Export Credit Insurance
Export credit insurance protects exporters against the risk that the importer
will default on payment.
In the U.S., export credit insurance is provided by the Foreign Credit
Insurance Association (FICA).
FICA provides cove
Globalization of markets shift from historically distinct markets of different countries and
merging to a more unified global market
Globalization of production the sourcing of goods and services from around the globe to take
1. Antidumping Regulations
Dumping occurs whenever a firm sells a product for a price that is less
than the cost of producing it.
Antidumping rules set a floor under export prices and limit a firms ability
to pursue strategic pricing.
International pricing is an important element in the marketing mix.
There are three issues to consider:
o The case for price discrimination.
o Strategic pricing.
o Regulations that affect pricing decisions.
Price Discrimination -
1. Cultural Barriers it can be difficult to communicate messages across cultures.
A message that means one thing in one country may mean something quite
different in another.
To overcome cultural barriers, firms need to develop cross-cultural lite
Differences Between Countries - There are four main market characteristics that
result in variance in distribution systems:
1. retail concentration.
2. channel length.
3. channel exclusivity.
4. channel quality.
1. Retail Concentration
In a concen
Global Marketing and R&D
The marketing mix (the choices the firm offers to its targeted market) is comprised of:
The issues and decisions are more complex in the i
The Advantages of Buying It - Buying component parts from independent suppliers:
1. gives the firm greater flexibility
a. Buying component parts from independent suppliers lets the firm maintain
flexibility switching orders between suppliers as circ
Concentrating production at a few choice locations makes sense when:
fixed costs are substantial.
the minimum efficient scale of production is high.
flexible manufacturing technologies are available.
Production in multiple locations makes sense w
Where To Produce - Three factors are important when making location decisions
1. country factors.
2. technological factors (may have industry issues).
3. product factors (may raise some firm issues).
(Thus, this is consistent w
Pros and Cons of Countertrade
Countertrade gives firms a way to finance exports when other means are not
If a firm is unwilling to enter a countertrade agreement, it may lose an export
opportunity to a competitor that is willing to make
Walmart is a leader in the U.S. retail industry but cannot manage to acquire a similar
position in China. Walmart entered China in 1996 but has only a little over 400 stores in the
country. Walmart is having trouble understanding Chinese consumer buying d