Midterm Flashcards
Name an international brand and how it is different? Why?
McDonalds- China VS US. International brands may have different associations abroad the home market
International sourcing can lead to
surprising supply chains like manufacturing of cars or designing apple IPhones
Apple iPhones
Designed in CA but made in China. *Watch the video
Starbucks
*Watch Video
Can all international brands be successful everywhere
No because some have a strong international appeal and some are meant to be local
What is a company that has a strong international appeal?
Nike
4Ps
Product Place Price and Promotion
How do the 4P’s relate to international marketing?
need to understand/consider the competition/consumer needs on a global and local level
Our economy is
connected globally. Any company, product, brand exists in most of the world
Sourcing and supply chains encompass the globe because
companies look to become and stay competitive
The connected world economy allows for
¥ Consumers have a larger set of options to choose from in addition to their local markets
How to classify countries
GNI, Development level, poverty level
GNI stands for
Gross national income
GNI Stages
High income countries, Upper-middle income, Lower-middle income, Low income
Development level
Developed countries, Industrializing or developing, Least developed countries, Underdeveloped (low income, civil strife, flat income, tend to be dangerous)
WTO Stands for
World Trade Organization
WTO replaced
GATT
GATT stands for
General agreements on Tariffs and Trade
GATT was
Any reduction in tariffs would have to be extended to all countries inside GATT but they didn’t take into account other non-trade barriers like quotas, custom procedures and bureaucracy
WTO is meant to focus on
free overall trade
WTO has many critics on both sides. True or false
true
One side of WTO
Small countries that are developing have little negotiation power, farm subsidies, non-dumping agreements can be favorable to some countries while others are pressured to open up markets protectionism (Like US steel industry tariffs)
Can also arbitrate conflicts – long term success is an ongoing problem
PTA
(preferential trade agreements can exits and countries notify WTO)
Free trade area and integration
High level of integration (more so than a loosely formed regional cooperation) with a goal to reduce customs duties and non-tariff barriers
Free trade area only applies
to countries that ARE part of the free trade area
Free trade area allows for goods
to come in into a low tariff country then be distributed in the FTA with no tariffs
Free trade area
Usually also have laws on Local Content Laws which means that a portion of the product has to be created in the FTA for the product to NOT be subject to tariffs
NAFTA
US, Canada, Mexico
EFTA
European Free Trade Association
MERCOSUR
¥ common market of the South – Argentina, Brazil, Paraguay, Unguay
ASEAN
Indonesia, Malaysia, Philippines, Singapore and Thailand, then later Brunei, Viet Nam, Lao PDR and Myanmar, and Cambodia. Informally added: Japan, China and Korea. Informally also Australia, New Zealand, India – ASEAN plus six
Trade areas
NAFTA, EFTA MERCOSUR, ASEAN
Trade barriers include
customs (bureaucracy and local cultural practices)
Most signficiant trade barrier
is tarriffs
TRIPS stands for
Trade related Aspects of Intellectual Property Right
TRIPS is meant to
give all the countries the same right to intellectual property protection as a country would for its own nationals
TRIPS is not a
international patent system
Hot issues (under TRIPS) is
licensing for pharmaceuticals if a country has no manufacturing capability
A big portion of IP is on in the form of
electronic, which makes it easy to copy and re-create which discourages creation and decreased value
Avoiding copying of IP
¥ encryption, digital signatures, hardware, software
Need a system that
¥ reward and protect creation but that the system also allows a market for content. solution - subscriptions or memberships.
