect exporting SIA Tactical planning 2. Define strategic planning. How is strategic planning different for international marketing than domestic marketing? Strategic planning

Chapter 13 Products and Services for Consumers Teaching Objectives Products and services, the first part of the marketing mix to be discussed, is covered here with consumer products and services, and the next chapter on industrial products and services. An overall point that needs to be made with these two chapters is that companies

Chapter 13 - Products and Services for Consumers Discussion Questions 1. Define the following terms and show their significance to international marketing: Diffusion InnovationProduct Component Model Green marketingQuality Product HomologationGlobal brand Diffusion InnovationProduct Component Model Green marketingQuality Product HomologationGlobal brand Diffusion Innovation Product Component Model Green marketing Quality Product Homologation Global brand 2. Debate the issue of global versus

Chapter 14 Products and Services for Businesses Teaching Objectives The overall objective of this chapter is to illustrate how the differences in the motives between buyers of consumer products and industrial goods and services place different emphasis on the marketing of these products. It is important to stress that much of what has been

Chapter 14 Products and Services for Businesses Discussion Questions 1. Define the following terms and show the significance to international marketing: Derived demand ISO 9000Price-quality relationship Relationship marketingClient followers Derived demand ISO 9000Price-quality relationship Relationship marketingClient followers Derived demand ISO 9000 Price-quality relationship Relationship marketing Client followers 2. What are the differences between consumer and industrial goods and

Chapter 15 International Marketing Channels Teaching Objectives In some markets the distribution system may be the single biggest impediment to successful marketing. An inadequate distribution system may make the cost of reaching some consumers so high that it puts the price of the product out of reach of the market. In China, for example,

Chapter 15 International Marketing Channels Discussion Questions 1. Define: Distribution process Distribution structureLarge-Scale Retail Store LawComplementary marketingAgent middlemenMerchant middlemenHome country middlemenDealerExport management company (EMC)Export Trading Company Act (ETC) Distribution structureLarge-Scale Retail Store LawComplementary marketingAgent middlemenMerchant middlemenHome country middlemenDealerExport management company (EMC)Export Trading Company Act (ETC) Distribution structure Large-Scale Retail Store Law Complementary marketing Agent middlemen Merchant middlemen Home country middlemen Dealer Export management

Chapter 16 Integrated Marketing Communications and International Advertising Teaching Objectives The debate on the merits of standardization compared to modification of international advertising has always seemed to be a fallacious issueit seems obvious that it is best to standardize any marketing activity whenever possible but, on the other hand, if there is any activity

Chapter 16 - Integrated Marketing Communications and International Advertising Discussion Questions 1. Define: AdvertisingPublic relations Sales promotionIntegrated marketing communicationsNoise AdvertisingPublic relations Sales promotionIntegrated marketing communicationsNoise Advertising Public relations Sales promotion Integrated marketing communications Noise 2. Perhaps advertising is the side of international marketing with the greatest similarities from country to country throughout the world. Paradoxically, despite its many similarities, it

Chapter 17 Personal Selling and Sales Management Teaching Objectives The problems of managing marketing and sales personnel in global markets is the focus of this chapter. The unique qualities of American management thinking are contrasted with the variety of cultural contexts in which American executives must operate around the world. The teaching objectives are: 1)

Chapter 17 - Personal Selling and Sales Management Discussion Questions 1. Define: Relationship marketing TCNExpatriate Work CouncilsLocal nationalsSeparation allowance Relationship marketing TCNExpatriate Work CouncilsLocal nationalsSeparation allowance Relationship marketing TCN Expatriate Work Councils Local nationals Separation allowance Repatriation 2. Why may it be difficult to adhere to set job criteria in selecting foreign personnel? What compensating actions might be necessary?

Chapter 18 Pricing for International Markets Teaching Objectives Basic pricing policy questions that arise from the special cost, market, and competitive factors in foreign markets are the focus of this chapter. The additional costs of international marketing that lead to price escalation and ways to minimize these costs and countertrades as a special pricing

Chapter 18 - Pricing for International Markets Discussion Questions 1. Define: Dumping Skimming Countervailing duty CountertradeParallel marketGray MarketVariable-cost pricingPenetration pricingPrice Escalation Full-cost pricingExclusive distribution BarterCartelForfaitingLetter of CreditBills of ExchangeAdministered pricing Countervailing duty CountertradeParallel marketGray MarketVariable-cost pricingPenetration pricingPrice Escalation Full-cost pricingExclusive distribution BarterCartelForfaitingLetter of CreditBills of ExchangeAdministered pricing Countervailing duty Countertrade Parallel market Gray Market Variable-cost pricing Penetration pricing Price Escalation Full-cost

