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international Marketing 18th Edition ' ô%ãằã - *.ã**#ã ã • — *•« ÄS“r • • M :v n IjTr-rV,^ *ô ã ã ã " * v t -W , •• • /- _• • • ;• / ’V t • : / ’ * •' V *'•' • ? *• J!fc : * • .?* ? *> / , ■ T_ •• -ft * ^ * ^' f ; '••■ V » :• ■*,• V i 1» V j V • r >■ ••'•* Me P h ilip R C ateora * R- Bruce Money H ill M ary C- Gilly • John L Graham G raw Ed ucatio n Tai ngay!!! Ban co the xoa dong chu nay!!! Philip R C ateora FELLOW, ACADEMY OF INTERNATIONAL BUSINESS, UNIVERSITY OF COLORADO R Bruce M o n ey BRIGHAM YOUNG UNIVERSITY Mary c Gilly FELLOW, AMERICAN MARKETING ASSOCIATION, UNIVERSITY OF CALIFORNIA, IRVINE TRƯ Ở N CO ẠI H O C o u v NHdtVj John L Graham UNIVERSITY OF CALIFORNIA, IRVINE Me Graw Hill Education Published by McGraw-Hill Education, Penn Plaza, New York, NY 10121 Copyright © 2020 by McGraw-Hill Education All rights reserved Printed in the United States o f America No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the —: .of McGraw-Hill Education, including, but not limited to, in any network or other electronic storage o ::ar.crr*:ssion, or broadcast for distance learning Some ancillaries, including electronic and print components, may not be available to customers outside the United States This book is printed on acid-free paper * I.W1 21 20 19 ISUN 97K-1-260-54787-0 MIIID I-260*54787*6 ( over Image: • \ulcr\ LRnm\/SliuUvr\unk All ercdiK appeal mg on page m the cud "I Ok * hunk are cuiisideicd In be an extension n| die copyright page I lie Internet addresses listed m the lexi weie acunntc d ir nmc o| publication I he inclusion ol u website docs not indu ale an endorsement by the authors nr McGraw H ill I ducalion, and M cGraw-Hill Education does not guuiaulec tin- accuracy o| die mlormution picscntcd at these sites 1111k'i 11a Ho in i nin 'hichcied To Edward T Hall, the first to bridge the gap between Anthroooloav and Business WALKTHROUGH A quick look at the new edition Color maps and exhibits allow for a clearer presentation o f international symbols and cultural meanings in marketing and advertising In addition, photos that depend on full color for maximum impact easily bring many global examples to life This visually stimulating combination works together to make the text material reader-friendly and accessible for instructors as well as students A Chapter Outline provides students an at-a-glance overview o f chapter topics, while Chapter Learning Objectives summarize the chapter’s goals and focus Each chapter is introduced with a Global Perspective vignette, which draws upon the experiences o f real companies—ranging from national exporters to global enterprises—to illustrate the significant issues discussed in the chapter These company profiles are designed to help students combine the theories in the text with real-life applications Like the Global Perspectives, the Crossing Borders boxes offer a wealth of entertaining anecdotes from real companies They are designed to encourage critical thinking and guide students through topics ranging from ethical to cultural to global issues facing marketers today We put Paris, “the city of lights,” on our cover for a number o f reasons including: (1) It is the most popular tourist destination in the world; (2) There, on 12 December 2015, Parties to the UNFCCC reached a landmark agreement to combat climate change and to accelerate and intensify the actions and investments needed for a sustainable low-carbon future, now referred to as the Paris Agreement; (3) Among all cities in the world it is the most central in the network of municipal governments that are moving faster on mitigating climate change than are national governments; and (4) At night it is particularly beautiful Someday the lights will go on there without adding carbon to our atmosphere! NEW Cases _ Five new cases accompany the eighteenth edition, enlivening the material in the book and class discussions while broadening a student’s critical thinking skills These cases bring forth many o f the topics discussed in the chapters and demonstrate how these concepts are dealt with in the real world These cases can be found in Connect and SmartBook Global Perspectives At the beginning of each chapter, Global Perspectives give examples o f current company experiences in global marketing Illustrating chapter concepts, these profiles help students to combine the theory they read about with real-life application Mc ! G raw Hill Education Students—study more efficiently, retain more and achieve better outcomes Instructors—focus on what you love—teaching conned: SUCCESSFUL SEMESTERS INCLUDE CONNECT For Instructors You’re in the driver’s seat Want to build your own course? No.problem Prefer to use our turnkey, prebuilt course? Easy Want to make changes throughout the semester? 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Experience Group can also help you troubleshoot tech problems— although Connect’s 99% uptime means you might not need to call them See for yourself at status.mheducation.com For Students Effective, efficient studying Connect helps you be more productive with your study time and get better grades using tools like SmartBook, which highlights key concepts and creates a personalized study plan Connect sets you up for success, so you walk into class with confidence and walk out with better grades V Shutterstock/wavebreakmedif u I really liked this app—It made It easy to study when you don't have your text­ book in front of you.** - Jordan Cunningham, Eastern Washington University Study anytime, anywhere Download the free ReadAnywhere app and access your online eBook when it’s convenient, even if you’re offline And since the app automatically syncs with your eBook in Connect, all of your notes are available every time you open it Find out more at www.mheducation.com/readanywhere s No surprises The Connect Calendar and Reports tools keep you on track with the work you need to get done and your assignment scores Life gets busy; Connect tools help you keep learning through it all Chapter 12 Quiz Chapter 11 Quiz Chapter 13 Evidence of Evolution Chapter 11 DNA Technology Chapter Quiz Chapter DNA Structure and Gene and m ore Learning for everyone McGraw-Hill works directly with Accessibility Services Departments and faculty to meet the learning needs of all students Please contact your Accessibility Services office and ask them to email accessibility@mheducation.com, or visit www.mheducation.com/about/accessibility.html for more information CONNECT INSTRUCTOR LIBRARY Instructor’s Manual: The custom-designed Instructor’s Manual includes chapter summaries, learning objectives, an extended chapter outline, key terms, description of text boxes, discus­ sion questions, and additional activities Test Bank: The Test Bank has been revised and updated to reflect the content of the eigh­ teenth edition of the book Each chapter includes multiple-choice, true/false, and essay questions PowerPoint: The slides include lecture material and additional content to expand concepts in the text The PowerPoint slides also include detailed teaching notes Video?: International Marketing, eighteenth edition, offers links to videos accompanied by instructional notes and discussion questions Cases: New cases accompany the eighteenth edition These cases bring forth many of the topics discussed in the chapters and demonstrate how these concepts are dealt with in the real world These cases are available in Connect Country Notebook: This writing guide will help students develop a marketing plan that con­ tains information a marketer should be aware of when making decisions involving a specific country market Binder-Ready LooseLeaf Text (ISBN 1260665534) This full-featured text is provided as an option to the price-sensitive student It is a four-color text that’s three-hole punched and made available at a discount to students It is also avail­ able in a package with Connect Tegrity Campus: Lectures /7 Tegrity Campus is a service that makes class time available 24/7 by automatically captur*nS every lecture in a searchable format for students to review when they study and com­ plete assignments With a simple one-click start-and-stop process, you capture all computer screens and corresponding audio Students can replay any part of any class with easy-to-use browser-based