Chapter 1. Introduction to Global Marketing

; Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organization goals.

; An organization that engages in Global Marketing focuses its resources on global market opportunities and threats. One difference between "regular" marketing and "global" marketing is the "scope of activities". A company that engages in global marketing conducts important business activities outside the home-country market. Another difference is that global marketing involves an understanding of specific concepts, considerations, and strategies that must be skillfully applied in conjunction with universal marketing fundamentals to ensure success in global markets.

Overview of Marketing

; Marketing: one of the activities that, along with product design, manufacturing, and transportation logistics, comprise a firm's value chain.

; Competitive pressure have prompted many firms to involve marketers in design, manufacturing, and other value-related decisions from the start. This approach is known in some circles as "boundaryless marketing". The goal is to eliminate the communication barriers between marketing and other functional areas.

; Value equation

; Value(가치) = Benefits(편익) / Price(비용:money, time, effort, ..)

; Needs(욕구)

; 모든 사람들이 원래부터 가지고 있는 것. 지각하고 있을 수도, 없을수도 있다.

; cf) Maslov's Basic Human Requirements {Physiological / Safety / Social / Esteem / Self-actualization }

; Wants(필요)

; 욕구에 의해서 사람들이 실제로 필요하다고 생각하는 것. Product나 Service와 연계된다.

; Competition (경쟁)

; Offering more value ⇒ More competition!

; The marketing mix is integral to the equation because benefits are a combination of the product, promotion, and distribution.

; Value를 증진시키기 위한 방법에는 아래와 같은 것이 있다.

; ① Offer customers an improved bundle of benefits or lower prices

; ② Improve the product itself, to design new channels of distribution, to create better communications strategies

; ③ Finding way to cut costs and prices

; ④ Decrease the time and effort that customers must expend to learn about or seek out the product

; 만약 회사가 뛰어난 제품, 유통, 프로모션 및 낮은 가격을 갖추게 된다면 극단적으로 유리한 고지에 서게 된다. (일본의 회사들이 그랬던 것처럼)

Competitive Advantage, Globalization, and Global Industries

; 기업이 그 경쟁자에 비해서 더 나은 가치를 제공하는데 성공한다면 이는 산업에서 '경쟁 우위'(Competitive Advantage)를 누리고 있다고 이야기한다.

; 과거의 지역적 혹은 국가적 산업들을 글로벌한 산업으로 변환시키는 것은 보다 더 넓은 세계화 과정(Globalization)의 일부분이다.

; Globalization is the inexorable integration of markets, nation-states and technologies to a degree never witnessed before

; 마케팅의 관점에서 Globalization은 기업에게 자사의 제품을 어디에서나 제공하는 기회(및 challenge)를 제공한다. 또한 동시에 예측하지 못한 기회들이 그들 자신을 변화시키기도 한다.

; Global industry is one in which competitive advantage can be achieved by integrating and leveraging operations on a worldwide sale. Also A company's industry position in one country is interdependent with its industry positoin in other countries.

; Focus is simply the concentration of attention on a core business or competence.

; 많은 회사들이 이 집중의 문제를 해결하기 위해 여러 다른 형태의 alliance, mergers, acquisitions, divestitures, and folding 등을 행하고 있다.

; Value(competitive advantage) and the focus required to achieve them are universal in their relevance and they should guide marketing efforts in any part of the world.

Global Marketing: What it is and What it isn't

; 각 지역마다 Marketing practice는 다를 수 밖에 없다. 이러한 차이점은 한 지역에서는 성공적으로 입증된 마케팅 접근방식(marketing approach)이 다른 지역에서 성공하리라는 보장이 없다는 것이다(not necessarily succeed)

; Global Marketing Strategy (글로벌 마케팅 전략)

; 단일 국가 내에서 기업은 표적 시장 선정(choosing target market)과 마케팅 믹스 개발(developing a marketing mix)에만 신경을 쓰면 된다. 이는 GMS에도 적용되나 몇 가지를 더 고려하여야 한다.

; ① Global market participation : the extent to which a company has operations in major world markets.

; ② Standardization VS Adaptation : the extent to which each marketing mix element can be standardized(executed in same way) or adapted(executed in different way) in various country markets.

; ③ Concentration of Marketing Activities : the extent to which activities related to the marketing mix(프로모션이나 가격 결정) are performed in one or a few country locations.

; ④ Coordination of marketing activities : the extent to which marketing activities related to the marketing mix are planned and executed interdependently around the globe

; ⑤ Integration of competitive moves : the extent to which a firm's competitive marketing tactics in different parts of the world are interdependent.

; Global marketing은 기회(Opportunity)와 위협(Threat)을 전세계에서 찾아 기업의 영역을 넓히는 것이다.

; The issue of standardization VS adaptation has been at the center of a long-standing controversy among both academicians and business practitioners.

; Coke의 글로벌 마케팅은 전세계적인 성공을 거두었다. 그러나 이것이 완전한 Standardization에만 기반한 것은 아니다. (일본에서는 내부로의 적극적인 접근으로 성공을 거둘 수 있었다) 일본에서의 Coke의 성공은 "Global localization"이란 말로 요약될 수 있다.

; Global localization : a successful global marketer must have the ability to "think globally and act locally".

; global marketing은 표준적인 것(제품 그 자체)과 비표준적인 것(유통방식이나 패키징)의 조합으로 이루어져 있다.

; 성공적인 글로벌 기업은 지나친 표준화나 지나친 적응화를 택하지 않는다.

The importance of Global Marketing

; Some companies that fail to formulate adequate responses to the challenges and opportunities of globalization will be absorbed by more dynamic, visionary enterprises.

; 세계화에 실패한 기업들은 자꾸 그 순위가 떨어지고 밀리는 것을 알 수 있다.

Management Orientations

⑴ Ethnocentric Orientation (민족 중심적)

; Home country is superior, sees similarities in foreign countries. A person who assumes that his or her home country is superior to the rest of the world.

; Sometimes associated with attitudes of national arrogance or assumptions of national superiority.

; Centralized in marketing management

; 이런 사람들은 시장의 동일성만 보려는 경향이 있고 자국에서 성공한 제품과 방법이 다른 곳에서도 성공적일 것이라 생각하기 쉽다. 또한 자국 이외에서의 기회를 많이 무시하는 경향이 있다. 이러한 기업들은 domestic companies 라 불린다. 또한 Ethnocentric company이나 자국 이외에서도 기업을 운영하는 경우를 international company라고 부른다. 이들은 자국에서 성공한 제품이 다른 곳에서도 성공할 것이라 집착한다.

; 이러한 관점은 adaptation 없이 표준화된(standardized or extension approach) 마케팅이 어디에서나 통할 것이라는 전제를 가지고 있다.

; 이러한 기업에서는 foreign operator나 market이 국내의 것에 비해 2차적이거나 부수적인 것으로 여겨진다.

; Ethnocentrism is one of the major internal weaknesses that must be overcome if a company is to transform itself into an effective global competitor.

; 민족 중심주의는 기업이 효과적인 글로벌 경쟁자가 되기 위해 극복되어져야 하는 가장 큰 내부적 약점 가운데 하나이다.

; ★ Standardize extension "centralized"

⑵ Polycentric Orientation (다민족 중심적)

; Each host country is unique, sees differences in foreign countries.

; 이는 Ethnocentric Orientation의 반대(opposite)이다.

; Manger's belief of assumption that each country in which a company does business is unique. Multinational company(다국적 기업)가 여기에 포함된다. 이는 각각의 마켓 상태(different market condition)에 따라 각각 localized 혹은 adaptation approach된 제품을 제공하여야 한다는 것에 기초한다.

; Decentralized in marketing management

; ★ Everything is different, extreme localization "decentralized"

⑶ Regiocentric Orientation (지역 중심적 관점)

; Sees similarities and differences in a world region; is ethnoceitric or polycentric in its view of the rest of the world

; A region becomes the relevant geographic unit; management's goal is to develop an integrated regional strategy.

; 한 지역은 적절한 지리적 단위가 된다. 경영 목표는 통합적인 지역 전략을 개발하는 것이다.

; ex) U.S. 회사들이 NAFTA 소속 국가에 집중하는 것. 또한 유럽 기업들은 유럽 지역에 중심을둔다.

; Integrated on regional in marketing management

⑷ Geocentric Orientations (지구 중심적 관점)

; World view, sees similarities and differences in home and host countries

; Views the entire world as a potential market and strives to develop integrated world market strategies.

; 전 세계를 잠재적인 시장으로 보고 통합된 세계 시장에 대한 전략을 개발하기 위해 노력한다.

; Integrated on global in marketing management

; 이들 중 Regiocentric / Geocentric 관점으로 경영하려는 회사들은 때때로 세계적(Global) 혹은 초국적(Transnational) 기업이라고 불린다.

; Global company

; A Global company can be further described as one that pursues either a strategy of serving world markets from a single country, or that sources globally for the purposes of focusing on select country market.

; Global companies tend to retain their association with a particular HQs country.

; ex) 할리 데이비슨은 US와 아일랜드에서 전 세계 시장에 공급한다. Gap의 경우 저임금의 국가에서 의류를 가져와 주로 핵심 미국 시장을 공략한다. (이들은 모두 글로벌 기업이다!)

; Transnational companies both serve global markets and source globally. There is often a blurring of national identity. A true transnational would be characterized as "stateless."

; ex) Toyota가 초국적 기업의 예.

; Global 및 Transnational 기업을 International 혹은 Multinational 기업과 구분짓는 가장 중요한 기준은 Mind-set 이다: Global/Transnational 기업은 확장(expand)과 적응(adaptation)에 관련한 결정이 가정(assumption)에 기초해서 내려지지 않는다. 오히려 그러한 결정들은 시장 필요와 욕구에 대한 조사의 기초 위에서 내려진다. 또한 글로벌한 경영은 통합적(integrated)이고 종합적(coordinated)이다.

; 한 기업이 Transnational인지 확인하기 위해서는 3가지를 보면 된다

; ① Sales outside the home country to total sales

; ② Assets outside the home country to total assets

; ③ Employees outside the home country to total employee

; The geocentric orientation represents a synthesis of ethnocentrism and polycentrism. It is a "world view" that sees similarities and differences in markets and countries and seeks to create a global strategy that is fully responsive to local needs and wants.

