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1、International MarketingMKTG3060 Semester 2 2008Richard CollinsLecturer Learning ObjectivesThe changing face of U.S. businessThe changing face of U.S. businessThe scope of the international marketing taskThe scope of the international marketing taskThe importance of the self-reference criterion The i
2、mportance of the self-reference criterion (SRC) in international marketing(SRC) in international marketingThe progression of becoming a global marketerThe progression of becoming a global marketerThe increasing importance of global awarenessThe increasing importance of global awarenessGlobal Perspec
3、tive: Global Commerce Causes PeaceGlobal commerce during peace timel lCommercial aircraft and space vehicle Commercial aircraft and space vehicle industriesindustriesl lMobile phone industryMobile phone industryl lIndividuals and small companiesIndividuals and small companiesInternational markets ar
4、e ultimately unpredictablel lFlexibility means survivalFlexibility means survivalEvents and Trends Affecting Global BusinessThe rapid growth of the World Trade Organization and regional free trade areasThe trend toward the acceptance of the free market system among developing countries in Latin Amer
5、ica, Asia, and eastern EuropeEvents and Trends Affecting Global Business (continued)The burgeoning impact of the Internet, mobile phones, and other global media on the dissolution of national bordersThe mandate to properly manage the resources and global environment for the generations to comeThe In
6、ternationalization of U.S. BusinessIncreasing globalization of marketsIncreasing number of U.S. companies are foreign controlledl l$9.6 trillion in foreign investment in the U.S. $9.6 trillion in foreign investment in the U.S. $2.6 trillion more than American overseas $2.6 trillion more than America
7、n overseas investmentinvestmentIncreasing number of foreign companies building and buying manufacturing plants in the U.S.Increasing difficulty for domestic markets to sustain customary rates of growthForeign Acquisitions of U.S. CompaniesSelected U.S. Companies and Their International SalesInternat
8、ional Marketing DefinedInternational marketing is the performance of business activities designed to plan, price, promote, and direct the flow of a companys goods and services to consumers or users in more than one nation for a profit.The International Marketing TaskInsert Exhibit 1.3Environmental A
9、daptation NeededBe able to interpret effectively the influence and impact of the culture in which you hope to do businessl lCultural adjustmentsCultural adjustmentsEstablish a frame of referenceAvoid measuring and assessing markets against the fixed values and assumptions of your own cultureThe Self
10、-Reference Criterion and EthnocentrismThe key to successful international marketing is adaptation to the environmental differences from one market to another.Primary obstacles to success in international marketing:l lSRCSRCl lAssociated ethnocentrismAssociated ethnocentrismThe Self-Reference Criteri
11、on and Ethnocentrism (continued)SRC is an unconscious reference to ones own cultural values, experiences, and knowledge as a basis for decisions.Ethnocentrism is the notion that ones own culture or company knows best how to do thingsThe Self-Reference Criterion and Ethnocentrism (continued)Dangers o
12、f the SRC:l lFailing to recognize the need to take actionFailing to recognize the need to take actionl lDiscounting the cultural differences that exist Discounting the cultural differences that exist among countriesamong countriesl lReacting to a situation in a way offensive to Reacting to a situati
13、on in a way offensive to your hostsyour hostsThe Self-Reference Criterion and Ethnocentrism (continued)Ethnocentrism and the SRC can influence an evaluation of the appropriateness of a domestically designed marketing mix for a foreign market.The most effective way to control the influence of ethnoce
14、ntrism and the SRC is to recognize their effects on our behavior.Framework for Cross-cultural Analysis1.Define the business problem or goal in home-country cultural traits, habits, or norms.2.Define the business problem or goal in foreign-country cultural traits, habits, or norms through consultatio
15、n with natives of the target country. Make no value judgments.Framework for Cross-cultural Analysis (continued)Isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem.Redefine the problem without the SRC influence and solve for the optimum business goa
16、l situation.Developing a Global AwarenessTolerance of cultural differences:l lUnderstanding cultural differences and Understanding cultural differences and accepting and working with others whose accepting and working with others whose behavior may be different from yoursbehavior may be different fr
17、om yoursKnowledge of cultures, history, world market potential, and global economic, social, and political trendsDeveloping a Global AwarenessApproaches to global awareness:l lSelect individual managers specifically for Select individual managers specifically for their demonstrated global awarenesst
18、heir demonstrated global awarenessl lDevelop personal relationships in other Develop personal relationships in other countriescountriesl lHave a culturally diverse senior executive Have a culturally diverse senior executive staff or board of directorsstaff or board of directorsStages of Internationa
19、l Marketing InvolvementNo direct foreign marketingInfrequent foreign marketingRegular foreign marketingInternational marketingGlobal marketingStrategic OrientationDomestic market extension orientationMultidomestic market orientationGlobal market orientationThe Orientation of International MarketingA
20、n environmental/cultural approach to international strategic marketing. Intended to demonstrate the unique problems of international marketing.Discussion of international marketing ranges from the marketing and business practices of small exporters to the practices of global companies.Foreign Policy
21、s Global Top 20Insert Exhibit 1.4SummaryThe internationalization of business is proceeding with increasing pace.The globalization of markets and competition necessitates all managers to pay attention to the global environment.International marketing is defined as the performance of business activiti
22、es across national borders.Summary (continued)Environmental differences such as laws, customs, and cultures must be taken into account if firms are to market products and services at a profit in other countries.Self-reference criteria and ethnocentrism limit the international marketers abilities to
23、understand and adapt to differences prevalent in foreign markets. Solutions:l lGlobal awarenessGlobal awarenessl lSensitivitySensitivitySummary (continued)Strategic orientations found among managers of international marketing operations:l lDomestic market extension orientationDomestic market extensi
24、on orientationl lMulti domestic market orientationMulti domestic market orientationl lGlobal market orientationGlobal market orientationHistory and GeographyThe Foundations of CultureLecture 2 MKTG3060Learning ObjectivesThe importance of history and geography in the understanding of international ma
25、rketsThe effects of history on a countrys cultureHow culture interprets events through its own eyesLearning ObjectivesThe effect of geographic diversity on economic profiles of a countryWhy markets need to be responsive to geography of a countryEconomic effects of controlling population growth versu
26、s aging populationCommunications are an integral part of international commerceGlobal PerspectiveBirth of a Nation Panama in 67 HoursTo fully understand a societys actions and its points of view, you must have an appreciation for the influence of historical events and the geographical uniqueness to
27、which a culture has had to adapt.Behaviour and attitudesTo interpret a cultures behavior and attitudes, a marketer must have some idea of a countrys history and geography.Behaviour and attitudesJapanese History:l lSeven centuries under the shogun feudal systeml lThe isolation before the coming of Ad
28、miral Perry in 1853l lThreat of domination by colonial powersl lRise of new social classesl lWestern influencesl lHumiliation of World War IIl lInvolvement in the international communityHistory and Contemporary BehaviorHistorically, loyalty and service, a sense of responsibility, and respect for dis