viewing on a PC or Mac Educators know that the more students can see, hear, and experience class resources, the better they learn In fact, studies prove it With Tegrity Campus, students quickly recall key moments by using Tegrity Campus’s unique search feature This search helps students efficiently find what they need, when they need it, across an entire semester of class record­ ings Help turn all your students’ study time into learning moments immediately supported by your lecture To learn more about Tegrity, watch a two-minute Flash demo at http://tegritycampus nihlie.com Assurance of Many educational institutions today are focused on the notion of assurance of learning, Learning Ready an important element of some accreditation standards International Marketing is designed specifically to support your assurance of learning initiatives with a simple, yet powerful solu­ tion Each test bank question for International Marketing maps to a specific chapter learning outcome/objective listed in the text You can use Connect to easily query for learning out­ comes/objectives that directly relate to the learning objectives for your course McGraw-Hill Higher Education and Blackboard McGraw-Hill Higher Education and Blackboard have teamed up What does this mean for you?12 Your life, simplified Now you and your students can access McGraw-Hill’s Connect™ and Create™ right from within your Blackboard course-all with one single sign-on Say good-bye to the days of logging in to multiple applications Deep integration of content and tools Not only you get single sign-on with Connect™ and Create™, you also get deep integration of McGraw-Hill content and - The Best Of Both Worlds H&M, 231 Hofstede’s indexes, 110-111, 130, 134, 136, 143, 150, 160, 162-163, 238, 359 Holiday Inn, Home-country middlemen, 460-4.63 Home-office personnel, 547 Homologation, 381-182 Honda Motor Company, 7, 9, 299, 325, 413, 431 Honduras, 282 Hong Kong, 33, 34, 41, 57, 129, 143, 184, 237, 242, 322, 328, 340-341, 342, 377,391,399, 428, 488, 511 Hong Kong Disneyfand, 377, 399, 565 Hon Hai Precision Industry, 186 Honne, 256 Hoover, 383 Hormone-treated beef, 189 Hospitality, 17 Host-country restrictions, 541 Hsu Fu Chi, 371 Huawei Technology, 3, 189, 567 Huffy Corp., Hughes Aircraft, 45 Human engineering laboratory, 239 Human organ trade, 216, 219 Human rights, 12, 157, 179, 226, 319 Human universal, 102 Hungary, 303, 410 Hurricanes, 67, 464 Hypermarkets, 454 Hyundai Motor Company, 328, 431, 435 I Iberia, 366 IBM, 12, 143, 175, 181, 225, 320, 370, 395, 425, 519, 535, 546, 550-551 ICC, 203-205, 215 Iceland, 302 iDesign, 129 IDV, 110-112, 134, 138, 155, 162-163 Ijara, 201 IJVs, 368-369 IKEA, 77, 353, 382, 449, 453, 460 Immigration, 79-80, 279, 280, 294, 296 Impatience, 130, 144 Imperatives, cultural, 131-132 Import certificate fees, 574 Import licenses, 41-42 Import-oriented distribution structure, 450-451 Import relief, 45 import restrictions, 43, 178-179 Imports African Union market groups, 306-307 Asia Pacific, 333 automobiles, 43 big emerging markets (BEMs), 277-278 eastern Europe, 302 European market regions, 297 oil, 73-75, 587-588 parallel, 470, 568-570 InBev, 204 Incentives, salary, 535, 552 Incomes, rising, 286-287 Independence versus integration, 348 Independent enterprise, 134 India antitrust laws, 221 arranged marriages, 107 caste system, 106 cattle dung for fuel, 75, 386, 426-427 changes in economies, 265 competitiveness, corruption, 151, 327 data collection in, 238 economic problems, 326-327 marketing in, 217, 274 McDonald’s in, 17 middle class, 327 Narmada Valley Dam Project, 68 population growth, 77, 327 privatization, 178 product adaptation, 382 ratio of male to female, 107, 147 restrictions on investments, 175 tax controls, 179, 188 Indirect exporting, 362 Individualism/Collective Index (IDV), 110-112, 134, 138, 155, 162-163 Individualistic versus communitarian approach, 160-162 Indonesia, 428, 564, 587 Indulgence, 110 Industrial corporations, largest, 33 Industrial demand, volatility of, 422-425 Industrial goods See also Products and services adaptation and, 420-421 derived demand, 422-424 ISO 9000 certification, 433-435 metric system, 432-433 Industrial Revolution, 78 Industrial waste, 69-70 Inequality, tolerance of, 112 Inflation, 574-575 Infomercials, 507 Informal discussions, 132 Information exchange, 617-620 Information-oriented culture, 162-163, 606-607 Information source, 502-503 Information technology See also Internet; Technology China, 187, 320 economic development and, 268-269 India, 327 Japan, 325 privacy of data, 237, 405, 474 Infrastructure in Asia pacific regions, 332 in big emerging markets, 277-278 economic development and, 269-270 global comparison, 312-313 in India, 326 Initiatives, 158-160 Innovation adaptation and, 103, 390-397 characteristics of, 392 diffusion of, 390-394 by multinational companies, 110 technology and, 105 INSEAD, 158 Inseparability of services, 402 Instagram, 519 Institutional Revolutionary Party (PRI), 171, 172 In-store demonstrations, 486 Intangibility of services, 402 Integrated marketing communications (IMC), 485, 486 Integration versus independence, 348 Intel, 10, 190, 221, 329, 370, 419, 436 Intellectual property counterfeiting/piracy, 206-208, 211, 212-213 GATT and, 46 inadequate protection, 208 international conventions, 209-210 laws for, 151, 199 managerial approaches, 210-213 Microsoft example, 212 NAFTA and, 281 Philips example, 212 prior use versus registration, 209 protection of, 206-213, 405 SOPAand, 183 Subject Index International assignments sustainable development, 159 characteristics needed for, 541, trade barriers and, 40 544-545 Warner Bros example, 212 compensation for, 535, 548-551 Inter-American Commercial Arbitration cost of, 552 Commission, 203 early return, 553-554 Inter-American Convention on expatriates, 536-538, 548 International Arbitration, 205, 209 preparing for, 552-555 lnterbrand, 408 recruiting personnel, 536-541 Interest, payment of, 200 reluctance to except, 552-553 International advertising repatriation, 552, 554-555 advances in effectiveness, 492-494 International business advertising agencies, 270, 272, 526-528 communication links, 82, 90 cable and satellite TV, 404, 517-518 gender bias, 146-150 campaign execution, 526-527 Canada 106 217-218 282 499, 507 geographic factors, 64-75 government encouragement, for children, 485, 528-529 193-194 China, 217-219, 491, 495-496 historical perspective, 56-63 communication (See Communication) control of, 528-529 population trends, 76-80 creative challenges, 502-511 projected changes, 34-35 culture and, 496-497 trends affecting, decency standards, 384, 528 world trade routes, 80-82 deception in, 528 International cartels, 587-590 digital media, 491, 516-517 International Chamber of Commerce direct sales, 363, 457-458, 518, (ICC), 203-205, 215 542-543 International Commercial Bank of China emotions and, 492-494 (ICBC), 408 expenditure rate growth, 491, 495-496 International commitment, 355-356 Germany, 217, 219-220, 512 International conventions, 209-210 Internet (See Internet) International corporate planning, 354 language skills needed for, 559-560 International Court of Justice, 202 legal issues, 216-220, 506-508, International dispute resolution, 202-206 528-529 International Electrotechnical linguistic limitations, 508-510 Commission, 432 magazine industry, 515-516 International Franchising Association, 364 measurement of, 249 International Herald Tribune 147 media planning and analysis, International Internet marketing (IIM), 363 511-526 Microsoft example, 500-501 International joint ventures (IJVs), mistakes in, 503, 505 368-369 newspaper industry, 514-515 International Labor Organization, 76, 148 offensive products, 218 International marketing public relations, 488-491 adaptation needed, 15-16 radio, 516-517 bottom-of-the-pyramid markets, sales promotions, 217, 486-488 330-331 social media, 116, 489, 520, 521 cause of peace, 3-7 strategies and goals, 497-501 challenge of, television, 507, 516-517 controllable elements, 11-12 top 20, 495 cultural congruence strategy, 125 top 100, 496 decision factors, 11-12 trade shows, 438-440 defined, 10 word-of-mouth 520 in developing countries, 269 272-277 International Advertising Association, 529 versus domestic 10 669 domestic uncontrollable elements, 12-13 effect of world