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Chapter1TheScopeandChallengeofInternationalMarketing

2.HowcantheincreasedinterestininternationalmarketingonthepartoftheU.S.firmsbe

explained?

l)TheU.S.markethasreachedsaturationlevelsformanyproducts,andincreasing

numbersoffirmsarefacedwithsurpluseswhichmustbesold.

2)manyfirmsfindthatreturnoninvestmentmaybehigherinforeignmarketsthanin

domesticmarkets.

3)morefirmsrealizethattomorrow'smarketswillbeworldmarketsanditisimperative

toestablishworldmarketpositionsearly.

3.Discussthefourphasesofinternationalmarketinginvolvement.

Thefirstphaseisdomesticfirmswhichhavenoforeignbusinessactivityexceptthose

salesmadetoforeigncustomerswhocomedirectlytothefirm.

Thesecondisdomesticfirmswhichhavetemporarysurpluseswhicharesoldabroadon

anavailabilitybasiswithnointentionforcontinuingmarketrepresentation.

Thethirdisthedomesticfirmsthathavepermanentproductivecapacitywhichisusedto

producegoodswhicharesoldonacontinuingbasisinforeignmarkets.

Thefourthistheinternationalcompanythatproducesaproductfortheworldmarket.

4.Discusstheconditionsthathaveledtothedevelopmentofglobalmarkets.

l)newcommunicationstechnology,travelandotherfactorsledtheworldmarketsbeing

awareofdifferentproductsandprocesses.

2)Becauseofthisawareness,eachmarketthushadcommonneedsforhighquality,

reasonablypriced,standardizedproducts.

3)Thereisastrongfeelingthatwithinideasfromtheworldaffectedthetastesand

perceivedneedsofeverycountrymarket

4)Thereisastrongfeelingthatworldmarketsarebeingdriventowardaconverging

commonalityoftasteandneedsleadingtowardglobalmarkets.

5.Differentiatebetweenaglobalcompanyandamultinationalcompany.

Aglobalcompanyassumescountrieshavethesameneedsanddesignsastandardized,high

quality,reasonablypricedproductforthosemarketsitasiftherearenodifferencesamongthe

countrymarkets.

Amultinationalcompanyhasaspecificmarketingplanandadaptsproductsforeachcountry

marketandthinkthereareculturaldifferencesamongcountriesthatrequirespecific

adaptationsforthosemarkets.

6.Differentiateamongthethreeinternationalmarketingconcepts.见课件

7.Discussthethreefactorsnecessarytoachieveglobalawareness.

(1)objectivity;objectiveinassessingopportunities,evaluatingpotential,andresponding

toproblems.Toooftenmistakesaremadebecausecompaniesaresweptawaywith

generalitiesandmakeinvestmentsonlylatertofindoutthattheircommitmentorabilities

werenotsufficienttosucceed,

(2)tolerancetowardculturaldifferences;toleranceisunderstandingculturaldifferences

andacceptingandworkingwithotherswhosebehaviormaybedifferentfromyours,

3)knowledgeable;Tobesuccessfulininternationalbusinessandgloballyaware,aperson

needstobeknowledgeableoftheenormouschangesoccurringthroughouttheworldand

thepotentialopportunities

8.Defineanddiscusstheideaofglobalorientation.

Aglobalorientationmeansoperatingasifallthecountrymarketsinacompany'sscope

ofoperations(includingdomesticmarket)areapproachableasasingleglobalmarketand

tostandardizethemarketingmixwhereculturallyfeasibleandcosteffectiveortoadapt

themarketingmixwhereculturallyrequiredandcosteffective.

Aglobalorientationmeanstandardizingthecomponentsofthemarketingmixwhere

demandissimilarandchangingthemarketingmixwheretherearesignificantcultural

differences.

Chapter2:TheGlobalEnvironmentofInternationalMarketing

DiscussionQuestions

2.TheTokyoRound(会谈)ofGATThasemphasizedthereductionofnontariffbarriers.Howdoes

theUruguay(乌拉圭)Rounddiffer?

Nontariffbarriersarealltherestrictionsimposedontheimportationofgoodsbyahost

governmentwiththeexceptionoftariffs.Suchthingsasstandards,quotas,import

licenses,countervailingduties,bordertaxescanbeclassifiedasnontariffbarriers.

EarlierroundsofnegotiationsbyGATTmembershadbeensuccessfulinreducingtariffs

andtheTokyoRoundfocusedonthereductionofnontariffbarriers.

