Page 254 - Foundations of Marketing

Reaching Global Markets | Chapter 8 221

Key Concepts

international North American Free Trade World Trade Organization contract manufacturing 215
marketing 196 Agreement (NAFTA) 207 (WTO) 212 outsourcing 215
gross domestic product European Union (EU) 208 General Agreement on offshoring 215
(GDP) 199 Southern Common Market Tariffs and Trade offshore outsourcing 215
import tariff 201 (MERCOSUR) 209 (GATT) 212 joint venture 215
quota 201 Asia-Pacific Economic dumping 212 strategic alliance 216
embargo 201 Cooperation (APEC) 210 importing 213 direct ownership 216
exchange controls 202 Association of Southeast exporting 213 multinational
balance of trade 202 Asian Nations trading company 214 enterprise 216
cultural relativism 203 (ASEAN) 211 licensing 214 globalization 217

Issues for Discussion and Review

1. How does international marketing differ from domestic 6. How will NAFTA affect marketing opportunities for
marketing? U.S. products in North America (the United States,
2. What factors must marketers consider as they decide Mexico, and Canada)?
whether to engage in international marketing? 7. What should marketers consider as they decide whether
3. Why are the largest industrial corporations in the to license or enter into a joint venture in a foreign nation?
United States so committed to international 8. Discuss the impact of strategic alliances on interna-
marketing? tional marketing strategies.
4. Why do you think this chapter focuses on an analysis of 9. Contrast globalization with customization of marketing
the international marketing environment? strategies. Is one practice better than the other?
5. If you were asked to provide a small tip (or bribe) to 10. What are some of the product issues that you need to
have a document approved in a foreign nation where this consider when marketing luxury automobiles in
practice is customary, what would you do? Australia, Brazil, Singapore, South Africa, and Sweden?

Marketing Applications

1. To successfully implement marketing strategies in the 3. This chapter discusses various organizational approaches
international marketplace, a marketer must understand to international marketing. Which would be the best
the complexities of the global marketing environment. arrangements for international marketing of the follow-
Which environmental forces (sociocultural, economic, ing products, and why?
political/legal/regulatory, ethical, competitive, or a. Construction equipment
technological) might a marketer need to consider when b. Cosmetics
marketing the following products in the international c. Automobiles
marketplace, and why? 4. Procter & Gamble has made a substantial commitment
a. Barbie dolls to foreign markets, especially in Latin America. Its
b. Beer actions may be described as a “globalization of market-
c. Financial services ing.” Describe how a shoe manufacturer (e.g., Wolverine
d. Television sets World Wide) would go from domestic marketing to
2. Many firms, including Procter & Gamble, FedEx, and limited exporting, to international marketing, and finally
Occidental Petroleum, wish to do business in eastern to a globalization of marketing. Give examples of some
Europe and in the countries that were once part of the activities that might be involved in this process.
former Soviet Union. What events could occur that 5. Windshield wipers were invented by Mary Anderson in
would make marketing in these countries more difficult? 1903, when she observed that streetcar drivers in New
What events might make it easier? York City had to open the window when it rained in

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