events on, 5-6 ethnocentrism, 16-19,413 foreign uncontrollables, 13-15 friendship and, 132 global awareness, 19-20 versus global marketing management, 349 government encouragement, 193-194 impact of geography on (See Geography) linguistic distance concept, 117, 162 opportunities and challenges, 378 orientation of, 24-26 permanently normalized trade relations (PNTR), 12, 38-39, 181, 319 recruitment of personnel, 536-541 risks and payoffs, 23 selection of personnel, 541-546 self-reference criterion and, 16-19 small business in, 35 stages of involvement, 20-24 task of, 11-15 training, 546-547 International marketing channels channel management, 467-470 cost issues, 465, 479-480, 581 distribution patterns, 456-459 distribution structure, 450-456 factors affecting channel choice, 464-467 Internet and, 453-456, 470-479 logistics, 479-481 middleman choices, 459-464 modern structures, 453-456 six Cs of channel strategy, 464-467 International marketing plan, 360 International marketing research See Marketing research International Monetary Fund (IMF), 45, 49-50, 181, 318 International Olympic Committee 598 International Organization for Standardization, 433 International public relations, 488-491 International Reciprocal Trade Association (1RTA), 586 International sales management 363 International Space Station International standards, 432 international tourism, 403-405 670 Subject Index International trade balance of payments, 35-37 balance of trade, 34 boycotts and embargoes, 39, 42, 179, 181, 223, 505-506 decline of (2008), disputes, 29, 173, 177 dumping, 44, 46, 47, 582-583 easing restrictions on, 44-49 Eastern Europe, 302-303 export trade (See Exporting) GATT, 31, 32, 44, 46-47, 437, 583 growth projections, 34-35 historical overview, 31-35 International Monetary Fund (IMF), 45, 49-50, 181,318 legal issues (See Legal environment) map of, 93 Marshall Plan, 31-32 nontariff barriers, -37, 39, 43, 44, 46, 49 oil imports, 73-75, 587-588 Omnibus Trade and Competitiveness Act of 1988, 45,222 protectionism (See Protectionism) protests, 4-5, 50-52, 182-184, 211, 242, 322, 359 in services, 46 skirting the spirit of GATT/WTO, 49 top trading partners, 30 World Bank Group, 45, 49-50, 148, 172, 181, 266 world trade routes, 80-82 WTO (See World Trade Organization (WTO)) International Trade Administration (ITA), 193,436 Internet See also Technology adoption rates, 471 advertising and, 507, 518-519 African Virtual University, 308 buying drugs via, 568-569 China censorship of, 13, 201, 310 collection of taxes, 215 communicating via, 142-143 concerns with selling via, 473, 478-479 countertrading and, 585-586 cyberlaw, 213-216 cybcrtcrrorism/cybercrimc, 187-188 data centers, 436 as a distribution channel, 453-456, 470-479 economic development and, 82, 90, 268-269 e-trading via, 95 as foreign market entry method, 363 impact of, Iran censorship of, 310 jurisdiction of disputes, 215-216 language of websites, 143, 476-477, 478 legality of data gathering via, 242 machine translation, 143 Marriott example, 474-477 mistakes in advertising via, 503, 505 number of users, 395 online auctions, 95, 114 penetration rates, 474 piracy and, 183, 206-208, 211, 212-213 research using, 248-250, 259 social media and, 116, 489, 520, 521 States Secrets Law, 201 taxing of sales, 363 top 10 websites visited, 519 used to enhance company performance, 472-473 use in Africa, 308 use in Japan, 95 virtual expatriates, 537-538 Interpublic Group, 277 Invention in negotiation, 621-623 Inventory control, 473 Investment base, 191 Invisible hand, 135 iPads, 30-31, 508 iPhones, 4, 18, 30, 186, 242, 251, 422, 501, 567, 574 Iran cyberlaw and, 213 exports, 308 form of government in, 173-174 terrorism, 185 trade sanctions/embargoe against, 12, 42, 226 U.S boycott of, 179-180 wars in, 310 Iraq exports, 308-309 Rolls-Royce bribery case, 197 terrorism and, 185, 226 US ban on trade with, 12, 181 wars in, 4, 177, 184, 310 Ireland, 298n6, 301, 508 Iridium LLC, 421 Islamic law, 198, 200-201 ISO 9000 certification, 433-435 ISO Health and Safety Standard, 434 ISP Virtual Show, 441 Israel, 136, 223, 291, 605 ITA, 193, 436 Italy, 98, 99, 138, 148-149, 172, 291, 295, 299 Ito-Yokado Corporation, 455 J J Walker Thompson, 282 Jamaica, 509 Jana Partners LLC, 18 Japan advertising and, 515 advertising in, 491 affiliation, 139-140 aging population, 78-79 aisatsu, 597 antitrust laws, 221, 590 Barbie dolls, 129, 152 birthrates in, 96-97, 109-110 blondes in, 129 bowing in, 132 bribery and corruption, 154-155 cake mixes, 389-390 communication, 256-257 consequences of consumption, 98-99 cultural issues, 17, 325-326 decision making in, 137 diet change, 125 distribution structure, 451-453 earthquake/tsunami impact, 5, 325 economic problems, 323-326, 575 energy use, 75 Ford Motor in, 612 GNI per capita, 324 Gothic Lolita subculture, 389 high-context-oriented, 141-142 historical overview, 58 industrialization of, 428 influence on China, 339 information technology and, 325 infrastructure, 331-332 Internet use in, 95 investment in U.S companies, 7-8 legal system in, 198, 205-206 length of workweek, 139 loyalty and, 58 market research, 236 masculinity/femininity index, 150 motivation of sales force, 547-548 nationalism in, 175-176 negotiating styles in, 604, 616 Nestle in, 398 671 Subject Index ningen kankei, 131-132 Kmart, 462 performance measurement in, 552 Kodak, 379, 511, 513 personal life, 139 KOF Globalization Index, 24-25 as pilot market, 231 Kojima, 453 population trends, 106, 325 Komelon, Inc., 21 protecting intellectual property, 210 Komsomolskaya Pravda, 236 relationship-oriented culture, 163 Koran, 108, 174, 198, 200-201, 388 Korea, 147, 208, 210, 328, 579-580, 604 stock trading in, 95 Korean War, 334 tent villages, 162 Korn/Ferry International, 537 time management, 145 KPMG Peat Marwick, 144 trade disputes, 29 Kraft Foods, 347, 371, 382-383, 410, 505 uncertainty avoidance, 113 Krispy Kreme, 119 U.S fear of, Kuwait, 144, 507 U.S trade sanctions, 181 Kygvzstan 173 305 vacation lime in 406 Kyocera Corporation, 371 voluntary export restrictions, 42 Japan Airlines, 366 L Jardine Matheson Trading House, Labeling laws, 48, 216, 217, 400 57, 57n3 Labor costs, 367, 474 J-Com, 95 Labor problems, 179 JCPenney, 65 Lacoste, 355 J.D Powers and Associates, 380 LAFTA, 285 Jeep, 414 Laguna Beach: The Real Orange County Jerusalem, 291 (TV show), 517 Jet lag, 263-264 “La Hora Sin Demora,” 145 Jeune pousse, 143 Land Rover, 349 JLG Industries, 361-362 Lands’ End, 363, 454, 455, 471 Job mobility, 138 Language Johns Hopkins Hospital, 253 back translation, 246 Johnson & Johnson, 10, 26, 557, 572, 580 barriers to effective market research, Jointventures, 32, 191, 368-369 245-247, 294 Jordan, 209 barrier to effective advertising, Journal of International Business Studies, 508-510 559 Chinese dialects, 337-338 Jurisdiction, in legal disputes, 202, 215-216 decentering, 246 Jusco, 464 importance of understanding, 116-118 Justice or fairness, 158 Japanese alphabet, 325 JV Company, 370 negotiation and, 601-606 silent, 140 K skills needed for foreign assignments KakaoTalk, 334 KalKan, 410 559-560 Kazakhstan, 197, 305 U.S versus U.K., 123 of websites, 143, 476-477, 478 Kellogg Company, 206, 351, 367, 409, 492 Kenya, 78, 173 LapPower, 528 Large-Scale Retail Store Law 453 Ketcham, 489 KFC, 185, 189, 319, 320, 341, 349, 365, Latin America 465, 505 compadre, 131-132 Kia Motor, 328, 490 direct investments, 32 Kimberly-Clark, 565, 580 emerging markets, Kissing, 245 eye contact in, 132 KitKat, 385 infrastructure, 270 KLM, 367 meaning of time in, 16 Mercosur, 284-286 Monroe Doỗtrine and, 59, 60-61 nationalism, 175 population and income, 276-277 privatization, 429 TV in, 517 U.S intervention in, 61-62 women in management, 147 Latin American Integration Association (LAIA), 285, 293 Latvia, 209, 303 Lawson Inc., 150 Layoffs, 4, 161, 179 LDCs, 266 Leasing, 201, 583-584 Least-developed countries (LLDCs), 266 Lebanon, 173 Legal environment, 196-229 acts of God, 200, 205 advertising laws, 216-220, 506-508, 528-529 alien status of foreign business, 14 Anheuser-Busch legal battle, 204 antiboycott laws, 223 antitrust, 221, 223, 462, 479, 590 attorneys per capita, 199-200 bases for legal systems, 198-202 bribery, 153-157, 192-193, 197, 327 Canadian law, 217-218, 224 civil/code law, 198, 199-200 commercial law, 199, 216-221 common law, 198, 