; A regiocentric manager might be said to have a world view on a regional scale; the world outside the region of interest will be viewed with an ethnocentric or a polycentric orientation, or both.

; 하지만 최신의 연구 결과는 지역적인 경쟁력을 유지하는 것이 곧바로 글로벌 환경으로 옮겨가는 것보다 훨씬 낫다고 한다.

; Ethnocentric/polycentric ⇒ Regiocentric/gencentric 옮겨가는 것의 어려움

; "The multinational solution encounters problems by ignoring a number of organizational impediments to the implementation of a global strategy and underestimating the impact of global competition"

For Affecting Global Integration and Global Marketing

Driving Forces (원동력)

⑴ Regional Economic Agreements (지역적 경제 협정)

; A number of multilateral trade agreements have accelerated the pace of global integration.

; e.g.) NAFTA, GATT, WTO, EU

⑵ Converging Market Needs and Wants and the Information Revolution

; Most global markets do not exist in nature; they must be created by marketing effort.

; ex) No one "needs" soft drinks, and yet today in some countries per capita soft drink consumption "exceeds" the consumption of water

; 전세계적으로 소비자 욕구와 필요는 더더욱 수렴(converge)하고 있다. Multinational companies pursuing strategies of product adaptation run the risk of falling victim to global competitors that have recognized opportunities to serve global customers.

; Information revolution is one reason for the trend toward convergence. 위성 방송과 전세계적인 TV 네트웍(CNN, MTV)으로 지구 끝에 있는 사람들도 그들의 라이프 스타일과 생활 standard를 다른 나라와 비교할 수 있게 되었다.

; The Internet is an even stronger driving force. 이로 인해 세계 어디에서도 접속 가능한 환경이 되었다. 또한 인터넷은 제한되지 않은 제품과 서비스들을 가상적으로 사고팔 수 있도록 만들었다.

⑶ Transportation and Communication Improvements (운송 및 통신 수단의 발달)

; 제트 항공기의 발달로 전세계 어디로든 48시간 이내에 도달할 수 있게 되었다.

; 또한 다른 정보통신 수단의 발달도 비용의 절감을 가져오게 되었다.

; The cost associated with physical distribution, both in terms of money and time, have been greatly reduced.

⑷ Product Development Cost (제품 개발 비용)

; The pressure for globalization is intense when new products require major investments and long periods of development time.

⑸ Quality (품질)

; Global marketing strategies can generate greater revenue and greater operating margins which support design and manufacturing quality.

; Global companies "raise the bar" for all competitors in an industry. When a global company establishes a benchmark in quality, competitors must quickly make their own improvements and come up to par.

; For truly global products, uniformity can drive down research, engineering, design, and production costs across business functions.

⑹ World Economic Trends (세계 경제 경향)

; Economic growth has been a driving force in the expansion of the international economy and the growth of global marketing for three reasons:

① Economic growth in key developing countries has created market opportunities that provide a major incentive for companies to expand globally.

② Economic growth has reduced resistance that might otherwise have developed in response to the entry of foreign firms into domestic economies.

; 중국 같은 국가가 급격한 경제 성장을 경험하고 있을 때 정책 결정자는 외부에 대해서 보다 호의적이다.

; A growing country means growing markets; there is often plenty of opportunity for everyone.

; 따라서 이렇게 경제가 성장하는 경우 외부의 기업이 들어와서 국내(domestic) 기업들과 경쟁하지 않고도 경쟁력을 갖추는 것이 가능하다. 그러나 경제 성장이 없이는 글로벌 기업들이 국내(domestic) 기업들의 자리를 차지하게 된다. 그 경우 국내 기업들이 정부의 개입을 요구하며 그들의 자리를 보호해 달라고 요청할 수 있다.

③ The worldwide movement toward free markets, deregulation, and privatization

; The trend toward privatization is opening up formerly closed markets.

⑺ Leverage (감쇄효과?)

; Leverage : Some type of advantage that a company enjoys by virtue of the fact that it has experience in more than one country.

; Leverage는 기업이 새로운 지역적 시장에서 기회를 찾고자 할 때 자원을 절약하도록 해준다. 다른 말로 Leverage는 기업이 보다 적은 시간, 적은 노력, 적은 자본을 투자하도록 해 준다. 다음은 Leverage의 4가지 종류이다.

① Experience Transfer (경험 옮기기)

; 국제 기업은 한 국가에서 이미 시험했던 경영 방침(management practices), 전략(strategies), 제품(products), 광고 소구(advertising appeals), 혹은 매출 및 프로모션 아이디어(sales or promotional ideas) 등을 다른 국가에서도 적용할 수 있다.

② Scale Economies (규모의 경제)

; The global company can take advantage of its greater manufacturing volume to obtain traditional scale advantages within a single factory.

; Finished products can be manufactured by combining components manufactured in scale-efficient plants in different countries.

; The importance of manufacturing scale has diminished somewhat as companies implement flexible manufacturing techniques and invest in factories outside the home country.

; Just as a domestic company can achieve economies in staffing by eliminating duplicate positions after an acquisition, a global company can achieve the same economies on a global scale by centralizing functional activities. The larger scale of the global company also creates opportunities to improve corporate staff competence and quality.

③ Resource Utilization (자원 활용)

; A major strength of the global company is its ability to scan the entire world to identify people, money, and raw materials that will enable it to compete most effectively in world markets.

④ Global Strategy (세계적 전략)

; A global strategy is built on an information system that scans the world business environment to identify opportunities, trends, threats, and resources.

; When opportunities are identified, the global company adheres to the three principles identified earlier : It leverages its skills and focuses its resource to create superior perceived value for customers and achieve competitive advantage.

; "The global strategy is a design to create a winning offering on a global scale."

; A global strategy is no guarantee of ongoing organizational success.

Restraining forces (억제력)

⑴ Management Myopia and Organizational Culture (근시안적 경영 및 조직 문화)

; 근시안적이고 인종 중심적 기업은 지역적으로 확장할 수 없다. 글로벌 마케팅 에서는 지역 시장 상황에 대해 정보를 제공하는 강한 로컬 팀과 함께 일할 수 없다.

; 또한 "다 알고 있어" 식의 최고 경영진도 곤란하다. 본사 경영진이 모든 것을 다 알고 있는 회사에서는 local initiative나 in-depth knowledge of local needs and condition을 위한 공간이 없다.

⑵ National Controls (국가적 통제)

; Every country protects the commercial interests of local enterprises by maintaining control over market access and entry in both low- and high-tech industries.

; 오늘날 관세 장벽은 WTO, GATT, NAFTA 등으로 많이 철폐되었지만 비관세 장벽 (non-tariff barriers) 즉 "우리 물건 사기"(buy local) 캠페인이나 식품 안전법(food safety rules), 그리고 다른 관료적 장벽(other bureaucratic obstacles) 들이 회사가 개별 국가에 접근해 들어가기 힘들게 하고 있다.

⑶ Opposition to Globalization (세계화에 대한 반대)

; Globaphobia : an attitude of hostility toward trade agreements, global brands, or company policies that appear to result in hardship for some individuals or countries while benefiting others.

; 이는 정책 결정자나 잘 알려진 글로벌 기업들에 대한 반대(protest)나 폭력(violence)의 형태로 나타난다.

; 세계화의 반대자들 : Labor unions, college and university students, special interest group 등등이 있다.

; 미국 내에서도 세계화가 미국 노동자들의 임금 하락을 가져왔다는 이야기가 있다.

Review Questions.

1. What are the basic goals of marketing? Are these goals relevant to global marketing?

2. What is meant by "global localization"? Is Coca-Cola a global product? Explain.

3. Describe some of the global marketing strategies avaliable to companies. Give example of companies that use the different strategies

4. How do the global marketing strategies of Harley-Davidson and Toyota differ?

5. Describe the difference between ethnocentric, polycentric, regiocentric, and geocentric management orientations.

6. Identify and briefly describe some of the forces that have resulted in increased global integration and the growing importance of global marketing

7. Define leverage and explain the different types of leverage utilized by companies with global operations.

Chapter 2. The Global Economic Environment

The World Economy - An Overview

; 세계대전 이후 가장 근원적인 변화는 emergence of global markets 이다 : responding to new opportunities, global competitors have steadily displaced or absorbed local ones. Concurrently, the integration of the world economy has increased significantly.

; During the 20 years, the world economic environment has become increasingly dynamic; change has been dramatic and far reaching. To achieve success, executives and marketers must take into account the following new realities.

; Capital movement have replaced trade as the driving force of the world economy

; Production has become "uncoupled" from employment

; The world economy dominates the scene; individual country economies play s subordinate role.

; the 75-year struggle between capitalism and socialism is largely over

; The growth of e-commerce diminishes the importance of national barriers and forces companies to re-evaluate their business models.

; Changes of World Economy

; ① Increased volume of capital movement

; Global capital movements far exceed the dollar volume of global trade.

; Today, it is capital movements and trade that detemine currency value.

; ② Relationship between productivity and employment

; ③ Emergence of the world economy as the dominant economic unit

; ④ End of the Cold War

; ⑤ Personal computer revolution and the advent of the Internet era have in some ways diminished the importance of national boundaries

Economic Systems

		Resource Allocation
		Market	Command
Resource Ownership	Private	Market capitalism	Centrally planned capitalism
	Slate	Market socialism	Centrally planned socialism

⑴ Market Capitalism (시장 자본주의)

; An economic system in which individuals and firms allocate resources and productoin resources are privately owned.

; Consumers decide what goods they desire and firms determine what and how much to produce. The role of the state is to promote competition among firms and ensure consumer protection.

; 예) 대다수의 많은 국가들이 채택하고 있다. (북아메리카, 서유럽)

; 그렇다고 모든 시장 지향 경제체자가 같은 형태라고 할 수는 없다. (미국과 일본이 다르듯)

⑵ Centrally Planned Socialism (중앙 통제 사회주의)

; The state has broad powers to serve the public interest as it sees fit.

