1.Ethnocentrism is defined as the feeling or belief that one’s ethnic group is better than, or superior to, all other ethnic groups due to the teachings of their religion, heritage, and culture. Individuals, who are coined as “ethnocentric”, typically judge other cultures and groups with focus on a superior belief of their behavior, language, or religion. To apply this concept to the EuroDisney case, Disney’s lack of cultural analysis led it to believe that the products and characters which were large sellers in the United States would hold the same amount of success in Europe. The park in Paris was very much like the American parks and symbolized the American culture which was vastly different than Paris’ “historical and refined” culture. The belief that French culture entailed the same vacation times, enjoyed the same foods, willingness to pay among citizens, etc., were only a few of the many cultural differences that Disney failed to account for when launching EuroDisney.
2.Non-tariff barriers to trade, also known as NTBs, restrict imports and are less common than their counterparts, Tariff Barriers, which restrict exports. NTB’s can result from complex regulatory environments, differences in employment laws, product classifications, etc. The Office of the United States Trade Representative attempts to reduce the number of NTB’s which are deemed to decrease market opportunities of American exports and thus, provided competitive advantages to other countries or interfere with trade in various ways. Barriers such as the restrictive licensing agreements implemented by Apple which favors their software and products “one-sided” and “greedy” ways, would be an example of a current NTB. Specific limitations on trade, customs & administrative entry procedures, standards, and government participation in trade, are a few other types of NTBs.
3.International marketers should be able to recognize the complexities associated with the geography of a country and realizes that these characteristics will have a large impact on marketing communications and the sales of its product or service distribution. Heading “blindly” into a foreign marketplace in regards to its history could result in a product’s rejection due to varying attitudes which were misunderstood by the marketer. The historical and geographical study of a region is necessary for any marketing plan to understand why the country has developed the way it has, as opposed to being used as a guide for adapting its marketing plan. Natural barriers and environmental issues of a country such as, the relocation of its people, industrial pollution, temperature extremes, etc., are some of the uncontrollable environmental factors which all marketers must account for when attempting to plan for a country’s geography. In regards to history, understanding the nation’s business and political climates are very subjective to each country due to biases and cultures.
4.Three cultural values in the United States would include Independence, Equality, & Directness. Americans believe in the concept of individualism and we consider ourselves as separate individuals who control our own lives and destiny, this would describe Independence. The next value is Equality, backed by the Declaration of Independence, which includes the argument that all persons are created equal. For example, Americans are uncomfortable with displays of respect such as bowing to superiors, etc., with exception to our military standards. A third American value would include the idea that we value openness and being “up-front” when communicating. Conflicts can best be resolved by forthright conversations and that persons should directly confront someone to come up with a solution. American culture also holds dearly many rituals, both acceptable and odd ones. For example, the Thanksgiving holiday holds rituals such as the Macy’s Thanksgiving Day Parade and Thanksgiving Dinner. Another ritual would include parades which are public forms of celebration, such as on the 4th of July or after a team wins the NFL’s SuperBowl. Lastly, when a couple becomes “engaged”, or commit to becoming married, bachelor and bachelorette parties occur which typically involve partying and extravagant parties assembled by the bride or groom’s closest friend or family member.
5.Cultural imperatives in a country would be the “unchangeable” customs which one must adapt to in order to be successful. Relationship building in a large number of Asian countries when conducting business would be required before leaders of these countries will engage in performing business activities. Cultural electives are described well by their classification, where persons can conform to the customs, but are not required to. The majority of customs fall into this classification and heading to a beach “fully nude” or wearing swim trunks can be seen as a cultural elective in many European countries due to their more open view of nudity. Lastly, cultural exclusive are reserved solely for a local community within a culture. For example, the “Shout” song being hollered after a touchdown would be a cultural exclusive for fans of the NFL team, The Buffalo Bills.
6.Confiscation is the seizing of a company’s assets without payment and is the most severe political risk associated with confiscation. For example, when the American company Enron was found to be “cooking the books”, its company’s assets were confiscated, leaving both its leaders involved and its not-guilty employees both jobless and without reparations. Domestication is when a government required local ownership and an increase in national involvement in a foreign company’s management. The American Overseas Reinsurance Company was announced to be “re-domesticated” in 2012 to Barbados. This was announced to help future results in regards to the economic and operating environments to help support future performance of the company. Nationalism is a shared feeling by a group to hold its particular interests as a primary importance. A lasting example of Nationalism would be Adolf Hitler’s ability to rally together a powerful regime by focusing on nationalistic values and by increasing their German pride.
7.Bribery is defined as money being offered by one company to a high ranking official in order to gain advantages or sway their decision, which normally would have not occurred. For example, paying money to a high ranking official could help a company’s import be classified under a different code in a bill of lading. This would result in avoidance of higher taxes and duty fees than if this “false classification” did not occur. Extortion is the use of force or threats to obtain a resource sought, typically money or business advantages. Examples of extortion could be the blackmailing of a boss to receive a promotion which otherwise would have went to one’s co-worker. Lubrication and Subornation is the form of bribery, but involves providing smaller gifts or cash payments unlawfully to lower-ranking individuals. An example of this could be myself giving small gifts to my receptionist every now and then, in hopes of her not marking me down when I arrive late to the office.
8.Common Law is developed by judges or courts which are stated in the decisions of individual cases that will create effects involving precedent on future cases. Common Law in America dates back to the Medieval English common laws and involves both pure & interstitial forms of common law. Islamic Law, also known as “Sharia Law”, involves the legal foundation of the “ways of life” of those residing in a legal system based on Islamic teachings from the Quran and the Hadith. A prime example of Islamic Law would be the “Islamic sexual jurisprudence”. Teachings in the Quran confine sexual activity to marriages involving men and women. This means that chastity is to be followed when non-married, with respect to the belief of leading a life with broader values than sexual activity. Code Law is a form of legislation aimed to cover a complete system of laws as it existed when the code was enacted by codification. Michigan’s Supreme Court came to the conclusion that a doctor who assisted a patient in suicide, that he could be prosecuted under Michigan’s common law, even though the state’s criminal code did not prohibit this.
9.There are four different types of economic integration and the first one I will describe is Free Trade Areas. Free Trade Areas involve abolishing all trade restrictions of a particular group, although each country included in this group is free to keep their own regulations with other “non-member” countries. Current Free Trade Area groups include the Latin American Free Trade Association (LAFTA) and the European Free Trade Association (EFTA). Another form of economic integration is an Economic Union, where the group implies complete integration of a group of countries’ economic activities. This results in harmonized and coordinated fiscal and monetary policies, and economic activities of member nations. A Customs Union is an external tariff against “non-member” countries. For example, when Labatt Blue products are sold in America, they are hit with Customs tariffs and taxes, increasing the price of Labatt’s trade agreements with American companies. Lastly, Sectoral Integration is when a common market is established within a given group of products. Members of the “Inner Six” created this type of integration in the coal and steel market within their respective European territories.
10.An example of an economic grouping in the Western hemisphere would be the energy subsidies of Latin America and the Caribbean (LAC). Energy subsidies in the LAC accounted for nearly 2.2% of the region’s Gross Domestic Product (GDP). These regions are characterized as “energy-rich” and account for a large part of government revenues to assist in the stimulation of economies and the ability for these regions to assist areas of their countries prosper as their main purpose. LAC counties such as Haiti, the Dominican Republic, and Honduras, group together in order to achieve maximum profitability and sustainability in their countries. If these LAC subsidies acted economically independent, effects of cannibalism of market share, reduced resources, and decreases in their chances of stability, could result in lower returns and financial goals of maximum profitability and sustainability.