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1Reviewthewholebookfortermexam2013Chapterone:P.7Internationalmarketingdefined•Performanceofbusinessactivitiesdesignedto–Plan–Price–Promote,and–Directtheflowofacompany’sgoodsandservicestoconsumersorusersinmorethanonenationforaprofitP.8Exhibit1.3P.12SRC(definition)SRCisanunconsciousreferencetoone’sownculturalvalues,experiences,andknowledgeasabasisfordecisions.P.144stepsaresuggestedasaframework1.Definebusinessproblemorgoal•Home-countryvs.foreign-countryculturaltraits,habits,ornorms•Consultationwithnativesofthetargetcountry2.Makenovaluejudgments3.IsolatetheSRCinfluence•Examineitcarefullytoseehowitcomplicatestheproblem4.Redefinetheproblem•WithoutSRCinfluence•SolvefortheoptimumbusinessgoalsituationP.16stagesofInternationalMarketing•Nodirectforeignmarketing•Infrequentforeignmarketing•Regularforeignmarketing•Internationalmarketing•GlobalmarketingChaptertwo:P.23GATT(threebasicelements)•Threebasicelements:•1)tradeshallbeconductedonanon-discriminatorybasis;•2)protectionshallbeaffordeddomesticindustriesthroughcustomstariffs,notthroughsuchcommercialmeasuresasimportquotas;•3)consultationshallbetheprimarymethodusedtosolveglobaltradeproblems.P.25-26IMF(threeobjectives)2–Stabilizationofforeignexchangerates–Establishmentoffreelyconvertiblecurrenciestofacilitatetheexpansionandbalancedgrowthofinternationaltrade–TheIMFalsolendsmoneytomembershavingtroublemeetingfinancialobligationtoothermembers.WorldBankGroup(services)–Lendingmoneytothegovernmentsofdevelopingcountries–Providingassistancetogovernmentsfordevelopmentalprojectstothepoorestdevelopingcountries–Lendingdirectlytotheprivatesector–Providinginvestorswithguaranteesagainst“noncommercialrisk”–PromotingincreasedflowsofinternationalinvestmentP.27-39GlobalMarketsandMultinationalMarketGroupsEurope•--EuropeanIntegration•--EuropeanUnion(EUInstitutions,EconomicandMonetaryUnionandExpansionoftheEuropeanUnion)TheAmericas•--NorthAmericanFreeTradeAgreement(NAFTA)Asian-PacificRim•--AssociationofSoutheastAsianNations•--Asia-PacificEconomicCooperationAfricaTheMiddleEastP.33NAFTAP.51Bigemergingmarketsshareanumberofimportanttraits•Bigemergingmarketsshareanumberofimportanttraits.They•-Areallgeographicallylarge.•-Havesignificantpopulations.•-Representsizablemarketsforawiderangeofproducts.•-Havestrongratesofgrowthorthepotentialforsignificantgrowth•-Haveundertakensignificantprogramsofeconomicreform.•-Areofmajorpoliticalimportancewithintheirregions.•-Are“regionaleconomicdrives.”•Willendangerfurtherexpansioninneighboringmarketsastheygrow•Becausemanylackmoderninfrastructure,muchoftheexpectedgrowthwillbeinindustrialsectorsChapterthree:P.59Exhibit3.1(thelove-haterelationshipbetweentheUnitedStatesandMexicoP.65Exhibit3.4WorldEnergyConsumptionP.68Rural/urbanmigration(adesireforgreateraccessto…)3–Sourcesofeducation–Healthcare–ImprovedjobopportunitiesP.68PopulationDecline&Aging•Populationgrowthinmanycountrieshasdroppedbelowtheratenecessarytomaintainpresentlevels•Anationneedsafertilityrateofabout2.1childrenperwoman•NotonemajorcountryhassufficientinternalpopulationgrowthtomaintainitselfChapterfour:P.75culture’spervasiveimpact•Cultureaffectseverypartofourlives,everyday,frombirthtodeath,andeverythinginbetween–Japan–theyearoftheFireHorse•Ascountriesmovefromagriculturaltoindustrialtoserviceseconomies’birthratesdecline•Consequencesofconsumption–Tobacco•Culturenotonlyaffectsconsumption,italsoaffectsproduction–StomachcancerinJapanP.79definitionofcultureP.79Exhibit4.4OriginsofCultureChapterfive:P.10010basiccriteriaforrequiredadaptation1)opentolerance2)flexibility3)humility4)justice/fairness5)abilitytoadjusttovaryingtempos6)curiosity/interest7)knowledgeofthecountry8)likingforothers9)abilitytocommandrespect10)abilitytointegrateoneselfintotheenvironmentP.101culturalimperatives–Businesscustomsandexpectationsthatmustbemetandconformedtooravoidedifrelationshipsaretobesuccessful►Thesignificancefriendshipcannotbeoveremphasized–Insomeculturesaperson’sdemeanorismorecriticalthaninothers–ImperativesvaryfromculturetocultureP.102culturalelectives(Example)–Relatetoareasofbehaviorortocustomsthatculturalaliensmaywishtoconformtoorparticipateinbutthatarenotrequired4–Aculturalelectiveinonecountymaybeanimperativeinanother–CulturalelectivesaremostvisiblydifferentcustomsP.102culturalexclusives(Example)–CustomsorbehaviorpatternsreservedexclusivelyforthelocalsP.103TheimpactofAmericancultureonmanagementstyle(7importantideas)•“Masterofdestiny”viewpoint•Independententerpriseastheinstrumentofsocialaction•Personnelselectionandrewardbasedonmerit•Decisionsbasedonobjectiveanalysis•Widesharingindecisionmaking•Never-endingquestforimprovement•CompetitionproducingefficiencyP.105PDI•HigheronHofstede’sPowerDistanceIndex(PDI)–MayleadtobusinessmisunderstandingsP.106-108ManagementObjectivesandAspirationsP.111P-timeversusM-time•Monochronictime–Tendtoconcentrateononethingatatime–Dividetimeintosmallunitsandareconcernedwithpromptness–Mostlow-contextculturesoperateonM-Time•Polychronictime–Dominantinhigh-contextcultures–Characterizedbythesimultaneousoccurrenceofma