International Marketing

10. Do demographic variables have universal meanings? Is there a chance that they may be

interpreted differently in different cultures?

11. In forecasting sales in international markets, to what extent can the past be used to

predict the future? Sales and trend, plan a scenario. Convergent forces( macroeconomy stability) divergent forces (cultural diversity).

Get a core planning team, cross section of expertise (include heads od sales, mkg, operations, purchasing, personel = new perspective, include outside information/ people

12. How should the firm decide whether to gather its own intelligence or to buy it from

outside?

1. Identify different types of barrier to the free movement of goods and services.

Tariff barriers (taxes), trade barriers, quotas, embargo, nationalization, market control, local content laws, price controls, labour restrictions, tax controls

2. Explain the importance of a common European currency to firms selling goods to the

European market.

No problem of exchange rate fluctuations, decreases transaction costs, greater transparency in foreign markets, ease of movement in the countries of Europe and price comparison, Business-facilities for businesses

3. How useful is GNP when undertaking a comparative analysis of world markets? What

other approaches would you recommend?

4. Discuss the limitations of per capita income in evaluating market potential.

5. Distinguish between: (a) free trade area( all barriers to trade among member countries are removed. each member country maintains its own tradevis a vis non members),

(b) customs union( goods and services are freely traded among members and its established a common trade policy with respect to non member,

(c) common market( same features of customs union. In addition, factors of production are mobile. Restrictions on immigration and cross-border investment are abolished)

(d) economic and monetary union (members harmonize monetary policies, taxation, and government spending) and

(e) political union (A larger and consolidated group of nations or states that share a joint government that is internationally acknowledged)

6.