International Marketing CH. 9+10

The way the countries will trade and prosper in the 21st century is changing is because of:...

____ is generally understood to mean an increase in national production reflected by an increase in the average per capita gross domestic product (GDP) and consumer demand.

The stage of __ ___ within a country affects the following:
-Attitudes toward foreign business activity
-The demand for goods
-The distribution systems found within a country
-The entire market process

Stage of Economic Development - U.N. Classification:
Industrialized countries with high per capita incomes such as Canada, Germany, France, and the United States

Stage of Economic Development - U.N. Classification:
Industrially developing countries just entering world trade with relatively low per capita incomes such as many countries in Asia and Latin America

Stage of Economic Development - U.N. Classification:
Industrially underdeveloped, agrarian, subsistence societies with rural populations with extremely low per capita income levels, and little world trade involvement, such as some countries in Central Africa and parts of Asia

Countries are experiencing rapid economic expansion and industrialization and do not exactly fit as LDCs or MDCs. They have shown rapid industrialization of targeted industries. They have per capita incomes that exceed other developing countries. They have moved away from restrictive trade practices and instituted significant free market reforms. They attract both trade and foreign direct investment.

The factors that existed to some extent during ___ growth of NICs were as follows:
- Political stability in policies affecting development
- Economic and legal reforms
- Entrepreneurship
- Planning
- Outward Orientation
- Factors of Production
- Industries Targeted for Growth
- Incentives to force a high domestic rate of savings and to direct capital to update the infrastructure, transportation, housing, education, and training
- Privatization of state-owned enterprises (SOES) that placed a drain on national budgets

A country's investment in ___ ____ is an important key to economic growth because...
- ___ can be the key to a sustainable future for developed and developing nations alike
- As the Internet cuts transactions costs, it has enabled small firms in Asia or Latin America to work together to develop a global reach
- It accelerates the process of economic growth by speeding up the diffusion of new technologies to emerging economies
- Mobile phones and other wireless ___ greatly reduce the need to lay a costly telecom infrastructure

The following are objectives of what?:
- Industrialization is the fundamental objective of ___
- Economic growth is measured not solely in economic goals but also in social achievements
- Because foreign businesses are outsiders, they often are feared as having goals in conflict with those of the host country
- The trend toward privatization is currently a major economic phenomenon in industrialized and ___ ____

___ is the fundamental objective of most developing countries.

___ ___ is measured not solely in economic goals but also in social achievements.

Because ___ ___ are outsiders, they often are feared as having goals in conflict with those of the host country.

The trend toward ____ is currently a major economic phenomenon in industrialized and developing countries.

___ represents those types of capital goods that serve the activities of many industries.

Paved roads, railroads, seaports, communication networks, financial networks, and energy supplies and distribution are included in a country's ____.

The quality of an ___ directly affects a country's economic growth potential and the ability of an enterprise to engage effectively in business.

The less developed a country is the less adequate the ___ is for conducting business.

Countries begin to lose ____ ____ ground when their infrastructure cannot support an expanding population and economy.

___ is not always considered meaningful to those responsible for planning.

Economic planners frequently are more production oriented than __ oriented.

___ is an economy's arbitrator between productive capacity and consumer demand.

The ___ process is the critical element in effectively utilizing production resulting from economic growth. It can create a balance between higher production and higher consumption.

___ efforts must be keyed to each situation, custom tailored for each set of circumstances.

Pricing in a subsistence ___ poses different problems from pricing in an affluent society.

To evaluate the potential in a developing country, the marketer must assess the existing level of ___ development and receptiveness within the country, and the firm's own capabilities and circumstances.

The level of ___ development roughly parallels the stages of economic development.

The more developed an economy, the greater the variety of ___ functions demanded, the more sophisticated and specialized the institutions become to perform ___ functions.

As countries develop, the ___ channel systems develop.

____ structures of many developing countries are simultaneously at many stages.

Estimating market potential and devising useful segmentation strategies in less-developed countries involve challenges. Most of the difficulty is from the coexistence of three distinct kinds of markets in each country:
- The ___ ___ sector tends to live and work in the countryside
- The ___ sector is centered in the larger cities with expanding westernized middle class
- The ___ sector has those moving from the country to the large cities
- Low-income __ ___

One of the greatest challenges of the 21st century is to manage and market to the ___ ___ in developing countries.

___ ___ ___ share a number of important traits.
- Are all geographically large
- Have significant populations
- Represent sizable markets for a wide range of products
- Have strong rates of growth or the potential for significant growth
- Have undertaken significant programs of economic reform
- Are of major political importance within their regions
- Are "regional economic drivers"
- Will engender further expansion in neighboring markets as they grow

The ___ differ from other developing countries in that they import more than smaller markets and more than economies of similar size.

As ___ embark on economic development, demand increases for capital goods.

As ___ economies expand, there is accelerated growth in demand for goods and services, much of which must be imported.

Much of the expected growth in a ___ will be industrial sectors such as information technology, environmental technology, transportation, energy technology, healthcare technology, and financial services.

