Chapter 1 Introduction to International Marketing

Chapter 1 INTRODUCTION TO INTERNATIONAL MARKETING Internet exercises

1. Pick one large multinational company (e.g. MacDonald’s) and assess the degree to which they ‘Think Global Act Local’. This task can be undertaken by looking at websites or advertisements and even by looking at the number of international locations they are in. 2. International marketing is all around us, even if we are not aware of it. Back in 2007 an American woman, Sara Bongiorni, brought out a book entitled ‘A year without “Made in China”: One Family’s True Life Adventure in the Global Economy’, describing how her family tried to live a year without buying anything made in China. Let’s do a mini version of that. Keep a diary for a week or so (you might want to continue it through your international marketing course) noting what you buy and consume that is internationally marketed. Try and identify the country of production (e.g. ‘Made in China’) but also, as appropriate, the country of the brand.

Cengage Learning Australia 2014 Chapter 2 THE ECONOMIC ENVIRONMENT Internet exercise

1. What has been the effect of recent economic crises on exports from your home country? Use a mixture of statistics (national statistics offices), government organisations (Austrade, NZTE, etc.) and media to build a composite mixture. Track changes in the direction and composition of exports from 2007 onwards. For the top 10 destinations go to the Statistics Database on the WTO website and get their imports for the period you are covering. Has your country’s share changed?

Cengage Learning Australia 2014 Chapter 3 TRADE INSTITUTIONS AND TRADE POLICY Internet exercises

1. With the Doha Round (http://www.wto.org/english/tratop_e/dda_e/dda_e.htm) pretty much in suspension, or so it appears, there is a constant flurry of FTAs and similar trade agreements between all sorts of partners. For instance, at the beginning of 2010, South Korean President Lee Myung-bak was in India talking with Indian Prime Minister Manmohan Singh about a ‘strategic partnership’ that would double trade in a few years. At the same time, relations across the Taiwan Strait, between China and Taiwan, were warming up and negotiations were beginning on an economic cooperation framework agreement (ECFA). Bilateral agreements not merely stimulate trade between countries but can also distort existing trade patterns, disadvantaging other countries. For instance, the Japan–Chile FTA makes things difficult for Australian and New Zealand wine exports to Japan. The WTO does have a database (the Regional Trade Agreements Information System) that gives some information on trade agreements signed or under negotiation between WTO members, but it is neither comprehensive nor up to date. Nevertheless, using this and the media and official government websites, try to construct a map showing the FTA relationships of your country’s major trading partners. Try these sources:  World Trade Organization Regional Trade Agreements Information System (RTA-IS) at http://rtais.wto.org/UI/PublicMaintainRTAHome.aspx.  Australia: DFAT’s ‘Australia’s Trade Agreements’ page at www.dfat.gov.au/fta/index.html  New Zealand: MFAT’s ‘Trade Relationships and Agreements’ page at www.mfat.govt.nz/ Trade-and-Economic-Relations/2-Trade-Relationships-and-Agreements/index.php 2. Let us not forget the WTO itself. Using its website, and the media, give an assessment of the current state of the Doha Round. Are there any issues that surface that have particular implications for international marketing from your country? 3. There is a lot of opposition to globalisation and to trade liberalisation. What are the major arguments against liberalisation and how do you, as a student of international marketing, engage with the debate?

Cengage Learning Australia 2014 Chapter 4 THE POLITICAL AND LEGAL ENVIRONMENT Internet exercises

1. There is ongoing debate concerning climate change and the environmental impact of international marketing. Cast your eyes back over this chapter’s Panorama feature then do an update. What is happening? What is the current state of scientific opinion and are there any big international conferences and agreements planned? And, crucially, what are the implications for international marketing of all this? 2. Let’s turn to some practical aspects. From your country select a number of companies involved in the international marketing of environmentally sensitive/contentious products. How well are they handling this? What suggestions do you have for them to improve their performance? 3. It is sometimes said that as tariff barriers go down, non-tariff barriers (NTB) go up. What are the major trade disputes that your country is involved in at the moment? Check government websites (DFAT, Austrade, MFAT, NZTE, and various ministry websites such as Agriculture).

Cengage Learning Australia 2014 Chapter 5 THE CULTURAL ENVIRONMENT Internet exercises

1. Multiculturalism is blurring the stereotypes of culture once held by many. Look at two countries in your region. By accessing census data, assess the extent to which the country is multicultural. Looking at your own country, to what extent has multiculturalism changed consumption patterns? 2. Compare and contrast the home pages of an international marketer for presentation and content. For example, go to the homepage of Coca-Cola and use the change country option in the top right corner to see homepages for other countries (www.coca-cola.com).

Cengage Learning Australia 2014 Chapter 7 FOREIGN MARKET ENTRY Internet exercises

1. A small Australian company has developed some valuable new medical products using its unique biotechnology know-how and is now trying to decide how to best serve the Japanese market. Its choices are:  Manufacture the product at home and let foreign distributors handle sales and marketing.  Manufacture the products at home but set up a wholly owned subsidiary in Japan to handle sales and marketing.  Enter a joint venture arrangement with a large Japanese pharmaceutical firm. The product would be manufactured in Europe by the 50/50 joint venture and marketed by the Japanese firm. The cost of investment in the overseas manufacturing facilities will be major for the Australian firm, but not totally outside its reach. If these are the firm’s only options, which one would you advise it to choose and why? Can you recommend any other course of action that it might follow? 2. What services does Austrade provide (www.austrade.gov.au) to benefit small businesses trying to internationalise?