; State planners make "top-down" decisions about what goods and services are produced and in what quantities. Consumers can spend their money on what is available. Government ownership of entire industries(as well as individual enterprises) is characteristic of centrally planned socialism.

; Demand typically exceeds supply, the elements of the marketing mix are not used as strategic variables. Little reliance is planned on product differentiaion, advertisin, or promotion.

; To eliminate "exploitation" by intermediaries, the government also controls distribution.

; 예) 과거의 중국과 구 소련, 인도

⑶ Centrally Planned Capitalism (중앙 통제 자본주의)

; An economic system in which command resource allocation is utilized extensively in an environment of private resource ownership

; 예) 스웨덴, 일본

⑷ Market Socialism (시장 사회주의)

; Market allocation policies are permitted within an overall environment of state ownership

; 예) 중국

; Economic Freedom Index (경제 자유 지수)

; Variables considered : trade policy, taxation policy, government consumption of economic output, monetary policy, capital flows and foreign investment, banking policy, wage and price controls, property rights, regulations, and the black market.

; Categorized as "Free", "Mostly Free", "Mostly Unfree", "Repressed", "Unrated"

; There is high correlation between the degree of economic freedom and the extent to which a nation's mixed economy is heavily market-oriented.

Stages of Market Development

; The stages provide a useful basis for global marketing segmentation and target marketing.

; Big Emerging Markets (BEMs) : China, India, Indonesia, South Korea, Brazil, Mexico, Argentina, South Africa, Poland, and Turkey

; Those are the 4 categories based on GNP (per capita)

; GNP = Gross National Product

; GDP = Gross Domestic Product

⑴ Low-income Countries

; Have a GNP per capita of less than $755.

; ① Limited industrialization and a high percentage of the population engaged in agriculture and subsistence farming

; ② High birth rates

; ③ Low literacy rates

; ④ Heavy reliance on foreign aid

; ⑤ Political instability and unrest

; ⑥ Concentration in Africa south of the Sahara

; About 40% of world's population is included.

; Many low-income countries have such serious economic, social, and political problems that they represent extremely limited opportunities for investment and operations.

; BEMs : India, Indonesia

⑵ Lower-Middle-Income Countries

; UN designates fifty countries in the bottom ranks of the low-income category as Least-developed Countries (LDCs) (This term is sometimes used to indicate a contrast w/ developing countries and developed countries. Bottom 15%.)

; Consumer markets in these countries are expanding rapidly.

; Have a major competitive advantage in mature, standardized, labor-intensive industries such as making toys and textiles.

; BEMs : China and South Africa

⑶ Upper-Middle-Income Countries

; The percentage of population engaged in agriculture drops sharply as people move to the industrial sector and the degree of urbanization increases.

; Rising wages and high rates of literacy and advanced education but significantly lower wage costs that the advanced countries.

; Innovate local companies can become formidable competitor and help contribute to their nations' rapid, export-driven economic growth.

; Newly industrilizing economics (NIEs)

; Upper-middle-income countries that achieve the highest rates of economic growth

; BEMs : Argentina, Mexico, Poland, Turkey

; Maquiladora

; Mexical corporation that is permitted to import materials, components, equipment, and other production inputs duty-free if they are used to produce goods for export.

; Marketing Opportunities in LDCs and Developing Countries

; Misconceptions about the "bottom of the pyramid"

; ① The poor have no money.

; In fact, the aggregate buying power of poor communities can be substantial.

; ② The poor are too concerned with fulfilling basic needs to "waste" money on non-essential goods.

; In fact, consumers who are too poor to purchase a house do buy "luxury" item sich as TV and gas stoves to improve their lives.

; ③ The goods sold in developing markets are so inexpensive that there is no room for a new market entrant to make a profit

; In fact, because the poor often pay higher prices for many goods, there is an opportunity for efficient competitors to realize attrative margins by offering quality and low prices.

; ④ People in BOP markets cannot use advanced technology

; In fact, residents of rural areas can and do quickly learn to use cell phones, PCs, and similar devices.

; ⑤ Global companies that target BOP markets will be criticized for exploiting the poor

; In fact, the informal economies in many poor countries are highly exploitative. A global company offering basic goods and services that improve a country's standard of living can earn a reasonable return while benefiting society.

; The marketing process of focusing an organization's resources on environmental opportunities is a process of universal relevance. The role of marketing is the same in all countries, irrespective of level of economic development.

; Global companies can also contribute to economic development by finding creative ways to preserve old-growth forests and other resources while creating economic opportunities for local inhabitants.

⑷ High-Income Countries

; Also known advanced, developed, industrialized, or postindustrial countries. (GNP > $9,266)

; Postindustrial country

; The source of innovation in postindustrial societies are derived increasingly from the codification of theoretical knowledge rather than from "random" inventions.

; Product and market opportunities in a postindustrial society are more heavily dependent upon new products and innovations than in industrial societies.

; Ownership levels for basic products are extremely high in most households. Organizations seeking to grow often face a difficult task if they attempt to expand their share of existing markets. They can endeavor to create new markets.

; BEMs : South Korea

; G7(Group of Seven) : U.S., Japan, Germany, France, Britain, Canada, and Italy

; G8 : G7 + Russia

; OECD(Organization of Economic Cooperation and Development)

⑸ The Triad

; Refers to Japan, Western Europe, and U.S.

; The dominant economic centers of the world.

Marketing Implications of the Stages of Development

; It describes previously can serve as a guide to marketers in evaluating product saturation levels(제품 충족 레벨), or the percentage of potential buyers or households who own a particular product.

; 대개 1인당 국민소득이 낮은 나라(low per capita income)에서는 많은 제품의 제품 충족 레벨이 낮은 편에 속한다.

Balance of Payments (지불 균형)

; A record of all economic transactions between the residents of a country and the rest of the world.

; 한 국가의 거주민과 나머지 세계 사이의 경제 교류 기록

; The balance of payment is divided into the current and capital accounts

; Current account

; A broad measure that includes trade in merchandise and services plus certain categories of financial transfer such as humanitarian aid.

; Trade deficit (무역 적자)

; A country with a negative current account balance

; The outflow of money to pay for imports exceeds the inflow of money for sales of export

; Trade surplus (무역 흑자)

; A country with a positive current account balance

; Capital account

; A record of all long-term direct investment, portfolio investment, and other short- and long-term capital flows.

; 마이너스인 경우에는 현금의 외부 유출을 의미한다.

World Trade in Merchandise and Services

; Import and export growth has outpaced the rate of increased in GNP.

; Probably the fast-growing sector of world trade is trade in services. Services include travel and entertainment; education; business services such as engineering, accounting, and legal services; and payments of royalties and license fees.

; 또한 저개발, 저소득 국가에서는 지적 재산권과 특허권이 제대로 지켜지지 못하고 있고 이로 인해 낮은 수익을 거두고 있다.

Overview of International Finance

; Foreign exchange makes it possible for a company in one country to conduct business in other countries with different currencies. However foreign exchange is an aspect of global marketing that involves certain financial risks, decisions, and activities that are completely different than those facing a domestic marketer.

; When a company conducts business across boundaries, it is thrust into the turbulent world of exchange risk.

; The foreign exchange market

; Consists literally of a buyer's and a seller's market where currencies are traded for both spot and future delivery on a continuous basis.

; Spot market

; Immediate delivery

; Forward market

; Future delivery

; A currency in this market is worth what people are willing to pay for it. It is worth what people are prepared to sell it for. It is a commodity.

Managed Dirty Float

; Float : The system of fluctuating exchange rates

; Dirty : Central banks buy and sell currencies in the foreign exchange market in an effort to influence exchange rates. Such interventions may be intended to dampen fluctuations in foreign exchange rates.

; Managed : The specific use of fiscal and monetary policy by government to influence exchange rates

; Devaluation(평가절하) can result from government action that decrees a reduction in the value of the local currency that was previously fixed against other currencies.

; Market forces can also trigger devaluation.

Foreign Exchange Market Dynamics

; A country sells more goods and services abroad than it buys, there will be a greater demand for its currency and a tendency for it to "appreciate" in value.

; Short-term capital is sensitive to interest rates and long-term capital to return expectations, and both are sensitive to perceptions of risk.

; 만약 (미국의 경우를 예로 들어) 수입이 수출보다 많아지면 어떻게 되겠는가? 이는 Import > Export ⇒ We pay for dollars ⇒ Weaken Dollars 가 된다.

Purchasing Power Parity

; It is used when adjusting national income data to improve comparability.

; The so-called Big Mac Index is a "quick and dirty" way of determining which of the world's currencies are too weak or too strong.

Economic Exposure (경제 노출) (★중요)

; The degree to which exchange rates affect a company's market value as measure by its stock price. Refers to the impact of currency fluctuations on the present value of a company's expected future cash flows.

; [설명] 예상치 못한 환율변동으로 기업의 기대현금흐름의 현재가치가 변할 가능성을 말한다. 경제적 익스포우져는 환산 익스포우져나 거래 익스포우져보다 기업의 장기적 경영에 보다 중요하다. 그러나 경제적 익스포우져는 임의적인 시간범위 내에서 거래의 현금흐름을 계산하기 때문에 주관적으로 흐를 가능성이 높다. 따라서 경제적 익스포우져는 회계과정에서 발생하는 것이 아니라 경제적 분석에서 발생한다고 할 수 있다.

; 이는 아래의 2가지 category로 나뉠 수 있다.

; ① Transaction exposure

; Arises when the company's activities result in sales or purchases denominated in foreign currencies.

; The importance of transaction exposure is directly proportional to the amount of business a company conducts outside the home market.

; ② Real operating exposure

; Arises when currency fluctuations, together with price changes, alter a company's future revenues and costs.

; The firms that face operating exposure include not only those that have overseas operations but also those whose manufacturing plan calls for sourcing goods abroad.

; Key issue is whether the company can use price as a strategic tool for maintaining its profit margins.