29、cipline, training, and artistry were stressed to maintain stability and order.A historical perspective gives the foreigner in Japan a basis on which to begin developing cultural sensitivity and a better understanding of contemporary Japanese behavior.History is SubjectiveHistorical events always are
30、 viewed from ones own biases and SRC.A crucial element in understanding any nations business and political culture is the subjective perception of its history.l lRelationship between U.S. and MexicoMonroe DoctrineMonroe DoctrineTerritorial Expansion of United States from 1783Insert Exhibit 3.1Manife
31、st Destiny and the Monroe DoctrineBoth accepted as the basis for U.S. foreign policy during much of the 19th and 20th centuries.The idea of Manifest Destiny was used to justify U.S. annexation of Texas, Oregon, New Mexico, and California and later, U.S. involvement in Cuba, Alaska, Hawaii, and the P
32、hilippines.Manifest Destiny and the Monroe DoctrineThree basic dicta of the Monroe Doctrine:l lNo further European colonization in the New No further European colonization in the New WorldWorldl lAbstention of the U.S. from European political Abstention of the U.S. from European political affairsaff
33、airsl lNonintervention of European governments in Nonintervention of European governments in the governments of the Western Hemispherethe governments of the Western HemisphereChange in the Monroe Doctrine:l l1881, Roosevelt Corollary1881, Roosevelt CorollaryU.S. Intervention in Latin America Since 1
34、945Insert Exhibit 3.2Geography and Global MarketsUnderstanding of how a societys culture and economy are affected as a nation struggles to supply its peoples needs within the limits imposed by its physical makeup.Climate and Topographyl lAltitude, humidity, and temperature extremesAltitude, humidity
35、, and temperature extremesSouth AmericaSouth AmericaBritish resistance of the English ChannelBritish resistance of the English ChannelTrade through the AlpsTrade through the AlpsGeography, Nature and Economic GrowthAs countries prosper, natural barriers are overcome.Environmental issues:l lDisruptio
36、n of ecosystemsDisruption of ecosystemsl lRelocation of peopleRelocation of peoplel lInadequate hazardous waste managementInadequate hazardous waste managementl lIndustrial pollutionIndustrial pollutionSocial Responsibility and Environmental ManagementEnvironmental protection is not an optional extr
37、aPollution is on the verge of getting completely out of controlChina has 16 of the worlds 20 most polluted citiesCritical issue: the disposal of hazardous wasteSustainable developmentResourcesThe availability of minerals and the ability to generate energy are the foundations of modern technology.The
38、 principal supplements to human energy are: Animalsl lWoodWoodl lFossil fuelFossil fuell lNuclear powerNuclear powerl lOcean tidesOcean tidesl lGeothermal powerGeothermal powerl lThe sunThe sunResources (continued)United States in Perspectivel l1942 nearly self-sufficient1942 nearly self-sufficientl
39、 l1950 major importer1950 major importerl l1973-2000 increased dependency from 1973-2000 increased dependency from 36% to 66%36% to 66%l lMid-2000s predicted to be importing more Mid-2000s predicted to be importing more than 70% of needsthan 70% of needsThe location, quality, and availability of res
40、ources will affect the pattern of world economic development and trade well into the 21st century.World Energy ConsumptionInsert Exhibit 3.3Dynamics of Population TrendsControlling population growthl lThe most important deterrent to population The most important deterrent to population control is cu
41、ltural attitudes about the control is cultural attitudes about the importance of large families.importance of large families.Rural/urban migrationl lResult of a desire for greater access to Result of a desire for greater access to sources of education, health care, and sources of education, health c
42、are, and improved job opportunities.improved job opportunities.Dynamics of Population TrendsPopulation decline and agingl lPopulation growth in many countries has Population growth in many countries has dropped below the rate necessary to maintain dropped below the rate necessary to maintain present
43、 levels.present levels.l lA nation needs a fertility rate of about 2.1 A nation needs a fertility rate of about 2.1 children per woman.children per woman.l lNot one major country has sufficient internal Not one major country has sufficient internal population growth to maintain itself.population gro
44、wth to maintain itself.World Population by Region, 2005-2050, and Life Expectancy at Birth, 2005-2010 (millions)Insert Exhibit 3.4Rural and Urban Population, 2005-2030 (millions)Insert Exhibit 3.5Dynamics of Population Trends (continued)Worker Shortage and Immigrationl lThe free flow of immigration
45、will help to ameliorate the dual problems of explosive population expansion in less-developed countries and worker shortage in industrialized regions.l lEurope will need 1.4 billion immigrants over the next 50 years.l lJapan and the U.S. will need 600 million immigrants between now and 2050.World Tr
46、ade RoutesProgression of trade routes:l lOverlandOverlandl lSea routesSea routesl lAir routesAir routesl lThe InternetThe InternetTrade routes among Europe, Asia and the Americas were well established by the 1500s.World Trade RoutesTrade routes represent the attempts of countries to overcome economi
47、c and social imbalances created in part by the influence of geography.500 Years of TradeInsert Exhibit 3.7Communication LinksTelegraphTelephoneTelevisionSatellitesComputerInternetGlobal PerspectiveEquities and eBay Culture Gets in the WayCulture deals with a groups design for living.The successful m
48、arketer clearly must be a student of culture.Equities and eBay Culture Gets in the WayMarkets are the result of the three-way interaction of a marketers:l lEffortsEffortsl lEconomic conditionsEconomic conditionsl lAll other elements of cultureAll other elements of cultureThe use of something new is
49、the beginning of cultural change, and the marketer becomes a change agent.Cultures Pervasive ImpactCulture affects every part of our lives, every day, from birth to death, and everything in between.l lJapan the year of the Fire HorseJapan the year of the Fire HorseAs countries move from agricultural
50、 to industrial to services economies birthrates decline.Cultures Pervasive ImpactConsequences of consumptionl lTobaccoTobaccoCulture not only affects consumption, it also affects productionl lStomach cancer in JapanStomach cancer in JapanBirthrates (per 1000 women)Insert Exhibit 4.1Patterns of Consu
51、mption (annual per capita)Insert Exhibit 4.2Consequences of ConsumptionInsert Exhibit 4.3Definitions and Origins of CultureMost traditional definitions of culture around the notion that culture is the sum of the values, rituals, symbols, beliefs, and thought processes that are learned, shared by a g
52、roup of people, and transmitted from generation to generation.Definitions and Origins of CultureHumans make adaptations to changing environments through innovation.Individuals learn culture from social institutions through:l lSocialization (growing up)Socialization (growing up)l lAcculturation (adju
53、sting to a new culture)Acculturation (adjusting to a new culture)Origins, Elements, and Consequences of CultureInsert Exhibit 4.4Definitions and Origins of Culture (contd)Geographyl lThe ideas of Jared Diamond and Philip ParkerThe ideas of Jared Diamond and Philip ParkerHistoryl lTobacco being the o
54、riginal source of the Tobacco being the original source of the Virginia colonys economic survival in the Virginia colonys economic survival in the 1600s.1600s.Definitions and Origins of Culture (contd)The political economyl lThree approaches to governance competed Three approaches to governance comp
55、eted for world dominance:for world dominance:FascismFascismCommunismCommunismDemocracy/Free EnterpriseDemocracy/Free EnterpriseTechnologyl lThe birth control pillThe birth control pillDefinitions and Origins of Culture (contd)Social institutionsl lFamilyFavoritism of boys in some culturesFavoritism
