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MKT 340 Ch06 ppt

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This document contains slides from a chapter on global marketing. It outlines learning objectives for students to understand major trends influencing world trade, environmental forces shaping global marketing, and approaches for companies to enter global markets. Several slides provide examples and diagrams to illustrate concepts related to cultural diversity, economic considerations, and political/regulatory climates in global markets. The overall document serves to educate students on key topics and issues in developing global marketing strategies.

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Slide 6-1 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Slide 6-2 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. LO 6-2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 6, YOU SHOULD BE ABLE TO: LO 6-1 Identify the major trends that have influenced world trade and global marketing. Identify the environmental forces that shape global marketing efforts.
Slide 6-3 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. LO 6-4 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 6, YOU SHOULD BE ABLE TO: LO 6-3 Name and describe the alternative approaches companies use to enter global markets. Explain the distinction between standardization and customization when companies craft worldwide marketing programs.
Slide 6-4 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. BUILDING A BILLION DOLLAR BUSINESS IN INDIA THE DELL INC. WAY Dell India Web site
Slide 6-5 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. MARKETING IN A BORDERLESS ECONOMIC WORLD TREND 1—DECLINE OF ECONOMIC PROTECTIONISM LO 6-1  Protectionism  Tariffs  Quota  World Trade Organization (WTO)  General Agreement on Tariffs and Trade (GATT) World Trade Organization
Slide 6-6 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. FIGURE 6-1 Protectionism hinders world trade when countries raise prices and limit supply through tariff and quota policies
Slide 6-7 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. MAKING RESPONSIBLE DECISIONS GLOBAL ETHICS AND GLOBAL ECONOMICS— THE CASE OF PROTECTIONISM LO 6-1
Slide 6-8 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. MARKETING IN A BORDERLESS ECONOMIC WORLD TREND 2—RISE OF ECONOMIC INTEGRATION LO 6-1  European Union • Euro (currency)  North American Free Trade Agreement (NAFTA) Euro Video
Slide 6-9 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. FIGURE 6-2 The European Union in early 2015 consists of 28 countries with more than 500 million consumers European Union countries
Slide 6-10 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. MARKETING IN A BORDERLESS ECONOMIC WORLD TREND 3—GLOBAL COMPETITION LO 6-1  Global Competition  Strategic Alliances
Slide 6-11 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. FIGURE 6-A Global companies and marketing strategy
Slide 6-12 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. MARKETING IN A BORDERLESS ECONOMIC WORLD TREND 3—GLOBAL COMPANIES LO 6-1  International Firms  Transnational Firms  Multinational Firms • Multidomestic Marketing Strategy • Global Marketing Strategy • Global Brand
Slide 6-13 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. MARKETING IN A BORDERLESS ECONOMIC WORLD TREND 3—GLOBAL CONSUMERS LO 6-1  Global Consumers
Slide 6-14 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. MARKETING MATTERS The Global Teenager—A Market of 2 Billion Voracious Consumers LO 6-1
Slide 6-15 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. MARKETING IN A BORDERLESS ECONOMIC WORLD TREND 4—A NETWORKED GLOBAL MARKETPLACE LO 6-1 Nestle Hungary Ad
Slide 6-16 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. MARKETING IN A BORDERLESS ECONOMIC WORLD TREND 5— ECONOMIC ESPIONAGE LO 6-1  Economic espionage exists!  Clandestine collection of trade secrets or proprietary information about competitors  Costs U.S. firms $250+ billion/year  23 nations routinely target U.S. firms  Economic Espionage Act (1996) makes theft a federal crime
Slide 6-17 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. A GLOBAL ENVIRONMENTAL SCAN CULTURAL DIVERSITY LO 6-2 • Foreign Corrupt Practices Act (1977)  Cross-Cultural Analysis  Values  Customs
Slide 6-18 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. FIGURE 6-B Cultural appreciation
Slide 6-19 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. A GLOBAL ENVIRONMENTAL SCAN CULTURAL DIVERSITY LO 6-2  Cultural Symbols
Slide 6-20 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. A GLOBAL ENVIRONMENTAL SCAN CULTURAL DIVERSITY LO 6-2  Language • Unintended Meanings • Back Translation (Italian translation: “Stop Looking at My Rear”) (Japanese Translation: “Surely Win”) Nestle Japan Ad
Slide 6-21 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. A GLOBAL ENVIRONMENTAL SCAN ECONOMIC CONSIDERATIONS LO 6-2  Economic Infrastructure • Communications • Financial • Transportation • Distribution Systems
Slide 6-22 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. A GLOBAL ENVIRONMENTAL SCAN ECONOMIC CONSIDERATIONS LO 6-2  Consumer Income and Purchasing Power  Currency Exchange Rate Denizen
Slide 6-23 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. A GLOBAL ENVIRONMENTAL SCAN POLITICAL-REGULATORY CLIMATE LO 6-2  Impacts of Political Stability  Impact on Economy from Trade Regulations
Slide 6-24 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. FIGURE 6-3 Alternative global market-entry strategies
Slide 6-25 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. COMPARING MARKET-ENTRY STRATEGIES EXPORTINGLO 6-3  Exporting • Indirect Exporting • Direct Exporting
Slide 6-26 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. MARKETING MATTERS Creative Cosmetics and Creative Export Marketing in Japan LO 6-3
Slide 6-27 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. GLOBAL MARKET-ENTRY STRATEGIES LICENSING LO 6-3  Advantages  Disadvantages  Franchising  Contract Manufacturing  Contract Assembly
Slide 6-28 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. GLOBAL MARKET-ENTRY STRATEGIES JOINT VENTURE LO 6-3  Joint Venture • Advantages ? • Disadvantages ?
