- •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?
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
Political amenability among countries is another basic requisite for development of a supranational market arrangement. Participating countries must have comparable aspirations and general compatibility before surrendering any part of their national sovereignty. State sovereignty is one of the most cherished possessions of any nation and is relinquished only for a promise of significant improvement of the national position through cooperation
4) Explain the marketing implications of the factors contributing to the successful development of a multinational market group
Successful economic union requires favorable economic, political, cultural, and geographic factors as a basis for success.
Economic factors- every type of economic union shares the development and enlargement of market opportunities as a basic orientation; usually markets are enlarged through preferential tariff treatment for participating members and common tariff barriers against outsiders.
Political factors- participating countries must have comparable aspirations and general compatibility before surrendering any part of their national sovereignty. State sovereignty is one of the most cherished possessions of any nation and is relinquished only for a promise of significant improvement of the national position through cooperation.
Geographic- such closeness facilitates the functioning of a common market.
Cultural- cultural similarity eases the shock of economic cooperation with other countries because members understand the outlook and viewpoints of their colleagues
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.
- Regional Cooperation groups- governments agree to participate jointly to develop basic industries beneficial to each economy. Each country makes an advance commitment to participate in the financing of a new joint venture and to purchase a specified share of output of the venture
-Free-Trade Area- agreement among two or more countries to reduce or eliminate customs duties and nontariff trade barriers among partner countries while members maintain individual tariff schedules for external countries
-Customs Union- it enjoys the free-trade area’s reduced or eliminated internal tariffs and adds a common external tariffs on products imported from countries outside the union
- Common Market- eliminates all tariffs and other restrictions on internal trade, adopts a set of common external tariffs, and removes all restriction on the free flow of capital and labor among member nations. The Treaty of Rome, which established the EEC, called for common external tariffs and the gradual eliminations of intra-market tariffs, quotas, and other trade barriers. The treaty also called for elimination of restrictions on the movement of services, labor, and capital; prohibition of cartels; coordinated monetary and fiscal policies; common agricultural policies; use of common investment funds for regional industrial development; and similar rules for wage and welfare payments
-Political Union- involves complete political and economic integration; it may be voluntary or enforced. The treaty allows for the free movement of goods, persons, services, and capital through the members states; a common foreign and security policies; a common justice system.