199-200 contracts, 199-200, 215-216 copyright law, 40, 47, 201 cyberlaw, 213-216 data gathering via the Internet, 242 dispute resolution, 202-206 400 620 export restrictions, 225-228 extortion, 156 extraterritorial application, 224-225 Foreign Corrupt Practices Act (FCPA), 45, 155, 156, 157, 197, 222, 547 green marketing legislation, 20, 383-384 intellectual property rights 151, 199 Internet (See Internet) Islamic law, 198 200-201 jurisdiction, 202 labeling law's, 216, 217 local-content laws, 43, 178 marketing laws, 216-220 Marxist-socialist tenets, 198, 201-202 302 packaging, 220, 383-384 Legal environment (continued) pajama caper, 224 security laws, 225-226 social responsibility and, 69 UCC, 199 U.S laws in host countries, 221-225 Legal person, 13 Legal representative, 13 Lego Co., 129, 239, 395, 402 The Lego Movie (film), 402 Lehar-Pepsi, 382 Lehman Brothers, 95 Lenor, 384 Lenovo, 207, 212, 339, 415, 422 Lesotho, 386-387 Less-developed countries (LDCs), 266 Letters of credit, 591-592 LEvenement Sportif, 515 Lever Brothers, 400, 507 Levi Strauss & Company, 206, 349, 409, 415, 471 LG Electronics Inc., Libya, 12,185 Licensing entry into foreign markets, 363-364, 437 export, 45, 225, 226-228 of technology, 191 Lidl, 571 Liechtenstein, 295 Life cycle, product, 390 Life expectancy, 78, 98-99, 106 Lil’ Orbits, 365 Lindt, 564 Linguistic distance, 117, 162 Linguistic limitations, 508-509 Linkedln, 519 Listening, 611 Literacy rate, 108, 245, 269, 399, 509 Lithuania, 209, 217, 303 Litigation, 203, 205-206 Living standards, 264, 266, 312, 332 L.L Bean, 363, 454, 455 LLDCs, 266 Local contact, 478 Local-content laws, 43, 178 Local customs, 131 Localization versus globalization, 348, 349-350 Local language, 246 Local nationals, hiring of, 538-540 Location, of negotiation, 614-615 Lockheed Corporation, 157, 440 Lockheed Martin, 160, 547, 585 Locus of decisions, 373-374 Logistics management, 479-481 London Court of Arbitration, 203 Long-Term Orientation (LTO), 110, 160 L’Oreal, 274, 392-393 Lost Odyssey (video game), 402 Lôtschberg Tunnel, 67 Lotte Department Store, 334 Louis Vuitton, 287, 355, 467, 581 LoveByte, 107 Low-PDI countries, 136 Loyalty, 58, 137, 139 Loyalty programs, 487 LTO, 110, 160 Lubrication, bribery and, 156 Lucky-Goldstar (LG), 328 Lufthansa, 148, 367 Luxembourg, 291, 299 Lux soap, 400, 411 Mango, 455 Manifest Destiny, 60 Manufacturer’s export agent (MEA), 463 Manufacturers’ retail stores, 460 Manure, used as fuel, 75, 386, 426-427 Maps See World/regional maps Maquiladora, 280, 579 Marathon candy, 410 Marginal-cost pricing, 570, 582 Market access, 45 Market analysis, 630-631 Market analyst, 394 Market audit, 630-631 Market barriers, 311-312 Market data, 513-514 Market demand, estimating, 250-253 Market-entry strategies, 361-371 Market heterogeneity, 271 Marketing laws, 216-220 See also Legal environment Marketing mix M adaptation of, 359-360 Maastricht Treaty, 295, 296, 298, ethnocentrism and, 17 300, 301 Oreo and milk example, 488 Macao, 34 strategies in the EU, 313-314 Macedonia, 302, 303 Marketing News, 255 Machine-to-machine (M2M), 422 Marketing orientation, 146 Machine translation, 143 Marketing plan, 360, 631-633 Machismo, 150 Marketing research See also Data Madoff scandals, 153 analyzing and interpreting data, Madrid Arrangement, 209 253-254 Maersk Line, 423-425 Barbie dolls, 129, 152, 235 Magazine advertising, 515-516 breadth and scope of, 233-234 Mail order, 457-458 communicating results, 256-257 Maintenance and repair, 400-401 cultural issues, 242-243, 247-248, 257 Makeup Genius app, 392-393 decentralization trend, 254 Malawi, 306 defined, 233 Malaysia, 136, 190, 428, 507, 518, 529 Malcolm Baldrige Quality Award, 380, 434 domestic versus foreign, 233-234 Mali, 185 establishing objectives, 234-235 Management objectives and aspirations, estimating market demand, 250-253 138-140 importance of, 232 Management style laws regulating, 216-220 adaptation, 130-133 multicultural research, 247-248 around the world, 136-146 observational research, 249 communication styles, 140-143 primary data, 239-247 formality and tempo, 143-144 problem definition, 234-235 gender bias and, 129, 146-150 process of, 234 impact of American culture on, 133quantitative/qualitative methods, 136 239-241 marketing orientation, 146 responsibility for, 254-255 negotiations, 145-146 secondary data, 235-239, 258-261 objectives and aspirations, 138-140 self-reference criterion, 235 P-time versus M-time, 144-145 tools, 242 673 Subject Index types of information collected, 233-234 using the Internet, 248-250 websites for, 238-239, 259 Market integration, 311-314 Market metrics, 312-313, 331-333 Market offerings, 378 Market-perceived quality, 379-381 Market potential estimation, 274 Market segmentation, 351 Marks & Spencer, 504 Marlboro, 206, 408 Marriage, 106-107, 113, 123 Marriott, 143, 474-477, 505 Mars Company 380, 409 492 564 Marshall Plan, 31-32 Marvel, 377 Marxism, 31, 151 Marxist-socialist tenets, 198, 201-202, 302 Mary Kay Company, 26, 158-160, 217, 274, 382, 458, 542-543 Masculinity/Femininity Index (MAS), 110,150 Mass consumption, 428 Mass customization, 350-351 Mass media advertising, 491, 495 MasterCard, 363 “Master of destiny” philosophy, 133, 134 Matrix organizational structure, 372 Matsushita, 22, 140, 339, 393 Mattel Inc., 129, 152, 192, 235, 350, 485, 489 Maturity, 541 Mayo Clinic, 253 Mazda, 349, 612 MCC, 489 McCann Worldgroup, 277 McDonald’s, 6, 9, 17, 39, 51, 118, 125, 181, 182, 185, 189, 191, 208, 209, 210, 220, 244, 265, 304, 312, 320, 328, 341, 349, 365, 385, 388, 406, 408, 488, 489, 490, 491, 575, 577 McDonald’s Hamburger University, 436 M-commerce, 521 McVitie’s, 17, 18 MDCs, 266 MEA, 463 Mecca Cola, 388 Mecca pilgrimage, 115 Media See also International advertising digital, 491, 516-517 habits, 351 influence of, 108-109 limitations of, 511 penetration of, 517 planning and analysis, 511-526 spending, 514 Mediation, 203 Medical Expo, 440 Medical tourism, 404-405 Medtronics, 81 Megafon, 496 Melissa virus, 187 Mercedes-Benz, 7, 287, 299, 431 Merchandise returns, 458, 478 Merchant middlemen, 460 Merck & Company, 191 Mercosur, 267, 284, 285 Merit, 134-135 Merrill Lynch, 95, 404 Mervyns, 355 Message, communication and, 502-506 Metaphor, 118, 119 Meter-Man, 21 Methane conversion, 427 Metric system, 432-433 Mexicana, 366 Mexican-American War, 59 Mexican National Advertisers Association, 513 Mexican Revolution, 59 Mexico annual hours worked, 139 changes in economies, 265 decision making, 136 devaluation, 576 direct selling in, 543 infrastructure, 270 maquiladora, 280, 579 NAFTA and, 8, 9, 279-281 negotiating styles in, 606 as newly industrialized country, 33, 266 perception of history, 59 personal relationships and, 134 political instability, 171-172 privatization and, 178, 429 purchasing power, 38 sovereignty, 171 MGA Entertainment Inc., 152, 350 MHB, 421 Microsoft, 26, 63, 190, 206 207, 209, 212, 214, 215, 220, 221 320, 366, 371, 384, 401-402 420, 423, 424, 425, 435, 488, 500-501, 504, 557 Middle class, 276, 287 327 Middle East a n t i- A m e r ic a n s e n t im e n t 388 boycotts, 42 decision making in, 136 free trade and, 291 mistakes made trading in, 144 Nestlé in, 352 Oslo Accords, 291 women in management, 147 Middle Eastern Union, 291 Middle East/North Africa (MENA), 308-310 Middle East Translation Services, 401 Middlemen controlling, 469-470 foreign-country, 463-464 government affiliated, 464 home-country, 460-463 location/selection, 468-469 motivating, 469 termination of, 470 transportation costs and, 578 Migration, rural/urban, 77-78 Migros, 119 Militant economic nationalism, 175 Minimum access volume (MAV), 582 Ministry of Commerce, 221 Ministry of Culture, 214, 215 Ministry of Information, 529 Ministry of International Trade and Industry (MIT1), 453 Missionaries, 151 Mitsubishi, 140, 388, 462, 621 Mitsui, 462 Mitsukoshi, 456 Mizuho Securities Co., 95 Mobile phones advertising and, 500-501 apps for, 520-521 economic development and, 269 emerging markets, 7, 14 global communication links, 82, 90 government imposed blackouts, 14 impact on children, 18 in India, 332 protests and, 184 riots and, Mobility, job, 138 Moldova, 305 Monaco, 295 Monarchy, 173 Mondelez, 383, 410 505, 564 Monetary trade barriers, 42-43 MoneyGram, 189 Monochronic time (M-time), 144-145 674 Subject Index Monroe Doctrine, 59, 60 