Slide 6-29 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. GLOBAL MARKET-ENTRY STRATEGIES JOINT VENTURE LO 6-3  Direct Investment • Advantages ? • Disadvantages ?
Slide 6-30 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. FIGURE 6-4 Five product and promotion strategies for global marketing
Slide 6-31 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. CRAFTING A WORLDWIDE MARKETING PROGRAM PRODUCT STRATEGIES LO 6-4  Product Extension  Product Adaptation  Product Invention
Slide 6-32 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. CRAFTING A WORLDWIDE MARKETING PROGRAM PROMOTION STRATEGIES LO 6-4  Communication Adaptation  Dual Adaptation  Identical Message Nescafe China
Slide 6-33 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. CRAFTING A WORLDWIDE MARKETING PROGRAM DISTRIBUTION AND PRICING STRATEGIES LO 6-4  Countries Impose Pricing Constraints  Channels Can Be Long or Short  Prices May Be Too High or Too Low • Dumping • Gray Market  Channels and Economic Development
Slide 6-34 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. FIGURE 6-5 Channels of distribution in global marketing
Slide 6-35 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. MARY KAY, INC.: BUILDING A BRAND IN INDIA VIDEO CASE 6 Mary Kay Video Case
Slide 6-36 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. FIGURE 1 Social and economic statistics for India in 2007 and China in 1995
Slide 6-37 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. VIDEO CASE 6 Mary Kay 1. Is Mary Kay an international firm, a multinational firm, or a transnational firm based on its marketing strategy? Why?
Slide 6-38 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. VIDEO CASE 6 Mary Kay 2. What global market-entry strategy did Mary Kay use when it entered India?
Slide 6-39 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 3. Is Mary Kay a global brand? Why or why not? VIDEO CASE 6 Mary Kay
Slide 6-40 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. INTRODUCING CARMEX HEALING CREAM TO EUROPEAN MARKETS IN-CLASS ACTIVITY 6-1
Slide 6-41 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. ICA 6-1 Carmex Healing Cream (U.S. to European Markets) Carmex Video Example: Introducing Carmex Healing Cream to European Markets
Slide 6-42 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Slide 6-43 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Slide 6-44 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Countertrade Countertrade is the practice of using barter rather than money for making global sales.
Slide 6-45 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Gross Domestic Product (GDP) Gross domestic product (GDP) is the monetary value of all products and services produced in a country during one year.
Slide 6-46 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Balance of Trade Balance of trade is the difference between the monetary value of a nation’s exports and imports.
Slide 6-47 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Economic Espionage Act (1996) The Economic Espionage Act (1996) is a law that makes the theft of trade secrets by foreign entities a federal crime in the United States.
Slide 6-48 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Protectionism Protectionism is the practice of shielding one or more industries within a country’s economy from foreign competition through the use of tariffs or quotas.
Slide 6-49 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Tariffs Tariffs are government taxes on products or services entering a country that primarily serve to raise prices on imports.
Slide 6-50 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Quota A quota is a restriction placed on the amount of a product allowed to enter or leave a country.
Slide 6-51 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. World Trade Organization (WTO) The World Trade Organization (WTO) is a permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions.
Slide 6-52 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Global Competition Global competition exists when firms originate, produce, and market their products and services worldwide.
