It is on eof the most difficult cultural issues
A short description of what you do, or the point you want to make, presented in the time it takes an elevator to go from the top floor to the first floor or vice versa. (30-60 sec)
Primary obstacle to success in international marketing
Self Reference criterion (SRC)+ Ethnocentrism
Frame of reference embracing cultural difference and knowledge of cultures, history, world market potential, and global economic, social and political trends.
What is different about competing globally?
- *Customer wants and demands may be different
- *Local culture and customs guaranteed to be different
BoP (balance of payment)
Set of accounts that record a country's international transactions, and which always balance out with no surplus or deficit shown on the overall basis.
The worldwide movement toward economic, financial, trade, and communications integration.
Governmental policy aimed at shielding a fragile economy, or a weak or critical sector, from cheaper or better imports through imposition of high duty rates (tariff barriers), quotas, and/or inordinately stringent or time consuming inspection or quality regulations (non-tariff barriers).
Government imposed restriction on the free international exchange of goods or services.
Government tax on goods entering at borders.
Omnibus Trade and Competitiveness Act
Designed to help US businesses be more competitive in world markets and address perceived injustices in trade practices.
GATT(General Agreement on Tariffs and Trade)
UN agency for promotion of free trade between signatory countries (called contracting parties).
WTO (World Trade Organization)
- -Only Global international organization dealing with rules of trade between nations.
- -Goals to help producers of goods and services, exporters and importers conduct business
- -Established 1995, 153 Member countries
- -HQ Geneva, Switzerland
- -Currency Swiss francs
- -Vital source of financial and technical assistance to developing countries around world.
- -Mission to fight poverty; help people help themselves and environment by providing resources, sharing knowledge, building capacity and forging partnership in public and private sectors.
- -Established 1944, 187 member countries
- -HQ Washington DC
IMF(International Monetary Fund)
- -Oversees international monetary system by following macroeconomic policies of member countries
- -Goal to stabilize international exchange rates and facilitate development by encouraging members to eleminate restictions that hinder trade.
- -Offers highly leveraged loans, mainly to poorer countries.
- -Established 1944, 187 member countries
- -HQ Washington, DC
- -Currency SDR(Special Drawing Rights)="paper gold" $1=SDR 0.656
Reasons for Protest against Global Institutions
- -Enviromental concerns
- -worker exploitation and domestic job losses
- -cultural extinction
- -higher oil prices
- -dimishined sovereignty of nations
Top 3 US trading partnersq
History of International Trade
- -Competing aproaches to economic development (Socialist Marxist vs Democratic Capitalist)
- -Rapid growth of war-torn economies and previously underdeveloped countries
- -Large-scale economic cooperation and asssitance
- -Rising standards of living
- -Volulntary Export Restraints
- -Boycotts and Embargoes
- -Monetary barriers
- -Anti-dumping penalties
- -Blocked currency
- -Differential Exchange
- -Goverment approval
Protectionism-Governmental Procurement Policies
- -Outsourcing and subcontracting have assumed international dimensions. International procurement organization (IPOs) opening in developing countries like India, China, Mexico, Brazil.
- -35 US States ban outsourcing of goverment contracts
- -World's Total market for outsourcing business growing at 9%
Google threatened to quit China because of strict censorhip of its google.cn search engine. China is just "protecting" their country.
part of negotiation process in which conversation topics do not include business; typically a preliminary phase of negotiations.
Western decision making approach
model for understanding & predicting results of intercultural encounters, i.e. how people in different cultures will speak, act, negotiate & make decisions
Essential friendship or trusting relationship must be established before business can begin
Behaviors that can be conformed to, but are not absolutely required. e.g. gifts
Foreigner must NEVER participate in these customs. customs only for locals, aliens barred, apologize if err, never joke about or criticize
- Crucial reality of international business both host & home governments
NGOs (Non-Governmental Organizations)
Involved inrelieving human misery Plaguing parts of the world. UNICEF
interpretation through past decisions of higher courts
- legal system is generally divided into 3 separate codes:
- •Basis for Islamic law is interpretation of Qur’an
- •Among unique aspects of Islamic law is prohibition against payment of interest
mediation = non-binding agreement to resolve dispute
parties agree to honor judgment made by mutually selected referee
lawsuits in public courts
a right granted to the inventor of a product or process that excludes others from making, using, or selling that invention.
words or symbols that distinguish a product and its manufacturer. Trademark protection lasts indefinitely, provided the word or symbol continues to be distinctive.
give creators of original works . freedom to publish or dispose of them as they like.
refers to creations of the mind: inventions, literary and artistic works, and symbols, names, images, and designs used in commerce
- laws dealing with competition in business
Foreign Corrupt Practices Act
illegal for companies to pay bribes to foreign officials, candidates, or political parties
National security laws
- •protect consumers
- •protect exports & investments against private restrictions