56、of boys in some culturesl lReligionMisunderstanding of beliefsMisunderstanding of beliefsl lSchoolNo country has been successful No country has been successful economically with less than 50% literacy.economically with less than 50% literacy.Definitions and Origins of Culture (contd)l lThe mediaMedi
57、a time has replaced family timeMedia time has replaced family timel lGovernmentGovernments try to influence the thinking Governments try to influence the thinking and behaviors of adult citizens.and behaviors of adult citizens.l lCorporationsMost innovations are introduced to Most innovations are in
58、troduced to societies by companiessocieties by companiesHofstedes Indexes, Language, and Linguistic DistanceInsert Exhibit 4.5Elements of CultureCultural valuesl lIndividualism/Collectivism Indexl lPower Distance Indexl lUncertainty Avoidance Indexl lCultural Values and Consumer BehaviorRitualsl lMa
59、rriagel lFuneralsElements of CultureCultural valuesl lIndividualism/Collectivism Indexl lPower Distance Indexl lUncertainty Avoidance Indexl lCultural Values and Consumer BehaviorRitualsl lMarriagel lFuneralsElements of Culture (contd)Symbolsl lLanguageLanguageLinguistic distanceLinguistic distancel
60、 lAesthetics as SymbolsAesthetics as SymbolsInsensitivity to aesthetic values can offend, Insensitivity to aesthetic values can offend, create a negative impression, and, in create a negative impression, and, in general, render marketing efforts ineffective general, render marketing efforts ineffect
61、ive or even damaging.or even damaging.Elements of Culture (contd)Beliefsl lTo make light of superstitions in other cultures To make light of superstitions in other cultures when doing business there can be an when doing business there can be an expensive mistake.expensive mistake.Thought processesl
62、lDifference in perceptionDifference in perceptionFocus vs. Big-PictureFocus vs. Big-PictureMetaphorical Journeys through 23 NationsCultural KnowledgeFactual knowledge vs. interpretive knowledgel lHas meaning as a straightforward fact about a Has meaning as a straightforward fact about a culture but
63、assumes additional significance culture but assumes additional significance when interpreted within the context of the when interpreted within the context of the culture.culture.Mexico is 98% CatholicMexico is 98% CatholicBeing Catholic within MexicoBeing Catholic within MexicoCultural KnowledgeCult
64、ural sensitivity and tolerancel lBeing attuned to the nuances of culture so Being attuned to the nuances of culture so that a new culture can be viewed objectively, that a new culture can be viewed objectively, evaluated and appreciated.evaluated and appreciated.l lCultures are not right or wrong, b
65、etter or Cultures are not right or wrong, better or worse, they are simply different.worse, they are simply different.l lThe more exotic the situation, the more The more exotic the situation, the more sensitive, tolerant, and flexible one needs to sensitive, tolerant, and flexible one needs to be.be
66、.Cultural ChangeCultural borrowing:l lEffort to learn from others cultural ways in the Effort to learn from others cultural ways in the quest for better solutions to a societys quest for better solutions to a societys particular problems.particular problems.Similarities: an illusionl lA common langu
67、age does not guarantee a A common language does not guarantee a similar interpretation of word or phrases.similar interpretation of word or phrases.l lJust because something sells in one country Just because something sells in one country doesnt mean it will sell in another.doesnt mean it will sell
68、in another.Cultural ChangeResistance to change:l lGradual cultural growth does not occur Gradual cultural growth does not occur without some resistance; new methods, ideas, without some resistance; new methods, ideas, and products are held to be suspect before and products are held to be suspect bef
69、ore they are accepted, if ever.they are accepted, if ever.Resistance to genetically modified (GM) Resistance to genetically modified (GM) foodsfoodsCultural Change (contd)Planned and unplanned cultural change:l lDetermine which cultural factors conflict with Determine which cultural factors conflict
70、 with an innovationan innovationl lChange those factors from obstacles to Change those factors from obstacles to acceptance into stimulants for change.acceptance into stimulants for change.l lMarketers have two options when introducing Marketers have two options when introducing and innovation to a
71、culture:and innovation to a culture:They can waitThey can waitThey can cause changeThey can cause changel lCultural CongruenceCultural CongruenceCultural Change (contd)Consequences of innovation:l lConsequences of diffusion of an innovation Consequences of diffusion of an innovation may be functiona
72、l or dysfunctional, depending may be functional or dysfunctional, depending on whether the effects on the social system on whether the effects on the social system are desirable or undesirable.are desirable or undesirable.Introduction of a processed feeding formula Introduction of a processed feedin
73、g formula into the diet of babies in underdeveloped into the diet of babies in underdeveloped countries where protein deficiency is a countries where protein deficiency is a health problem.health problem.Culture, Management Style, and Business SystemsLecture 3McGraw-Hill/IrwinInternational Marketing
74、, 13/e 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. Learning ObjectivesThe necessity for adapting to cultural differencesHow and why management styles vary around the worldThe extent and implications of gender bias in other countriesLearning ObjectivesThe importance of cultural differe
75、nces in business ethicsThe differences between relationship-oriented and information-oriented culturesGlobal PerspectiveCulture, including all its elements, profoundly affects management style and overall business systemsl lMax Weber (1930)Max Weber (1930)Americansl lIndividualistsIndividualistsJapa
76、nesel lConsensus oriented & committed to the groupConsensus oriented & committed to the groupGlobal PerspectiveCentral & Southern Europeansl lElitists and rank consciousElitists and rank consciousKnowledge of the management style existing in a country and a willingness to accommodate the differences
77、 are important to success in an international market.Required AdaptationAdaptation is a key concept in international marketing.As a guide to adaptation, all who wish to deal with individuals, firms, or authorities in foreign countries should be able to meet 10 basic criteria:Required Adaptationl l1)
78、 1) open toleranceopen tolerancel l2) flexibility2) flexibilityl l3) humility3) humilityl l4) justice/fairness4) justice/fairnessl l5) ability to adjust to varying tempos5) ability to adjust to varying temposRequired Adaptationl l6) curiosity/interest6) curiosity/interestl l7) knowledge of the count
79、ry7) knowledge of the countryl l8) liking for others8) liking for othersl l9) ability to command respect9) ability to command respectl l10) ability to integrate oneself into the 10) ability to integrate oneself into the environmentenvironmentDegree of AdaptationEssential to effective adaptation is a
80、wareness of ones own culture and the recognition that differences in others can cause anxiety, frustration, and misunderstanding of the hosts intentions.Degree of AdaptationThe self-reference criterion (SRC) is especially operative in business customs.The key to adaptation is to remain American but
81、to develop an understanding of and willingness to accommodate the differences that exist.Cultural ImperativesThe business customs and expectations that must be met and conformed to or avoided if relationships are to be successful.Friendship motivates local agents to make more sales.Cultural Imperati
82、vesThe significance of establishing friendship cannot be overemphasized, especially in those countries where family relationships are close.In some cultures a persons demeanor is more critical than in other culturesWhat may be an imperative to avoid in one culture is an imperative to do in another.C
83、ultural Electives Cultural electives:l lRelate to areas of behavior or to customs that Relate to areas of behavior or to customs that cultural aliens may wish to conform to or cultural aliens may wish to conform to or participate in but that are not required.participate in but that are not required.
