Part01AnIntroductiontoInternationalMarketing(當(dāng)代國際營銷澳大利亞紐卡斯爾大學(xué))課件

GSBS6041

ContemporaryGlobalMarketingWeek1AnIntroductiontoInternationalMarketingGSBS6041

ContemporaryGlobalM1IntroductionsRobertScrymgourIntroductionsRobertScrymgour2Week

Date

Topic

Other(asapplicable)

1

01/02

IntroductiontoInternationalMarketing

Chapters1&2

2

08/02

Cultural&SocialEnvironment

Chapter3

3

TBA

ThePoliticalandLegalEnvironment

Chapter4

4

22/02

InternationalMarketingResearchandMarketSelectionandEntry

Chapters6&7

5

01/03

ModifyingProductsandServicesforInternationalMarkets

Chapters13&14

6

08/03

InternationalPromotionandAdvertisingOverseas

Chapter15

7

15/03

InternationalPricingforProfit

Chapter16

8

22/03

InternationalDistribution

Chapter17

9

29/03

EnvironmentalGroupPresentations

10

05/04

PlanningandInternationalStrategy

Chapter8

EASTERBREAK

6Aprilto13April

11

19/04

Competitive

Strategies

Chapter9&10

12

26/04

RelationshipManagementIssuesinInternationalMarketing

Chapter12

Examinationperiod3Mayto11May

WeekDateTopicOther(asappl3AssessmentAssessment4BlackboardYoumustbeenrolledAllcoursedocuments(PPTs,outline)ExternalSourceLinksDiscussionForumAnnouncementsTurnitinGradebookBlackboardYoumustbeenrolled5TurnitinMajorAssignmentmustbesubmittedLogonthroughBlackboardMultiplerevisions24hourturnaroundonrevisionsTurnitinMajorAssignmentmust6StudentManualGeneralInformationWorkinginGroupsAssignmentsupportReferencingTimeManagementExamAnxietyStudentManualGeneralInformat7YourTurnNameNationalityOccupationorbackgroundProgram(MBA,MMktg,MISetc)Numberandtypesofsubjectsalreadycompleted***Don’tforgettosigntheattendancesheetYourTurn8OHNo!!!!–NotGroupsOHNo!!!!–NotGroups9SubjectRecapCaseStudyPresentationsMajorAssignmentConsultationExamENJOYandhaveFUNSubjectRecap10IntroductionGlobalversuslocalapproachtointernationalmarketingExportersintheAustralasianregion:Indigenoussmallandmedium-scaleexporters(SMEs)Localsubsidiariesoftransnationalfirms0IntroductionGlobalversusloca11DefinitionofInternationalMarketing

“Internationalmarketingistheprocessofplanning&undertakingtransactionsacrossnationalboundariesthatinvolveexchange”DefinitionofInternationalMa12TheNewInternationalMarketingEnvironmentShrinkingcommunicationsMajorchangesintheinternationaltradingsceneFirmsfocusontheinterestsofstakeholders0TheNewInternationalMarketin13StakeholdersoftheInternationalFirm0StakeholdersoftheInternatio14DrivingForcesinInternationalMarketingMarketneedsTechnologyCostCommunicationsDrivingForcesinInternationa15RestrainingForcesinInternationalMarketingPoliticalsystemsLegalrequirementsCulturalnormsEconomicdevelopmentTechnologicalenvironmentRestrainingForcesinInternat16RestrainingForcesinInternationalMarketing(Cont.)ControlsoverentryandaccesstomarketsActualorperceivedriskCommercialCross-culturalCountryFinancialRestrainingForcesinInternat17DriversofGrowthintheInternationalEconomyDrivenbychangeinmanagementorientationEthnocentricOrientationPolycentricOrientationRegiocentricOrientationGeocentricOrientationInternationalmonetaryframeworkDriversofGrowthintheInter18DriversofGrowthintheInternationalEconomy(Cont.)WorldtradingsystemInternationalmonetaryframeworkCommunicationsandtransportTechnologyDriversofGrowthintheInter19ApproachestoInternationalMarketingFromdomestictotransnationalDomesticorientation-exporttooverseasagentMovetointernationalmarketing-commitresourcestooverseasmarketTakemultinationalstance-adaptforthemarketMovetoglobalmarketing-providecompetitiveglobalofferingApproachestoInternationalMa20ApproachestoInternationalMarketing(Cont.)FromexporttoholisticfocusExportthroughlocal(Australian)agentExportdirectEstablishoverseasofficeManufacturetheproductinthecountryunderlicenseSetupfactory&operationsindestinationcountryApproachestoInternationalMa21ConceptsUnderlyingInternationalMarketingComparativeadvantageProductlifecycleextensionInternalisationRelationships&networksConceptsUnderlyingInternati22TheWheelofInternationalMarketingTheWheelofInternationalMar23TheFirmsEnvironmentTheFirmsEnvironment24DomesticCountryEnvironmentDomesticCountryEnvironment25ForeignEnvironmentForeignEnvironment26TheWorldfromAnAustralianBusinessPerspectiveTheWorldfromAnAustralianB27Australia’sMerchandiseExportsbyDestination,2003-4Australia’sMerchandiseExport28Australia’sImportsbySector,2003-4Australia’sImportsbySector,29TheGlobalEconomicSceneRecentTrends:Globalmarkets&competitorsReductionoftradebarriersSurgeincapitalmovementsIncreasesinmanufacturingproductivityWorldeconomyimpactsonlocaleconomiesSpreadofmarketdriveneconomiesGrowthofe-commerce0TheGlobalEconomicSceneRecen30EconomicSystems&StructureSystemsMarketallocationsystemCommandallocationsystemMixedsystemStructureAgriculture,Industry,ServicesDevelopmentStageGNPpercapitaIncomelevels0EconomicSystems&StructureSy31InternationalTradeDebatefocusedonissueofprotectionism