; 즉 기업이 다양한 시장의 환율 변동에 따라 가격을 올리거나 낮을 수 있는가? 이는 수요에 대한 가격 탄력성에 관계가 깊다. 만약 수요에 대한 가격 민갑도가 낮다면 환율 변동에 대응하기 위해 회사에 더 큰 유연성(flexibility)이 요구될 것이다. 또한 가격 민감성(Price elasticity)는 경쟁의 정도와(Degree of competition) 경쟁자의 위치(location of the competitors)에 따른다(depend).

Managing Exchange Rate Exposure

; It is difficult to accurately forecast the movement of exchange rate.

; 따라서 이를 관리하기 위한 많은 전략들이 등장하게 되었다.

; ⑴ Hedging

; Hedging exchange rate exposure involves establishing an offsetting currency position such that the loss or gain of one currency position is offset by a corresponding gain or loss in some other currency.

; Basic Rule : If company forecasts indicate that the value of the foreign currency will weaken against the home currency, a hedge to protect against potential transaction losses is a prudent course of action. (Conversely, for predictions that the foreign currency will appreciate/strengthen against the home currency, then a gain can be expected on foreign transactions when revelues are converted into the home currency.)

; Given this expectation, the best decision may be not to hedge at all.

; External hedging methods for managing both transaction and translation exposure require companies to participate in the foreign currency market. Internal Hedging methods include price adjustment clauses and intra-corporate borrowing or lending in foreign currencies

; ⑵ Forward market

; A mechanism for buying and selling currencies at a preset price for future delivery. If it is known that a certain amount of foreign currency is going to be paid out or received at some future date, a company can insure itself against exchange loss by buying or selling forward.

; With a forward contract, the company can lock in a specific fixed exchange rate for a future date and thus immunize itself from the loss (or gain) caused by the exchange rate fluctuation.

; The company needs to protect the dollar value of the contract by hedging the potential foreign currency cash inflow that will be generated if the company turns out to be the wining bidders. In such an instance, forward contract are not the appropriate hedging tool.

; ⑶ Option

; "Put option" gives the buyer the right, not the obligation, to sell a specified number of foreign currency units at a fixed price, upon the option's expiration date.

; "Call option" is the right, but not the obligation, to buy the foreign currency.

; [참고] 통화나 채권 등을 일정한 가겨으로 팔고사는 권리를 말한다. 팔 권리를 풋 옵션(put option)이라고 하고 살 권리를 콜 옵션(call option)이라고 한다.	유럽식은 옵션을 정해진 기일에만 행사할 수 있는데 반해 미국식은 언제라도 옵션을 행사할 수 있다. 니케이 평균 옵션과같이 거래소에 상장된 것도 있고 상대방끼리 거래하는 장외거래 옵션도 있다. 예를 들면 3개월 후에 수출대금 100억 달러를 받는 기업이 통화 옵션을 이용하여 엔고, 달러저로 인한 수취금액 감소를 방지하려면 우선 엔시세가 현제의 1달러당 105엔보다 상승하면 수취할 수 있는 엔화 금액이 줄게 되므로 이를 우려하여 옵션료를 지급하고 1달러당 110엔으로 달러를 팔 수 있는 풋 옵션을 미리 사둔다. 3개월 후에 엔화 가치가 상승하여 1달러당 100엔이 된다면 만약 옵션을 사두지 않았다면 수취금액은 1억 엔, 그러나 미리 사둔 옵션을 행사하면 1달러당 110엔에 살 수 있어 옵션을 포기하고 현물시세로 엔화를 사면 수취금액은 1억 1,500억 엔으로 늘어나지만 그 대신 옵션료만큼은 손실을 보게 된다. 달러를 팔 권리를 사는 것과 동시에 달러를 살 권리를 팔아서 옵션료를 상쇄하는 제로코스트 옵션 등을 많이 활용하고 있다.

Review Questions.

1. Explain the difference between market capitalism, centrally planned capitalism, centrally planned socialism, and market socialism. Give an example of a country that illustrates each type of system.

2. What is a Big Emerging Market (BEM)? Identify the BEMs accorting to their respective stages of economic development.

3. Turn to the Index of Economic Freedom and identify where the BEMs are ranked. What does the result tell you in terms of the relevance of the index to global marketers?

4. A manufacturer of satellite dishes is assessing the world market potential  for his products. He asks you if he should consider developing countries as potential markets. How would you advise him?

5. A friend is distressed to learn that America's merchandise trade deficit hit a record $549 billion in 2003. You want to cheer your friend up by demonstrating that the trade picture is not as bleak as it sounds. What do you say?

Chapter 3. The Global Trade Environment

The World Trade Organization and Gatt

; WTO

; The World Trade Organization (WTO) is an international, multilateral organization, which sets the rules for the global trading system and resolves disputes between its member states; all of whom are signatories to its approximately 30 agreements.

Preferential Trade Agreement

; A mechanism that confers special treatment on select trading partners.

; By favoring certain countries, such agreements frequently discriminate against others. (이러한 이유로 특혜 무역 협정을 맺고자 한다면 WTO에 신고하여야 한다)

⑴ Free Trade Area (자유 무역 지대)

; Formed when 2 or more countries agree to Eliminate tariffs, Quotas, and other barriers that restrict trade.

; A free trade area comes into being when trading partners successfully negotiate a free trade agreement.

; The ultimate goal is zero duties on goods that cross borders between the partners.

; Countries that belong to an FTA can maintain independent trade policies with respect to third countries.

; Rules of Origin (원산지 표기법)

; Used to discourage the importation of goods into the member country with the lowest external tariff for trans-shipment to one or more FTA members with higher external tariff; customs inspectors police the borders between members.

; ex) EU, G3, ..

⑵ Customs Union (관세 동맹)

; FTA(removal of internal barriers to trade) + Common external tariffs (CETs) and Quota system

; ex) EU, Turkey

⑶ Common Market (공동 시장)

; Customs Union + Elimination of Restrictions on Factor Movements (factors of production - including labor, capital, and information)

; ex) SICA

⑷ Economic Union (경제 동맹)

; Common Market + Coordinate and harmonize economic and social policy within the union to facilitate the free flow of capital, labor, and goods and service from country to country

; Would involve the creation of a unified central bank, the use of a single currency, and common policies on agriculture social services and welfare, regional development, transport, taxation, competitoin, and mergers.

; ex) EU

North America

; Includes Canada, the U.S., Mexico

; U.S.는 막대한 부와 많은 인구, 넓은 영토 및 풍부한 천연 자원 등의 자연적 환경과 정치적 환경으로 독특한 마케팅 특성을 가지고 있다.

; 이 3개의 국가는 NAFTA(North American Free Trade Agreement)를 맺고 있다.

; 왜 NAFTA가 관세 동맹이나 단일 시장(common market)대신 FTA 지역을 만들었는가? 모든 3개의 나라는 관세 철폐와 무역 및 투자 증가를 통해 경제적 성장을 촉진하고자 한다. 하지만 동일 외부 관세나 노동력 이동 등과 같은 요인에 대한 제약은 아직까지 없다. 멕시코에서의 미국 불법 이주는 아직까지도 문제가 되고 있다.

; 협정에서는 discretionary protectionism에 대한 문은 아직까지 열어두고 있지 않다.

Latin America: SICA, Andean Community, Mercosur, CARICOM

; 라틴 아메리카에는 Carribbean and Central and South America 가 포함된다.

; Balanced budget이 우선순위이고 privatization 은 현재 진행중이다.

Central American Integration System (SICA) (중앙 아메리카 연합체)

; Central American common market을 만들기 위해 노력하고 있다.

; Common rules of origin 이 통용되며 현재 SICA 국가들 간의 자유로운 물품 이동을 허용하고 있다.

; 다만 아직까지 통합 과정이 uncoordinated, inefficient, and costly 하다.

Andean Community (안데스 커뮤니티)

; 가입 국가들은 그룹간 무역에 대해 낮은 관세를 허용하고 각각의 국가들이 무엇을 생산하는지에 대해 함께 결정한다. 또한 외국의 물품과 회사들은 가급적 멀리 하도록 노력한다.

; Common external tariff가 적용되어 현재 진정한 관세 동맹으로 나아가고 있다.

Common Market of the South (Mercosur) (남부 공동 시장)

; 목표는 상품, 서비스, 그리고 생산 요소가 가입 국가들 사이에 완전히 자유롭게 이동하는 것이다. 하지만 Mercosur는 common market이라기보다는 관세 동맹(customs union)처럼 운영되고 있다. 90%의 상품이 자유롭게 이동하고 있지만 Mercosur의 개인 가입국들은 내부 및 외부 관세를 정부의 관점에서 자유롭게 바꿀 수 있다.

Caribbean Community and Common Market (CARICOM) (카리브해 커뮤니티 및 공동 시장)

; CARICOM의 주 목표는 Carrebean 공동 시장이라는 수단을 통해 경제적 통합을 깊게 하는 것에 있다.

Current Trade-Related Issues

; 서반구에서의 가장 큰 이슈는 FTAA(Free Trade Area of the Americas)이다. Leaders in many Latin American countries are frustrated by what they perceive as America's failure to follow through on its promises in the region. 그 결과 Brazil과 Mercosur 파트너들은 좀 더 느린 3단계의 협상 접근 방식을 옹호하고 있다.

; First stage : Include discussions on business facilitation issues such as standardized customs forms and industry deregulation

; Second stage : Focus on dispute ssettlement and rules of origin

; Third stage : Focus on tariff

ASIA-PACIFIC: The Association of Southeast Asian Nations (ASEAN)

; ASEAN은 아시아-태평양 지역의 flagship 특혜 무역 협정(preferential trade agreement) 주자이다.

; Individually and collectively, ASEAN countries are active inregional and global trade.

; A constant problem was the stric tneed for consensus among all members before proceeding with any form of cooperate effort.

Marketing Issues in the Asia-Pacific Region

; Mastering the Japanese market takes flexibility, ambition, and a long-term commitment. 일본에는 법만큼이나 태도(attitude)에도 장벽이 있다. 일본에 공급하고자 한다면 최고 품질의 제품과 서비스를 제공하여야 한다.

; <에구 너무 많다..>

Western, Central, and Eastern Europe

The European Union (EU)

; The objective of the EU member countries is to harmonize national laws and regulations so that goods, services, people, and eventually money can flow freely across national boundaries.

