International Marketing 2

- Power Distance The degree to which the less powerful members of a society accept and expect that power is distributed unequally.Socio Cultural environment (Buying Behavior) 

- Individualism versus collectivism 

Individualism: individuals are expected to take care of themselves and their immediate families only.

Collectivism: individuals can expect members of a particular in-group to look after them in exchange for  loyalty. 

- Masculinity versus femininity 

Masculinity: a preference for achievement, heroism, assertiveness and material reward for success.

Femininity: a preference for cooperation, modesty, caring for the weak and quality of life. 

- Uncertainty avoidance

The degree to which the members of a society feel uncomfortable with uncertainty and ambiguity. 

- Long-term versus short-term orientation

Long-term orientation: can be interpreted as society’s search for virtue.

Short-term orientation: generally have a strong concern with establishing the absolute Truth. 

- Indulgence versus restraint

Indulgence: enjoying life and having fun.

Restraint: strict social norms 

Economic freedom: Trade policy, taxation policy, wage and price controls, property rights (Ranges from “free” to “repressed”)

Stages of market development: Based upon Gross National Product (GNP) Ranges from high-income to low-income countries 

LDC have a shortage of goods and services 

Long-term opportunities 
- Look beyond per capita GNP
- Consider first mover advantage
- Set realistic deadlines
- Consider the LDCs collectively rather than individually 

Foreign involvement in the economy: 
- Degree of foreign investment in country or in a specific industry
- Rules governing foreign investment 

Availability and quality of infrastructure 
- Traffic networks for distribution capabilities
- Communication systems for marketing
- Energy (electrical & fuel) 

Financial market situation 
- Currency's stability
- Credit availability 

- Preferential Trade Area: An agreement in a set of countries to reduce but not eliminate trade restrictions among themselves

- Free trade Area: An agreement in a set of countries to eliminate Trade restrictions among themselves.

- Customs Union: An agreement in a set of countries to eliminate trede restrictions among themselves and to adopt a common external tariff.

- Common Market: An agreement of a set of countries to eliminate trade restrictions among themselves, to adopt a common external tariff, and to allow the free movement of labor and physical capital among member countries.

- Investment regulations
- Trade laws
- Embargoes and sanctions
- Export controls
- Import controls

Categories of political risk:
-War
- Corruption

Types of political risk 
- Ownership risk (e.g. seizure of assets)
- Operating risk (ongoing operating interference)
- Transfer risk (in shifting funds between countries)

Disputes between nations are issues of public international law

- Judicial arm of the United Nations
- International Court of Justice

- International law, 3 main sources:
- Customs
- international treaties,
- court decisions 

- Patent: Exclusive right to make, use, and sell an invention for a specified period of time. 

- Trademark: Distinctive mark used to distinguish it from competing products 

- Copyright: Establishes ownership of a written, recorded, performed, or filmed creative work

- Counterfeiting: Unauthorized copying and production of a product 

- Associative counterfeit: Product name differs slightly from a well-known brand 

- Piracy: Unauthorized publication or reproduction of copyrighted work