The United States and Canada already had the world's largest bilateral trade agreement ___. Each was the other's largest trading partner.

The United States, Canada, and Mexico needed one another to compete more effectively in world markets, and they need mutual assurances that their already dominant trading positions in the other's markets are safe from protectionist pressures. ___ was ratified and became effective in 1994.

___ required the three countries to remove all tariffs and barriers to trade over 15 years. (All tariff barriers were dropped in 2008).

___ stopped firms from looking for cheap labor in outside markets, encouraged foreign investment in this market, increase competitiveness in outside markets, caused labor and environmental issues (North American Agreement on Labor Cooperation and Commission on Environmental Compliance).

___ was proposed in October of 2018. Agreement between the countries between United States, Canada, and Mexico. Takes effect on 1 Jan 2020, pending legislative approval.

___ based on NAFTA with several proposed adjustments such as: more access to canada's dairy sector, increased hourly wages in Mexico's automotive sector are required, digital economy elements have been adjusted.

NAFTA to USMCA Overview of Changes:
- __ __ __ __: Automobiles must have 75 percent of their components manufactured in Mexico, the US, or Canada to qualify for zero tariffs (up from 62.5 percent under NAFTA)

NAFTA to USMCA Overview of Changes:
- ___ ___: 40 to 45 percent of automobile parts must be made by workers who earn at least $16 an hour by 2023. Mexico agreed to pass new labor laws to give greater protection to workers, including migrants and women. Most notably, these laws are supposed to make it easier for Mexican workers to unionize.

NAFTA to USMCA Overview of Changes:
- ___ : The US got Canada to open up its dairy market to US farmers, a big issue for Trump.

NAFTA to USMCA Overview of Changes:
- ___: The deal extends the terms of copyright to 70yrs beyond the life of the author (up from 50). It also includes new provisions to deal with the digital economy, such as prohibiting duties on things like music and ebooks, and protections for internet companies so they're not liable for content their users produce.

NAFTA to USMCA Overview of Changes:
- ___: The agreement adds a 16-year sunset clause - meaning the terms of the agreement expire, or "sunset," after 16 years. The deal is also subject to a review every six years, at which point the US, Mexico, and Canada can decide to extend the USMCA.

___: refers to the Central American Free Trade Agreement - Dominican Republic Free Trade Agreement. This is a comprehensive free trade agreement among Costa Rica, The Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States.

___: this includes Argentina, Bolivia, Brazil, Chile, Paraguay, and Uruguay and is the second-largest common-market agreement in the Americas after NAFTA. This also has become the most influential and successful free trade area in South America.

__ __: Most of the countries have moved from military dictatorships to democratically elected governments. Privatization of state-owned enterprises and other economic, monetary, and trade policy reforms show a broad shift away from the inward-looking policies of import substitution and protectionism.

__: 13 countries. The long-term goal of this market group is a gradual and progressive establishment of a Latin American common market. There is a differential treatment of member countries according to their level of economic development. It has a provision that permits members to establish bilateral trade agreements among member countries.

___: This has worked toward a single-market economy, established ___ in 2000, with the goal of a common currency for all members.

___: established in 2000, goal of a common currency for all members

Initially, ___ was envisioned as the blueprint for a free trade area extending from Alaska to Argentina.

The first new country to enter the NAFTA fold, was to be ___, then membership was to extend south until there was a ___.

As a country develops ____ change, ____ concentration shift, expectations for a better life adjust to higher standards, new ___ evolve, and social capital investments are made.

When incomes ___, new demand is generated at all income levels.

Countries with ___ per capita incomes are potential markets for a large variety of goods.

As income rise to ___ ___ range, demand for more costly goods increases.

Markets are changing ___, and identifiable market segments with similar consumption patterns are found across many countries.

___: a group of counties come together and agree to cooperate in international trade by various means. Mainly economic advantages, easier trade negotiations as a block, trade creation between the countries, stimulus for investments due to larger market size, reduced import prices, increased competition and economies of scale, higher factor productivity; some discrimination against non-member countries.

___: Political factors - cooperation, stability and power in international markets

Sucessful __ ___ requires favorable economic, political, cultural, and geographic factors as a basis for success

Benefits must greatly outweigh the disadvantages before nations forgo any part of their ____.

Many associations formed in Africa and Latin America have had little impact because perceived benefits were not sufficient to offset the partial loss of ____.

For a Union to survive, it must have ___ and ___ in place to settle economic disputes.

The total benefit of economic integration must outweigh ____ ____ that are sure to arise as member countries adjust to new trade relationships

Usually markets are enlarged through preferential ___ ___ for participating members, common ___ ___ against outsiders, or both

Enlarged, protected markets stimulate ___ economic development.

External and internal barriers are reduced because of the greater economic ____ afforded to domestic producers.

___ ____ among countries is another basic requisite for the development of a market agreement.

Typically, marketing arrangements are made in response to ___ political threats.

Participating countries must have comparable aspirations and general compatibility before surrendering any part of their ___ sovereignty.