The European Free Trade Area (EFTA) and European Economic Area (EEA)

; The ultimate goal is to achieve the free movement of goods, services, capital, and labor between the two groups.

; EEA is a free trade area, not customs union with common external tariffs.

Marketing Issues in the European Union

; 그냥 읽고 말자~

The Lome Convention and the Cotonou Agreement

; Designed to promote trade and provide poor countries with financial assistance from a European Development Fund.

Central European Free Trade Association (CEFTA)

; Global companies view the region as an important new source of growth, and the first company to penetrate a country market often emerges as the industry leader.

The Middle East

; The majority of the population is Arab, a large percentage is Persian, and a small percentage is Jewish.

; Despite apparent homogeneity, many differences exist.

; The Middle East does not have a signal societal type with a typical belief, behavior, and tradition.

; Business in the Middle East is driven by the price of oil.

Cooperation Council for the Arab States of the Gulf

; The countries in GCC are heavily dependent on oil revenues to pay for their imports; efforts toward economic diversification are underway.

; The organization provides a means of realizing coordination, integration, and cooperation in all economic, social, and cultural affairs.

Marketing Issues in the Middle East

; Connection is the key word in conducting business in the Middle East. Those who take the time to develop relationships with key business and government figures are more likely to cut through red tape than those who do not.

; A predilection for bargaining is culturally ingrained, and the visiting business person must be prepared for some old-fashioned haggling.

; Decisions are usually not made by correspondence or telephone.

; Most social customs are based on the Arab male-dominated society.

Africa

Economic Community of Western African States (ECOWAS)

; The member countries agreed to establish a free trade area for unprocessed agricultural products and handicrafts.

; Tariffs on industrial goods were also to be abolished. However there were implementation delays.

East African Cooperation

; Established to promote free trade and economic integration. Tariff issues will be resolved and prospects for a customs union are being explored. Efforts are also underway to develop regional ties in tourism and coordinate energy projects.

Southern African Development Community (SADC)

Review Questions.

1. Explain the role of the World Trade Organization.

2. Describe the similarities and differences between a free trade area, a customs union, a common market, and an economic union. Give an example of each.

3. Identify a regional economic organization or agreement in each of the following areas: Latin America, Asia-Pacific, Western Europe, Central Europe, the Middle East, and Africa.

Chapter 4. Social and Cultural Environments

Society, Cuture, and Global consumer culture

; Culture

; Definition : ways of living, built up by a group of human beings, that are transmitted from one generation to another.

; or "The collective programming of the mind that distinguishes the members of one category of people from those of another."

; A culture acts out in the context of "social institution" (family, education, religious, governmental, and business institutions)

; those institutions function to reinforce "cultural norms".

; 문화는 의식적/무의식적인 가치, 생각(idea), 태도(attitude), 및 인간 행동을 구성하는 기호들과 이를 한 세대에서 다음 세대로 전이(transmit)하는 것을 포함한다.

; 2 Broad Categories of Culture

; ⑴ Material culture (물질 문화)

; 때때로 물리적 구성요소(physical component) 혹은 물리적 문화(physical culture)로 불리고 의복이나 도구와 같이 인간에 의해 만들어진 물리적 물체(physical object)나 인공물(artifact)을 포함한다.

; ⑵ Nonmaterial culture (정신 문화)

; 이는 주관적(subjective) 혹은 추상적 문화(abstract culture)라고 불리며 종교(religion), 인식(perceptions), 태도(attitudes), 신념(beliefs), 그리고 가치(value) 등과 같은 무형의 것(intangible)을 포함한다.

; 탈근대주의 경향을 띠는 현대 사회에서 문화 정보와 이미지들은 위성 TV, 인터넷, 그리고 비슷한 커뮤니케이션들과 새로운 글로벌 소비자들의 출현으로 인해 급속히 유입되고 있다. 이러한 문화를 인식한 사람들은 소비와 관련된 기호들의 의미있는 집합(meaningful set)을 공유하게 된다. 마케터들은 이를 "패스트 푸드 문화", "신용카드 문화", "주점 문화", "커피 문화" 등으로 부른다. 이러한 코스모폴리탄 문화는 다양한 지역 문화들간의 상호교류성이 증대되는 '연결된 세계'(wired world)의 상당 부분을 차지하고 있다.

⑴ Attitudes, Beliefs, and Values (태도, 신념, 가치)

; 우리는 문화를 특정 구성원 집단이 공유하는 태도, 신념, 그리고 가치를 학습함으로서 문화를 배울 수 있다.

; 태도(Attitude)

; A learned tendency to respond in a consistent way to a given object or entity.

; Attitudes are clusters of interrelated beliefs

; 신념(Belief)

; An organized pattern of knowledge that an individual holds to be ture about the world.

; Attitudes and beliefs, in turn, are closely related to values

; 가치(Value)

; An enduring belief or feeling that a specific mode of conduct is personally or socially preferable to another mode of conduct.

; 하위 문화(Subculture)

; Smaller groups of people with their own shared subset of attitudes, beliefs, and values.

⑵ Religion (종교)

; One important source of a society's beliefs, attitudes, and values.

; Buddhism, Hinduism, Islam, Judaism, and Christianity {Roman Catholicism and Protestant}

⑶ Aesthetics (미학)

; An overall sense of what is beautiful and what is not beautiful, what represents good taste as opposed to tasteless or even obscenity(음란), and so on.

; 글로벌 마케터라면 제품, 라벨, 패키지의 색채나 모양으로 구현된 시각적 심미학(visual aesthetics)의 중요성을 이해해야 한다.

; 하나의 지역에서는 통용되는 색채도 다른 지역에서는 그 의미가 달라질 수도 있다.

; There is nothing inherently "good" or "bad" about any color of the spectrum; all associations and perceptions regarding color arise from culture.

; Red - a popular color in most parts of the world.

; Blue - an elemental connotation with undertones of dependability, constancy, and eternity.

; Sensitivity and a willingness to accommodate perceptions can help generate rapport and bluild goodwill.

; Music is an aesthetic component of all culture, accepted as a form of artistic expression and source of entertainment. Music represents a "transculture" that is not identified with any particular nation. Music plays an important role in advertising, marketers must understand what style is appropriate in a given national market.

⑷ Dietary Preferences

; A solid understanding of food-related cultural preferences is important for any company that markets food or beverage products globally.

; There is plenty of evidence that global dietary preference are converging.

; ex) Fast Food

; But such process can provoke a nationalist backlash.

; ex) The French Culinary Exception

⑸ Language and Communication

; Spoken or verbal language can be divided into four main areas : syntax, semantics, phonology, and morphology. Unspoken or nonverbal communications include : gestures, touching, and other forms of body language. (sometimes called silent language)

; Language is a crucial tool for communicating with customers, channel intermediaries, and others.

; 마케팅 사례에는 제품 이름이나 광고 카피의 부정확하거나 부적절한 번역으로 발생한 값비싼 실수들이 많다. 어떠한 국가에서는, 마케터들이 국가내 언어(intranational language)나 방언(dialect)의 차이로 인해 생기는 하위 문화(subculture)를 이해해야 하는 경우도 있다.

; 또한 국제 마케팅에서는 Semantic issue와 Phonology로 인해 발생하는 문제들이 많다.

; 스페인에서는 colgate는 'go hang yourself'란 뜻이다. 또한 한국에서 8282면 'hurry up'이란 뜻이 있다.

; 세계화가 미친 가장 큰 영향은 영어가 전 세계적으로 전파(diffusion)되었다는 것이다. 이로 인해 영어 구사 능력은 많은 기업들에 있어서 세계화를 위한 필수조건이 되었다.

; 또한 제2 외국어를 배워두는 것도 글로벌 마케팅을 위해서 매우 중요하다. 언어 구사 능력을 갖추게 되면서 학생들은 중요한 cross-cultural insight를 갖추게 된다. 이러한 지식들은 협상(negotiation)에 있어서 매우 중요한 것이 될 수 있다.

; 또한 nonverbal communication 역시도 각 나라에 따라 중요하게 고려되어야 한다.

; 또다른 이슈들에는 Sequencing(concerns whether the discussion goes directly from point A to point B or seems to go off on tangents), Phasing(pertains to whether certain important agenda items are discussed immediately or after the parties have take some time to establish rapport)

Marketing's Impact on Culture

; 문화 환경에 대한 보편적인 양상은 글로벌 마케터들이 그들의 마케팅 프로그램에서 제공하는 일부 혹은 전부의 구성요소들을 표준화(standardize)할 수 있는 기회를 제공하고 있다. 빈틈없는 글로벌 마케터들은 겉으로 보이는 문화의 다양성들이 실은 동일한 것을 성취하는 다른 방법들이라는 것을 발견해낸다. convenience food, disposable products, popular music, and movies in the U.S., Europe, and Asia에 대해 널리 퍼진 공유된 선호도(shared preference)는 많은 소비자들이 광범위하고, 보편적인 어필(appeal/매력)을 가지고 있다는 것을 의미한다. 여행과 통신의 증가는 많은 제품 카테고리에 대한 취향과 선호도의 수렴(convergence)을 가져왔다.

; 하지만 문화에 대한 글로벌 자본주의 마케팅의 효과에는 논란의 소지가 있다. 이른바 "문화의 맥도널드화(McDonaldization of culture)"는 글로벌 회사들이 새로운 시장에 그들의 제품을 확장하고자 할 때 뚫어야 할 문화적 장벽이다.

High- and Low- Context Cultures

; Concept of high and low context is a way of understanding different cultural orientation.

; Low-context culture(저배경 문화)

; Messages are explicit and specific. Words carry most of the communication power.

; ex) U.S., Switzerland, Germany

; High-context culture(고배경 문화)

; Less information is contained in the verbal part of a message. Much more information resides in the context of communication, including the background, associations, and basic values of the communication.

; ex) Japan, Saudi Arabia

; 일반적으로 고배경 문화에서는 저관여 문화에 비해서 법적인 서류(legal paperwork)이 덜 필수적이다(less essential).