Monsoon Wedding (film;, 114, 328 Monsters (film), 460 Montenegro, 302 More-developed countries (MDCs), 266 Morinaga Love restaurant chain, 125 Morocco, 306, 308, 310 Moshe & All’s Gourmet Foods, Motivation of middlemen, 469 of sales force, 547-548 Motorola, 12, 190, 339, 370, 371, 380 Moxibustion, 236 Mrs Baird's Bread 8, M-time versus P-time, 144-145 MTN, 521 MTS, 496 MTV, 151, 351 Mulan, 485 Multicultural research, 247-248 Multigenerational family living, 81 Multilingual franca, 560 Multinational companies (MNCs) extraterritoriality of U.S laws, 224-225 foreign acquisitions, global market planning, 355 green marketing legislation, 220, 383-384 innovation, 110 intellectual property and, 208 largest, 33 nationalistic pride, 411 organization of, 374 political vulnerability, 190-191 TQM, 432, 434 world trade and, 32-34 Multinational market regions Africa, 305-308 the Americas, 264 defined, 292 Europe, 293-305 global markets, 64-75 Middle East/North Africa, 291, 308-310 patterns of cooperation, 294-296 strategic implications, 311-312 Multiple income levels, 573 Murabuha, 201 Muslim Up, 388 Myanmar, 180, 181 224, 433, 529 t\i NAETA See North American Free Trade Agreement (NAFTA) Narmada Valley Dam Project India, 68 Narrow-band, 474 National Aeronautics and Space Administration (NASA), 3, 433 National Basketball Association (NBA), 363,522-525 National brands, 410-411 National Bureau of Statistics, 237 National Enquirer, 515 National Highway Traffic Safety Administration, 381 Nationalism, 6, 9, 175-176 National Resources Defense Council, 169 National Security Agency, 242 National security laws, 225-226 National Statistics Enforcement Office, 237 National Trade Data Bank (NTDB), 45 Nation equity, 415 NATO, 170 Natural disasters, 4-5, 67, 173, 200 Natural gas resources, 304 Natural resources, 73-75 Nature, economic growth and, 67-69 NBA, 363, 522-525 NBC, 598 NBC Universal, 372 Negotiation, 596-624 BATNA, 613 differences in thinking, 609-610 impact of culture on, 145-146, 600-610 inventive, 621-623 language and, 601-606 location of, 614-615 nonverbal behaviors, 600-604 physical arrangement, 614 post-negotiation, 620-621 preparation for, 612-615 problems encountered during, 600-601 stages of, 615-620 stereotyping dangers, 599 styles in China, 342-343, 599, 604-605, 616 at the table, 615-620 traits necessary for good, 610-611 using teams, 610-611 value differences, 606-609 via e-mail, 614-615 The Negotiation Game (Karrass), 620 Nescafe, 7, 411 Nestle, 42, 43, 180, 181, 221, 277, 351-352, 359-360, 367, 370, 371, 374, 385, 398, 409, 410-411, 453, 487-488, 511, 518, 564, 576 Netflix, 348, 517, 519 Netherlands, 7, 100-101, 139, 180, 212, 217, 291 Netnography, 249 Never-ending quest for improvement, 135 New Balance shoes, 38, 207-208 Newly Independent States (NIS), 304 Newly industrialized countries (NICs), 33, 266-267 Newness of products, 390, 392 Newspaper advertising, 514-515 New York Convention, 205 New York Times, 217 New Zealand, 154,317, 432 NGOs, 158, 184 NHL, 364 Nicaragua, 244, 282 NICs, 33, 266-267 Nigeria, 173 Nike, 38, 71, 119, 181, 209, 218, 304, 460, 471,488, 489, 504,569 Nikkei index, 323 9/11 disaster, 4, 185, 226, 423, 541 Ningen kankei, 131-132 Nintendo, 401 Nissan Motor Company, 240, 366, 370, 612 Nivea, 209 Niveja, 209 Nochar Inc., 35 Noise, 502, 506 Nokia, 366, 371, 379, 467, 500 Noldus Information Technology Inc., 242 Nondurable goods, 378 Nongovernmental organizations (NGOs), 158, 184 Nontariff barriers, 37, 39, 43, 44, 46, 49 Nontask sounding, 615-617 Nonverbal behaviors in negotiation, 600-604 Norelco, Normal trade relations (NTR), 319, 328 Norms, 494 Nortel Networks, 498 North Africa, 308-310 North American Free Trade Agreement (NAFTA) automobile imports, 43 business service markets, 437 economic benefits from, 38 foreign acquisition of U.S companies, FTAA/SAFTA, 286 government policy stability, 172 historical background, 34, 278-280 key provisions, 281 Subject Index local-content laws, 43, 178 marketing across borders, regional trading groups, 293 sovereign rights and, 170 N orth American Free Trade Area, 35 North Atlantic Treaty Organization (NATO), 170 Northeast China, 337-339, 342 North Korea, 12, 154, 180, 185 Norway, 148-149, 150, 160, 217 No Thanks Unde Sam, 176 NTDB, 45 NTT DoCoMo, 559 Nynex, 240 O OAS, 153 Objective analysis, 134-135 Objectives defining of, 355 of developing countries, 269 establishing research, 234-235 of management, 138-140 pricing, 566-567 Objectivity, 607 Observability, 392 Observational research, 249 Occupy Wall Street protests, OECD, 32n2, 34, 71, 109, 153, 155, 236, 303, 396 Offensive products, advertising, 218 Office space, 140 Official Preppy Handbook (Birnbach), 355 Oil & Gas Journal, 442 Oil industry, 4, 73-75, 587-588 Oligarchy, 173 Olympic games, 181, 212, 364, 487, 490-491, 598 Omnibus Trade and Competitiveness Act of 1988, 45, 222 Omnicom, 527 One-child policy, 321 One-party sickness, 324 Oneworld Alliance, 366-367 Oniyome Nikki, 150 Online auctions, 95, 214 Online dating services, 107 Online focus groups, 249 Online surveys, 249 Online trade show, 440, 441 OPEC, 587-588 Open account, 590, 593 Open Garden, 4, 232 Open Society and Its Enemies (Popper), 182 OPIC, 193 Opinions, communication of, 241 Opium War, 56-57 Oracle, 300 Orderly market agreements (OMAs), 42 Oreos, 382-383, 488, 563-565 Organizational structure, 371-374 Organization for Economic Cooperation and Development (OECD), 32n2, 34, 71, 109, 153, 155, 236, 303, 396 Organization of American States (OAS), 153 Organization of Petroleum Exporting Countries (OPEC), 587-588 Organization of the Islamic Conference (OIC), 310 Organ transplants, 405 Oroweat, Osborne Brandy, 509 Oslo Accords, 291 OTCPharm, 496 Outsourcing, 243, 472 Overseas Private Investment Corporation (OPIC), 193 Oxfam, 184 P Pace of life, 145 Pacific Connections, 461 PacificCorp, Packaging components of, 399-400 laws governing, 220, 383-384 Pajama caper, 224 Pakistan, 147, 310 Palestine, 291, 310 Panama, 175 Panama Canal Zone, 61, 81 Panda Express, 322 Pan-European promotional strategy, 499 Paper gold, 49 Paraguay, 267, 284 Parallel imports, 470, 568-570 Parallel market, 568 Parallel translation, 246 Paris Air Show, 440 Paris Climate Accord, 71, 171 Paris Convention for the Protection of Industrial Property, 209 Parker Brothers, 276 Partido Acción National (PAN), 172 172n4 Patent Cooperation Treaty (PCT) 209 Patent rights, 363 675 Patents, 209-210 Payment bills of exchange, 593 cash in advance, 593 by credit card, 478 foreign commercial, 590-593 forfaiting, 593 letters of credit, 591-592 open accounts, 590, 593 Payoffs, 153-157, 192-193 PCT, 209 PD1, 110-111, 112, 136, 138, 143, 155, 160, 162-163 Peace, free trade and, 291 Peace protests, 182-184 Peacetime, causes of, 3-7 PeaceWorks, Pearle Vision, Pearl River Delta region, China, 341, 342 Pedigree Petfoods, 410 Peer recommendations, 520 PEMEX, 9, 62, 281, 442, 457 Penetration pricing policy, 571-573 People’s Republic of China (PRC), 318 PepsiCo, 14, 173, 176, 179, 180, 217, 271, 282, 327, 349, 382, 385, 487, 495-496, 503, 504, 507, 557, 584 Performance evaluation, 551-552 Performance quality, 379-381 Perishability of services, 402 Permanent normal trade relations (PNTR), 12, 38-39, 181, 319 Persia, 173-174 Persian Gulf, 308 Personal life, 138-139 Personal security, 138 Personnel selection, 541-546 Persuasion, 619-620 Peru, 145, 173, 190 Petrobras, 153, 614 Petroleum industry, 4, 73-75, 587-588 PETRONAS 457 Pew Research Center, 81 Pfizer, 207 Pharmaceutical industry, 326, 568-569 PHENIX Initiative, 212 Philanthropy, 158-160 Philanthropy by Design, 159 Philip Morris, 303 Philippines, 428, 520 Philips Design, 158-159, 271, 386-387, 395 Philips Research, 212, 255 Physical attributes of a product, 385, 498-499 Physical barriers, 65, 67 Physical distribution system, 479-481 Physical space, 16-17 Piaget, 479 PicturePhone Direct, 363 Piggybacking, 463 Pilsner Urquell, 362 Piracy, 183, 206-208, 211, 212-213 Pirate Party, France, 183 Pixar, 460 Pizza Hut, 180, 185, 189, 320, 341, 366, 526 Planned change, 125-126 Planned domestication, 191 Planning, for global markets, 354-361 P la y b o y, 515 PlayPump water system, 66-67 PlayStation 2, 390 Pluralistic constituencies, 72 PNTR, 12, 38-39, 181, 319 Point-of-purchase displays, 487 Poland, 201, 265, 278, 303, 347, 352, 488, 501, 543 Polaroid, 413 