Chapter 19 Negotiating with International Customers, Partners, and Regulators Teaching Objectives The main thrust of this last chapter is the recognition that all international marketing strategies and plans are implemented via negotiations with managers, partners, and customers from foreign countries. Cross- cultural negotiation skills are a key attribute of the successful international executive. The

Chapter 19 - Negotiating with International Customers, Partners, and Regulators Discussion Questions 1. Define: StereotypesBATNANon-task soundingTask-related information exchangeCreativity in negotiations StereotypesBATNANon-task soundingTask-related information exchangeCreativity in negotiations Stereotypes BATNA Non-task sounding Task-related information exchange Creativity in negotiations 2. Why can cultural stereotypes be dangerous? Give some examples. Cultural stereotypes are quite commonthe aggressive American, the quite Japanese, the pushyBrazilian. Often there is

Chapter 2 The Dynamic Environment of International Trade Teaching Objectives This chapter has a short history of international trade. Included is a history of GATT and the role of multinationals from the end of World War II through the present time and beyond. The aim of this chapter is to provide a brief overview

Chapter 02 - The Dynamic Environment of International Trade Discussion Questions 1. Define: GATT Protectionism Balance of payments IMFNontariff barriersCurrent Account Voluntary export restraint (VER)Tariff WTO Balance of payments IMFNontariff barriersCurrent Account Voluntary export restraint (VER)Tariff WTO Balance of payments IMF Nontariff barriers Current Account Voluntary export restraint (VER) Tariff WTO 2. Discuss the globalization of the U.S. economy. Americas

Chapter 3 History and GeographyThe Foundations of Culture Teaching Objectives Understanding the geography and history of a country can help a marketer have a better appreciation for many of the characteristics of its culture. A culture of a people evolves in response to the environment which it confronts. The geography of a country, its

Chapter 03 - History and GeographyThe Foundations of Culture Discussion Questions 1. Define: Manifest Destiny Sustainable development Roosevelt CorollaryExpropriationGreen-house gas emissionsRural/urban migrationMonroe DoctrineOpium WarsConfucian philosophyTaiping Rebellion Roosevelt CorollaryExpropriationGreen-house gas emissionsRural/urban migrationMonroe DoctrineOpium WarsConfucian philosophyTaiping Rebellion Roosevelt Corollary Expropriation Green-house gas emissions Rural/urban migration Monroe Doctrine Opium Wars Confucian philosophy Taiping Rebellion 2. Why study geography in international marketing? Geography is a

Chapter 4 Cultural Dynamics in Assessing Global Markets Teaching Objectives Culture in this text is defined in an anthropological sense in that culture refers to the entire social heritage of a group of people. Thus, culture includes a countrys economy, society, behavior, etc. It is imperative for international marketers to learn to appreciate the

Chapter 04 - Cultural Dynamics in Assessing Global Markets Discussion Questions 1. Define: Cultural sensitivity Culture Cultural values Cultural congruence Cultural borrowingLinguistic distanceAestheticsSocial institutions Planned change Cultural congruence Cultural borrowingLinguistic distanceAestheticsSocial institutions Planned change Cultural congruence Cultural borrowing Linguistic distance Aesthetics Social institutions Planned change 2. Which role does the marketer play as a change agent? Whether or not the marketer is aware

Chapter 5 Culture, Management Style, and Business Systems Teaching Objective Business customs within a country are an extension of the countrys culture. There are many similarities in how business is conducted from country to country but the differences, if not properly adjusted for, often cause enormous problems. It is not necessary for a business person

Chapter 05 - Culture, Management Style, and Business Systems Comments and Suggestions 1. We begin the discussion of this chapter by stressing the importance of tolerance when dealing with cultural differences and a need to gain insight into where the other person is coming from. The key is to remain yourself but be aware

Chapter 6 The Political Environment: A Critical Concern Teaching Objectives All the cultural elements are important in international marketing but the political element is by far the most pervasive and must always be examined from both domestic and foreign country perspectives. Regardless of where a company does business, the political element is always a

