International Marketing Midterm

1. List and briefly describe the four events or trends described in the text that have shaped international business beyond today’s bumpy roads and into the future. 

The four events/trends that are described in the text that have shaped international business include:

• The growth of the World Trade Organization - The growth of trade in the world has greatly increased international trade as well as dependence.  Based on the consumption of countries like the United States, it relies on trade with developing countries such as China to provide goods for an ever increasing demand of the consumer.  This has helped shape how the world expects goods and helped to increase the financial resources/dependence of countries like the United States to developing countries such as Thailand who manufacture many of our goods without restrictions or oversight.
• The impact of the Internet and its elimination of borders. – The Internet has closed the global divide as it pertains to the communication between different languages, cultures and time zones.  One merely needs to go on the Internet and it can be provided translation of language, access to global culture, and a no restrictions unless a country blocks certain “questionable” sites.  Where once there were barriers to information and access to individuals, there is no longer those restrictions which have changed the course of international business.
• Free market acceptance in regions such as Asia, Latin America and Eastern Europe – Where once these regions were secluded and segregated these markets have accepted a global mentality.  This has enabled a greater relationship based on trade agreements, supply and finance gains
• The directive by most countries to better manage environmental resources for future generations. – As the world’s finite resources are being depleted it has become a much greater emphasis to introduce legislation and steps to ensure environmental safeguards.  Much of the behavior has been predicated upon the world’s need to over consume.  This has created more emphasis on reduction of emissions and manufacturing efforts globally.

1. Why is the international marketer’s task more difficult than that of the domestic marketer?

There is a greater challenge for the international marketer because of the complications that exist with the minimum two levels of uncontrollable uncertainty as opposed to the singular uncertainty of a domestic marketer.  In addition for international marketers take place in more than one country.  This means that cultures, customs, political conditions exist and can be a major factor in the success or failure of a product

 The international marketer's task is more complicated than that of the domestic marketer because the international marketer must deal with at least two levels of uncontrollable uncertainty instead of one. Uncertainty is created by the uncontrollable elements of all business environments, but each foreign country in which a company operates adds its own unique set of uncontrollable factors.

1.  Explain the concept of the self-reference criterion (SRC)

Self-Reference Criterion is in reference to how a company or organization assumes that the cultural values and views are transferable when making the attempt to enter into a new foreign market.  A form of ethnocentrism in that the assumption exists that every culture will understand, like, and appreciate one’s own culture is what has been detrimental to many foreign introduced products based on this type of thinking.  This also holds true for values and dealings and is not limited to products alone.  In some cultures an outstretched hand means something completely different that a gesture of greeting as it does in the United States.  To bow in Japan is a sign of respect while in the U.S. it is often seen as a sign of weakness.

As individuals one also can rely on their own cultural background knowledge, and experience in answering questions and/or solving problems that arise. This one size fits all approach tends to work against ones favor as there are many variables and variances within different countries and cultures.

1. Briefly describe the American efforts toward global trade and its impact.

The United States made some key strategic and tactical decisions in an effort to increase global trade and cause global impact as a result.  Post World War II the U.S. did not want to create a new resurgence of communism.  In order to combat this foreseen spread the U.S. made a tactical move to try and promote and instill capitalism throughout the world.  America provided industrial and financial assistance to Japan and instilled the Marshall Plan in Europe which aided in the reconstruction of Europe.  With this type of assistance the former enemies of the U.S. were able to obtain greater financial independence and these countries that had been so accustomed to communist rule began to see the positive attributes of capitalism within the new markets that were created.  

This was done by design and as the countries saw greater exposure to capitalism there began a greater interest in Western culture, goods and products.  The dollars invested into these countries became dollars invested in U.S. goods and products.  By strengthening these other countries the U.S. received a greater return on their investment which included new allies and purchasing power to buy from America.  This created the Superpower we know today as the United States.

1. Briefly describe the fundamental characteristics of the Japanese behavior.

Dating back several thousand years the Japanese have historically had a strong sense of loyalty.  This loyalty is not only seen within the family structure but also to the company as well as their country.  Based on the teachings of Confucius which taught the Japanese the virtues of loyalty to every relationship be it family, friend or most important, ruling body has traditionally become a fundamental aspect of the Japanese.  The Japanese seek to unit at all costs and this ideology creates the ideology of Japanese behavior.  

1. What explains the variation while viewing history? Does the difference permeate to other matters? Provide an example.

The method in which historical events are perceived and interpreted are what can vastly explain variations while viewing history.  Historically there are many biases when looking at events and self-reference criteria (SRC) also is a contributing factor as many countries feel as if their interpretation of historical events is the most plausible.  A historian that is commissioned by a country that has high SRC will most likely have its subjective viewpoint take precedence and as record.  As an example maps that are sold typically will show the country of origin as the center of the map.  As an example a map made in the U.S. will typically show America as the center of the world while a map made in the UK will likely showcase Great Britain as center.