Political amenability, 294 Political and social activists (PSAs), 180-184 Political bargaining, 192 Political decision, 12 Political environment, 168-195 alien status of foreign business, 14 assessing vulnerability, 188-190 causes of instability, 173-177 culture influence on, 105 eastern Europe, 302-303 economic risks, 178-179 forms of government, 173-174 government encouragement, 193-194 government policy stability, 172-177 Japan, 324 lessening vulnerability, 190-193 nationalism, 175-176 newly industrialized countries (NICs), 33, 266-267 regional trading groups ( S e e Regional trading groups) risks of global business, 177-188 sovereignty of nations, 170-172 targeted fear/animosity, 176-177 terrorism ( S e e Terrorism) trade disputes, 173, 177 Politically sensitive products, 188-189 Political payoffs, 192-193 Political risk, measurement of, 189 Political sanctions, 179-180, 181 Political union, 295-296 Political vulnerability, 188-193 Pollution, 69-70 S e e a lso Environment Polychronic time (P-time), 144-145 Ponstan, 207 Population aging of population, 78-79 Asia, 106 China, 76-77, 321 controlling growth of, 76-77 decline of, 78-79 European Free Trade Area, 297 gender imbalance in China, 80 immigration, 79-80, 279, 280, 294, 296 India, 77, 327 Japan, 106, 325 Latin America, 276 life expectancy, 78, 98-99, 106 rural/urban migration, 77-78, 321 worker shortage, 79-80 Portugal, 301, 363, 519 Positive outlook, 544 Potato chips, 29 Poundland, 410 Power and achievement, 140 Power Distance Index (PDI), 110-111, 112, 136, 138, 143, 155, 160, 162-163 PPP, 324, 452 Preconditions for takeoff, 425 Predatory pricing, 44 Preliminary analysis and screening, 357-359 Preliminary marketing plan, 631-633 Premier Pages websites, 143 Price, 562-595 administered, 587-590 approaches to setting, 570-573 cartels and, 587-590 controls for, 179 countertrade, 584-586 dumping, 44, 46, 47, 582-583 escalation of, 573-583 European Union and, 313-314 fixing of, 564-565, 587-590 foreign commercial payments, 590-593 government influenced, 590 gray market goods, 567, 568-570 inflation of, 574-575 leasing to control, 201, 583-584 marginal cost, 570, 582 objectives of, 566-567 Oreo example, 563-565 policies, 565-570 quotations for, 586 relationship to quality, 430-431 skimming versus penetration, 571-573 variable-cost, 570-571, 582 volatility in, 566-567 Price discrimination, 221 Price Point, 471 Pricesmart, 317 Price wars, 580 PricewaterhouseCoopers, 537 Primary data, 239-247 Princeton Video Imaging, 517 Pringles, 29 Prior-use versu s registration, 209 Privacy of data, 237, 405,474 Private brands, 415-416 Privatization, 178, 267, 269, 284, 303, 334, 429 Problem definition, 234-235 Procter & Gamble, 10, 24, 29, 190, 208, 221,240,384, 399, 409, 411, 415, 487, 490, 495,511,557,558, 565, 571, 580 Product attributes, 498-499 Product Component Model, 397-398, 402 Product homologation, 381 Production orientation, 146 Product Liability Directive, 434 Product life cycle, 390 Product placement, 515, 529 Products and services S e e a lso Business-tobusiness marketing (B2B) adaptation of, 381-383 analysis of components, 397-402 attributes of, 385, 498-499 brands and ( S e e Brands) business-to-consumer (B2C) marketing, 378 core component, 398-399 country-of-origin effect (COE), 411-415 cultural influences on, 384-390 development process example, 386-387 diffusion of innovation, 390-394 effects of climate on, 64-67 green marketing, 220, 383-384 Internet as a distribution channel, 453-456,470-479 marketing orientation, 146 opportunities and challenges, 378 packaging component, 399-400 perception of newness, 390, 392 politically sensitive, 188-189 psychological attributes, 385, 388 quality of ( S e e Quality) support services, 400-402 utilities, 384-385 vulnerability of, 188-189 Product tie-ins, 486 Profit orientation, 140 Promodes, 454 Promotion, 217, 460-461, 463, 478, 486-488 S e e a ls o International advertising Protectionism business services and, 437 in China, 319 consumer services and, 405 cost to consumers, 37-39 effect on world trade, 37-39 trade barriers, 39-44 Protests, 4-5, 50-52, 182-184, 211, 242, 322, 359 Provemex, 367 Psychological attributes of a product, 385, 388 Psychological pricing, 586 P-time v e r s u s M-time, 144-145 Publicis, 527 Public relations, 488-491 Purchase price parity (PPP), 324, 452 Purchasing agents, 422, 425 Purchasing power, growth in, 38-39, 280 Purina, Q Quaker, 347 Qualcomm, 371 Qualitative research methods, 239-241 Quality awards for, 380, 434 buyer defined, 430-433 defined, 379-380 global standards and, 430-435 ISO 9000 certification, 433-435 maintaining, 380-381 Malcolm Baldrige Quality Award, 380, 434 measurement of, 378 TQM, 432, 434 Quantas, 366 Quantitative research methods, 239-241 Quiksilver, 264, 490 Quotas, 39, 41-42, 188, 192, 568 Quotations, for price, 586 R Racism, Radio advertising, 516-517 Radio Shack Corporation, 358 Ralston Purina, 351 Rampant consumerism, 151 Random House, 8, Rank conscious, 130 R a t a t o u i l l e (film), 377 Razanne, 152 RCA, RCD, 295, 310 R e a d e r s D ig e s t , 247, 515 Reader’s Digest Association, 518 Receiver, 502-503 Reciprocity, 405 Recruitment of personnel, 536-541 Recycling, 69, 220, 383-384 Red Crescent, 184 Red Cross, 184, 521 Reddit, 519 Red October Chocolate factory, 381 Refund policies, 458 Regional Cooperation for Development (RCD), 295, 310 Regional segmentation, 499 Regional trading groups Africa, 305-308 ASEAN, 293 Asia-Pacific Economic Cooperation (APEC), 34, 293, 333, 335 Caribbean Community, 285-286 Central America-Dominican Republic, 282-283, 294 common market, 293-295 Commonwealth of Independent States (CIS), 296, 303-305, 429 Europe, 293-305 Middle East/North Africa, 308-310 reasons for economic union, 293-294 Registration assessment, 433 Registration ve rsu s prior-use, 209 Relationship marketing, 163, 441, 446, 534 Relationship-oriented v e r s u s informationoriented cultures, 162-163, 606-607 Relative advantage, 392 Reliability, of data, 237 Religion, 76, 77, 92, 108, 115, 200-201 Religious tourism, 291 Renault, 366, 370, 505 Renewable energy, 194, 431 Repatriation, 552, 554-555 Republic o f China (ROC), 318-321, 323 Research and development, 394-397 Research process, 234 S e e a l s o Marketing research Reserves account, 36 Resources, 73-75 Retailing S e e a l s o International marketing channels comparisons of, 452 direct selling, 363, 457-458, 542-543 distribution structure, 456-459 diversity of, 456 e-commerce ( S e e E-commerce) Internet and, 453-456 mail order, 457-458 pricing and ( S e e Price) size patterns, 456-457 Returns, of merchandise, 458, 478 Revenue, 9-10 R i b a , 200 Richemont, 479 Rights of the parties, 158 Riots, mobile phones and, Risk economic, 178-179 forecasting of, 189-190 of global business, 177-188 Risk orientation, 110 Rituals, 102, 113-114 Ritz Carlton Hotel, 380 Rolex, 206, 287 Rolls-Royce, 197, 222, 481 Romance products, 98 Romania, 302, 303 Roosevelt Corollary, 60-61 Royal Dutch Philips, 35 Royal Liver Assurance, 516 Royal Philips Electronics, 159 R-rated American movies, 151 Rubbermaid, 398 Rules of origin, 281 Rural to urban migration, 77-78, 321 Russia advertising spending, 495-496 Commonwealth of Independent States and, 303-305 data gathering in, 236 ease of doing business in, 304 involvement with 2016 U.S election, 179, 188 legal system in, 201 negotiating styles in, 605 trade sanctions against, 12, 179 Subject Index 678 S Sabado Gigante, 517 Sabre, 179 Safeway, 209 Sainsbury, 415, 454 Sales force changing profile of, 557-558 characteristics needed, 541, 544-545 compensation for, 527, 535, 548-551 cultural awareness (See Culture) designing, 534-536 evaluating and controlling, 551-552 language skills, 559-560 motivating, 547-548 preparing for foreign assignments, 552-555 recruiting personnel, 536-541 selection of, 541-546 training of, 436, 546-547 Sales promotions, 217, 460-461, 463, 478, 486-488 Salvatore Ferragamo, 351 Same sex marriages, 107 Sampling, 244, 486, 487-488 Sam’s Club, 572 Samsung, 3, 7, 35, 242, 319, 328, 371, 422, 435 467, 490, 500, 519, 522, 535, 567, 574, 579 Sanctions, political, 179-180, 181 San Marino, 295 Sara Lee, 9, 265 SARS outbreak, 4, 104, 251, 440, 614 Satellite TV, 348, 517-518 Saudi Arabia, 147, 173, 189, 223, 352, 400, 432, 489, 554 Scandals, 153, 237 Schematic marketing