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Chapter 10 – Europe, Africa, and the Middle East
Discussion Questions
1. Define:
Multinational market regions Free-trade area
2. Elaborate on the problems and benefits for international marketers from multinational market groups.
A multinational market group has both problems and benefits for an international marketer, although
the benefits far exceed the disadvantages. A multinational market group (comprised of a number of
individual countries) has two important goals. The first of these is to limit and eventually eliminate
3. Explain the political role of multinational market groups.
The political role of a multinational market group is of importance if such a market is to be
economically successful. This is a touchy subject because any nation has created throughout history a
10-1
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
Chapter 10 – Europe, Africa, and the Middle East
4. Identify the factors on which one may judge the potential success or failure of a multinational market
group.
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© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
Chapter 10 – Europe, Africa, and the Middle East
5. Explain the marketing implications of the factors contributing to the successful development of a
multinational marketing group.
There are at least four basic types of factors that must be favorable and which must fit smoothly
together for any form of multinational market group to be successful: (1) economic, (2) political, (3)
Such marketing forms, to be implemented after World War II, include the establishment of lower
trade barriers, long-term development loans, and liquid short-term funds, all of which cause world
6. Imagine that the United States was composed of many separate countries with individual trade
barriers. What marketing effects might one visualize?
7. Discuss the possible types of arrangements for regional economic integration.
There is usually considered to be four types of regional economic integration arrangements:
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© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
Chapter 10 – Europe, Africa, and the Middle East
I. Free Trade Associations are the weakest forms of regional economic integration. Their key
II. A Custom Union is a logical stage in the development of multinational market groups, standing
III. A Common Market adds further elements to facilitate international trade that in effect makes it
IV. A Political Union of commercial matters is either voluntary or enforced. Typical of the voluntary
8. Differentiate between a free trade area and a common market. Explain the marketing implication of
the differences.
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© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
Chapter 10 – Europe, Africa, and the Middle East
9. It seems indeed obvious that the founders of the European Union intended it to be a true common
market; so much so that economic integration must obviously be supplemented by political
integration in order to accomplish these objectives completely. Discuss.
10. The European Commission, the Council of Ministers, and the Court of Justice of the EC have gained
power in the last decade. Comment.
As the European Union has become more economically interdependent, the Community’s institutions,
the Commission, the Council of Ministers, and the Court of Justice, have gained in their influence
over business dealings among member countries. For example, the European Commission has
recently won the right to take part in consultations on European Union foreign policy. This is a
significant step in enhancing its importance among the governments of the ten member countries.
11. Select any three countries which might have some logical basis for establishing a multinational
market organization and illustrate their compatibility as a region trade group. Identify the various
problems which would be encountered in forming multinational market groups of such countries.
Individual research (sample below).
Assumptions: Canada, United States, and Mexico establishing a common market. Problems that will
arise are:
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© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
Chapter 10 – Europe, Africa, and the Middle East
12. U. S. exports to the European Union are expected to decline in future years. What marketing actions
may a company take to counteract such changes?
13. “Because they are dynamic and because they have great growth possibilities, the multinational
markets are likely to be especially rough-and-tumble for the external business.” Discuss.
14. Differentiate between a full customs union and a political union.
15. Why have African nations had such difficulty in forming effective economic unions?
African common market activities are affected by the following factors:
1. Most national governments are not strong in Africa.
2. Government turnover.
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© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
Chapter 10 – Europe, Africa, and the Middle East
16. Discuss the implications of the European Union’s decision to admit Eastern European nations to the
group.
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© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