Cengage Learning Australia 2014 Chapter 8 GLOBAL DISTRIBUTION AND LOGISTICS Internet exercises

1. What type of transportation information is available to exporters? Do an internet search to find available and reliable information. Identify three sites which you think would provide the most information and explain why these sites are best. 2. Setting up a website to service your international market can be tricky. Go to the Austrade website www.austrade.gov.au/ebusiness-for-Australian exporters/default.aspx. What are the key issues exporters must be mindful of?

Cengage Learning Australia 2014 Chapter 9 PRODUCT POLICY AND ADAPTATION IN INTERNATIONAL MARKETS Internet exercises

1. The software industry is the hardest hit by piracy. Using the website of the Business Software Alliance (www.bsa.org), assess how this problem is being tackled. 2. Are standards like those promoted by the International Organization for Standardization (www.iso.org) a hindrance or an opportunity for exporters?

Cengage Learning Australia 2014 Chapter 10 PRODUCT AND BRAND MANAGEMENT IN INTERNATIONAL MARKETS Internet exercises

1. The elements that make up a truly innovative company are many: a focused innovation strategy, a winning overall business strategy, deep customer insight, great talent, and the right set of capabilities to achieve successful execution. How do those key goals and attributes aid and abet the efforts of companies in each strategy to develop the capabilities they need to succeed? (See strategy+business article, ‘The Global Innovation 1000: Why Culture Is Key’, at www.booz.com/media/uploads/BoozCo-Global-Innovation-1000-2011- Culture-Key.pdf) 2. Using the list of the world’s leading brands (available at Interbrand, www.interbrand.com) evaluate why certain brands place high and some lower.

Cengage Learning Australia 2014 Chapter 11 SERVICES MARKETING Internet exercises

1. One of the most important and complex services traded internationally is education. What is the current role of educational services in the trade of your country at the moment? Check out the latest statistics. One of the critical issues to tease out is the direct total economic impact of foreign students – not merely their fees but how much they spend during their time of study, whether their presence here motivates family and friends to visit them, etc. Consider long-term effects, especially the building of business (and other linkages) between their country of origin and their country of study. That, by its nature, is impossible to quantify, but you should be able to turn up some estimates. 2. Tourism remains the largest internationally traded service. Assess the current state of the industry and try to identify trends. a. Which outbound and inbound markets will grow and which will be less successful? The United Nations World Tourism Organization website (www.unwto.org/index.php) is a useful starting point. b. What impact will the new generation of aircraft (Airbus A380, Boeing 787 Dreamliner) have on the industry? c. How will environmental issues affect international tourism? 3. Find current data on the five leading export and import countries for commercial services. (The information is available on the World Trade Organization site at www.wto.org. Click the statistics button.) How has this changed in the past decade and how much do you expect it to change in the next decade?

Cengage Learning Australia 2014 Chapter 12 PRICING IN INTERNATIONAL MARKETS Internet exercises

1. Compare the services of the Global Offset and Countertrade Organization (www.globaloffset.org) and the Asia-Pacific Countertrade Association (http://apca.net). 2. Iron ore and concentrates rank as Australia’s highest exports, totalling AU $64.1 billion in 2011. Using ABS trade data available from www.dfat.gov.au chart the trends in exports of this commodity over the last 10 years. Compare the trend with prices for iron ore in that time period and fluctuations in the Australian dollar. Are there other factors that account for the trend? What do you feel has had the greatest impact on exports of iron ore in the last 10 years?

Cengage Learning Australia 2014 Chapter 13 INTERNATIONAL MARKETING COMMUNICATIONS Internet exercises

1. Trade shows are considered a very effective means of marketing communications. Do you agree that this is the case? You can use the CeBIT (www.cebit.com.au or www.cebit.de) website to provide the rationale for your answer. 2. Using YouTube, find at least three advertisements from different chocolate manufacturers across the world. Would these advertisements you found be suitable to show worldwide? Explain why or why not with particular reference to the countries where you feel the advertisement would not work.

Cengage Learning Australia 2014 Chapter 14 SOCIAL NETWORKS AND COMMUNICATIONS Internet exercises

1. Current information on the state of social media worldwide is provided by various websites, including comScore at www.comscoredatamine.com, eMarketer at www.emarketer.com, Nielsen Wire at blog.nielsen.com/nielsenwire, and internet World Stats at www.internetworldstats.com. Visit these and other sites and develop a profile of the current state of social media in a country or region of your choice. 2. Visit the websites of three multinational firms using social media. Suppose you worked for a small company. Based on your investigation of the above sites, write a memo to your superior in which you describe the most important social media features of corporate websites for facilitating international marketing success.

Cengage Learning Australia 2014