MKT_360_Test_1_Review - MKT 360 Test 1 Review Fall 2006...

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MKT 360 Test 1 Review Fall 2006 IMPORTANT CONCEPTS Chapter 1 1. some of the trade preference programs that the U.S. government uses to assist countries : o Protectionism –preference systems 1. Generalized preference system (1976) duty-free treatment for 4600 classification products, covering 144 countries 2. Caribbean Basin Initiative (1983) not duty-free, but gives pref purpose of this was to fight communism 3. Andean Trade Preference Act (1991) covers 4 countries in S. America: Bolivia, Columbia, Ecuador, + Peru all these countries produce cocaine idea: help them out + help slow the production; have them produce other things due to expire on Jan. 1 st , 2007…may turn into… 4. Free Trade Area (FTA) 5. Most-Favored Nation (MFN) 6. North America Free Trade Agreement (NAFTA): Canada, Mexico no tariffs 2. “Most-Favored Nation (MFN)” treatment in international trade : o the MFN gets the lowest tariff 3. The Multi-Fiber Agreement : regulated trade on textiles + apparel o 1974, quota system. Expires Jan. 1, 2005 o Limitation on the amount of a product that can be imported in order to protect native industries. o What was the UK’s reaction when it expired on January 1, 2005 ? o What was the US’s reaction ? 4. Some of the reactive reasons that drive companies to mkt their products internationally : o responding to unsolicited offers from abroad o loss of domestic competitiveness o defensive purposes (foreign competition) o Some of the proactive reasons : expanded mkt potential + growth geographic diversification to spread risk economies of scale + optimal productivity econ of scale: cost decreases by producing large amounts product @ end of its life cycle overseas mkts as source of new products, ways of doing business
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5. The uncontrollable environments in international mktg : o 1. demographics (population) o 2. social/cultural o 3. Political/legal o 4. Competition o 5. Technology o 6. Economy o How they differ from domestic marketing : There are fewer uncontrollable environments in the domestic market: Political/legal forces, Competitive structure, Economic Culture. 6. The self-reference criterion (SRC) : an unconscious reference to one’s own cultural values, experiences + knowledge as a basis for decisions o =a primary obstacle to success in intl mktg o The dangers of the SRC : failing to recognize the need to take action discounting the cultural differences that exist among countries reacting to a situation in a way offensive to your hosts 7. Ethnocentrism : the notion that one’s own culture or company knows how to do things best 8. The 5 stages of international marketing involvement (=how companies get into intnl mktg) + what companies do at each stage : not all companies look to get thru all the stages o 1. No direct foreign mktg not selling your products overseas, but somehow they’re getting it there EX: domestic companies sell their product to WalMart who has a store
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This note was uploaded on 01/27/2012 for the course MKT 360 taught by Professor Don'trememebr during the Spring '07 term at University of Miami.

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MKT_360_Test_1_Review - MKT 360 Test 1 Review Fall 2006...

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