Chapter 06 - The Political Environment: A Critical Concern Discussion Questions 1. Define: Sovereignty Confiscation Nationalism DomesticationExpropriation Political and Social Activists (PSAs)Non-governmental Organizations (NGOs) Nationalism DomesticationExpropriation Political and Social Activists (PSAs)Non-governmental Organizations (NGOs) Nationalism Domestication Expropriation Political and Social Activists (PSAs) Non-governmental Organizations (NGOs) 2. Why would a country rather domesticate than expropriate? Expropriation creates problems with other governments

Chapter 7 The International Legal Environment: Playing by the Rules Teaching Objectives This chapter deals with two broad issues involving the legal environment. The first issue is concerned with the problems that arise with international commercial contracts and settling disputes when they arise. Since there is no international commercial law or international commercial courts,

Chapter 07 - The International Legal Environment: Playing by the Rules Discussion Questions 1. Define: Common Law Code Law Islamic Law Marxist-Socialist tenetsPrior use vs. registration ConciliationArbitration LitigationCybersquatters Prior useRegistration Islamic Law Marxist-Socialist tenetsPrior use vs. registration ConciliationArbitration LitigationCybersquatters Prior useRegistration Islamic Law Marxist-Socialist tenets Prior use vs. registration Conciliation Arbitration Litigation Cybersquatters Prior use Registration 2. How does the international

Chapter 8 Developing a Global Vision through Marketing Research Teaching Objectives The availability and accuracy of secondary data and the challenge of collecting primary data are the main themes of this chapter. The need for good market data is becoming more important in todays global markets as companies are seeking market segments across country

Chapter 08 - Developing a Global Vision through Marketing Research Discussion Questions 1. Define: Marketing research Multicultural research International marketing research Back translationResearch process AnalogySecondary data Parallel translationPrimary dataExpert opinionDecenteringTriangulation International marketing research Back translationResearch process AnalogySecondary data Parallel translationPrimary dataExpert opinionDecenteringTriangulation International marketing research Back translation Research process Analogy Secondary data Parallel translation Primary data Expert opinion Decentering Triangulation 2. Discuss how

Chapter 9 Economic Development and the Americas Teaching Objectives This is the first of three chapters that include discussions of key topics economic development, economic integration, and burgeoning economic growth all discussed in the context of the market regions most appropriate. First we discuss Economic Development in the Americas. Barring a major political and economic

Discussion Questions 1. Define: BEM Economic development InfrastructureNICs Economic development InfrastructureNICs Economic development Infrastructure NICs 2. It is possible for an economy to experience growth as measured by total GNP without a commensurate rise of the standard of living. Discuss fully. A countrys gross national product is the total of its economic output and assets. However, the

Chapter 09 Economic Development and the Americas Planning. A central plan with observable and measurable development goals linked to specific policies. Outward orientation. Production for the domestic market and export markets with increases in efficiencies and continually differentiating exports from competition. Factors of production. If deficient in the factors of production

The first stage of the business negotiation process is nontask sounding, which includes all those activities that might be described as establishing rapport or getting to know one another. Answer: TRUEThe first stage of a business negotiation process is nontask sounding, which includes all those activities that might be described as

In the context of foreign market entry strategies, the advantages of _____ are most apparent when capital is scarce, import restrictions forbid other means of entry, a country is sensitive to foreign ownership, or patents and trademarks must be protected against cancellation for nonuse. A. consortia B. exporting arrangements C. strategic alliances D. licensing E.

The notion that competition is crucial for efficiency, improvement, and regeneration is fundamental to Western management practices. Answer: TRUEPerhaps most fundamental to Western management practices is the notion that competition is crucial for efficiency, improvement, and regeneration. TRUEPerhaps most fundamental to Western management practices is the notion that competition is crucial for

APEC is a body formed by the major governments of the Asian countries with the primary purpose of protecting their local industries against the market domination by their western counterparts. Answer: FALSEFormed in 1989, APEC provides a formal structure for the major governments of the region, including the United States and

The _____ of the United States makes it illegal for companies to pay bribes to foreign officials, candidates, or political parties. A. Taft-Hartley Act B. Informed Consumer Standard C. Foreign Corrupt Practices Act D. Best Practices Act E. International Codes of Law Answer: C.The Foreign Corrupt Practices Act (FCPA) makes it illegal for companies to pay

One of the basic elements of the General Agreement on Tariffs and Trade (GATT) is that: A. member nations are exempt from import tariffs to other member nations. B. all tariffs shall be abolished among member nations at the time of membership. C. the World Court shall review all trade disputes and make