TheTokyoRoundstarttoaddressanumberofnontariffbarriersthathavebecomemore

seriousinrecentyears.Despitethesuccessofthesepastrounds,hightariffshavenot

disappearedentirelyandnontariffbarriersarestillwidelyused.Therearealsoareasthat,

untilnow,GATThasnotaddressedsuchasservices,intellectualpropertyrights,and

investment.Specifically,GATTnegotiationsinthisroundaretoaddresskeyareasof

importanceininternationaltradewhicharenotnowunderthescopeofGATTrules.For

example,GATTrulesdonotapplytotheinternationaltradeofserviceswhichrepresentan

increasingpercentageofinternationaltradeflows.Similarly,GATTruleshavelittle

influenceovergovernmentinvestmentpoliciesaffectinginternationaltradeoronpolicies

concerningtheprotectionofintellectualpropertyrightssuchaspatents,trademarks,and

copyrights.AgriculturaltradeisanotherareawhereGATTruleseitherdonotapplyorare

noteffective.Finally,thedisputesettlementmechanismisseentobeincreasingly

ineffectiveatresolvingconflictsamongGATTmembers.

3.DiscusstheimpactofGATS,TRIMS,ANDTRIPSonglobaltrade.

AnimportantobjectiveoftheUnitedStatesintheUruguayRoundwastoreduceor

eliminatebarrierstointernationaltradeinservices.Whilethereisstillmuchprogressto

bemadebeforefreetradeinserviceswillexistthroughouttheworld,theGeneral

AgreementonTradeinServices(GATS)isthefirstmultilateral,legallyenforceable

agreementcoveringtradeandinvestmentinservicessector.Itprovidesalegalbasisfbr

futurenegotiationsaimedateliminatingbarriersthatdiscriminateagainstforeignservices

tradeanddenythemmarketaccess.Forthefirsttime,comprehensivemultilateral

disciplinesandprocedurescoveringtradeandinvestmentinserviceshavebeen

established.Specificmarket-openingconcessionsfromawiderangeofindividual

countrieswereachievedandprovisionwasmadeforcontinuednegotiationstofurther

liberalizetelecommunicationsandfinancialservices.

Equallysignificantweretheresultsofnegotiationsintheinvestmentsector.Trade-Related

InvestmentMeasures(TRIMs),establishedthebasicprinciplethatinvestmentrestrictions

canbemajortradebarriersandthereforeareincluded,forthefirsttime,underGATT

procedures.Aninitialsetofspecificpracticeswereprohibitedincluding:localcontent

requirementsspecifyingthatsomeamountofthevalueoftheinvestor'sproductionmustbe

purchasedfromlocalsourcesorproducedlocally;tradebalancingrequirementsspecifying

thataninvestormustexportanamountequivalenttosomeproportionofimportsor

conditiontheamountofimportspermittedonexportlevels;and,foreignexchange

balancingrequirementslimitingtheimportationofproductsusedinlocalproductionby

restrictingitsaccesstoforeignexchangetoanamountrelatedtoitsexchangeinflow.Asa

resultofTRIMs,restrictionsinIndonesiawhichprohibitforeignfirmsfromopeningtheir

ownwholesaleorretaildistributionchannelscanbechallenged.Andsocaninvestment

restrictionsinBrazilthatrequireforeign-ownedmanufacturerstobuymostoftheir

componentsfromhigh-costlocalsuppliersandthataffiliatesofforeignmultinationals

maintainatradesurplusinBraziPsfavorbyexportingmorethantheysellwithin.

AnotherobjectiveoftheUnitedStatesfromtheUruguayRoundwasachievedbyan

agreementonTrade-RelatedAspectsofIntellectualPropertyRights(TRIPs).TheTRIPs

agreementestablishessubstantiallyhigherstandardsofprotectionfbrafullrangeof

intellectualpropertyrights(patents,copyrights,trademarks,tradesecrets,industrialdesigns,

andsemiconductorchipmaskworks)thanareembodiedincurrentinternationalagreements

anditprovidesfbrtheeffectiveenforcementofthosestandardsbothinternallyandatthe

border.

4.DiscusstheevolutionofworldtradethathasledtotheformulationoftheWTO.

