International Marketing: Key Concepts and Practices

Defining International Marketing

International Marketing can be defined as the tasks involved when a company introduces a product into a foreign market. It includes the multinational process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

The Role of an International Marketer

The work of an international marketer is mainly concerned with:

a) Adapting the marketing mix to enter a market in another country.

Controllable Factors in International Marketing

Controllable factors in international marketing are:

c) Promotion and Price.

Understanding Ethnocentrism

Ethnocentrism can simply be defined as:

d) The notion that people in one's own culture and values are better or more important than others.

Tariffs: Taxes on Imported Goods

A tariff is a tax imposed by a government on goods entering its borders.

Balance of Payments: Recording Financial Transactions

A nation's balance of payments statement records all the financial transactions between its residents and those of the rest of the world during a given period of time.

a) TRUE

Quotas: Limits on Imported Goods

A specific unit or dollar limit applied to a particular type of good is:

c) Quota.

Non-Tariff Barriers: VERS, Embargoes, and Standards

Voluntary export restraints (VERs), embargoes, and standards are types of non-tariff barriers.

GATT: General Agreement on Tariffs and Trade

The GATT stands for: General Agreement on Tariffs and Trade.

WTO: Established Through the Uruguay Round

The WTO was established through the Uruguay Round on January 1st, 1995.

Elements of Culture

Elements of culture include:

• Education
• Religion

The Stever Corp: No Direct Foreign Marketing

The Stever Corp is an example of:

e) No direct foreign marketing.

Minimizing Political Vulnerability

Three strategies that companies use to minimize political vulnerability are:

• Joint ventures
• Licensing
• Expanding the investment base

Laura's Company: Infrequent Foreign Marketing

Laura's company is an example of:

a) Infrequent foreign marketing.

Key Concepts in International Marketing

Ethnocentrism and Self-Reference Criterion (SRC)

Ethnocentrism is the notion that one's own culture and values are better or more important than others. The Self-Reference Criterion (SRC) is an unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions.

Tariff Barriers and Their Impact

Tariff barriers tend to increase:

• Inflationary pressure

Tariff barriers tend to decrease:

• Balance of payments
• Supply and demand patterns

Importance of International Marketing

The importance of international marketing stems from:

1. Globalization
2. Population increase and emerging markets

Trade Barriers and Their Restrictions

Trade barriers restrict:

• Manufacturer supply sources
• Competition

Non-Trade Barriers

Non-trade barriers include:

• Specific limitations on trade
• Customs and administrative entry procedures
• Standards

Monetary Barriers

Monetary barriers include:

• Blocked currency
• Differential exchange rates

Hofstede's Cultural Dimensions

Hofstede identified four dimensions of culture:

1. Individualism/Collectivism Index
2. Power Distance Index
3. Uncertainty Avoidance Index
4. Masculinity/Femininity Index