Tariffversusnon-tariffbarriersTheWorldTradeOrganization(WTO)EconomicintegrationPreferentialTradingarrangementsFreetradeareasCustomsUnionsEconomicUnionsInternationalTradeDebatefocu32WithintheAsianTradingRegionASEANFreeTradeAreaSingapore,Malaysia,Thailand,Indonesia,Philippines,Brunei,Vietnam,Laos,Cambodia,&MyanmarASEAN+3(Japan,China,&SouthKorea)APECASEANnations,Australia,NewZealand,Canada,USA,Japan,SouthKorea,Chile&MexicoViewedasapossiblecounterbalancetoEU&NAFTABilateralFreeTradeAgreementsForexample,Australia-USA,Thailand,&Singapore...WithintheAsianTradingRegio33ConsumptionPatternsEngel’sLaw-expenditureon‘otheritems’ProductsaturationMerchandisetradeServicestradeConsumptionPatternsEngel’sLa34TradingEnvironmentRegulatedbyGovernmentsGovernmentsdesiretocontroltradeflowstendstobemotivatedby:FinancialissuesSecurityissuesSafetyissuesHealthissuesProtectionistissuesTradingEnvironmentRegulatedb35MeasuringMarkets(Cont.)LevelsofIncomePopulationQualityoflifeovertimeInfrastuctureDebtResourcesMeasuringMarkets(Cont.)Level36MarketingImplicationsNeedtomonitortheeconomicenvironmentonbothaglobalandindividualcountrybasisProvidesknowledge:TotargetspecificmarketsNatureofcustomersanddemandMostimportantsegmentsEntrystrategyMarketingmixMarketpotentialMarketingImplicationsNeedto37TheFinancialEnvironmentForeignexchangeissuesRatesofexchangefluctuateSpotmarketrateForwardmarketrateExchangeratesmayormaynotbesettofloatindependentlyForecastingexchangeratesPurchasingpowerparityEconomicfactorsPoliticalfactorsTheFinancialEnvironmentForei38ForeignExchangeIssues(Cont.)ManagingforeignexchangeriskexposureTransactionexposureTranslationexposureEconomicexposureGovernmentinterventionMultipleexchangeratesForeignExchangeIssues(Cont.39FinancialManagementFinancing-justasimportantaspriceSourcesoffundsBanksandgovernmentsForfeitingandfactoringTypesoffinancialriskCommercialriskPoliticalriskForeignexchangeriskFinancialManagementFinancing40CopingwithRecessionPulloutEmphasizeaproduct’svalueChangetheproductmixRepackagethegoodsMaintainstricterinventoryLookoutsidetheregionforexpansionopportunitiesIncreaseadvertisingintheregionIncreaselocalprocurementCopingwithRecessionPullout41InternationalFinancialSystemInternationalMonetaryFund(IMF)CooperativemonetarypolicyManagesinternationalfinancialsystem-liquidityWorldBankEconomic&socialinfrastructureprojectsFosterderegulation&marketactivitiesInternationalAidPoliticalFinancialAltruisticInternationalFinancialSystem42MarketingImplicationsNeedtoknowthesourcesoffundswhendoingbusinessoverseasNeedtomonitorthefinancialsituationintheeconomyoftheoverseascountryProvidesanindicationofthelikelystabilityoftheexchangerate,availabilityoffunds,andthecostoffundsMechanismsexisttoassessandminimisefinancialrisksMarketingImplicationsNeedto432.Theglobalpoliticalandlegalenvironment2.Theglobalpoliticalandle44PoliticalEnvironment-IndividualGovernmentsGovernmentaffectsalmosteveryaspectofbusinesslifeinacountry.Nationalpoliticsaffectbusinessenvironmentdirectly,throughchangesinpolicies,regulations,andlaws.Thepoliticalstabilityandmoodinacountryaffecttheactionsagovernmentwilltake.HomeCountryvs.HostCountry.PoliticalEnvironment-Indivi45PoliticalEnvironment-IndividualGovernmentsStructureofGovernment:IdeologyCommunismCapitalismSocialismPoliticalPartiesSingle-party-dominantcountryDual-partysystemMulti-partysystemGovernmentPoliciesandRegulations:Itistheroleofgovernmenttopromoteacountry’sinterestsintheinternationalarenaforvariousPoliticalEnvironment-Indivi46Political–HostGovernmentActionsGovernmentprocurementTenders:localcontentrequirementsBuylocalcampaignsDickSmith’sproductsOwnershipcontrolsQantasandTelstraInvestmentcontrolsFIRBControlofportfolioandFDIPolitical–HostGovernmentAc47Political-HostGovernmentActionsOwnershipChangesExpropriationgovernmenttakeoverwithcompensationlesscommonsincemid1970’sConfiscationasabove,nocompensationDomestication/PhaseouttransferofownershipandmanagementovertimeLimitationsimposed:mediaandnaturalresourcesAbovedecreasinglycommonTrend-privatisationPolitical-HostGovernmentAc48TheglobalisationofterrorismJuly72005–7bombblastinLondonSept92004–truckexplodedoutsideAustembassyinJakartaSept12004–ChechenrebelstakeoveraschoolinBeslanMar112004–3trainexplosionsinMadridNov152003–bombingatHSBCBankinInstanbulSept302003–bombinginBogotanightclub,ColumbiaAreportbytheOECDputpotentiallossesfromasinglelargeterroristattackat$50billion-250billion.Theglobalisationofterrorism49TerrorismandtheWorldEconomyAccordingtoanIMFstudy,theSeptember11,2001terroristattacksinNewYorkandWashingtonD.C.resultedinmajorlossesfortheU.S.economy.Theshort-termlosteconomicoutputwasestimatedas$47billion.