SincetheinceptionofGATT,therehavebeeneight“rounds“ofintergovernmentaltariff

negotiations.ThemostrecentlycompletedwastheUruguayroundwhichbuiltonthe

successoftheTokyoRound,themostcomprehensiveandfar-reachingroundundertaken

byGATTuptothattime.TheTokyoRoundresultedintariffcutsandsetnew

internationalrulesforsubsidiesandcountervailingmeasures,anti-dumping,government

procurement,technicalbarrierstotrade(standards),customsvaluation,andimport

licensing.WhiletheTokyoRoundaddressednon-tariffbarriers,thereweresomeareas

notcoveredbythatroundwhichcontinuedtoimpedefreetrade.Inadditiontomarket

access,therewereissuesoftradeinservices,agriculture,andtextiles;intellectual

propertyrights;andinvestmentandcapitalflows.

.TheUruguayRoundwasbegunin1986inPuntadelEste,Uruguayandfinallyconcluded

in1994.By1995,80GATTmembersincludingtheUnitedStates,theEuropeanUnion

(anditmemberstates)Japan,andCanadahadacceptedtheagreement.Perhapsthemost

notableachievementoftheUruguayRoundwasthecreationofanewinstitutionasa

successortotheGATT,theWorldTradeOrganization(WTO).Atthesigningofthe

UruguayRoundtradeagreement,U.S.representativespushedforanenormousexpansionof

thedefinitionoftradeissues.TheresultwasthecreationoftheWorldTradeOrganization

thatencompassesthecurrentGATTstructureandextendsittonewareasnotadequately

coveredinthepast.TheWTOisaninstitution—notanagreementaswasGATT.Itwillset

therulesgoverningtradebetweenits117members,provideapanelofexpertstohearand

ruleontradedisputesbetweenmembersand,unlikeGATT,issuebindingdecisions.Itwill

requireforthefirsttime,thefullparticipationofallmembersinallaspectsofthecurrent

GATTandtheUruguayRoundagreementsand,throughitsenhancedstatureandscope,

provideapermanent,comprehensiveforumtoaddressthetradeissuesofthe21stcentury

globalmarket.Tradedisputeswillbeheardbyapanelofexperts.Apanelofexperts,

selectedbytheWTO,willhearbothsidesandissueadecision;thewinningsidewillbe

authorizedtoretaliatewithtradesanctionsifthelosingcountrydoesnotchangeitspractices.

WhiletheWTOhasnoactualmeansofenforcement,internationalpressuretocomplywith

WTOdecisionsfromothermembercountriesisexpectedtoforcecompliance.TheWTO

ensuresthatmembercountriesagreetotheobligationsofalltheagreements,countries,

includingdevelopingcountries(thefastestgrowingmarketsoftheworld)willundertake

obligationstoopentheirmarketsandtobeboundbytherulesofthemultilateraltrading

system.

ThisexerciseisdesignedtofamiliarizethestudentwiththeInternetandissuesGATTas

wellastheWTO.InadditiontothevariousRoundsofGATT,thissiteisacomplete

discussionofWTO.Thediscussionofthisquestioncouldincludeabroaderdiscussion

ofWTO.

5.U.S.exportstotheEuropeanCommunityareexpectedtodeclineinfutureyears.What

marketingactionsmayacompanytaketocounteractsuchchanges?

AneconomicunitysuchastheECisprimarilyconcernedwithincreasesoftradewithin

itsmember-countriesbecausetheywanttoraisetheirownproductionandgainthrough

economicgrowththattheirspecializedmemberscansupply.ItmaybesaidthattheEC

wantstodecreasetheirtradewithnonmembernations.Onestudyhasshownsome

proportionaldeclinesalready.

WhattheU.S.marketershoulddotocounteractsuchactionsisto,asrapidlyaspossible,

expandexportstothismarket.Moreimportant,themarketersshouldbuildnewand

expandEC-located,U.S.-ownedindustriesandmarketingfacilitiestostrengthentheir

positionbeforeitbecomestoolate.ECmembersarenowbusybuildingnewplantsand

establishingtheiroutletsandmarkets.FromtheU.S.foreignmarketer'spointofview,

thereisnotimetowaste,otherwisetheywilllosesomeofthegriptheyhaveestablished

inEurope.

Also,keepinginmindthatmanyotherWesternEuropeancountriesareagaininterestedin

joiningEC.Thetypicalargument:"Itwillbetooexpensivetostayoutside.^^Asound

policyforAmericancompanieswantingordependentuponmarketingintheEuropean

marketmightincreasetheirpotentialinEFTA.

6."Becausetheyaredynamicandbecausetheyhavegreatgrowthpossibilities,the

multinationalmarketsarelikelytobeespeciallyrough-and-tumblefbrtheexternal

business.^^Discuss.