84、l lA cultural elective in one county may be an A cultural elective in one county may be an imperative in another.imperative in another.l lCultural electives are the most visibly different Cultural electives are the most visibly different customs and thus more obvious.customs and thus more obvious.Cu
85、ltural ExclusivesCultural exclusives:l lThose customs or behavior patterns reserved Those customs or behavior patterns reserved exclusively for the locals and from which the exclusively for the locals and from which the foreigner is barred.foreigner is barred.- Religious events, politics, employment
86、.The Impact of American Culture on Management Style“Master of destiny” viewpointIndependent enterprise as the instrument of social actionPersonnel selection and reward based on meritThe Impact of American Culture on Management StyleDecisions based on objective analysisWide sharing in decision making
87、Never-ending quest for improvementCompetition producing efficiencyAuthority and Decision MakingInfluencers of the authority structure of business:l lHigh PDI CountriesHigh PDI CountriesMexico, MalaysiaMexico, Malaysial lLow PDI CountriesLow PDI CountriesDenmark, IsraelDenmark, IsraelAuthority and De
88、cision MakingThree typical authority patterns:l lTop-level management decisionsTop-level management decisionsl lDecentralized decisionsDecentralized decisionsl lCommittee or group decisionsCommittee or group decisionsManagement Objectives and AspirationsSecurity and mobilityl lRelate directly to bas
89、ic human motivation and Relate directly to basic human motivation and therefore have widespread economic and therefore have widespread economic and social implications.social implications.Personal lifel lWorldwide study of individual aspirations, Worldwide study of individual aspirations, (David McC
90、lelland).(David McClelland).Management Objectives and AspirationsAffiliation and social acceptancel lIn some countries, acceptance by neighbors In some countries, acceptance by neighbors and fellow workers appears to be a and fellow workers appears to be a predominant goal within business.predominan
91、t goal within business.Power and achievementl lSouth American countriesSouth American countriesAnnual Hours WorkedInsert Exhibit 5.1Communication StylesFace-to-face communication:l lManagers often fail to develop even a basic Managers often fail to develop even a basic understanding of just one othe
92、r language.understanding of just one other language.l lMuch business communication depends on Much business communication depends on implicit messages that are not verbalized.implicit messages that are not verbalized.Communication StylesInternet communications:l lNothing about the Web will change th
93、e extent to Nothing about the Web will change the extent to which people identify with their own language and which people identify with their own language and cultures.cultures.l lEstimates are that 78% of todays Web site content Estimates are that 78% of todays Web site content is written in Engli
94、sh, but an English e-mail message is written in English, but an English e-mail message cannot be understood by 35% of all Internet users.cannot be understood by 35% of all Internet users.l lCountry-specific Web sitesCountry-specific Web sitesl lWeb site should be examined for any symbols, Web site s
95、hould be examined for any symbols, icons, and other nonverbal impressions that could icons, and other nonverbal impressions that could convey and unwanted message.convey and unwanted message.Communication StylesFormality and Tempo:Informality and formalityTask and relationship tempoContextual Backgr
96、ound of Various CountriesP-Time versus M-TimeMonochronic time:l lTend to concentrate on one thing at a timeTend to concentrate on one thing at a timel lDivide time into small units and are concerned with Divide time into small units and are concerned with promptnesspromptnessl lMost low-context cult
97、ures operate on M-TimeMost low-context cultures operate on M-TimePolychronic time:l lDominant in high-context culturesDominant in high-context culturesl lCharacterized by the simultaneous occurrence of Characterized by the simultaneous occurrence of many thingsmany thingsl lAllows for relationships
98、to build and context to be Allows for relationships to build and context to be absorbed as parts of high-context cultures.absorbed as parts of high-context cultures.P-Time versus M-TimeMost cultures offer a mix of P-time and M-time behavior, but have a tendency to be either more P-time or M-time in
99、regard to the role time plays.As global markets expand more businesspeople from P-time cultures are adapting to M-time. .Speed is RelativeNegotiations EmphasisBusiness negotiations are perhaps the most fundamental business rituals.The basic elements of business negotiations are the same in any count
100、ry.l lThey relate to the product, its price and terms, They relate to the product, its price and terms, services associated with the product, and services associated with the product, and finally, friendship between vendors and finally, friendship between vendors and customers.customers.Negotiations
101、 EmphasisOne standard rule in negotiating is “know thyself” first, and second, “know your counterpart.”Gender Bias in International BusinessWomen represent only 18% of the employees who are chosen for international assignments.In many cultures women are not typically found in upper levels of managem
102、ent, and men and women are treated very differently.l lAsia, Middle East, Latin AmericaAsia, Middle East, Latin AmericaGender Bias in International BusinessPrejudices toward women in foreign countriesCross-mentoring systeml lLufthansaLufthansaExecutives who have had international experience are more
103、 likely to get promoted, have higher rewards, and have greater occupational tenure.Few and Far Between- Female directors on corporate boards: %Insert 5.4Corruption DefinedTypes of Corruption:l lProfits (Marxism)Profits (Marxism)l lIndividualism (Japan)Individualism (Japan)l lRampant Consumerism (Ind
104、ia)Rampant Consumerism (India)l lMissionaries (China)Missionaries (China)Corruption DefinedCriticisms of Mattel and Barbie:l lSales of Barbie declined worldwide after the Sales of Barbie declined worldwide after the global standardizationglobal standardizationl lParents and government did reactParen
105、ts and government did reactl lMattels strategy boosted sales of its Mattels strategy boosted sales of its competitioncompetitionThe Western Focus on Bribery1970s, bribery became a national issue with public disclosure of political payoffs to foreign recipients by U.S. firms.The decision to pay a bri
106、be creates a major conflict between what is ethical and proper and what is profitable and sometimes necessary for business.The Western Focus on BriberyOECD Convention on combating the bribery of foreign public officials in international business transactions.Transparency International (TI)Bribery: V
107、ariations on a ThemeBribery and Extortion:l lVoluntary offered payment by someone Voluntary offered payment by someone seeking unlawful advantage is bribery.seeking unlawful advantage is bribery.l lIf payments are extracted under duress by If payments are extracted under duress by someone in authori
108、ty from a person seeking someone in authority from a person seeking only what he are she is lawfully entitled to that only what he are she is lawfully entitled to that is extortion.is extortion.Bribery: Variations on a ThemeSubornation and Lubrication:Subornation and Lubrication:l lLubrication invol
109、ves a relatively small sum of Lubrication involves a relatively small sum of cash, a gift, or a service given to a low-cash, a gift, or a service given to a low-ranking official in a country where such ranking official in a country where such offerings are not prohibited by law.offerings are not pro