organization plan, 373 School, 108-109, 308 Scientific American, 515 Screening of middlemen, 468 of potential partner countries, 357-359 Screwdriver plants, 583 SDRs, 49-50 Seafood consumption, 98, 125 Sea Launch, 435 Sears Roebuck 362 460, 462 Sea Shepherd Conservation Society, 183 Secondary data, 235-239, 258-261 Secondary wholesaling, 470 Securities and Exchange C ommission (SEC) 153, 243 Security laws to protect, 225-226 national, 12 personal, 138 Segmentation strategies in less developed countries, 274, 276 product attribute, 498-499 variables, 351 Selection, of sales and marketing staff, 541-546 Self-orientation, 110 Self-reference criterion (SRC) adaptation and, 131 advertising and, 503 marketing research, 235 negotiation, 146 overview of, 16-19 product evaluation, 394 subjectivity in history, 58 Selling orientation, 146 Sematech, 370 Sensitive products, 188-189 Sensitivity, 121-122 Separation allowance, 548 September 11, 4, 185, 226, 423, 541 Serbia, 302, 303 Services See also Products and services after-sale, 435-436 barriers to market entry, 405-406 business, 435-438 characteristics of, 402 Internet and, 471-472 marketing of, 402-406 opportunities in global markets, 403 for product support, 400-402 Services trade, 46 7-Eleven, 7, 8, 150, 455, 458 Sex in advertising, 528 Sex ratio, 80, 107, 147 Shanghai Automotive, 320 Shanghai Disneyland, 377 Shanghai/Yangtze River Delta region, China, 339-341, 342 Shariah (Islamic law), 200-201 Sherman Antitrust Act, 223, 463 Shipper’s Export Declaration, 225 Shipping cartels, 588-589 Shipping routes, 80-81 Shiseido, 389-390 Shop America, 458 Shrek 2(n\m), 151 S IA ,366-368 Siemens 153 Sierra Leone, 172 “The Silent Language of Overseas Business” (Hall), 140 Silent languages, 140 Silicon Graphics Inc., 226 Silk Road, 104, 394 Similarities illusion, 123 Simplified Network Application Process (SNAP), 228 The Simpsons, 109,487 Singapore, 33, 97, 178, 266, 328, 428, 506 Single European Act, 220, 298, 300, 405 Six Cs of channel strategy, 464-467 Size patterns, in retailing, 456-457 Skepticism, measurement of, 493 Skimming pricing policy, 571-573 Sky Atlantic, 348 Sky Channel, 517 SkyTeam, 367 Slammer virus, 187-188 Slovenia, 301, 303 Slumdog Millionaire (film), 328 Small business in international marketing, 35 Smart & Final, Smithfield Foods, Smith & Wesson, 7, Smoot-Hawley Act (1930), 32, 171 Smuggling, 41, 310 SNAP, 228 Snapple, 347 Snickers, 380, 410 Social acceptance, 139-140 Social inequality, tolerance of, 112 Social institutions, culture and, 105-110 Socialist legal systems, 198, 201-202 Socialization, 103, 115 Social media, 116, 489, 520, 521 Social responsibility, 69-72, 157-160, 525 Sociopolitical governance, 271 SodaStream, SOEs, 33, 267, 284, 318 Software piracy, 206-208 Sogo shosha, 462 Solar power, 169 Solar Turbines Inc., 240, 380, 442-445, 584, 609 SolarWorld, 38 Solid waste, 383-384 Somalia, 154, 185 Sony Corporation, 7, 390, 401, 408, 415, 495, 573 South Africa advertising in, 108 679 Subject Index apartheid, 12, 181, 306 economic growth, 306-308 retailing in, 456-457 sampling issues, 244 trade restrictions, 226 U.S ban on trade with, 12 South America, 65, 79 See also Latin America South American Free Trade Area (SAFTA), 284, 286 Southdown, Southern African Development Community (SADC), 306 Southern Cone Free Trade Area (M erco su r) 284 South Korea, 5, 7, 30, 33, 49, 50, 63, 139, 160, 175, 178, 208, 213, 265, 266, 308,328,334-335,428,516,519 South Sudan, 185 Southwestern Bell, 429 Sovereign state, 170 Sovereignty of nations, 170-172 Soviet Union, 173, 201, 226, 295, 296, 302, 303, 584 S&P, 10 SpaceX, 435 Spain, 77, 79, 81, 98, 114, 145, 301, 366, 506, 508, 521, 526, 543, 605 Spam, 334 Special administrative region (SAR), 322 Special drawing rights (SDRs), 49-50 Special Economic Zone, 341 Specific duty, 40, 574 Sponsorship, 487, 490 Sports utility vehicles (SUVs), 325, 383 The Spy Who Shagged Me (film), 123 SRC See Self-reference criterion (SRC) Sri Lanka, 233, 244 St Louis Post Dispatch, 204 Standardization versus adaptation, 349-351, 420-421 of advertising themes, 497-498 Standard of living, 264, 266, 312, 332 Standards international, 432 ISO 9000 certification, 433-435 NAFTA and, 281 quality, 430-435 as trade barriers, 43 Star Alliance, 367 Starbucks Corporation, 17, 51, 191, 268, 306, 349, 364, 366, 449, 464 465 Star Manufacturing, 580 Star TV, 517 Starwood Hotels & Resorts Worldwide, 558 State Administration of Radio, Film, and Television, 338 State Department travel advisories, 185 State-owned enterprises (SOEs), 33, 267, 284, 318 States Secrets Law, 201 STELA, 227-228 Stereotyping, 415, 599 Stimuli, economic, 44 Stockholm Business Council on Ethics, 528 Stockmann's Department Store, 467 Stock trading, 95, 113 Stop Online Piracy Act (SOPA), 183 Strategic alliances, 366-368, 437 Strategic international alliances (SIA), 366-368 Strategic philanthropy, 158-160 Strategic planning, 354 Strategic thinking, 160-162 Structural Impediments Initiative, 453 Subculture, 511 Subliminal advertising, 507 Subornation, 156 Subsidies, domestic, 44 Sudan, 310 Suez Canal, 63 Suffrage, 173 Sugar prices, 563-564 Sumitomo, 140, 462 SunExpress, 471 Sun Microsystems, 300, 471, 547 SunPlaza, 471 Suntory, 527 Superstitions, 97, 120, 134 Supply restrictions, 221 Support services, 400-402 Surprise, measurement of, 493 Surveys, 244, 249 Sustainable development, 67, 72, 75, 159 Swadeshi, 326 Sweden, 150, 217, 299, 353 Sweepstakes, 487 Swift & Company Switzerland, 8, 148, 295 Symbols, 102, 115-119 Syria, 185, 223, 310 352 System f o r Tracking Export License Applications (STELA) 227-228 T Taco Bell, 180, 279, 280, 341 Tactical planning, 354 Taiping Rebellion, 57-58, 217 Taiwan, 33, 44, 49, 97, 178, 266, 318, 323, 328, 342-343, 428, 570, 605 Tajikstan, 305 Takeoffs, 391, 428 Tang, 398 Tangible products, 402 Tanzania, 75, 192 Target, 242, 461 Targeted fear, 176-177 Target markets, 359-360 Tariffs on goods from China, 169 lowering of, 580-581 operation of, 40-41 price escalation and, 574 reduction in, 46-47, 327 Task-related exchange of information, 617-620 Tata Motors, 331, 366, 392 Tatemae, 256 Tax controls, 179, 188 Taxes on advertising, 507-508 e-commerce and, 215 excise, 574 on Internet sales, 363 price escalation and, 574 value-added (VAT), 29, 215, 299 TCNs, 540-541 Team negotiation, 610-611 Technology See also Information technology; Internet communication links, 82, 90 computer viruses, 187-188 economic development and, 268-269 e-mail usage, 142-143, 249, 614-615 exports of, 420 facial recognition software, 242, 492 healthcare advances and 105 impact on culture 105 issues with 474 level of understanding about, 13-14 licensing, 191 market demand and, 428-429 Teléfonos de Mexico, 42° Television advertising on, 507, 516-517 cable and satellite, 404, 517-518 Television ( c o n t i n u e d ) infomercials, 507 language barriers and, 337 Television without Frontiers, 507 Telmex, 276, 429 Tempo, formality and, 143-144 Temporal proximity, 294 Tencent, 471 Tent villages, in Japan, 162 Termination, of middlemen, 470 Terrorism 9/11, 4, 185, 226, 423, 541 cyberterrorism, 187-188 increase in in London, 50 violence and, 184-187 worldwide map of, 91 Tesco, 240, 453, 454, 569 Tesla Motors, 23 Test markets, 231 Texas Commerce Bank, 240 Texas Instruments, 370 Texting, 520 Thailand, 178, 197, 235, 413, 428 Theocratic republic, 174 Third-country nationals (TCNs), 540-541 Thought process, 121 -D N e g o tia tio n , 622 Three Gorges Dam, China, 68 3M Company, 585 Thums Up, 14, 176, 349-350 Tianjin Economic and Technology Development Zone, 339 T im e , 419 Time management, 144-145, 608-609 Time Warner, 249, 347, 512 Time zones, 263-264, 294 Tipping, 406 TL 9000 certification, 434 Tmall, 317, 471 T-Mobile, 8, 567 Tobacco advertising and, 303, 529 consumption of, 98 Toblerone, 380, 410 Toilet paper, 571 Toilets, innovation and, 393 Tokyo Disneyland, 235, 377 Tokyo Round, 46 Tokyo Stock Exchange, 95 Tolerance, 112, 121-122, 131 Top-level management decision making, 136 Topography and climate, 64-67 Toshiba, 339, 422 Total quality management (TQM), 432, 434 S e e a ls o Quality Toto, 239, 388 Tourism, growth in, 267n9,403-405 Toxic waste disposal, 69-70 Toyota Motor Corporation, 7, 9, 23, 176, 192, 256, 257, 325, 326, 380, 381, 408, 413, 427, 431, 489, 510, 608, 614, 621 Toys MR” Us Inc., 485-486 TQM, 