Slide 6-53 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Strategic Alliances Strategic alliances are agreements among two or more independent firms to cooperate for the purpose of achieving common goals such as a competitive advantage or customer value creation.
Slide 6-54 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Multidomestic Marketing Strategy A multidomestic marketing strategy involves multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business.
Slide 6-55 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Global Marketing Strategy A global marketing strategy involves transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.
Slide 6-56 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Global Brand A global brand is a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs.
Slide 6-57 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Global Consumers Global consumers are consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services.
Slide 6-58 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Cross-Cultural Analysis Cross-cultural analysis involves the study of similarities and differences among consumers in two or more nations or societies.
Slide 6-59 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Values Values are a society’s personally or socially preferable modes of conduct or states of existence that tend to persist over time.
Slide 6-60 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Customs Customs are what is considered normal and expected about the way people do things in a specific country.
Slide 6-61 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Foreign Corrupt Practices Act (1977) The Foreign Corrupt Practices Act (1977) is a law, amended by the International Anti-Dumping and Fair Competition Act (1998), that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country.
Slide 6-62 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Cultural Symbols Cultural symbols are things that represent ideas and concepts.
Slide 6-63 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Back Translation Back translation is the practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors.
Slide 6-64 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Currency Exchange Rate A currency exchange rate is the price of one country’s currency expressed in terms of another country’s currency.
Slide 6-65 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Exporting Exporting is a global market-entry strategy in which a company produces products in one country and sells them in another country.
Slide 6-66 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Joint Venture Joint venture is a global market- entry strategy in which a foreign company and a local firm invest together to create a local business in order to share the ownership, control, and profits of the new company.
Slide 6-67 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Direct Investment Direct investment is a global market-entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division.
Slide 6-68 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Dumping Dumping occurs when a firm sells a product in a foreign country below its domestic price or below its actual cost.
Slide 6-69 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Gray Market A gray market is a situation where products are sold through unauthorized channels of distribution. Also called parallel importing.

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MKT 340 Ch06 ppt

  • 1. Slide 6-1 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
  • 2. Slide 6-2 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. LO 6-2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 6, YOU SHOULD BE ABLE TO: LO 6-1 Identify the major trends that have influenced world trade and global marketing. Identify the environmental forces that shape global marketing efforts.
  • 3. Slide 6-3 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. LO 6-4 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 6, YOU SHOULD BE ABLE TO: LO 6-3 Name and describe the alternative approaches companies use to enter global markets. Explain the distinction between standardization and customization when companies craft worldwide marketing programs.
  • 4. Slide 6-4 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. BUILDING A BILLION DOLLAR BUSINESS IN INDIA THE DELL INC. WAY Dell India Web site
  • 5. Slide 6-5 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. MARKETING IN A BORDERLESS ECONOMIC WORLD TREND 1—DECLINE OF ECONOMIC PROTECTIONISM LO 6-1  Protectionism  Tariffs  Quota  World Trade Organization (WTO)  General Agreement on Tariffs and Trade (GATT) World Trade Organization
  • 6. Slide 6-6 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. FIGURE 6-1 Protectionism hinders world trade when countries raise prices and limit supply through tariff and quota policies
  • 7. Slide 6-7 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. MAKING RESPONSIBLE DECISIONS GLOBAL ETHICS AND GLOBAL ECONOMICS— THE CASE OF PROTECTIONISM LO 6-1
  • 8. Slide 6-8 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. MARKETING IN A BORDERLESS ECONOMIC WORLD TREND 2—RISE OF ECONOMIC INTEGRATION LO 6-1  European Union • Euro (currency)  North American Free Trade Agreement (NAFTA) Euro Video
  • 9. Slide 6-9 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. FIGURE 6-2 The European Union in early 2015 consists of 28 countries with more than 500 million consumers European Union countries
