1. What is International Marketing? Flashcards

1
Q

Who are the Stakeholders of an International Firm?

A
  1. Expatriate Staff
  2. Customers
  3. Local workers and unions
  4. Suppliers
  5. Host-country government
  6. Pressure groups
  7. Financial Intermediaries
  8. Shareholders
  9. Competitors
  10. Distributors/retailers
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2
Q

Why do companies go abroad?

A
  1. Market Drivers
  2. Cost Drivers
  3. Competitive Drivers
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3
Q

Market Drivers ?

A
  • Respond to client demands
  • Consumer interest
  • Product life cycle expansion
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4
Q

Cost Drivers?

A
  • Economies of scale - mass produce = manufacturing efficiency
  • Cost savings: cheaper labour, material, etc.
  • Technology/Communication advancement
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5
Q

Competitive Drivers?

A
  • Saturated local markets
  • New foreign entrants
  • Mergers and acquisitions
  • Keep up/stay ahead of rivals
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6
Q

International Marketing in the past.

A
  1. The silk Road
  2. China -> Europe
  3. 100BC - A.D 1450 = change is slow
  4. Spread:
    - > fundamental buddhism
    - > Diseases (rats)
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7
Q

International Marketing in the present.

A
  1. TheSilkRoad.com (2011 -2013)
    - > bitcoin
    - > change = rapidly quicker
  2. New Silk Road
    - > increase trade
    - > political power
  3. Distribution alot more spread out
    - > new co. overtaking
    - > wealth spreading out (america -> china)
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8
Q

What does Figure 1.8 International Marketing Task consist of?

A
  1. Firm environment (controllables)
    - > PPPP
  2. Domestic environment (uncontrollables)
    - > political/ legal forces
    - > economic environment
    - > communication forces
  3. Foreign environment (uncontrollables)
    - > Political/legal forces
    - > Social/cultural forces
    - > Global & infrastructure
    - > International Obligations
    - > Advancement of Tech
    - > Financial forces
    - > Economic forces
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9
Q

List the types of risks in International Business.

A
  1. Commercial Risk
  2. Currency/ Financial Risk
  3. Country (political/legal risks)
  4. Cultural risk
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10
Q

Explain Commercial Risk.

A
  1. weak partner
  2. operational problems
  3. time of entry
  4. competitive intensity
  5. poor execution of strategy
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11
Q

Explain Currency/Financial Risk.

A
  1. Currency Exposure
  2. Asset valuation
  3. Foreign taxation
  4. Inflationary and transfer pricing
  5. Global sourcing
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12
Q

Explain Country (political and legal risks).

A
  1. Social/political unrest/instability
  2. Economic mismanagement; inflation
  3. Distribution of income, size of middle class
  4. Government intervention; bureaucracy. red tape
  5. Market access; barriers; profit repatriation
  6. Legal safeguards for intellectual property rights
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13
Q

Explain Cross-cultural risks.

A
  1. Cultural distance
  2. Negotiation patterns
  3. DM styles
  4. Ethical practices
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14
Q

What are the 4 specific Rationales for Expansion?

A
  1. Proactive - internal
  2. Proactive - external
  3. Reactive - internal
  4. Reactive - external
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15
Q

Explain Proactive - internal.

A
  1. Managerial desire
  2. USP
  3. Utilise excess capacity
  4. Small size of domestic mkt
  5. Stagnant or declining domestic mkt
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16
Q

Explain Reactive - internal.

A
  1. Diversifying risk

2. Reduce the disadvantage of seasonality

17
Q

Explain Proactive - external.

A
  1. Opportunities in foreign markets

2. Other sources of stimulus e.g. gov, banks, etc.

18
Q

Explain Reactive - external.

A
  1. Unsolicited order
  2. Competitor strategy
  3. Supplier Stimulus
19
Q

List the Stages of Internationalisation.

A
  1. Domestic Mktg -ethnocentric (ararat kebabs)
  2. Export Mktg - ethnocentric (goon)
  3. International country-by-country MKtg - local product development based on local needs (aldi)
  4. Multinational region-by-region Mktg - standardise within region but not across (ford)
  5. Global Mktg. - integrate, coordinate, allocated (apple)