Midterm

Question 1

Name an international brand and how it is different? Why?

Answer 1

McDonalds- China VS US. International brands may have different associations abroad the home market

Question 2

International sourcing can lead to

Answer 2

surprising supply chains like manufacturing of cars or designing apple IPhones

Question 3

Apple iPhones

Answer 3

Designed in CA but made in China. *Watch the video

Question 4

Starbucks

Answer 4

*Watch Video

Question 5

Can all international brands be successful everywhere

Answer 5

No because some have a strong international appeal and some are meant to be local

Question 6

What is a company that has a strong international appeal?

Answer 6

Nike

Question 7

4Ps

Answer 7

Product Place Price and Promotion

Question 8

How do the 4P’s relate to international marketing?

Answer 8

need to understand/consider the competition/consumer needs on a global and local level

Question 9

Our economy is

Answer 9

connected globally. Any company, product, brand exists in most of the world

Question 10

Sourcing and supply chains encompass the globe because

Answer 10

companies look to become and stay competitive

Question 11

The connected world economy allows for

Answer 11

¥ Consumers have a larger set of options to choose from in addition to their local markets

Question 12

How to classify countries

Answer 12

GNI, Development level, poverty level

Question 13

GNI stands for

Answer 13

Gross national income

Question 14

GNI Stages

Answer 14

High income countries, Upper-middle income, Lower-middle income, Low income

Question 15

Development level

Answer 15

Developed countries, Industrializing or developing, Least developed countries, Underdeveloped (low income, civil strife, flat income, tend to be dangerous)

Question 16

WTO Stands for

Answer 16

World Trade Organization

Question 17

WTO replaced

Answer 17

GATT

Question 18

GATT stands for

Answer 18

General agreements on Tariffs and Trade

Question 19

GATT was

Answer 19

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

Question 20

WTO is meant to focus on

Answer 20

free overall trade

Question 21

WTO has many critics on both sides. True or false

Answer 21

true

Question 22

One side of WTO

Answer 22

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

Question 23

PTA

Answer 23

(preferential trade agreements can exits and countries notify WTO)

Question 24

Free trade area and integration

Answer 24

High level of integration (more so than a loosely formed regional cooperation) with a goal to reduce customs duties and non-tariff barriers

Question 25

Free trade area only applies

Answer 25

to countries that ARE part of the free trade area

Question 26

Free trade area allows for goods

Answer 26

to come in into a low tariff country then be distributed in the FTA with no tariffs

Question 27

Free trade area

Answer 27

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

Question 28

NAFTA

Answer 28

US, Canada, Mexico

Question 29

EFTA

Answer 29

European Free Trade Association

Question 30

MERCOSUR

Answer 30

¥ common market of the South – Argentina, Brazil, Paraguay, Unguay

Question 31

ASEAN

Answer 31

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

Question 32

Trade areas

Answer 32

NAFTA, EFTA MERCOSUR, ASEAN

Question 33

Trade barriers include

Answer 33

customs (bureaucracy and local cultural practices)

Question 34

Most signficiant trade barrier

Answer 34

is tarriffs

Question 35

TRIPS stands for

Answer 35

Trade related Aspects of Intellectual Property Right

Question 36

TRIPS is meant to

Answer 36

give all the countries the same right to intellectual property protection as a country would for its own nationals

Question 37

TRIPS is not a

Answer 37

international patent system

Question 38

Hot issues (under TRIPS) is

Answer 38

licensing for pharmaceuticals if a country has no manufacturing capability

Question 39

A big portion of IP is on in the form of

Answer 39

electronic, which makes it easy to copy and re-create which discourages creation and decreased value

Question 40

Avoiding copying of IP

Answer 40

¥ encryption, digital signatures, hardware, software

Question 41

Need a system that

Answer 41

¥ reward and protect creation but that the system also allows a market for content. solution - subscriptions or memberships.