; 고배경 문화에서 한 사람의 말은 그의 약속(bond)이기도 하다. 우발적인 사건이나 외부적인 법적 규정(sanction)을 제공할 필요가 적은 것이, 이러한 문화에서는 의무(obligation)와 신뢰(trust)를 중요한 가치로 강조하기 때문이다. 이러한 국가에서는 의무나 명예(honor)에 대한 공유된 감정이 비인간적인(impersonal) 법적 효력보다 더 큰 자리를 차지한다.

; 비록 국가들이 고배경/저배경 문화로 분류되었다 하더라도, 일반적인 경향성(general tendency)에 대한 예외들도 존재한다. 이러한 예외들은 주로 하위문화(subculture)에서 발견된다. 미국에서도 이는 마찬가지이며, 중앙 은행의 세계와 같은 경우는 신사들을 위한 '고배경'의 세계이다.

Factors/Dimensions	High Context	Low Context
Lawyers	Less important	Very important
A person's word	Is his or her bond	Is not to be relied upon; "get it in writing"
Responsibility for organizational error	Taken by highest level	Pushed to lowest level
Space	People breathe on each other	People maintain a bubble of private space and resent intrusions
Time	Polychronic-everything in life must be dealt with in terms of its own time	Monochronic-time is money. Linear-one thing at a time
Negotiations	Are lengthy-a major purpose is to allow the parties to get to know each other	Proceed quickly
Competitive bidding	Infrequent	Common
Country/regional examples	Japan, Middle East	U.S., Northern Europe

Hofstede's Cultural Typology

; Social values suggesting that the cultures of different nations can be compared in terms of five dimensions.

; Dimensions

; ⑴ Power distance (권력 격차)

; The extent to which the less powerful members of a society accept(expect) power to be distributed unequally.

; 한 사회의 약자들이 권력 분배가 얼마나 불균등하게 분배되었는지에 대해 느끼는(혹은 기대하는) 정도

; ⑵ Individualism VS Collectivitism (개인주의 / 전체주의)

; The degree to which individuals in a society are integrated into groups.

; Individualist culture

; Each member of society is primarily concerned with his or her own interest ahd those of the immediate family.

; Giving priority to one's goal over group goals. Private identification is more important than group identification.

; ex) U.S., Europe

; Collectivist culture

; All of the society's members are integrated into cohesive in-groups.

; Giving priority to the group's goal.

; ex) Japan, Asian countries

; ⑶ Masculinity VS Femininity (남성주의 / 여성주의)

; Masculinity

; A society in which men are expected to be assertive, competitive, and concerned with material success, and women fulfill the role of nurturer and are concerned with issues as the welfare of children.

; ex) Japan, Austria

; Femininity

; A society in which the social roles of men and women overlap, with neither gender exhibiting overly ambitious or competitive behavior.

; ex) Spain, Taiwan (is low)

; ⑷ Uncertainty Avoidance (불확실성 회피도)

; The extent to which the members of a society are uncomfortable with unclear, ambiguous, or unstructured situations.

; It is like a level of risk tolerance(aversion). Characterized by people uncomfortable of uncertain situation.

; Members of some cultures express strong uncertainty avoidance by resorting to aggressive, emotional, intolerant behavior; they are characterized by a belief in absolute truth.

; ex) Greece, Portugal

; ⑸ Long-term Orientation VS Short-term orientation (장기적 관점 / 단기적 관점)

; The sense of immediacy within a culture, whether gratification should be immediate or deferred.

; Long-term values

; Persistence(preserverance) : A general tenacity in the pursuit of a goal

; Ordering relationship : status reflects the presence of societal hierarchies

; Observing this order : Acceptance of complementary relations

; Thrift : manifests itself in high saving rates

; A sense of shame : leads to sensitivity in social contact

; In addition to that, 'The existence of a market' and 'Supportive political context' is needed to explain the economic growth.

; 불확실성 회피도를 이해함으로서 글로벌 마케터들은 구매자들이 편하게 느끼는 리스크의 양을 좀 더 잘 측정할 수 있게 된다. 많은 일본/아시안 문화는 애매모호함(ambiguity)에 대한 포용력이 낮다(low tolerance). 구매자들은 브랜드 이름을 주의깊게 살피고, 높은 브랜드 충성도를 보인다.

; 권력 격차는 사회 구성원들 간의 신뢰의 정도를 반영한다. PDI가 높을수록 신뢰의 정도는 낮다. 조직적으로 높은 PDI는 높은 위계관계 구조를 가지고 중앙 집중화 경향이 있으며 상대적으로 보다 많은 관리 인원들을 가지게 된다. PDI 차원은 또한 관리자들(superior)과 아랫 사람들(subordinate) 사이의 원동력에 대한 통찰력을 제공한다. 위계관계가 높은 경우, 부하직원들은 보스에게 찾아가기 위해 몇 단계를 거쳐야 한다. 이러한 문화에서는 하위 단계의 직원들은 관리자들에게 무시되기 쉽다.

; 남성주의-여성주의 차원은 성취와 소유(남성적 가치)에 대한 도움과 사회적 조력(여성적 가치)의 상대적 중요성을 나타내는 척도가 될 수 있다. (일본에서 여성에 대한 시각은 부정적이며, 특히 어린 여자일 수록 더욱 그렇다)

; 전체주의-개인주의 성향은 그것이 문화의 주된 구성 요소라는 폭넓은 동의가 있을 경우 중요한 comment가 될 수 있다.

; 예를 들어서 일본에서는 팀의 방향(team orientation)과 단결(wa:harmony)이 중요한 가치로 여겨진다. 따라서 동료들 중에서 한 사람만 뽑혀저 나와 칭찬하는 것이 매우 이상하게 여겨진다. 아시아에서는 전체주의 성향이 지배적이다. 반면 미국과 같은 개인주의적 성향이 강한 문화에서는 개인적인 성취를 거둔 개인은 대중적으로 인지되는 경향이 있다.

; 어떤 연구자들은 전체주의/개인주의적 성향이 신문 및 TV 광고에 미치는 영향을 조사한 적이 있다. 즉 개인주의적 성향이 강한 곳에서는 개인을 위한 광고가, 전체주의적 성향이 강한 곳에서는 전체를 위한 광고가 훨씬 높은 가치를 가졌다. (반면 신문 광고는 개인적인 독자들을 위한 것이기에 상관관계가 발견되지 않았다)

; 3가지 종류의 브랜드 이미지

; ① functional brand image(기능적 이미지) : oriented toward problem solving and problem prevention

; ② social brand image (사회적 이미지) : fulfill consumers' needs for group membership and affiliation

; ③ sensory appeal (감각적 이미지) : provide novelty, variety, and sensory gratification

; 권력 격차가 큰 곳에서는 사회적 이미지를 강조하는 것이 브랜드의 성능을 보다 강화시킨다는 연구 결과가 있다. 반면 권력 격차가 작은 곳에서는 기능적, 감각적 이미지를 강조하는 것이 더낫다.

The Self-Reference Criterion and Perception

; Self-reference Criterion (SRC)

; Unconscious reference to one's own cultural value

; 4 systemic step framework

; ① Define the problem or goal in terms of home-country cultural traits, habits, and norms

; ② Design the problem or goal in terms of host-country cultural traits, haits, and norms. Make no value judgments.

; ③ Isolate the SRC influence and examine it carefully to see how it complicates the problem

; ④ Redefine the problem without the SRC influence and solve for the host-country market situation.

; Perception

; DEFINITION 찾을 것!!!!!!!!!!!!!!!!!!!!!!!

; Maslov's hierarchy

Self-actualization

Esteem, Achievement, Competence, Respect (It also can be group esteem in collectivism)

Belongingness, Love, Relationship

Safety

Physiological

Diffusion Theory (확산 이론)

; 혁신이란 새로운 것이다. 따라서 이것이 제품에 적용되었을 때, "new"는 다른 것을 의미할 수 있다. 절대적인 관점에서 제품이 일단 세계에 소개되면, 그것은 더 이상 혁신이 아니다. 하지만 상대적으로 말해서 하나의 시장에 이미 소개된 제품은 다른 곳에서는 그것이 표적 시장에 있어 새롭고 다른 것이기 때문에 혁신일 수 있다.

The Adoption Process (적응 과정)

; The mental stages through which an individual passes from the time of his/her first knowledge of an innovation to the time of product adoption or purchase

; 5 Different stages

; ① Awareness (인지)

; The customers becomes aware for the first time of the product or innovation.

; 비개인적인 출처(impersonal source), 즉 매스 미디어나 광고에 대한 노출이 중요하다.

; ② Interest (관심)

; The customer is interested enough to learn more.

; 소비자들은 제품에 관계된 의사소통에 관심을 기울이고 더 정보를 찾아보려는 활동을 한다.

; ③ Evaluation (평가)

; The individual mentally assess the product's benefits in relation to pressent and anticipated future needs and, based on this judgment, decides whether or not to try it.

; ④ Trial (시험)

; Most customers will not purchase expensive products without the "hands-on" experience marketers call "trial"

; ⑤ Adoption (수용)

; The individual either makes an initial purchase or continues to purchase the less expensive product.

; 시험에서 수용으로 넘어갈 때 정보의 개인적인 출처(personal source)가 보다 중요하게 된다.

Characteristics of Innovations (혁신의 특성)

; ① Relative advantage (상대적 우위)

; How a new product compares with existing products or methods in the eyes of customers.

; 기존 제품에 대한 신제품의 인식된 상대적 우위(perceived relative advantage)는 수용율을 결정하는데 가장 크게 영향을 미친다.

; ② Compatibility (호환성)

; The extent to which a product is consistent with existing values and past experiences of adopters.

; 국제 마케팅에서의 혁신의 역사는 표적 시장에 대한 신제품의 호환성 부족으로 인한 실패로 가득차있다. ex) VCR / Betamax

; ③ Complexity (복잡성)

; The degree to which an innovation of new product is difficult to understand and use.

; 제품 복잡성은 특히 문맹률이 높은 개발도상국가 시장에서 수용율을 낮추는 요인이다.

; ④ Divisibility (분할성)

; The ability of a product to be tried and used on a limited basis without great expense.