110、hibited by law.l lSubornation involves giving large sums of Subornation involves giving large sums of money, frequently not properly accounted for, money, frequently not properly accounted for, designed to entice an official to commit an designed to entice an official to commit an illegal act on beh
111、alf of the one offering the illegal act on behalf of the one offering the bribe.bribe.Bribery: Variations on a Theme (continued)Agents Fees:l lWhen a businessperson is uncertain of a countrys rules and regulations, an agent may be hired to represent the company in that country.l lThe Foreign Corrupt
112、 Practices Actl lChange will come only from more ethically and socially responsible decisions by both buyers and sellers and by governments willing to take a stand.Ethical and Socially Responsible DecisionsIn normal business operations, difficulties arise In normal business operations, difficulties
113、arise in making decisions, establishing policies, and in making decisions, establishing policies, and engaging in business operations in five broad engaging in business operations in five broad areas:areas:l lEmployment practices and policiesEmployment practices and policiesl lConsumer protectionCon
114、sumer protectionl lEnvironmental protectionEnvironmental protectionl lPolitical payments and involvement in political Political payments and involvement in political affairs of the countryaffairs of the countryl lBasic human rights and fundamental freedomsBasic human rights and fundamental freedomsE
115、thical and Socially Responsible DecisionsLaws are the markers of past behavior that society has deemed unethical or socially irresponsible.Three ethical principles to help the marketer distinguish between right and wrong, determine what ought to be done, and properly justify his or her actions:l lUt
116、ilitarian Ethicsl lRights of the Partiesl lJustice or FairnessCultures Influence on Strategic ThinkingBritish-Americanl lIndividualisticIndividualisticJapan & Germanyl lCommunitarianCommunitarianIn the less individualistic cultures labor and management cooperate.Cultures Influence on Strategic Think
117、ingA competitive, individualistic approach works well in the context of an economic boom.Fourth kind of capitalism that common in Chinese culturesl lPredicted by culturePredicted by cultureA Synthesis, Relationship-Oriented vs. Information-Oriented CulturesStudies are noting a strong relationship be
118、tween Halls high/low context and Hofstedes Individualism/Collective and Power Distance indexes.Not every culture fits every dimension of culture in a precise way.A Synthesis, Relationship-Oriented vs. Information-Oriented CulturesInformation-Oriented Culturel lUnited StatesUnited StatesRelationship
119、Culturel lJapanJapanSynthesis of cultural differences allows us to make predictions about unfamiliar cultures.SummarySome cultures appear to emphasize the importance of information and competition while others focus more on relationships and transaction cost reductions.Businesspersons working in ano
120、ther country must be sensitive to the business environment and must be willing to adapt when necessary.SummaryUnderstanding the culture you are entering is the only sound basis for planning.Business behavior is derived in large part from the basic cultural environment in which the business operates
121、and, as such, is subject to the extreme diversity encountered among various cultures and subcultures.Summary (continued)Environmental considerations significantly affect the attitudes, behavior, and outlook of foreign businesspeople.Varying motivational patterns inevitably affect methods of doing bu
122、siness in different countries.The international trader must be constantly alert and prepared to adapt when necessary.Summary (continued)No matter how long in a country, the outsider is not a local; in many countries that person may always be treated as an outsider.One must avoid the critical mistake
123、 of assuming that knowledge of one culture will provide acceptability in another.The Political Environment:A Critical ConcernLecture 4McGraw-Hill/IrwinInternational Marketing, 13/e 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.ChapterLearning ObjectivesWhat the sovereignty of nations mea
124、ns and how it can affect the stability of government policiesHow different governmental type, political parties, nationalism, targeted fear/animosity, and trade disputes can affect the environment for marketing in foreign countriesLearning ObjectivesThe political risks of global business and the The
125、 political risks of global business and the factors that affect stabilityfactors that affect stabilityThe importance of the political system to The importance of the political system to international marketing and its effect on foreign international marketing and its effect on foreign investmentsinv
126、estmentsThe impact of political and social activists, The impact of political and social activists, violence, and terrorism on international businessviolence, and terrorism on international businessHow to assess and reduce the effect of political How to assess and reduce the effect of political vuln
127、erabilityvulnerabilityHow and why governments encourage foreign How and why governments encourage foreign investmentinvestmentGlobal PerspectiveOne of the most undeniable and crucial realities of international business is that both host and home governments are integral partners.A government control
128、s and restricts a companys activities by encouraging and offering support or by discouraging and banning or restricting its activities.Global PerspectiveInternational law recognizes the sovereign right of a nation to grant or withhold permission to do business within its political boundaries and to
129、control where its citizens conduct businessThe Sovereignty of NationsA sovereign state is independent and free from all external control.Sovereignty refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members.Nations can and do
130、abridge specific aspects of their sovereign rights in order to coexist with other nations.The Sovereignty of Nationsl lNAFTA North America Free Trade NAFTA North America Free Trade AgreementAgreementl lNATO North Atlantic Treaty OrganizationNATO North Atlantic Treaty Organizationl lWTO World Trade O
131、rganizationWTO World Trade OrganizationThe United States involvement in international The United States involvement in international political affiliations is surprisingly low.political affiliations is surprisingly low.The WTO is considered by some as the biggest The WTO is considered by some as the
132、 biggest threat so far to national sovereignty.threat so far to national sovereignty.Stability of Government PoliciesIssues that can affect the stability of a government: :l lRadical shifts in government philosophy when Radical shifts in government philosophy when an opposing political party ascends
133、 to power.an opposing political party ascends to power.l lPressure from nationalist and self-interest Pressure from nationalist and self-interest groups.groups.l lWeakened economic conditionsWeakened economic conditionsl lBias against foreign investmentBias against foreign investmentl lConflicts bet
134、ween governments Conflicts between governments Stability of Government PoliciesFive main political causes of instability in international markets:l lSome forms of government seem to be Some forms of government seem to be inherently unstableinherently unstablel lChanges in political parties during el
135、ections Changes in political parties during elections can have major effects on trade conditionscan have major effects on trade conditionsl lNationalismNationalisml lAnimosity targeted toward specific countriesAnimosity targeted toward specific countriesl lTrade disputes themselvesTrade disputes the
