- •International marketing 10- Multinational market regions and market groups
- •1) Define:
- •2) Elaborate on the problems and benefits for international marketers from multinational market groups.
- •3) Explain the political role of multinational market groups. Identify the factors on which one may judge the potential success or failure of multinational market group
- •4) Explain the marketing implications of the factors contributing to the successful development of a multinational market group
- •5) Imagine that the usa was composed of many separate countries with individual trade barriers. What marketing effect might be visualized?
- •6) Discuss the possible types of arrangements for regional economic integration.
- •7) Differentiate between a free-trade area and common market. Explain the marketing implications of the differences.
- •9) The European Commission, the Council of Ministers, and the Court of Justice of the ec have gained power in the last decade. Comment
- •11) Us export to the ec are expected to decline in future years. What marketing actions may a company take to counteract such changes?
- •12) “Because they are dynamic and because they have great growth possibilities, the multinational markets are likely to be especially rough and tumble for the external business”. Discuss
- •13) Differentiate between a customs union and a political union.
- •14) Why have African nations had such difficulty in forming effective economic unions?
- •15) Discuss the implication of Europe 1992 on marketing strategy in Europe.
- •16) Discuss the us- Canada Free Trade Agreement.
- •17) Discuss the strategic marketing implications of the Canada-us-Mexico Free Trade Area.
- •18) How is the concept of reciprocity linked to protectionism?
International marketing 10- Multinational market regions and market groups
Multinational market region-those groups of countries that seek mutual economic benefit from reducing intraregional trade and tariffs benefits (the main motive is economic).
1) Define:
-United States-Canada Free Trade Agreement- CFTA was designed to eliminate all trade barriers between two countries. The CFTA created a single, continental, commercial market for all goods and most cervices. It provides only for elimination of tariffs and other trade barriers. After Mexico was joined and CFTA became the model after which NAFTA was designed.
-COMECON- Council for Mutual Economic Assistance
-Harmonization-the most essential requirements for protection of health, safety, the environment, and product standards
-Single European Act reciprocity- the agreement designed to finally remove all barriers to trade and make the European Community a single internal market.
-NAFTA- North American Free Trade Agreement (Canada, US and Mexico).
-Mercosur- Southern Cone Common Market is the newest common-market agreement in Latin America (Argentina, Brazil Paraguay and Uruguay).
-AFTA- ASEAN (The Association of Southeast Asian Nations- multinational trade group in Asia)
-CEA- Chinese Economic Area (Hong Kong, Taiwan, and the coastal provinces of Southern China).
-EU- European Union.
-CEFTA- Central European Free Trade Area
2) Elaborate on the problems and benefits for international marketers from multinational market groups.
Multinational market region-those groups of countries that seek mutual economic benefit from reducing intraregional trade and tariffs benefits (the main motive is economic).
Multinational marker group is the form of large market that provides potentially significant market opportunities for international businesses. The more similar are the cultures, the more likely a market are to succeed because members understand the outlook and viewpoints of their colleagues. Benefits:
- Economic integration creates large mass markets for the marketer. Large markets are particularly important to businesses accustomed to mass production and mass distribution because of economies on scale and marketing efficiencies that can be achieved. In highly competitive markets, the benefits derived (полученный) from enhanced (улучшенной) efficiencies are often passed along as lower prices, which lead to increased purchasing power.
- The choice of buyer increases
- Elimination of borders conducts to equalization of the prices
- Most multinational groups have coordinated programs to foster economic growth as part of their cooperative effort. Such programs work to the advantage of marketers by increasing purchasing power, improving regional infrastructure, and fostering (способствовать) economic development.
Problems:
- The quantity of brands decreases
-In an integrated Europe, US multinationals may have an initial advantage over expanded European firms because US businesses are more experienced in marketing to large, diverse markets and are accustomed to looking at Europe as one market. But however there is a problem for other countries.
- Local preferences certainly spell troubles for the exporter located outside the market (when Greece joined the EC, imports from other EC countries increased while those from USA decreased. Many US exporters faced with the possible need to invest in Europe to protect their export markets in EC)
- Individual national markets with the same problems of language, customs, and instability will still confront international managers
- Many non-EC countries see such activities as creating a Fortress Europe, and, in effect, making marketing entry into a single European market more difficult than entering the member countries individually