  • 10. Slide 6-10 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. MARKETING IN A BORDERLESS ECONOMIC WORLD TREND 3—GLOBAL COMPETITION LO 6-1  Global Competition  Strategic Alliances
  • 11. Slide 6-11 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. FIGURE 6-A Global companies and marketing strategy
  • 12. Slide 6-12 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. MARKETING IN A BORDERLESS ECONOMIC WORLD TREND 3—GLOBAL COMPANIES LO 6-1  International Firms  Transnational Firms  Multinational Firms • Multidomestic Marketing Strategy • Global Marketing Strategy • Global Brand
  • 13. Slide 6-13 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. MARKETING IN A BORDERLESS ECONOMIC WORLD TREND 3—GLOBAL CONSUMERS LO 6-1  Global Consumers
  • 14. Slide 6-14 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. MARKETING MATTERS The Global Teenager—A Market of 2 Billion Voracious Consumers LO 6-1
  • 15. Slide 6-15 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. MARKETING IN A BORDERLESS ECONOMIC WORLD TREND 4—A NETWORKED GLOBAL MARKETPLACE LO 6-1 Nestle Hungary Ad
  • 16. Slide 6-16 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. MARKETING IN A BORDERLESS ECONOMIC WORLD TREND 5— ECONOMIC ESPIONAGE LO 6-1  Economic espionage exists!  Clandestine collection of trade secrets or proprietary information about competitors  Costs U.S. firms $250+ billion/year  23 nations routinely target U.S. firms  Economic Espionage Act (1996) makes theft a federal crime
  • 17. Slide 6-17 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. A GLOBAL ENVIRONMENTAL SCAN CULTURAL DIVERSITY LO 6-2 • Foreign Corrupt Practices Act (1977)  Cross-Cultural Analysis  Values  Customs
  • 18. Slide 6-18 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. FIGURE 6-B Cultural appreciation
  • 19. Slide 6-19 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. A GLOBAL ENVIRONMENTAL SCAN CULTURAL DIVERSITY LO 6-2  Cultural Symbols
  • 20. Slide 6-20 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. A GLOBAL ENVIRONMENTAL SCAN CULTURAL DIVERSITY LO 6-2  Language • Unintended Meanings • Back Translation (Italian translation: “Stop Looking at My Rear”) (Japanese Translation: “Surely Win”) Nestle Japan Ad
  • 21. Slide 6-21 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. A GLOBAL ENVIRONMENTAL SCAN ECONOMIC CONSIDERATIONS LO 6-2  Economic Infrastructure • Communications • Financial • Transportation • Distribution Systems
  • 22. Slide 6-22 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. A GLOBAL ENVIRONMENTAL SCAN ECONOMIC CONSIDERATIONS LO 6-2  Consumer Income and Purchasing Power  Currency Exchange Rate Denizen
  • 23. Slide 6-23 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. A GLOBAL ENVIRONMENTAL SCAN POLITICAL-REGULATORY CLIMATE LO 6-2  Impacts of Political Stability  Impact on Economy from Trade Regulations
  • 24. Slide 6-24 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. FIGURE 6-3 Alternative global market-entry strategies
  • 25. Slide 6-25 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. COMPARING MARKET-ENTRY STRATEGIES EXPORTINGLO 6-3  Exporting • Indirect Exporting • Direct Exporting
  • 26. Slide 6-26 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. MARKETING MATTERS Creative Cosmetics and Creative Export Marketing in Japan LO 6-3
  • 27. Slide 6-27 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. GLOBAL MARKET-ENTRY STRATEGIES LICENSING LO 6-3  Advantages  Disadvantages  Franchising  Contract Manufacturing  Contract Assembly
  • 28. Slide 6-28 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. GLOBAL MARKET-ENTRY STRATEGIES JOINT VENTURE LO 6-3  Joint Venture • Advantages ? • Disadvantages ?
  • 29. Slide 6-29 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. GLOBAL MARKET-ENTRY STRATEGIES JOINT VENTURE LO 6-3  Direct Investment • Advantages ? • Disadvantages ?
  • 30. Slide 6-30 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. FIGURE 6-4 Five product and promotion strategies for global marketing
  • 31. Slide 6-31 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. CRAFTING A WORLDWIDE MARKETING PROGRAM PRODUCT STRATEGIES LO 6-4  Product Extension  Product Adaptation  Product Invention
  • 32. Slide 6-32 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. CRAFTING A WORLDWIDE MARKETING PROGRAM PROMOTION STRATEGIES LO 6-4  Communication Adaptation  Dual Adaptation  Identical Message Nescafe China
  • 33. Slide 6-33 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. CRAFTING A WORLDWIDE MARKETING PROGRAM DISTRIBUTION AND PRICING STRATEGIES LO 6-4  Countries Impose Pricing Constraints  Channels Can Be Long or Short  Prices May Be Too High or Too Low • Dumping • Gray Market  Channels and Economic Development
  • 34. Slide 6-34 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. FIGURE 6-5 Channels of distribution in global marketing
  • 35. Slide 6-35 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. MARY KAY, INC.: BUILDING A BRAND IN INDIA VIDEO CASE 6 Mary Kay Video Case
  • 36. Slide 6-36 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. FIGURE 1 Social and economic statistics for India in 2007 and China in 1995
  • 37. Slide 6-37 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. VIDEO CASE 6 Mary Kay 1. Is Mary Kay an international firm, a multinational firm, or a transnational firm based on its marketing strategy? Why?