136、mselvesForms of GovernmentAncient Greeks Circa 500 B.C. criticized three fundamental forms of government:l lRule by one (monarchy)Rule by one (monarchy)l lRule by few (aristocracy)Rule by few (aristocracy)l lRule by many (democracy)Rule by many (democracy)Following the collapse of communism circa 19
137、90 the world seemed to have agreed that free-enterprise democracy was the best solution.Forms of GovernmentOf the more than 200 sovereign states on the planet almost all have at least nominally representative governments with universal suffrage for those 18 years and older.In about 10% of the states
138、 voting is required, in the rest it is voluntary.A Sampling of Government TypesInsert Exhibit 6.1Political PartiesIn countries where two strong political parties typically succeed one another in control of the government, it is important to know the direction each party is likely to take.l lGreat Br
139、itainGreat BritainThe Labour Party Vs. The Conservative The Labour Party Vs. The Conservative PartyPartyPolitical PartiesUnpredictable and drastic shifts in government policies deter investments, whatever the cause of the shift.A current assessment of political philosophy and attitudes within a coun
140、try is important in gauging the stability and attractiveness of a government in terms of market potential.NationalismNationalism is an intense feeling of national pride and unity, an awakening of a nations people to pride in their country.National interest and security are more important than intern
141、ational relations.NationalismThe more a country feels threatened by some outside force or as the domestic economy declines, the more nationalistic it becomes in protecting itself against intrusions.Nationalism comes and goes as conditions and attitudes change, and foreign companies welcomed today ma
142、y be harassed tomorrow and vice versa.Targeted Fear and/or AnimosityIt is important for marketers not to confuse nationalism with a widespread fear or animosity directed at a particular country.l lToyota in the U.S. (1980s)Toyota in the U.S. (1980s)l lAnimosity toward the United States in FranceAnim
143、osity toward the United States in Francel lThe unhappiness of citizens and politicians in The unhappiness of citizens and politicians in many other countries concerning the war in many other countries concerning the war in Iraq.Iraq.Targeted Fear and/or AnimosityIt is important to appreciate that no
144、 nation-state, however secure, will tolerate penetration by a foreign company into its market and economy if it perceives a social, cultural, economic, or political threat to its well-being.Trade DisputesPolitical Risks of Global BusinessConfiscation the seizing of a companys assets without payment.
145、Expropriation where the government seizes an investment but some reimbursement for the assets is made.Political Risks of Global BusinessDomestication when host countries gradually cause the transfer of foreign investments to national control and ownership through a series of government decrees by ma
146、ndating local ownership and greater national involvement in a companys management.Economic RisksExchange controlsl lStem from shortages of foreign exchange Stem from shortages of foreign exchange held by a country.held by a country.Local-content lawsl lCountries often require a portion of any Countr
147、ies often require a portion of any product sold within the country to have local product sold within the country to have local content.content.Economic RisksImport restrictionsl lSelective restrictions on the import of raw Selective restrictions on the import of raw materials to force foreign indust
148、ry to purchase materials to force foreign industry to purchase more supplies within the host country and more supplies within the host country and thereby create markets for local industrythereby create markets for local industryTax controlsl lA political risk when used as a means of A political ris
149、k when used as a means of controlling foreign investments.controlling foreign investments.Economic Risks (continued)Price controlsl lEssential products that command Essential products that command considerable public interest considerable public interest PharmaceuticalsPharmaceuticalsFoodFoodGasolin
150、eGasolineLabor problemsl lLabor unions have strong government support Labor unions have strong government support that they use effectively in obtaining special that they use effectively in obtaining special concessions from business.concessions from business.Political SanctionsOne or a group of nat
151、ions may boycott another nation, thereby stopping all trade between the countries, or may issue sanctions against the trade of specific products.l lU.S. boycotts of trade with Cuba/IranPolitical SanctionsHistory indicates that sanctions are often unsuccessful in reaching desired goals, particularly
152、when other major nations traders ignore them.Political and Social ActivistsNot usually officially sanctioned by the governmentCan interrupt the normal flow of tradeCan range from those who seek to bring about peaceful change to those who resort to violence and terrorism to effect change.l lWorldwide
153、 boycott of Nestle productsWorldwide boycott of Nestle productsPolitical and Social ActivistsThe Internet has become an effective tool of PSAs to spread the word on whatever cause they sponsor.l lProtest rallies against the U.S. Iraq WarProtest rallies against the U.S. Iraq WarNongovernmental organi
154、zations (NGOs) are increasingly affecting policy decisions made by governments.l lProtestsProtestsl lLobbyingLobbyingl lCollaborations with governmental Collaborations with governmental organizationsorganizationsNongovernmental OrganizationsMany also are involved in mitigating much of the human mise
155、ry plaguing parts of the planet.l lRed CrossRed Crossl lRed CrescentRed Crescentl lAmnesty InternationalAmnesty Internationall lOxfamOxfaml lUNICEFUNICEFl lCareCarel lHabitat for HumanityHabitat for HumanityU.S. State Department Travel WarningsInsert Exhibit 6.3Violence and TerrorismThe State Depart
156、ment reported 3,200 terrorist incidents worldwide in 2004.Goals of terrorisml lMultinationals are targeted to embarrass a Multinationals are targeted to embarrass a government and its relationship with firmsgovernment and its relationship with firmsIn the past 30 years, 80% of terrorist attacks agai
157、nst the U.S. have been aimed at American businesses.Cyberterrorism and CybercrimeThe internet is a vehicle for terrorist and criminal attacks by foreign and domestic antagonists wishing to inflict damage on a company with little chance of being caught.It is hard to determine if a cyber attack has be
158、en launched by a rogue state, a terrorist, or by a hacker as a prank.Each wave of viruses gets more damaging and spreads so rapidly that considerable harm is done before it can be stopped.Cyberterrorism and CybercrimeEach wave of viruses gets more damaging and spreads so rapidly that considerable ha
159、rm is done before it can be stopped.Tools for cyberterrorism can be developed to do considerable damage to a company, an entire industry, or a countrys infrastructure.Because of mounting concern over the rash of attacks, business leaders and government officials addressed a Group of Eight conference
160、.Politically Sensitive Products and IssuesProducts that have or are perceived to have an effect on the environment, exchange rates, national and economic security, and the welfare of people and that are publicly visible or subject to public debate, are more likely to be politically sensitive.Politic