Theattractivegrowthandprofitopportunitiesinmultinationalmarketstendtodrawthe

moreaggressivemarketersintocompetition.Whereas,acompanymayhavevirtuallyno

competitioninitshomemarket,itmaybecompetingwiththreeorfourmajorfirmsinthe

multinationalmarket.Nationalinterestgivespreferentialtreatmentofvarioustypesto

firmsfrommembernationsandintensifiesthenormalmarketcompetition.

7.DiscusstheimplicationsoftheEuropeanUnion'sdecisiontoadmitEasternEuropeannations

tothegroup.

TheadmissionofEasternEuropeannationsintotheEUwillcreateaneverlargerand

moreeconomicallyimportantthanthepresentEU.Theglobalizationofmarkets,the

restructuringofEasternEuropeintoindependentmarket-driveneconomies,the

dissolutionoftheSovietUnionintoindependentstates,theworldwidetrendtoward

economiccooperation,andenhancedglobalcompetitionmakeitimportantthatmarket

potentialbeviewedinthecontextofregionsoftheworldratherthancountrybycountry.

FormaleconomiccooperationagreementssuchastheECarethemostnotableexamples

ofmultinationalmarketgroupsbutmanynewcoalitionsareforming,oldonesarebeing

re-energized,andthepossibilityofmanynewcooperativearrangementsisonthehorizon.

8.DiscussthestrategicmarketingimplicationsoftheCanada-UnitedStates-MexicoFreeTrade

Agreement.

NAFTAaffectsavarietyofstrategicissues,themostimportantofwhichare:

MarketAccess.Within10yearsofimplementation,alltariffswillbeeliminatedon

NorthAmericanindustrialproductstradedbetweenCanada,Mexico,andtheUnited

States.AlltradebetweenCanadaandtheU.S.notalreadydutyfreewillbedutyfreeby

1998asprovidedforinCFTA.Mexicowillimmediatelyeliminatetariffsonnearly50

percentofallindustrialgoodsimportedfromtheU.S.,andremainingtariffswillbe

phasedoutentirelywithin15years.

NontariffBarriers.Inadditiontoeliminationoftariffs,Mexicowilleliminatenontariff

barriersandothertrade-distortingrestrictions.U.S.exporterswillbenefitimmediately

fromtheremovalofmostimportlicensesthathaveactedasquotasessentiallylimitingthe

importationofproductsintotheMexicanmarket.NAFTAalsoeliminatesahostofother

Mexicanbarrierssuchaslocalcontent,localproduction,andexportperformance

requirementsthathavelimitedU.S.exports.

RulesofOrigin.NAFTAreducestariffsonlyforgoodsmadeinNorthAmerica.Tough

rulesoforiginwilldeterminewhethergoodsqualifyforpreferentialtarifftreatmentunder

NAFTA.Rulesoforiginaredesignedtoprevent"freeriders“frombenefitingthrough

minorprocessingortransshipmentofnon-NAFTAgoods.Forexample,Japancouldnot

assembleautosinMexicoandavoidU.S.orCanadiantariffsandquotasunlesstheauto

hadaspecificpercentageofMexican(i.e.,NorthAmerican)content.Forgoodstobe

tradeddutyfree,theymustcontainsubstantial(62.5percent)NorthAmericancontent.

SinceNAFTArulesoforiginhavebeenstrengthened,clarified,andsimplifiedoverthose

containedintheU.S.-CanadaFreeTradeAgreement,theysupersedetheCFTArules.

CustomsAdministration.UnderNAFTA,Canada,Mexico,andtheU.S.haveagreedto

implementuniformcustomsproceduresandregulations.Uniformproceduresensurethat

exporterswhomarkettheirproductsinmorethanoneNAFTAcountrywillnothaveto

adapttomultiplecustomsprocedures.Mostproceduresgoverningrulesoforigin

documentationrecordkeeping,andoriginverificationwillbethesameforallthree

NAFTAcountries.Inaddition,thethreewillissueadvancedrulings,onrequest,on

whetherornotaproductqualifiesfortariffpreferenceundertheNAFTArulesoforigin.

Investment.NAFTAwilleliminateinvestmentconditionsthatrestrictthetradeofgoods

andservicetoMexico.Amongconditionseliminatedaretherequirementsthatforeign

investorsexportagivenlevelorpercentageofgoodsorservices,usedomesticgoodsor

services,transfertechnologytocompetitors,orlimitimportstoacertainpercentageof

exports.

