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Chapter 15 – International Marketing Channels
Discussion Questions
1. Define:
Distribution process
2. Discuss the distinguishing features of the Japanese distribution system.
Distribution in Japan has long been considered the most effective non-tariff barrier to the Japanese
High Density of Middlemen. There is a density of middlemen, retailers and wholesalers in the
Channel Control. Manufacturers depend on wholesalers for a multitude of services to other members
Business Philosophy. Coupled with the close economic ties and dependency created by trade
15-1
© 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 15 – International Marketing Channels
Large-Scale Retail Store Law. Competition from large retail stores has been almost totally
controlled by Daitenho–the Large-Scale Retail Store Law. Designed to protect small retailers from
3. Discuss the ways Japanese manufacturers control the distribution process from manufacturer to
retailer.
Manufacturers depend on wholesalers for a multitude of services to other members of the distribution
4. Describe the large-scale retail store law found in Japan and show how the Structural Impediments
Initiative (SII) is bringing about change in Japanese retailing.
Competition from large retail stores has been almost totally controlled by Daitenbo, the Large-Scale
Retail Store Law. Designed to protect small retailers from large intruders into their markets, the law
requires that any store larger than 5,382 square feet (500 square meters) must have approval from the
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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 15 – International Marketing Channels
Designed to protect small retailers against competition from large stores, the law has been imposed
against both domestic and foreign companies. It took ten years for one of Japan’s largest supermarket
Agreements between the United States and Japan under the Structural Impediments Initiative (SII)
have had a profound impact on the Japanese distribution system by leading to deregulation of
retailing and strengthening rules on monopoly business practices. The retailing law has been relaxed
SII and deregulation will undoubtedly have a part in changing Japanese distribution practices but
those merchants willing to challenge traditional ways and give the consumer quality products at
The “new” retailers are relatively small and account for no more than three percent of retail sales,
15-3
© 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 15 – International Marketing Channels
5. “Japanese retailing may be going through a change similar to that which occurred in the United States
after World War II.” Discuss and give examples.
6. Discuss how the globalization of markets affects retail distribution.
7. To what extent, and in what ways, do the functions of domestic middlemen differ from their foreign
counterparts?
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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 15 – International Marketing Channels
8. Why is the EMC sometimes called an independent export department?
9. Discuss how physical distribution relates to channel policy and how they affect one another.
10. Explain how and why distribution channels are affected as they are when the stage of development of
an economy improves.
11. In what circumstances is the use of a EMC logical?
12. In what circumstances are trading companies likely to be used?
13. How is the distribution channel structure affected by increasing emphasis on the government as a
customer and by the existence of state trading agencies?
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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 15 – International Marketing Channels
14. Review the key variables that affect the marketer’s choice of distribution channels.
15. Account, as best you can, for the differences in channel patterns which might be encountered in a
highly developed country and an underdeveloped country.
16. “One of the first things companies discover about international channel of distribution patterns is that
in most countries it is nearly impossible to gain adequate market coverage through a simple channel of
distribution plan.” Discuss.
17. Discuss the various methods of overcoming blocked channels.
18. What strategy might be employed to distribute goods effectively in the dichotomous small-large
middleman pattern which characterizes merchant middlemen in most countries?
19. Discuss the economic implications of charging termination penalties or restricting the termination of
middlemen. Do you foresee such restrictions in the United States?
15-6
© 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 15 – International Marketing Channels
20. Discuss why Japanese distribution channels can be the epitome of blocked channels.
21. What are the two most important provisions of the Export Trading Act of 1982?
23. Based on the information collected in Question 22, how practical would it be to encourage foreign
sales? Your average order ranges from about $250 to $800. All prices are quoted plus shipping and
handling. You handle a fairly exclusive line of Southwestern Indian jewelry that sells for about 15 to 20
percent higher in Europe than in the United States. The products are light weight and high in value.
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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.