The reserves account is a record of direct investment, portfolio investment, and short-term capital movements to and from countries. Answer: FALSEThe capital account is a record of direct investment, portfolio investment, and short-term capital movements to and from countries. FALSEThe capital account is a record of direct investment, portfolio investment, and short-term

In the context of international business negotiations, which of the following skills tops the list of negotiator traits? A. Preparation and planning skill B. Observational and oratory skill C. Linguistic and social skill D. Persuasion and intellectual skill E. Informational and interpretation skill Answer: A.Preparation and planning skill is at the top of almost everyone's list

The single most important difference between consumer and industrial marketing is the cyclical swings in demand inherent in the latter. Answer: TRUEThe single most important difference between consumer and industrial marketing is the huge, cyclical swings in demand inherent in the latter. TRUEThe single most important difference between consumer and industrial marketing

Which of the following aspects of the negotiation setting is an important consideration as it may eventually determine legal jurisdiction if disputes arise? A. Preliminary research B. Communications channels C. Number of participants D. Number of translators E. Location Answer: E.Location is an important consideration because it may determine legal jurisdiction if disputes arise. Location also

Which of the following is a provision of the commonwealth agreement signed by the Commonwealth of Independent States? A. To reject the powers of the old regimes B. To keep the ruble but allow new currencies C. To create disjointed control of nuclear weapons D. To invalidate all Soviet foreign treaties and debt obligations E.

Which of the following institutions has the responsibility to debate and decide which proposals of the Single European Act to accept as binding on European Union members? A. The European Commission B. The European Parliament C. The Council of Ministers D. The European Court of Justice E. The European Committee of the Regions Answer: C.The Council

Liaoning and Jilin provinces of China share borders with North Korea, and both provinces host substantial numbers of Korean minorities. Answer: TRUELiaoning and Jilin provinces share borders with North Korea, and both provinces host substantial numbers of Korean minorities. Of the 2 million ethnic Koreans in the country, about 60 percent

The Commonwealth of Independent States is: A. a political alliance with a central government. B. an economic and political alliance with open borders and no central government. C. an economic and political alliance with closed borders and a federal government. D. a federation of many states. E. a supranational organization similar to the old European

Which of the following is a factor responsible for global business successes? A. Standardization rather than customization of negotiation procedures across all cultures B. Emergence of the English language as the chief medium of negotiations C. Increased homogenization of cultures across the world D. Large numbers of skillful international negotiators E. Avoidance of the use

If, after seeking all reasonable secondary data sources, research questions are still not adequately answered, a market researcher must collect primary data. Answer: TRUEIf, after seeking all reasonable secondary data sources, research questions are still not adequately answered, a market researcher must collect primary data.[/cpmembership] TRUEIf, after seeking all reasonable secondary data

The British, German, and American businesspeople are found to fall in the middle of most scales for dimensions of negotiating behaviors. Answer: TRUELike the Germans and the British, the Americans fall in the middle of most continua. They did interrupt one another less frequently than all the others, but that was

Brazil is a fully industrialized country. Answer: FALSEBrazil is considered as a rapidly industrializing country. FALSEBrazil is considered as a rapidly industrializing country. FALSE Brazil is considered as a rapidly industrializing country. Spreading the portfolio of markets served brings important stability of revenues and operations to many global companies. Answer: TRUESpreading the portfolio of markets served

Companies following the _____ philosophy insist that no unit of a similar product is different from any other unit in terms of cost and that each unit must bear its full share of the total fixed and variable cost. A. full-cost pricing B. fixed-cost pricing C. variable-cost pricing D. demand-based pricing E. premium pricing Answer: A.Companies

One of the ways that an industrial firm should manage the inherent volatility of the industrial sector is by increasing advertising expenditure during booms. Answer: FALSEIndustrial firms can take several measures to manage inherent volatility, such as maintaining broad product lines and broad market coverage, raising prices faster and reducing advertising

Which of the following is the last step in the international planning process? A. Defining target markets and adapting the marketing mix accordingly B. Matching company and country needs C. Adapting the marketing mix according to market segments D. Implementation and control E. Developing the marketing plan Answer: D.All marketing plans require coordination and control during

When countries sell off state-owned enterprises and privatize them, it usually results in a(n): A. lack of accommodation of outside investors. B. decline in productivity throughout the private sector. C. release of capital to invest in strategic areas. D. instant change in political leadership. E. continuing drain on future natural resources. Answer: C.Privatization releases immediate capital