Services.NAFTAestablishesthefirstcomprehensivesetofprinciplesgoverningservices

trade.U.S.andCanadianfinancialinstitutionsarepermittedtoopenwhollyowned

subsidiariesinMexico,andallrestrictionsontheservicestheyofferwillbeliftedbythe

year2000.U.S.andCanadiantruckingcompaniesareabletocarryinternationalcargo

intoMexicanborderstatesand,by1999,theywillbeabletotruckthroughoutMexico.

IntellectualProperty.NAFTAwillprovidethehigheststandardsofprotectionof

intellectualpropertyavailableinanybilateralorinternationalagreement.Theagreement

coverspatents,trademarks,copyrights,andtradesecrets,semiconductorintegrated

circuits,copyrightsforNorthAmericanmovies,computersoftware,andrecords.

GovernmentProcurement.NAFTAguaranteesbusinessesfairandopencompetitionfor

procurementinNorthAmericathroughtransparentandpredictableprocurement

procedures.InMexico,Pemex(nationaloilcompany),CFE(nationalelectriccompany),

andothergovernment-ownedenterpriseswillbeopentoU.S.andCanadiansuppliers.

Standards.NAFTAprohibitstheuseofstandardsandtechnicalregulationsusedas

obstaclestotrade.However,NAFTAprovisionsdonotrequiretheUnitedStatesor

Canadatolowerexistinghealth,environmental,orsafetyregulations,nordoesNAFTA

requiretheimportationofproductsthatfailtomeeteachcountry'shealthandsafety

standards.

9.Foreachregionaltradegroup—EC,NAFTA,AFTA,ASEAN+3andMercosur—citewhichof

thefactorsforsuccessarethestrongestandwhicharetheweakest.Discusseachfactor.

Studentswillhavedifferentresponsestothisquestion.Theimportantpointisifthey

realizetheimportanceofthedifferentfactorsontheultimatesuccessofanyregional

tradegroup.Inmostcases,therearecultural,social,economic,politicalandever,

geographicaldifferencesamongcountrymembers.Thecriticalpointisiftheir

commitmenttoeconomicintegrationissufficientlystrongtoallowthemtodealwiththe

differencesthatwillariseasaresult.Eachresponsetothisquestionwillbedifferent.For

whatitisworth,theauthorwouldrankthemasfollows:

POLITICALECONOMICSOCIALGEOGRAPHIC

ECsStoWss

NAFTAWtoSWtoSStoWs

AFTAs,SWtoSWtoS

MERCOSURStoWWtoSSs

10.WhatisthemotivebehindASEAN+3andwhataretheprobableimplicationsforglobal

trade?

OneresultoftheAsianfinancialcrisisof1997-98wasthecreationofASEAN+3

(ASEANplusChina,JapanandSouthKorea),todealwithtradeandmonetaryissues

facingAsia.MostEastAsiafeltthattheywerebothletdownandputuponbytheWest

whotheyfeltcreatedmuchofthecrisisbypullingoutinthemidstofthecrisis.Itwasfelt

thattheleadingfinancialpowerseitherdeclinedtotakepartintherescueoperations,as

theUSdidinThailand,orthattheyproposedunattainablesolutions.Theresultwasthe

creationofASEAN+3,1consistingoftheforeignandfinanceministersofeachcountry,

whichmeetsannuallyafterASEANmeetings.Theirfirstmeetingwasdevotedto

devisingasystemwherebytheyshareforeignexchangereservestodefendtheir

currenciesagainstfutureattack.Whilestillonlytentative,therewasalsodiscussion

amongthemembersofASEAN+3ofcreatingacommonmarketandevenasingle

cun'encyor,perhaps,anewAsianentityencompassingbothNortheastandSoutheast

Asia.2CloserlinksbetweenSoutheastAsiaandNortheastAsiaisseenasasteptowards

strengtheningAsia'sroleintheglobaleconomyandthecreationofaglobalthree-block

configuration.3

11.Discusstheeconomicandtradeimportanceofthebigemergingmarkets.

TheDepartmentofCommerceestimatesthatover75percentoftheexpectedgrowthin

theworldtradeoverthenexttwodecadeswillcomefromthemorethan130developing

andnewlyindustrializedcountries(NICs).Thereisasmallcoreofthesethatwillaccount

foroverhalfofthatgrowth.TheypredictthatthecountriesidentifiedasBigEmerging

Markets(BEMs)alonewillbeabiggerimportmarketbytheendofthisdecadethanthe

EuropeanUnionandbytheyear2010,willbeimportingmorethantheEUandJapan

combined.