432, 434 Trace International, 160 Trade associations, 333-336 TradeBanc, 586 Trade barriers antidumping penalties, 44, 46, 47, 582-583 boycotts and embargoes, 39, 42, 179, 181, 223, 505-506 categories of, 40 common market and, 295 domestic subsidies, 44 easing of, 44-49 import licenses, 41-42 import restrictions, 43, 178-179 monetary barriers, 42-43 nontariff types, 37, 39, 43, 44, 46, 49 parallel imports, 470, 568-570 protectionism ( S e e Protectionism) quotas, 39, 41-42, 188, 192, 568 reasons for, 29 standards, 43 tariffs, 40-41 voluntary export restraints, 42 Trade blacklist, 181 Trade deficit, 34, 37 Trade disputes, 173, 177 Trademarks, 208, 209-210, 363, 508, 570 Trade-Related Aspects of Intellectual Property Rights (TRIPs), 47, 208, 210,212 Trade-Related Investment Measures (TRIMs), 46 Trade restrictions, 12, 226 Trade routes, 80-82 Trade sanctions, 42, 48, 181 Trade shows, 438-440 Trading companies, 462 Trading with the Enemy Act, 224, 226 Traditional distribution structure, 450 Traditional remedies, 236 Traditional society, 425 Training, 436, 546-547 Trans-Atlantic Conference Agreement, 588-589 Transborder data transfers, 405 Translation issues, 245-246 Trans-Pacific Partnership, 333 Transparency International (TI), 153-155, 162 Transportation costs, 479-480, 578 Travel advertising, 106 government warnings, 185 tourism growth, 403-405 Treaty of Asuncion, 284 Treaty of Nanjing, 56-57 Treaty of Rome, 295, 300 Trialability, 392 Triangulation, 251, 253 TRIMs, 46 Trinidad, 163 TRIPS agreement, 47, 208, 210, 212 Tropicana, 508 Tsunami, 4, 5, 67, 325 Tbnisia, 172 Tbnnels, 65, 67, 74 Tbrkey, 265, 294, 302, 310, 514 Turkmenistan, 305 Tweetmeme, 489 Twitter, 116, 489, 519 Twix Cookie Bars, 349 Tyson Foods, 367 U UCC, 199 Ukraine, 304-305, 584 UNCAC, 153 Uncertainty Avoidance Index (UAI), 110-111, 112, 160 T h e U n c o n q u e r a b le W o rld : P o w e r, N o n v i o l e n c e a n d th e W ill o f th e P e o p l e (Schell), 182 Uncontrollable elements, 12-15, 270, 354, 358 Unemployment, 323 Unibex, 468 UNICEF, 184 Unicom, 567 Uniform Commercial Code (UCC), 199 Unilever, 17, 189, 314, 354, 410, 411, 415, 492, 498 Union Carbide disaster, 183 Union Voole Technology, 212 Unisys Corporation, 233 United Airlines, 4, 367 United Arab Emirates, 310 Subject Index United Kingdom advertising laws and, 217 aging population, 78 annual hours worked, 139 antibribery laws, 153 cake mixes, 390 consequences of consumption, 98 digital signatures, 216 exit from EU, 5, 296, 298n6, 302, 405 investment in U.S companies, 7-8 metric system, 432-433 negotiating styles in, 605 Opium War and the, 56-57 trade barriers, 29 U.S versu s U.K English language 123 women in managerial positions, 148-149 United Nations, 71, 76, 202, 236, 266, 292 United Nations Convention against Corruption (UNCAC), 153 United Nations Security Council, 318 United States aging population, 78-79 alternative-fuel cars, 392 animosity towards, 176-177 annual hours worked, 139 birthrates, 97 bribery, 153-154 consequences of consumption, 98 conversion to metric system, 432-433 Cuba and, 55, 179-180 decentralized decision making, 135, 137, 254, 374 energy use, 74 e-trading, 95 fear of Japan, 176 information-oriented culture, 163 Iran boycotts, 179-180 management styles in, 133-136 Mexico relations, 59 negotiating styles in, 606, 616 pollution and 70-71 ratio of male to female, 147 Russia boycott, 179 sugar prices, 563-564 territorial expansion, 61 top trading partners, 30 trade relations with Asia, 30-31, 56-58 U.S versus U.K English language, 123 wars and, 184 women in managerial positions, 148 United States Department of Agriculture, 582-583 681 Venezuela, 33 62, 136, 173, 177, 210, 269, United States Department of Commerce 284, 295, 545 (DOC), 157, 193, 225, 228, 239, 265, VERs, 42 277, 380, 432, 433, 438, 468, 583 Versace, 412 United States Department of Defense, Vicks Company, 18 421, 440 Victoria’s Secret, 280 United States Department of Justice, 226 Video games, 384 United States economy Vietnam, 55, 265, 280, 328-329, 379, 501, balance of payments, 35-37 512 bilateral trade agreements, 46, 49, 185 Violence, 184-187 boom of the 1990s, Virgin Atlantic Airways, 406 changing role in trade, 32-34 Virtual expatriates, 537-538 exchange-rate fluctuations, 37, 49-50, Virtual supermarkets, 455 575-576 Virtual trade show, 440, 441 foreign-owned U.S companies, 7-8 Viruses, 104, 187-188 internalization of business, 7-10 Visa 363 interventions in Latin America Vivendi, 405 61-62 Vodacom, 15 Marshall Plan, 31-32 Vodafone, 504 Mexican-American War, 59 Volkswagen, 9, 153, 267, 508 multinational corporations, 32-34 Voluntary export restraints (VERs), 42 oil imports, 73-74 Volvo, 7, 341, 349 power and achievement, 140 Voting rights, 173, 175 stock trading, 95, 113 VP-Schickedanz AG, 221 trade blacklist, 181 Vulnerability, political, 188-193 worldwide power shift, 34-35 United States export trading companies, 462-463 Waldbaur, 380 Universal Currency, 586 Waldorf Astoria Hotel, 8, 171 Universal Studios, 7, 405 Wall Street (film), 135 Universal suffrage, 173 Wall Street Journal, 7, 8, 129, 253, 486 Univision, 517 Walmart, 10, 39, 71, 160, 176, 214, 224, Unocal Corporation, 171, 224-225 240, 265, 279, 317, 362, 453, 454, Unplanned change, 125-126 Upper Deck, 504 455, 460-461, 464, 471, 473, 485, UPS, 363, 406, 455, 478 559 572, 573 Walt Disney Co., 485 Urban migration, 77-78 Uruguay, 267, 284, 514 WAP, 252 Warehousing, 479-481 Uruguay Round, 32, 46-48, 583 Warner Bros., 212 USSR, 173, 303, 305, 429 Warner-Lambert, 573 Utilitarian ethics, 158 Wars, 31-32, 184-187, 334 Utilities, 384-385 Waste, management of 69-70, 220, UTStarcom, 379 383-384 UTV Software Communications Ltd., 371 WaterA id, 66 Uzbekistan, 305 Waterford Crystal, 518 Water supply/shortages, 66, 89 The Wealth of'Nations (Smith), 104, 135 Valence, measurement of, 493 Weapons of mass destruction (WMD) 2 b Validated license, 226 Webb-Pomerene Act of 1918, 463 Validation of data, 238-239 Webb-Pomerene export associations Value-added tax (VAT) 29, 215, 299 (WPEAs) 463 Values, 102 110-113, 606-609 Webers Variable-cost pricing, 570-571 582 Webster 's Dictionary; Vaseline Intensive Care 401 Web visitor tracking 249 VDSL Systems 489 W V 682 Subject Index WebXpress, 125 Weddings, 114 Wedel, 352 Wednesday’s off, in France, 139n29 West Africa, 330 West Nile virus, 104 Wheel of Fortune (TV show), 517 Whirlpool, 22, 35, 265 WHO, 207, 382, 529 Who Is Killing France?, 176 Wikipedia, 183, 208, 519 Willingness to respond, 242-244 Wimpy, 189 W i n e c o n s u m p t io n ,' WIPO 209 Wireless Access Protocol (WAP), 252 Wisconsin Central Transportation, Woman 's Day, 218, 515 Women education gap, 107 gender bias against, 146-150 harassment of, 148 negotiating and, 611 Word-of-mouth advertising, 520 Work councils, 549 Worker shortage, 79-80 Worker-to-retiree ratio, 79 The World Almanac and Book of Fads, 542 World Bank, 45, 49-50, 148, 172, 181, 266 WorldCom, 4, 153 World Court at The Hague, 202 World energy consumption, 73-75 World Health Organization (WHO), 207, 382, 529 World Intellectual Property Organization (WIPO), 209 The World is Not Merchandise, 176 World of Warcraft, 214 World/regional maps average annual growth rate, 86 China, 337 communication, 90 economy and world trade, 93 European Economic Area, 298 freedom, 87-88 GNI per capita, 86 levels of human development, 87 religion, 92 terrorism, 91 U.S intervention in Latin America, 62 U.S territorial expansion, 61 water resources, 89 World Trade Organization (WTO) bilateral trade agreements, 185 China’s membership in, 12, 38, 48,319 dispute resolution, 177 domestic subsidies, 45 dumping, 582-583 establishment of, 30, 34, 47-49 GATT and, 32 growth of, protectionism and, 37 protests against, 50-52, 359 regulations, 44 skirting spirit of, 49 sovereign rights and, 170-171 Taiwan’s membership in, 323 tariffs, 268 TRIPS agreement, 47, 208, 210, World trade routes, 80-82 WPEA, 463 WPP Group, 512, 527 WPP rankings, 408 X Xbox, 401 Xenophobia, 9, 320 Xerox, 584 Y Yahoo!, 187, 519 Yamaha, 341 Yang, 236 Yangtze River Delta, 339-341 Yankee traders, 56 Yemen, 185 Yin, 236 YouTube, 328, 488, 519 Yugoslavia, 303 Yum! Brands, 280, 319, 341, 349 Z Zain Group, 15 Zaire, 308 Zara, 17, 231 ZDNet, 187 Zenith, 7, 328 Zero defects, 379 Zika virus, 104

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