161、ally Sensitive Products and IssuesHealth is often the subject of public debate, and products that affect or are affected by health issues can be sensitive to political concern.The European Union has banned hormone treated beef for more than a decade.Forecasting Political RiskPolitical risk assessmen
162、t is an attempt to forecast political instability to help management identify and evaluate political events and their potential influence on current and future international business decisions.Forecasting Political RiskThe greater the risk to international marketers is the threat of the government a
163、ctually failing, causing chaos in the streets and markets.Risk assessment is used to estimate the level of a risk a company is assuming when making an investment and to help determine the amount of risk it is prepared to accept.Top 20 States in Danger of Failing (Ranked)Insert Exhibit 6.4Lessening P
164、olitical VulnerabilityRelations between governments and MNCs are generally positive if the investment:l lImproves the balance of payments by Improves the balance of payments by increasing exports or reducing imports increasing exports or reducing imports through import substitutionthrough import sub
165、stitutionl lUses locally produced resourcesUses locally produced resourcesl lTransfers capital, technology, and/or skillsTransfers capital, technology, and/or skillsl lCreate jobsCreate jobsl lMake tax contributionsMake tax contributionsLessening Political VulnerabilityPolitical parties seeking publ
166、icity or scapegoats for their failure often serve their own interests by focusing public opinion on the negative aspects of MNCs whether true or false.Lessening Political Vulnerability (continued)Strategies that MNCs use to minimize political vulnerability and risk:l lJoint venturesJoint venturesl l
167、Expanding the investment baseExpanding the investment basel lLicensing Licensing l lPlanned domesticationPlanned domesticationl lPolitical bargainingPolitical bargainingl lPolitical payoffsPolitical payoffsGovernment EncouragementThe most important reason to encourage foreign investment is to accele
168、rate the development of an economy.The U.S. government is motivated for economic as well as political reasons to encourage American firms to seek business opportunities in countries worldwide, including those that are politically risky.Government EncouragementAgencies that provide assistance to U.S.
169、 companies include:l lExport-Import Bank (Ex-Export-Import Bank (Ex-ImIm Bank) Bank)l lForeign Credit Insurance Association (FCIA)Foreign Credit Insurance Association (FCIA)l lThe Agency for International Development The Agency for International Development (AID)(AID)l lThe Overseas Private Investme
170、nt Corporation The Overseas Private Investment Corporation (OPIC)(OPIC)International Legal EnvironmentThe four heritages of todays legal systemsThe important factors in jurisdiction of legal disputesIssues associated with jurisdiction of legal disputes and the various methods of dispute resolutionIn
171、ternational Legal EnvironmentHow to protect against piracy and counterfeitingThe legal differences between countries and how the differences can affect international marketing plansThe different ways U.S. laws can be applied to U.S. companies operating outside the United StatesThe many issues of evo
172、lving cyberlawGlobal PerspectiveThe Pajama CaperBecause no single, uniform international commercial law governing foreign business transactions exists, the international marketer must pay particular attention to the laws of each country within which it operates.Global PerspectiveSecuring expert lega
173、l advice is a wise decision when doing business in another country.The foundation of a legal system profoundly affects how the law is written, interpreted, and adjudicated.Bases for Legal SystemsThree heritages form the bases for the majority of the legal systems of the world.l lCommon lawl lCivil o
174、r code lawl lIslamic lawBases for Legal SystemsEven though a countrys laws may be based on the doctrine of one of the four legal systems its individual interpretation may vary significantly.One measure of the importance of the legal system in each country is the number of attorneys per capita.Common
175、 and Code LawCommon law seeks “interpretation through the past decisions of higher courts which interpret the same statues or apply established and customary principles of law to a similar set of facts.”Under code law the legal system is generally divided into three separate codes:l lCommercial Comm
176、ercial l lCivilCivill lCriminalCriminalCommon and Code LawCommon law is recognized as not being all-inclusive, whereas code law is considered complete as a result of catchall provisions found in most code-law systems.Under common law, ownership is established by use; under code law, ownership is det
177、ermined by registrationIslamic LawThe basis for the Islamic law is interpretations of the Koran.Islamic law defines a complete system that prescribes specific patterns of social and economic behavior for all individuals.l lProperty rightsProperty rightsl lEconomic decision makingEconomic decision ma
178、kingl lTypes of economic freedomTypes of economic freedomIslamic LawAmong the unique aspects of Islamic law is the prohibition against the payment of interest.The Islamic system places emphasis on the ethical, moral, social, and religious dimensions to enhance equality and fairness for the good of s
179、ociety.Marxist-Socialist TenetsAs socialist countries become more directly involved in trade with non-Marxist countries it has been necessary to develop a commercial legal system that permits them to engage in active international commerce.The pattern for development varies among the countries becau
180、se each has a different background and each is at a different stage in its development of a market-driven economy.Marxist-Socialist TenetsUnder the premise that law is strictly subordinate to prevailing economic conditions, such fundamental propositions as private ownership, contracts, due process,
181、and other legal mechanisms have had to be developed.Jurisdiction in International Legal DisputesNo judicial body exists to deal with legal commercial problems arising between citizens of different countries.Legal disputes can arise in three situations:l lBetween governmentsBetween governmentsl lBetw
182、een a company and a governmentBetween a company and a governmentl lBetween two companiesBetween two companiesJurisdiction in International Legal DisputesJurisdiction is generally determined in one of Jurisdiction is generally determined in one of three ways:three ways:l lOn the basis of jurisdiction
183、al clauses included On the basis of jurisdictional clauses included in contractsin contractsl lOn the basis of where a contract was entered On the basis of where a contract was entered intointol lOn the basis of where the provisions of the On the basis of where the provisions of the contract were pe
184、rformedcontract were performedThe most clear-cut decisions can be made when The most clear-cut decisions can be made when the contracts or legal documents supporting a the contracts or legal documents supporting a business transactions include a jurisdictional business transactions include a jurisdi
185、ctional clause.clause.International Dispute Resolution: ConciliationConciliation is a nonbinding agreement between parties to resolve disputes by asking a third party to mediate differences.Conciliation sessions are private and all conferences between parties and the mediator are confidential.Intern
186、ational Dispute Resolution: Conciliation International Dispute Resolution: ConciliationAlthough conciliation may be the friendly route to resolving disputes it is not legally binding; thus an arbitration clause should be included in all conciliation agreements.International Dispute Resolution: Arbit