  • 38. Slide 6-38 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. VIDEO CASE 6 Mary Kay 2. What global market-entry strategy did Mary Kay use when it entered India?
  • 39. Slide 6-39 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 3. Is Mary Kay a global brand? Why or why not? VIDEO CASE 6 Mary Kay
  • 40. Slide 6-40 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. INTRODUCING CARMEX HEALING CREAM TO EUROPEAN MARKETS IN-CLASS ACTIVITY 6-1
  • 41. Slide 6-41 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. ICA 6-1 Carmex Healing Cream (U.S. to European Markets) Carmex Video Example: Introducing Carmex Healing Cream to European Markets
  • 42. Slide 6-42 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
  • 43. Slide 6-43 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
  • 44. Slide 6-44 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Countertrade Countertrade is the practice of using barter rather than money for making global sales.
  • 45. Slide 6-45 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Gross Domestic Product (GDP) Gross domestic product (GDP) is the monetary value of all products and services produced in a country during one year.
  • 46. Slide 6-46 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Balance of Trade Balance of trade is the difference between the monetary value of a nation’s exports and imports.
  • 47. Slide 6-47 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Economic Espionage Act (1996) The Economic Espionage Act (1996) is a law that makes the theft of trade secrets by foreign entities a federal crime in the United States.
  • 48. Slide 6-48 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Protectionism Protectionism is the practice of shielding one or more industries within a country’s economy from foreign competition through the use of tariffs or quotas.
  • 49. Slide 6-49 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Tariffs Tariffs are government taxes on products or services entering a country that primarily serve to raise prices on imports.
  • 50. Slide 6-50 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Quota A quota is a restriction placed on the amount of a product allowed to enter or leave a country.
  • 51. Slide 6-51 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. World Trade Organization (WTO) The World Trade Organization (WTO) is a permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions.
  • 52. Slide 6-52 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Global Competition Global competition exists when firms originate, produce, and market their products and services worldwide.
  • 53. Slide 6-53 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Strategic Alliances Strategic alliances are agreements among two or more independent firms to cooperate for the purpose of achieving common goals such as a competitive advantage or customer value creation.
  • 54. Slide 6-54 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Multidomestic Marketing Strategy A multidomestic marketing strategy involves multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business.
  • 55. Slide 6-55 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Global Marketing Strategy A global marketing strategy involves transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.
  • 56. Slide 6-56 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Global Brand A global brand is a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs.
  • 57. Slide 6-57 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Global Consumers Global consumers are consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services.
  • 58. Slide 6-58 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Cross-Cultural Analysis Cross-cultural analysis involves the study of similarities and differences among consumers in two or more nations or societies.
  • 59. Slide 6-59 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Values Values are a society’s personally or socially preferable modes of conduct or states of existence that tend to persist over time.
  • 60. Slide 6-60 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Customs Customs are what is considered normal and expected about the way people do things in a specific country.
  • 61. Slide 6-61 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Foreign Corrupt Practices Act (1977) The Foreign Corrupt Practices Act (1977) is a law, amended by the International Anti-Dumping and Fair Competition Act (1998), that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country.
  • 62. Slide 6-62 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Cultural Symbols Cultural symbols are things that represent ideas and concepts.
  • 63. Slide 6-63 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Back Translation Back translation is the practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors.
  • 64. Slide 6-64 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Currency Exchange Rate A currency exchange rate is the price of one country’s currency expressed in terms of another country’s currency.
  • 65. Slide 6-65 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Exporting Exporting is a global market-entry strategy in which a company produces products in one country and sells them in another country.
  • 66. Slide 6-66 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Joint Venture Joint venture is a global market- entry strategy in which a foreign company and a local firm invest together to create a local business in order to share the ownership, control, and profits of the new company.
  • 67. Slide 6-67 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Direct Investment Direct investment is a global market-entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division.
  • 68. Slide 6-68 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Dumping Dumping occurs when a firm sells a product in a foreign country below its domestic price or below its actual cost.
  • 69. Slide 6-69 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Gray Market A gray market is a situation where products are sold through unauthorized channels of distribution. Also called parallel importing.