Lecture 2 Flashcards
What factors does the political environment influence in global marketing?
- Sovereignty
- political risk
- taxes
- equity control
- expropriation.
What is sovereignty in global marketing?
The supreme and independent authority of a nation-state; often challenged by global economic integration.
What is political risk?
The likelihood that political decisions, events, or conditions will affect business operations.
How do companies manage taxation in global marketing?
By shifting income and negotiating tax treaties to minimize liabilities.
What is expropriation?
Government seizure of assets, either without compensation (confiscation) or through restrictions (creeping expropriation).
What are some global economic trends?
Shift from west to east, industry structure changes, and growth of natural resource demand.
What are common economic system types?
Market, command, and mixed economies.
What are important indicators of economic environment?
GDP, GNP, balance of payments, purchasing power, and stage of market development.
Name regional trade blocs.
EU, NAFTA, MERCOSUR, CARICOM, Andean Group.
What is culture in marketing?
Shared values, symbols, behavior, attitudes; both conscious and unconscious.
What are high-context cultures?
Cultures where communication relies heavily on implicit context, such as Japan or Saudi Arabia.
What are low-context cultures?
Cultures where communication is explicit and direct, such as the USA or Germany.
Name key cultural analysis tools.
Maslow’s hierarchy, Hofstede’s dimensions, Self Reference Criterion (SRC).
What does Hofstede’s Power Distance dimension measure?
The extent to which less powerful members expect and accept unequal power distribution.
How does technology affect global marketing?
It influences supply chain efficiency, communication speed, and social media marketing.
What is the difference between code law and common law?
Code law is based on written codes and judicial decisions; common law relies on precedent.
How are intellectual property rights handled internationally?
Patents and trademarks must be registered in each country individually.
What is the purpose of antitrust laws like the Sherman Act?
To prevent restrictive practices and ensure fair competition.
What role does the environment play in global marketing?
It influences policy and marketing decisions; climate change and sustainability are key concerns.