; income level들에 존재하는 큰 불일치성이 선호하는 구매 량, 크기 및 제품 부분에 큰 차이점을 가져온다.

; 예를 들어 CPCIH의 마요네즈는 라틴 아메리카에서 대용량으로 판매하지 않는다.

; ⑤ Communicability (의사소통성)

; The degree to which benefits of an innovation or the value of a product may be communicated to a potential market.

Adopter Categories (수용자 분류)

; Classifications of individuals within a market on the basis of their innovativeness.

; Five categories

; Innovator

; Venturesome, more cosmopolitan in their social relationships, and wealthier.

; Early Adoptors

; The most influential people in their communities (even more than the innovators)

; A critical group in the adoption process, they have great influence on the early and late majority.

; Characteristics

; ① Tend to be younger

; ② With higher social status

; ③ In a more favorable financial position than later adopter

; Early Majority

; Late Majority

; Laggards

; Interaction effect

; The process through which individuals who have adopted an innovation influence others.

Diffusion of Innovations in Pacific Rim Countries (환태평양 국가들에서의 혁신 확산) (중요!)

; There are likely to be fewer innovators in Japan and other Asian countries, where risk avoidance is high. However once consumers become aware that others have tried the product, they follow suit quickly so as not to be left behind.

; Left tail is longer, reflecting hesitancy to try a new product. The curve is steeper and less symmetrical, reflecting the speed with which early adopters and early majority try the product.

Marketing Implications of Social and Cultural Environments

; Reflects the extent to which products must be adapted to the culture-specific needs of different national markets.

; 제품을 환경적 민감도의 연속체로서 바라보는 것은 유용한 시각이다. 연속체의 한쪽 끝에는 환경적으로 둔감한 제품들이 있고, 이들은 다양한 세계 시장 환경에 대해 현저하게 적응할 것(significant adaptation)을 요구하지 않는다. 연속체의 다른 한쪽 끝에는 각기 다른 환경적 요인에 민감한 제품들이 놓여있다. 이러한 제품을 생산하는 기업의 경우 country-specific economic, regulatory, technological, social, 그리고 cultural environmental condition을 고려할 필요가 있을 것이다.

Review Questions.

1. What are some of the elements that make up culture? How do these find expression in your native culture?

2. What is the difference between a low-context culture and a high-context culture? Give an example of a country that is an example of each type and provide evidence for your answer.

3. How can Hofstede's cultural topologies help Western marketers better understand Asian culture?

4. Explain the self-reference criterion. Go to the library and find examples of product failures that might have been avoided through the application of the SRC.

5. Briefly explain the social research of Everett Rogers regarding diffusion of innovations, characteristics of innovations, and adopter categories. How does the adoption process in Asia differ from the traditional Western model?

6. Compare and contrast the United States and Japan in terms of traditions and organizational behavior and norms.

Chapter 5. The Political, Legal, and Regulatory Environments of Global Marketing

The Political Environment

Nation-States and Sovereignty

; Sovereignty : supreme and independent political authority

"Every sovereign state is bounded to respect the independence of every other sovereign state, and the courts in one country will not sit in judgment on the acts of government of another done within its territory"

; 주권은 2가지 요소에 의해 판명된다

; ① A country's stage of development

; ② Political and economic system in place in the country

; 한 나라의 산업화 정도는 industrilized, newly industrializing, developing 의 3가지 중 하나로 분류된다.

; 이들은 전략적인 사업을 키우고 보호하기 위해 각종 법률과 규제안을 만들어낸다.

; 비 시장경제에서는 정부의 힘이 강력하나, 자본주의 사회 하에서는 이러한 규제가 보다 제한된다.

; 현재의 글로벌 시장 및 비시장경제들은 모두 사유화(privatization)으로 향하는 경향을 보인다. (이는 정부에 의한 분배를 줄여준다)

; If countries can increase their share of world trade and increase national income, perhaps they will be willing to cede some sovereignty.

Economist Intelligence Unit	Business Environment Risk Intelligence	PRS Group
War	Fractionalization of the political spectrum	Political turmoil probability
Social unrest	Fractionalization by language, ethnic, and/or religious groups	Equity restrictions
Orderly political transfer	Restrictive/coercive measures required to retain power	Local operations restrictions
Politically motivated violence	Mentality (xenophobia, nationalism, corruption, nepotism)	Taxation discrimination
International disputes	Social conditions (including population density and wealth distribution)	Repatriation restrictions
Change in government/pro-business orientation	Organization and strength of forces for a radical government	Exchange controls
Institutional effectiveness	Dependence on and/or importance to a major hostile power	Tariff barriers
Bureaucracy	Negative influences of regional political forces	Other barriers
Transparency/fairness	Societal conflict involving demonstrations, strikes, and street violence	Payment delays
Corruption	Instability as perceived by assassinations and guerilla war	Fiscal/monetary expansion
Crime		Labor Costs Foreign debt

Political Risk

; Political risk : The risk of a change in political environment or government policy that would adversely affect a company's ability to operate effectively and profitably.

; 만약 한 국가가 높은 정치적 위험성을 가지고  있다고 인지되면, 이 국가는 외자를 유치하는데 큰 어려움을 겪을 것이다.

Causes of Political Risk

; Intention between the residents' aspirations and goals and the real conditions at a given time.

; 즉 이 gap이 커지면 political risk가 커진다.

; When the political risk is present in a high-income country, it can be traced to identifiable, long-standing issues int the country.

; cf) conflict between Protestants and Catholics in Northern Ireland

; 중하위층의 수입을 가진 국가에서는 economic crisis가 political risk를 가져올 수도 있다.

; ex) Indonesia

Expressions and Symptoms of Political Risk

; The level of political risk is inversely related to a country's stage of economic development.

; The less developed a country, the greater the political risk.

; The political risk cannot be accurately predicted, the corporate culture also must be considered when making a strategic decision.

; 즉 적극적인 기업에게라면 이런 곳은 큰 시장 잠재력을 가진 곳이지만, 보수적인 기업이라면 높은 위험이 있는 곳이 된다.

; companies can purchase insurance to offset potential risks arising from the political environment.

; ex) OPIC

Taxes

; Government taxation policies on sale of goods and services frequently motivate companies and individuals to profit by "not" paying taxes.

; 상품과 서비스에 대한 정부의 세금 정책이 기업과 개인들로 하여금 세금을 내지 '않도록' 할 때가 있다.

; cf) 중국의 경우 17%의 VAT가 붙는데, 그 결과 많은 양의 품목들이 밀반입(smuggle in)된다.

; Corporate taxation(법인 과세) 역시도 중요한 issue이다.

; cf) 정치적 위협이 높은 러시아에서는 높은 세금으로 인해 많은 기업들이 현금이나 물물교환(barter trade) 형태를 선호하는데, 이는 기록에 남지 않으며 세금청의 눈을 피할 수 있기 때문이다.

; 이로 인해 급료 지불이 점점 줄어들고 있고, 이로 인해 불만한 노동자들로 인해 정치적 불안정이 더욱 증대되고 있다.

Seizure of Assets (자산 몰수)

; Expropriation(공용징수/몰수) : Governmental action to disposes a foreign company or investor.

; Compensation is generally provided in "prompt, effective, and adequate" manner. if not, the action is referred to as "confiscation"(징발)

; Nationalization(국유화) : Government takes control of some or all of the enterprises in a particular industry

; "public purpose"의 의도 및 "adequate payment"가 주어졌을 때에 국유화라고 불린다.

; 그렇다면 왜 Expropriation/Nationalization을 하는가? Satisfy the public purpose.

; cf) S.Korea nationalized Kia to stabilize the market.

; 다만 Retaliation(보복)의 issue가 있을 수 있다.

; Creeping Expropriation(점진적 몰수) : Limitations on repatriation(송환) of profit, dividends, royalties, and technical assistance fees from local investment or technology arrangements.

; 점진적 몰수에는 그 외에 local content requirements, quotas for hiring local nationals, price controls, and other restrictions affecting return on investment(ROI), discriminatory tariff, nontariff barriers that limit market entry, discriminatory laws on patents and trademark, intellectual propery restriction 등이 있다.

The Legal Environment (법적 환경)

; International Law : Rules and principles that nation-states consider binding upon themselves.

; What happens if a nation has allowed a case against it to be brought before the International Court of Justice and then refuses to accept a judgment against it? The plaintiff nation can seek recourse through the UN Sceurity Council, which can use its full range of powers to enforce the judgment.

Common Law Versus Civil Law [시험 안 나옴]

; Private internation law : body of law that applies to disputes arising from commercial transactions between companies of different nations.

; Civil-law country : legal system reflects the structural concept and principles of the Roman Empire in the sixth century.

; the codes in which private law is cast are formulated in broad general terms and are thought of as completely comprehensive, that, is, as the all-inclusive source of authority by reference to which every disputed case must be referred for decision.

; Common-law country : many disputes are decided by reliance on the authority of past judicial decisions (cases).

; Islamic Law : The sharia is a comprehensive code governing Muslim conduct in all areas of life, including business. Code is composed of two sources: Koran + Hadith

Sidestepping Legal Problems : Important Business Issues

Jurisdiction (사법권)

; Refers to a court's authority to rule on particular types of controversies arising outside of a nation's borders or to exercise power over individuals or entities from different countries.

Intellectual Property : Patents, Trademarks, and Copyrights

; Patent (특허)

; A formal legal document that gives an inventor the exclusive right to make, use, and sell an invention for a specified period of time.

; 대개 여기에서 invention이라고 함은 기발하거나 평범하지 않은 "독창적 도약"을 의미한다.

; Trademark (상표)

; A distinctive mark, motto, device, or emblem that a manufacturer affixes to a particular product or package to distinguish it from goods produced by other manufacturers.

; Copyright (저작권)

; Establishes ownership of a written, recorded, performed, or filmed creative work.

; Infringement of intellectual property (지적 재산권 침해)

; ① Counterfeiting (위조품)

; The unauthorized copying and production of a product.

; ② Associative counterfeit (imitation) (모조품)

; Uses a product name that differs slightly from a well-known brand but is close enough that consumers will associate it with the genuine product.