TheBEMsdifferfromotherdevelopingcountriesbecausetheyimportmorethansmaller

marketsanmorethaneconomiesofsimilarsize.Astheyembarkoneconomicdevelopment,

demandforcapitalgoodstobuildtheirmanufacturingbaseanddevelopinfrastructure

increases.Increasedeconomicactivitymeansmorejobsandmoreincometospendon

productsnotyetproducedlocally.Thus,astheireconomiesexpand,thereisanaccelerated

growthindemandforgoodsandservices,muchofwhichmustbeimported.BEM

merchandiseimportsareexpectedtobenearlyonetrilliondollarshigherthantheywerein

1990;ifservicesareadded,theamountjumpsbeyondonetrilliondollars.

12.Whatarethetraitsofthosecountriesconsideredtobebigemergingmarkets?Discuss

ThoseBEMs,astheDepartmentofCommercereferstothem,shareanumberof

importanttraits:Theyareallphysicallylarge;havesignificantpopulations;represent

considerablemarketsforawiderangeofproducts;allhavestrongratesofgrowthorthe

potentialforsignificantgrowthhaveallundertakensignificantproblemsofeconomic

reforms;areallofmajorpoliticalimportancewithintheirregions;are"regionaleconomic

drivers;^^willengenderfurtherexpansioninneighboringmarketsastheygrow.

Whilethesecriteriaaregeneralionnatureandeachcountrydoesnotmeetallthecriteria,

theDepartmentofCommercehasidentifiedthefollowingBEMs.InAsia:China,Indonesia,

India,andSouthKorea.InLatinAmerica:Mexico,Argentina,andBrazil.InAfrica:

SouthAfrica.InCentralEurope:Poland.InSouthernEurope:Turkey.Vietnam,

Thailand,Venezuela,andColumbiamaywarrantinclusioninthenearfuture.Thelistis

fluidinthatsomecountrieswilldropoffwhileotherswillbeaddedaseconomicconditions

change.Themessageisclear,theDepartmentofCommerceisfocusingoncountriesthat

demonstratethegreatestpotentialforgrowth.

Chapter3HistoryandGeography:TheFoundationofCulture

2.Whystudygeographyininternationalmarketing?Discuss.

Geographyisastudyofthephysicalcharacteristicsofaparticularregionoftheearth.

Involvedinthisstudyareclimate,topography,andpopulation.Theinteractionofthe

physicalcharacteristicsisoneoftheprincipaldeterminantsofacountry'scustoms,

products,industries,needs,andmethodsofsatisfyingthoseneeds.

Marketingisconcernedwithsatisfyingtheneedsofpeople.Internationalmarketingseeks

outthewholeworldasitsmarketplace.Therefore,foraninternationalmarketertoknow

howtosatisfytheneedsoftheinternationalmarket,hemustbefamiliarenoughwith

geographytoknowwhatthevariouscausalfactorsofthepeople'sneedsare.Hemust

knowthatvariousclimatesandtopographiesdoexistandthattheyarevitalinshapingthe

marketingplansthataninternationalmarketermustmake.Asanexample,aproducer

sellingmachineryinthetropicswouldhavetorealizethatspecialprotectionisneededto

keepamachinerunningproperlyinhotandhumidclimates.

3.Whystudyacountry'shistory?Discuss

Historyhelpsdefineanation's"mission,“howitperceivesitsneighbors,howitseesits

placeintheworld,andhowitseesitself.Insightsintothehistoryofacountryare

importantforunderstandingattitudesabouttheroleofgovernmentandbusiness,the

relationsbetweenmanagersandthemanaged,thesourcesofmanagementauthority,and

attitudestowardforeigncorporations.

Tounderstand,explain,andappreciateapeople'simageofitselfandtheattitudesand

unconsciousfearsthatreflectedinitsviewofforeigncultures,itisnecessarytostudythe

cultureasitisnowaswellastounderstandthecultureasitwas—thatis,acountry's

history.Unlessyouhaveahistoricalsenseofthemanychangesthathavebuffeted

Japan—sevencenturiesundertheshogunfeudalsystem,1theisolationbeforethecoming

ofAdmiralPerryin1853,thethreatofdominationbycolonialpowers,"theriseofnew

socialclasses,Westerninfluences,thehumiliationofWorldWarII,andinvolvementinthe

internationalcommunity—itisdifficulttofullyunde

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