187、rationMost arbitration is conducted under the auspices of one of the more formal domestic and international arbitration groups organized specifically to facilitate the resolution of commercial disputes.The popularity of arbitration has led to a proliferation of arbitral centers established by countr
188、ies, organizations, and institutions.International Dispute Resolution: ArbitrationContracts and other legal documents should include clauses specifying the use of arbitration to settle disputes.Arbitration clauses require agreement on two counts:l lThe parties agree to arbitrate in the case of a The
189、 parties agree to arbitrate in the case of a dispute according to the rules and procedures dispute according to the rules and procedures of some arbitration tribunal.of some arbitration tribunal.l lThey agree to abide by the awards resulting They agree to abide by the awards resulting from the arbit
190、ration.from the arbitration.International Dispute Resolution: LitigationThe best advice is to seek settlement.Deterrents to litigation:l lFear of creating a poor image and damaging public relations.l lFear of unfair treatment in a foreign court.International Dispute Resolution: Litigationl lDifficul
191、ty in collecting a judgment that may otherwise have been collected in a mutually agreed settlement through arbitration.l lThe relatively high cost and time required when bringing legal action.l lLoss of confidentiality.Counterfeiting and PiracyLost sales from the unauthorized use of U.S. patents, tr
192、ademarks, and copyrights amount to more than $100 billion annually.The piracy industry has grown so sophisticated that many counterfeit goods are almost impossible to distinguish from the original.Counterfeiting and PiracyRecent research implies that for companies like Microsoft, some level of pirac
193、y actually can serve the company.A pharmaceutical manufacturers association that 2% of the $327 billion worth of drugs sold each year are counterfeit.Piracy Rates for Computer Software, Top and Bottom 20Insert Exhibit 7.2Inadequate ProtectionThe failure to protect intellectual property rights adequa
194、tely in the world marketplace can lead to the legal loss of rights in potentially profitable markets.Inadequate ProtectionThere have been many cases where companies have legally lost the rights to trademarks and have had to buy back these rights or pay royalties for their use.l lMcDonalds in JapanMc
195、Donalds in JapanMany businesses fail to take proper steps to legally protect their intellectual property.Prior Use versus RegistrationPrior Use whoever can establish first use is typically considered the rightful owner.Registration the first to register a trademark or other property right is conside
196、red the rightful owner.Prior Use versus RegistrationA company that believes it can always establish ownership in another country by proving it used the trademark or brand name first is wrong and risks the loss of these assets.It is best to protect intellectual property rights through registration.In
197、ternational ConventionsThree major international conventions:l lThe Paris Convention for the Protection of The Paris Convention for the Protection of Industrial PropertyIndustrial Propertyl lThe Inter-American ConventionThe Inter-American Conventionl lThe Madrid ArrangementThe Madrid ArrangementInte
198、rnational ConventionsWorld Intellectual Property Organization (WIPO)l lResponsible for the promotion of the protection of intellectual property and for the administration of the various multilateral treaties through cooperation among its member states.Patent Cooperation Treaty (PCT)European Patent C
199、onvention (EPC)The Trade-Related Aspects of Intellectual Property Rights (TRIPs)Marketing LawsAll countries have laws regulating marketing All countries have laws regulating marketing activities.activities.l lPromotionPromotionl lProduct developmentProduct developmentl lLabelingLabelingl lPricingPri
200、cingl lChannels of distributionChannels of distributionUsually the discrepancies across markets cause Usually the discrepancies across markets cause problems for trade negotiators, but particularly problems for trade negotiators, but particularly for managers and their firms.for managers and their f
201、irms.l lU.S. does not allow the buying or selling of U.S. does not allow the buying or selling of human organs.human organs.Marketing LawsThere often are vast differences in enforcement There often are vast differences in enforcement and interpretation among countries having laws and interpretation
202、among countries having laws covering the same activities.covering the same activities.l lLaws governing sales promotions in the Laws governing sales promotions in the European community.European community.Censorship of advertising is a constant concern.Censorship of advertising is a constant concern
203、.For many U.S. products with markets in Europe, For many U.S. products with markets in Europe, meeting EU standards is less expensive than meeting EU standards is less expensive than designing products especially for Europe.designing products especially for Europe.Green Marketing LegislationGreen ma
204、rketing laws focus on environmentally friendly products and on product packaging and its effect on solid waste management.Antitrustl lWith the exception of the U.S., antitrust laws With the exception of the U.S., antitrust laws were either nonexistent or not enforced in were either nonexistent or no
205、t enforced in most of the worlds countries for the better most of the worlds countries for the better part of the 20part of the 20thth century. century.The U.S. intervenes when non-U.S. companies attempt to acquire American companies.Green Marketing LegislationAt times, companies are subject to anti
206、trust charges in more than one country.l lNestlesNestles proposed acquisition of Dreyers proposed acquisition of Dreyers Grand Ice Grand Ice CreamCreamCompetitive methods illegal in the U.S. can be legal in another countryl lTony Tony RomasRomas in Mexico only sell in Mexico only sell ModeloModelo b
207、eer. beer.Cyberlaw: Unresolved IssuesDomain names and cybersquattersl lCybersquatters (CSQs) buy and register Cybersquatters (CSQs) buy and register descriptive nouns, geographic names, and descriptive nouns, geographic names, and names of ethnic groups and pharmaceutical names of ethnic groups and
208、pharmaceutical substances, and other similar descriptors and substances, and other similar descriptors and hold them until they can be sold at an inflated hold them until they can be sold at an inflated price.price.Anti-Cyber Squatting Consumer Protection Act (ACPA)Cyberlaw: Unresolved IssuesNominet
209、 Dispute Resolution Service (DRS)World Intellectual Property Organization (WIPO) established a structure through the Internet Corporation for Assigned Names and Numbers (ICANN)l lUniform Dispute Resolution Policy (UDRP)Uniform Dispute Resolution Policy (UDRP)Cyberlaw: Unresolved Issues (continued)Ta
210、xesl lIn the past, a company was deemed to have a In the past, a company was deemed to have a taxable presence in a country if it had a taxable presence in a country if it had a permanent establishment there.permanent establishment there.l lThe EU CommissionThe EU CommissionProposes value-added tax
211、(VAT)Proposes value-added tax (VAT)Cyberlaw: Unresolved Issues (continued)Jurisdiction of disputes and validity of contractsl lThe EU Commission has adopted an e-The EU Commission has adopted an e-commerce directive that will permit online commerce directive that will permit online retailers to trade by the rules of their home retailers to trade by the rules of their home country unless the seller had enticed or country unless the seller had enticed or approached the consumer by way of approached the consumer by way of advertising.advertising.