; ③ Piracy (저작권 침해)

; The unauthorized publication or reproduction of copyrighted work.

; Companies sometimes find ways to exploit loopholes or other unique opportunities offerred by patent and trademark laws in individual nations.

; International concern about intellectual property issues in the 19th century resulted in two important agreements.

; ① International Convention for the Protection of Industrial Property

; ② Patent Cooperation Treaty

; Another key issue is global patent protection for software.

Antitrust (반독점)

; Designed to combat restrictive business practices and to encourage competition.

; ex) 최근 Microsoft의 Media Player 끼워팔기 사건과 같은 것.

; Cartel

; A group of separate companies that collectively sets prices, controls output, ortakes other actions to maximize profits.

Licensing and Trade Secrets (면허 및 기업 기밀)

; Licensing

; A contractual agreement in which a licensor allows a licensee to user patents, trademarks, trade secrets, technology, or other intangible assets in return for royalty payments or other forms of compensation.

; 라이선싱에 있어 중요한 것은 기업이 라이선싱의 대가로 어떤 자산을 제공하여야 하고, 자산의 가격을 어떻게 매기고, 또한 제품을 만들 권리만 얻을 것인지 사용하고 판매할 권리도 얻을 것인지를 결정하는 것이다. 하위-라이선싱 역시 또 다른 중요한 문제이다.

; 또한 라이선스 기술을 받은 기업(Licensee)이 라이선스 제공 기업(Licensor)과 직접적으로 경쟁하는 것을 방지하기 위해 라이선스를 받은 기업이 자국 내에서 판매하는 것을 제한할 수 있다. 또한 Licensor는 계약이 만료되면 해당 기술 사용을 더 이상 하지 않겠다는 계약을 Licensee와 맺을 수도 있다. 따라서 Licensor는 그들의 경쟁적 위치가 훼손되지 않도록 조심할 필요가 있다. 이는 지속적인 혁신을 필요로 한다.

; 또한 Licensing expiration 되었을 경우 경쟁자를 만들 수 있다.

; Licensing을 통해 경쟁자를 만드는 것을 피해야 한다.

; 라이선스 조약은 반독점 조사에 걸릴 수 있다.(Antitrust scrutiny)

; Trade Secrets (기업 기밀)

; Confidential information or knowledge that has commercial value and is not in the public domain, and for which steps have been taken to keep it secret.

; 직업 기밀에는 작업 과정, 공식, 설계, 고객 리스트가 포함된다. 이것들이 폭로되는 것을 막기 위해 무특허 기업 기밀의 라이선싱은 보호된 정보에 접근할 권한이 있는 직원들간의 기밀 보호 계약과 연결되어야 한다.

; 현재는 각 국가들간에 기업 기밀을 보호하기 위한 법적인 개선 노력이 이루어지고 있다.

Bribery and Corruption : Legal and Ethical Issues (뇌물 및 부패 : 법적 및 윤리적 이슈)

; Bribery (뇌물)

; The corrupt business practice of demanding or offering some type of consideration(typically cash payment) when negotiating a cross-border deal.

; Foreign Corrupt Practices Act 에서는 300개가 넘는 미국 기업들이 외국 관료들에게 (밝혀지지 않은)뇌물을 주었다고 보고 있다.

; FCPA에 대한 비판 가운데 하나는 FCPA가 도덕적 제국주의에 대한 유감스런 표시라는 것이다. (?) 이들의 주장에 따르면 미국의 법, 표준, 가치 등을 전 세계에 있는 미국 기업과 시민들에게 지우는 것은 잘못되었다는 것이다. 그럼에도 이는 하나의 근본적인 측면을 간과하고 있다. 세계 어디에도 관료의 뇌물을 너그럽게 보아주는 법은 존재하지 않는다는 것이다. 따라서 FCPA에 의해 제시된 기준은 다른 국가들에게도 공유된다고 볼 수 있다.

; FCPA에 대한 또다른 비판은 이것이 외국 경쟁자들에 비해 미국 기업들을 어려운 위치에 밀어넣는다는 것이다. 상공인회의에 설문조사한 결과 이 법이 전세계적인 미국 기업에 부정적인 영향을 끼쳤다는 의식이 만연해 있음을 알아낼 수 있었다. 그럼에도 뇌물로 인한 비용이 $45 billion 에 달하고 외국 기업들이 그 중 80%를 차지한다는 사실은 주지할 필요가 있다.

; 뇌물의 존재는 세계 시장이 미국이 의도한대로 바뀌지 않는다는 것을 의미한다. 사실 뇌물 수수는 많은 유럽 국가들에 있어서는 deductible business expense로 여겨지고 있다. 하지만 불법적인 활동을 줄이기 위해 만들어진 행동 강령(code of conduct)를 수용하는 글로벌 기업들의 숫자는 계속 늘어나고 있는 추세이다.

; 새로운 조약이라는 진보에도 불구하고 산업 전망자들은 제안된 협정에 대해 몇가지 우려점을 나타내었다. ① It is unclear whether the new law will be enforced with equal rigor everywhere, and, if not, what sanctions will be imposed. ② The treaty contains legal loopholes, such as the provision that business contracts can be linked to public aid projects such as building hospitals. ③ There is disagreement on what constitutes a "normal" versus an "abnormal" payment. ④ It will be necessary to arrive at a workable definition of what constitutes a "public official."

; 고국의 법적 제약을 받지 않고 해외에서 운영 중인 기업들의 경우에는 기업 윤리에 관련된 연속된 선택에 직면해야 할 수 있다. 한 극단에서 그들은 고국의 윤리를 모두 준수하면서 local practice에 적응하거나 조정하지 않을 수 있다. 또 다른 극단에서는 기업 윤리를 준수하려는 어떠한 시도도 모두 포기하고 지역 조건과 환경에 맞게 완전히 적응할 수도 있다. 이러한 양 극단 사이에서 기업이 택해야 하는 한 가지 접근방식은 고국 윤리의 연장선을 다양화시키도록 활용하는 것이다. 대안적으로는 그들은 지역의 관습과 practice의 정도에 따라 변화할 수도 있다.

; 만약 경쟁사가 뇌물을 제공하려고 할 때 미국 기업은 어떻게 해야 하겠는가? 2가지 대안이 존재한다. ① 뇌물을 무시하고 그것이 아예 존재하지 않았던 것처럼 행동하는 것. ② 뇌물의 존재를 인식하고 그것이 소비자의 구매 결정에 미칠 영향을 조사하는 것이다. 최선의 방어 방법은 경쟁사의 그것보다 명확하게 우월한 제품을 만드는 것이다. 이러한 경우 뇌물은 구매 결정에 아무런 영향을 주지 못한다.

Conflict Resolution, Dispute Settlement, and Litigation (충돌 해결, 중재 및 소송)

; Conflicts inevitably arise in business anywhere, especially when different cultures com together to buy, sell, establish joint ventures, compete, and cooperate in global markets.

; Dispute with a foreign party is frequently in the home-country jurisdiction.

; Litigation in foreign courts becomes vastly more complex, partly because of differences in language, legal systems, currencies, and traditional business customs and patterns.

; Problem arises from difference in procedures relating to discovery.

; discovery (조사)

; the process of obtaining evidence to prove claims and determining which evidence may be admissible in which countries under which conditions

; A further complication is the fact that judgments handed down in courts in another country may not be enforceable in the home country.

; ⇒ 이러한 이유로 많은 국가들이 소송으로까지 가기 전에 중재하는 편을 선호한다.

Alternatives to Litigation for Dispute Settlement (분쟁 조정을 위한 소송에 대한 대안)

; Formal arbitration is one means of settling international business disputes outside the courtroom.

; Arbitration (중재)

; A negotiation process that the two parties have, by prior agreement, committed themselves to using.

; Generally, arbitration involves a hearing of the parties before a three-member panel; each party selects one panel member, and those two panel members in turn select the third member. The panel renders a judgment that the parties agree in advance to abide by.

; 국제적인 기업 중재에 대한 경험이 부족한 기업이나 변호사들은 계약서상의 중재 항목을 "단지 다른 항목"으로 여기기 쉽다. 사실은 모든 계약서의 내용은 다르고 어떠한 중재 항목도 서로 같은 수 없다. 하다못해 중재하는 위치를 선정하는 것만 해도 쉽지 않은 일이다. (미국 기업과 일본 기업 사이에 분쟁이 발생했을 때, 이들은 결국 중립적인 자역을 택할 수 밖에 없을 것이다) 또한 어떠한 언어를 선택하느냐도 중요한 문제이다.

; 장소와 언어 문제에 더해 standard for invalidity를 검증하는 문제도 있으며, 또다른 문제도 있다. 미국법은 중재자의 결정을 반드시 받아들이도록 규정하고 있지만, 다른 국가에서는 그러한 수용의 법이 없을 수도 있다.

The Regulatory Environment (규제 환경)

; Consists of agencies, both governmental and non-governmental, that enforce laws or set guidelines for conducting business.

; Global marketing activities can be affected by a number of international or regional economic organizations.

; ex) In Europe, the European Union makes laws governing member states.

; The WTO will have a broad impact on global marketing activities in the years to come.

; Although all three environments are compex, astute marketers plan ahead to avoid situations that might result in conflict, misunderstanding, or outright violation of national laws.

Review Questions.

1. What is sovereignty? Why is it an important consideration in the political environment of global marketing?

2. Describe some of the sources of political risk. Specifically, what forms can political risk take?

3. Briefly describe some of the differences between the legal environment of a country that embraces common law and one that observes civil law.

4. Global marketers can avoid legal conflicts by understanding the reasons conflicts arise in the first place. Identify and describe several legal issues that relate to global commerce.

5. You are an American traveling on business in the Middle East. As you are leaving country X, the passport control officer at the airport tells you there will be a passport "processing" delay of 12 hours. You explain that your plane leaves in 30 minutes, and the official suggests that a contribution of $50 would probably speed things up. If you comply with the suggestion, have you violated U.S. law? Explain.

6. "See you in court" is one way to respond when legal issues arise. What other approaches are possible?