Which of the following stages of Rostow's five-stage model of economic growth do highly-industrialized countries like Japan and Germany fit into? A. Traditional society B. Preconditions to takeoff C. Takeoff D. Drive to maturity E. The age of mass consumption Answer: E.In Stage 5 (the age of mass consumption) of Rostow's five-stage model of economic development

Which of the following countries is considered to be the world's most efficient user of energy? A. Canada B. Vietnam C. Japan D. India E. China Answer: C.As countries industrialize, energy sources are not always efficiently utilized. In comparison with Japan, possibly the world's most efficient user of energy, where less than 5 ounces of oil

Multinational market regions are those groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers. Answer: TRUEMultinational market regions are those groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers. TRUEMultinational market regions are those groups of countries that seek mutual

Which of the following is an example of a price-fixing arrangement? A. Price escalation B. Barter houses C. Letters of credit D. Cartels E. Countertrade Answer: D.Any type of price-fixing arrangement can be adapted to international business, but of all the forms mentioned, cartels are the most directly associated with international marketing. D.Any type of price-fixing arrangement

Which of the following ensures that balance-of-payments records are always in balance? A. Sum of squares recording system B. Bank reconciliation system C. Double-entry bookkeeping system D. Archival records system E. Multifactor recording system Answer: C.As the balance-of-payments record of a nation is maintained on a double-entry bookkeeping system, it must always be in balance. C.As the

In the context of international advertising, companies are moving from the commission system to a _____ system. A. tactical B. standardized C. reward-by-results D. self-regulation E. business-to-business Answer: C.Companies are moving from the commission system to a reward-by-results system, which details remuneration terms at the outset. C.Companies are moving from the commission system to a reward-by-results system,

The GATT became part of the World Trade Organization in 1995 with the ratification of the Uruguay Round agreements. Answer: TRUEWith the ratification of the Uruguay Round agreements, the GATT became part of the World Trade Organization (WTO) in 1995, and its 117 original members moved into a newera of free trade. TRUEWith

Which of the following is an effective approach to prevent Chinese consumers from creatively copying foreign intellectual property? A. Boycotting all trade activities with China B. Placing embargoes on trade with China C. Charging what the market will bear D. Disengaging local representation in sales E. Pursuing dispute resolution at the World Court Answer: C.The author

Which of the following provinces of China shares the closest economic ties with Russia? A. Liaoning B. Jilin C. Heilongjiang D. Guangdong E. Hainan Answer: C.The most important advantage of Northeast China is its juxtaposition with China's most important industrial neighbors. For centuries, goods and ideas have flowed across those borders and continue to do so

It is mandatory for importers who want to buy a foreign good from a foreign country to apply for a business permit in that country. Answer: FALSEImporters who want to buy a foreign good must apply for an exchange permit, that is, permission to exchange an amount of local currency for

Errors at the receiver end of the international communications process can be avoided if the message is encoded properly. Answer: TRUEErrors at the receiver end of the process generally result from a combination of factors: an improper message resulting from incorrect knowledge of use patterns, poor encoding producing a meaningless message, poor

Which of the following best describes the current perception of geographical features such as mountains in the context of economic growth in Europe? A. They provide natural protection from potentially hostile neighbors. B. They are impediments to efficient trade and communication. C. They are natural landmarks that symbolize national treasure. D. They are fortuitous

In the context of international business negotiations, even in countries where women do not participate in management, American female negotiators are first treated as _____. A. distractions B. ignorant people C. incompetent people D. foreigners E. inexperienced people Answer: D.Gender should not be used as a selection criterion for international negotiation teams, despite the great differences in

Dutch management professor Geert Hofstede argues that culture provides a guide for humans on how to think and behave. Answer: TRUEDutch management professor Geert Hofstede refers to culture as the 'software of the mind"and argues that it provides a guide for humans on how to think and behave; it is a

Longer channels of distribution are more appropriate for keeping prices under control than shorter channels of distribution. Answer: FALSEShorter channels can help keep prices under control. Designing a channel that has fewer middlemen may lower distribution costs by reducing or eliminating middleman markups. FALSEShorter channels can help keep prices under control. Designing

For countervailing duties to be invoked, it must be shown that prices are higher in the importing country than in the exporting country. Answer: FALSEFor countervailing duties to be invoked, it must be shown that prices are lower in the importing country than in the exporting country and that producers in