Page 242 - Foundations of Marketing

Reaching Global Markets | Chapter 8 209

and young professionals. Gathering information about these distinct tastes and preferences is
likely to remain a very important factor in developing marketing mixes that satisfy the needs
of European customers.
While the United States and the EU do not always agree, partnerships between the two
have been profitable and the two entities generally have a strong positive relationship. Much
of this success can be attributed to the shared values of the United States and the EU. The EU
is mostly democratic and has a strong commitment to human rights, fairness, and the rule of
law. As a result, the United States and the EU have been able to collaborate on mutually ben-
eficial projects with fewer problems than partnerships with other trade alliances that do not
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share similar values.
The latest worldwide recession has slowed Europe’s economic growth and created a debt
crisis. Ireland, Greece, and Portugal required significant bailouts from the European Union,
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followed by bailout requests from Spain and Cyprus. Standard & Poor’s dealt a blow to the
EU by downgrading the sovereign debt ratings of nine of its member countries, including
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France, Portugal, Italy, and Austria. Germany, on the other hand, is seeing its impact on the
euro-zone increase. Germany is home to many exporting companies, its exports are in high
demand in fast-growing economies, and it has a smaller budget deficit and household debt.
Germany continues to maintain its AAA+ rating, signaling to investors that the country is a
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safe investment.
Due to the massive industry collaboration between the United States and the EU, there
have been discussions about the possibility of a trade agreement between the two entities.
In many respects, the United States, the EU, and Asia have become largely interdependent in
trade and investment. For instance, the United States and the EU have already adopted the
“Open Skies” agreement to remove some of the restrictions on transatlantic flights, and
the two often collaborate on ways to prevent terrorist attacks, cyber hacking, and crime. The
United States and the EU hope that by working together, they can create mutually beneficial
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relationships that will provide benefits to millions of their citizens. The Southern Common Market
(MERCOSUR) An alliance that
promotes the free circulation of
The Southern Common Market (MERCOSUR) goods, services, and produc-
tion factors, and has a common
The Southern Common Market (MERCOSUR) was established in 1991 under the Treaty of external tariff and commercial
Asunción to unite Argentina, Brazil, Paraguay, and Uruguay as a free trade alliance. Venezuela policy among member nations
joined in 2006. Currently, Bolivia, Chile, Colombia, Ecuador, and Peru are associate members. in South America

Entrepreneurship in Marketing

Will Lei Jun Become the Steve Jobs of China?

To say that the comparisons posed against Lei Jun are domination and competition from Apple and Samsung.
daunting is an understatement. The billionaire founder of These two companies alone have created extensive bar-
Xiamoi, China’s hottest smartphone company, has con- riers for competitors to enter the global market. Apple
tinually been compared to the late Steve Jobs. With their products are popular within China and are seen as luxury
passion for innovation, the two seem to possess similar products. However, the localized appeal of Xiamoi has
qualities, which merit such comparisons. Xiamoi has a given it an advantage over Apple. A strength that Xiamoi
current market value of approximately $ 4 billion. has over competitors is its ability to create a high-quality,
Although Jun has successfully launched a billion- low-priced phone that appeals to the average Chinese
dollar smartphone company, he has faced challenges of consumer. This strategy has proven successful within the
sustaining that growth and finding a way to penetrate Chinese marketplace and Jun hopes it will achieve global
global markets. Other challenges Xiamoi faces lie with success.
c

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