Julie'stest1review - ?MKT 360 Test 1 Review Fall 2006...

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??MKT 360 Test 1 Review Fall 2006 IMPORTANT CONCEPTS Chapter 1 1. What are some of the trade preference programs that the U.S. government uses to assist countries - preference systems: a country is benefited by having their tariffs reduced or eliminated by their products. - preferential treatment to their imports - preference to their : allies(politics) - Andrean Trade Preference Act(1991): (cocaine) - Bolivia, Colombia, Ecuador, Peru - Gives duty free access for 5600 products - Seizes to exist on 2007 unless congress extend it - Colombian and Peru are getting a free trade agreement But Us congress has to agree on it. - Generalized System of Preferences(1976): - Offers duty free entrance for 4600 products from 140 different countries around the world. 2. What is “Most-Favored Nation (MFN)” treatment in international trade? - TSUSA: tariff schedule of the US - countries charge different tariffs on same items. Item# A B C D E 1234T 25% 15% 10% 5% 2% E= MFN(most favored nation) 3. What was the Multi-Fiber Agreement? What was the UK’s reaction when it expired on January 1, 2005? What was the reaction of the United States? - Multilateral quota system for textiles and apparel - 1995: WTO – to promote free trade… they had 10 years to get ready - UK: Blair went to china and asked for a 3 year extension - US: Accused china of dumping 4. What are some of the reactive reasons that drive companies to market their products internationally? What are some of the proactive reasons? - Reactive: - Responding to unsolicited offers from abroad - loss of domestic competitiveness - defense purposes(foreign competition)
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- Proactive - expanded market potential and growth - geographic diversification to spread risk - economies of scale and optimal productivity - product at end of its life cycle - oversees markets as source of new products, ways of doing business 5. What are the uncontrollable environments in international marketing? How do they differ from domestic marketing? - Uncontrollable factors : Things that are going to influence the market strategy. There is no control on it… - demographic - social/cultural - technology - legal/political - competition - be aware of any changes , they can act as opportunities or threats. - International marketers must not only take into consideration their domestic environment, but the environment forces in each one of their foreign markets. 6. What is the self-reference criterion (SRC)? What are the dangers of the SRC? - Self-reference criterion(SRC): Is an unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions. - 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. What is Ethnocentrism ? -
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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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Julie'stest1review - ?MKT 360 Test 1 Review Fall 2006...

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