Although not absolutely imperative, for cooperating members of a customs union, such closeness facilitates that functioning of a ___ ____.

___ tends to travel more easily in north-south directions than it did in ancient times.

Issues of immigration, legal and illegal, also promote closer economic ___.

Cultural similarity eases the shock of economic ____ with other countries.

___, as a part of culture, has not created as much a barrier for EU countries as was expected.

____, however still seems to be an issue, as evidenced by the impending membership of Turkey into the EU

Patterns of Multinational Cooperation: Regional Cooperation Groups, Free Trade Area, Customs Union, Common Market, and ___ ____

Regional Cooperation Groups: the most basic economic integration and cooperation is the Regional Cooperation for ___.

Governments agree to participate jointly to develop basic ___ beneficial to each economy.

Each ___ makes an advance commitment to: participate in the financing of a new joint venture, purchase a specified share of the output of the venture

Regional Cooperation Groups: No effect on ___ or Tariff Barriers

A Free Trade Area (FTA) requires ___ cooperation and integration than the RCD

Free Trade Area: is an ____ between two or more countries to reduce or eliminate customs duties and nontariff trade barriers

Free Trade Area: members maintain individual tariff schedules for ___ countries

An Free Trade Area (FTA) provides its members with a mass market without barriers to facilitate the flow of ___ ___ ___

Free Trade Area: No ___ tariffs

Free Trade Area: ___ tariffs could be different

Free Trade Area: cooperation on ___ issues

Free Trade Area: No free ___ or capital movements

Customs Union: enjoys the free trade area's reduced or eliminated internal tariffs and adds a common ___ tariff on products imported from countries outside the union

The __ __ was a customs union before becoming a common market

Custom Unions: No ___ tariffs

Custom Unions: common ___ tariffs

Custom Unions: No free labor or __ movements

Common Market: eliminates all tariffs and other restrictions on ___ trade

Common Market: adopts a set of common external tariffs, and removes all restrictions on the free flow of capital and labor among ___ nations

A common marketplace for goods as well as for services and capital is a unified economy and lacks only political ___ to become a political union

Political Union is the most full integrated form of regional ___

Political Union: involves complete political and economic integration, either voluntary or ____

The most notable enforced political union was the Council for Mutual Economic Assistance (COMECON), a centrally controlled group of countries organized by the ___ ___

Two new ___ ____ came into existence in the 1990s: Commonwealth of Independent States (CIS), European Union (EU)

No other group is more secure or more important economically than the ___

It has made progress toward achieving the goal of complete economic integration and, ultimately, ____ ___

European Union's Institutions: European Commission, Council of Ministers, European ___, Court of Justice

European Commission: initiates policy and supervises its observance by ___ ___

Council of Ministers: the ___-making body

European Parliament: pass and amend ____

Court of Justice: the Supreme Court of __

The Economic and Monetary Union (EMU), a provision of the Masstricht Treaty: established the parameters of the creation of a common currency for the ___, the euro

The Economic and Monetary Union (EMU) a provision of the Maastricht Treaty: established a timetable for its ___

The Economic and Monetary Union (EMU) a provision of the Maastricht Treaty: in 2002, established a ___ ___, fixed conversion rates, and completed circulation of euro banknotes and coins

The Economic and Monetary Union (EMU) a provision of the Maastricht Treaty: led to the 12 member states ___ the euro beginning in Jan. 1, 2001

Commonwealth of Independent States: the first Soviet Republics to declare independence were the ___ ___

Commonwealth of Independent States: the remaining 12 republics of the former USSR, collectively known as the Newly Independent States (NIS), regrouped into the ____ ____ ___

The Commonwealth of Independent States (CIS) is a loose economic and political alliance with open borders but no ____ government

Africa's Economic ___: African Union, Economic Community of West African States (ECOWAS), Southern African Development Community (SADC), East African Community (EAC)

Middle East/North Africa (MENA): The ongoing political turmoil in the Middle East/North Africa (MENA) region accelerated in 2011 and has resulted in economic ___ in several countries in the region

The Arab Common Market set goals for free ___ trade but has not really succeeded.

MENA's Economic Communities: The Arab States on the Persian Gulf, Egypt, and Morocco formed an Arab ___ ___ ___, sometimes called the Greater Arab Free Trade Area (GAFTA)

MENA's Economic Communities: Iran, Pakistan, and Turkey, formed the ___ ___ for Development (RCD), recently renamed to the Economic Cooperation Organization (ECO)

MENA's Economic ___: Led by Iran, the Organization of the Islamic Conference (OIC) is a common market composed of Islamic countries

Economic ___ creates large mass markets

Major savings will result from the billions of dollars now spent in developing different versions of products to meet a variety of national ____

Market ___: provide an advantage to the companies within the market in their dealings with other countries of the market group

Market Mix Implications: IN THE ___ - Companies charged different prices in different countries

Market Mix Implications: IN THE PAST - Nontariff barriers between member ___ supported such price differentials

Marketing Mix Implications: companies are adjusting their marketing mix ___ to reflect anticipated market changes in the single European Market