- •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?
7) Differentiate between a free-trade area and common market. Explain the marketing implications of the differences.
-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.
-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.
8) It seems obvious that the founders of the European Community intended it to be a truly common market, so much so that economic integration must be supplemented by political integration to accomplish these objectives. Discuss
EC from its beginning, it has successfully made progress toward achieving the goal of complete economic integration and, ultimately, political union. However, many, including Europeans, had little hope for the success of the European Common Market, as it was originally known, because of the problems created by integration and the level of national sovereignty that would have to be conceded to the community. There are language differences, individual national interests, and political differences (Germany protected its beer market, Italy- pasta market). Skeptics, doubtful that such cultural, legal, and social differences could ever be overcome, held little hope for unified Europe. But they were wrong. While complete integration has not been fully achieved, a review of the structure of the EC, its authority over members states The Single European Act, The European Economic Area, and The Maastricht Treaty, which created the EU, will show why the final outcome of full economic and political integration seems certain
9) The European Commission, the Council of Ministers, and the Court of Justice of the ec have gained power in the last decade. Comment
The European Commission proposes and supervises execution of laws and policies. The Council of Ministers, one from each member country, passes laws based on commission proposals, it’s the decision-making body of the EC. The European Court of Justice consists of 13 judges and is the Community’s supreme court. Its first responsibility is challenging any measures incompatible with the Treaty of Rome when the commission, council, or national governments adopt them. Its second responsibility is passing judgment, at the request of national court, on interpretation or validity of points of EC law
10) Select any three countries, which might have some logical basis for establishing a multinational market organization. Identify the various problems that would be encountered in forming multinational market groups of such countries.
The US, Japan, Hong Kong, Taiwan, and China are frequently discussed as likely prospects to form multinational market groups. Reasons for cooperative trade agreements among these speculative alliances vary substantially. A Japan- US trade link reflects three lines of reasoning. The first is defensive and result from preoccupation with an internal unified EC market and fear that reciprocity means a closed market to US and Japan. The second line of reasoning sees a US- Japan free-trade agreement as a less political way to handle the growing number of trade disputes between two countries. The third is more complex extension of the second in that there have yet to be resolved increasingly troublesome issues of trade. Successful resolution of problems of the protection of intellectual property, government procurements, and regulatory issues within Japan requires a broader economic relationship than now exists.