Thestockmarketlost$1.7trillion.Inaddition,125,000workerswerelaidofffor30days.

Terroristactivitiesdisruptinternationalmovementofsuppliesandmerchandiseandfinancialflows.TerrorismandtheWorldEconom50TheStraitofMalacca,throughwhichaquarteroftheworld'smaritimetradepasses,makesatemptingtargetforterroristsandpiratesAt500mi(800km)longandfromc.30to200mi(50–320km)wide,betweenSumatraandtheMalayPeninsula.LinkingtheIndianOceanwiththeSouthChinaSea,itisoneoftheworld’smostimportantseapassages.Piracyremainsaprobleminthestrait.Goingforthejugular.Jun10th2004|SINGAPOREFromTheEconomistTheStraitofMalacca,through51ThepoliticsofTheKraCanalChinawantthecanalSingaporedonotwantthecanalThailandareinfavourThedecisionisstilltobemadebutitcouldchangethefaceoftheworldforever!ThepoliticsofTheKraCanalC52InternationalAgreementsG7(GroupofSeven)isaneconomicpolicycoordinationgroupmadeupofpoliticalleadersfromCanada,England,France,Germany,Italy,Japan,andtheUnitedStates.G8(GroupofEight)consistsofG7andRussia.COCOM(TheCoordinatingCommitteeforMultilateralControls)wasfoundedin1949tostoptheflowofWesterntechnologytotheformerSovietUnion;memberscountriesincludeAustralia,JapanandtheNATOcountriesexceptIceland.InternationalAgreementsG7(Gr53LegalissuesfacinganinternationalmarketerLegalissuesfacinganinterna54LegalStructuresInternationallawNoenforceablebody:customs,treatiesandcourtdecisionsInternationaltribunalsforarbitrationCommonlaw:Britain,formercoloniessuchasSingaporeandHongKongandcommonwealth–generallyconsideredlowriskCodelaw-basedonRomanlawRomania,Italy,France,Germany,Switzerland&MexicoIslamiclaw-basedonKoranSaudi,Pakistan,Libya,ArabstatesSocialistlaw-marxistsocialismformerUSSR,China,Vietnam,CubaandAngolaLegalStructuresInternational55QualityofLegalStructuresSource:TheEconomist7thApril2001,p16ChinaImprovingsince1970sto90’sbutlongwaytogo.CulturalrevolutionGenerationoflawyersandjudgeslostsophisticatedlegalsystemscrappedJudgespoorlypaidwithnoformalqualifications–corruptionNewlawsonJointventuresSingaporeMuchlesscorruptionbutpoliticalinterferenceQualityofLegalStructuresSou56IssuesTranscendingNationalBoundariesISO9000certificationhasbecomeanessentialmarketingtoolforfirms.ISO14000isbasedontheprincipleofself–regulation,therebyminimizingsurveillanceandsanctions.IntellectualPropertyProtection:TRIPs(Trade-RelatedAspectsofIntellectualPropertyRights)Patent(first-to-file&first-to-inventprinciples)IssuesTranscendingNationalB57IssuesTranscendingNationalBoundariesCopyrightTheDigitalMillenniumCopyrightAct(DMCA)Trademark(prior-use,first-to-use&first-to-fileprinciples)TradeSecretParisConventionPatentCooperationTreatyPatentLawTreatyEuropeanPatentConventionBerneConventionIssuesTranscendingNationalB58CounterfeitingTomakeacopyof(usuallywiththeintenttodefraud/deceive)TomakefraudulentcopiesofsomethingNotgenuine;imitatingsomethingsuperiorAcopythatisrepresentedastheoriginalNote:DiscussionsonCounterfeitingbasedonMGSMclassassignmentbyCCarlin,ADavies,DNemtsevandNRileypresentedFeb2005CounterfeitingTomakeacopyo59Avictimlesscrime?OneBBCstudyin2004found:52%willinglybuyfakeclothing/footwear16%willinglypurchasefakeperfume“….isitreallysuchabigdeal?”Avictimlesscrime?OneBBCstu60Reportedvictims:Nigeria1995:2500diedafterusingfakemeningitisfakevaccineIndia1998:30diedafterdrinkingChinesecoughsyrupthatcontainedanti-freezeChina2001:DozensofinfantsdiedafterbeingfedfakeformulamilkChina2001:ShenzenEveningNewsreports192000peoplediedthatyearbyfakedrugsUSA2001:AmericanAirlinescrashsuspectedtohavebeencausedbyforgedaviationpartsReportedvictims:Nigeria1995:61BusinessImpactP&G–15%pfbrandedsoap/detergentsinChinaarefake($150mp.ainsales)Gillette–25%ofParkerpens,Duracellbatteries,GilletterazorsarefakeYamaha–5outof6Yamahabrandedmotorbikes/scootersinChinaarefakeSEAsia–10%chanceofbuyingfakeOTCmedicineChina–50%chanceofbuyingfakeOTCmedicinesBusinessImpactP&G–15%pfb62NeedingtoknowtherisksbeforehandIslamicRevolutionof1979Despiteeconomicalgrowth,therewasmuchoppositionagainsttheMohammadRezaShah,andhowheusedthesecretpolice,theSavak,tocontrolthecountry.StrongShi'ioppositionagainsttheShah,andthecountrycameclosetoasituationofcivilwar.TheoppositionwasleadbyAyatollahKhomeini,wholivedinexileinIraqandlaterinFrance.Hismessagewasdistributedthroughmusiccassettes,whichweresmuggledintoIraninsmallnumbers,andthenduplicated,andspreadallaroundthecountry.ThiswasthebeginningofIranianrevolution.Needingtoknowtherisksbefo63RiskAssessmentRiskassessmentismoreformallybasedon:HostGovernmentstabilityStrengthofhostgovernment’scommitmenttospecificrules:ownership,contractsgivenideologyandpowerLikelylongevityofgovernmentIfcurrentgovernmentchanges-likelyimpactBasedonanswerstoabove:Whatdecisionsshouldbetakennow?RiskAssessmentRiskassessment64Part01AnIntroductiontoInternationalMarketing(當(dāng)代國際營銷澳大利亞紐卡斯爾大學(xué))課件65RiskReductionbyfirmEstablishcontactswithhostcountrygoverningeliteBecomeindispensable–partoflocalsupplychainDistributedresourcesDomesticationpolicyDomesticationofbrand–eg.McDonaldsinSerbiaMakingfinancialrisklocal-JointventuresReduceexposureofcapitalassets(TCAimplications)Politicalriskinsurance (EFIC)inAustraliaRiskReductionbyfirmEstablis66GSBS6041

ContemporaryGlobalMarketingWeek1AnIntroductiontoInternationalMarketingGSBS6041

ContemporaryGlobalM67IntroductionsRobertScrymgourIntroductionsRobertScrymgour68Week

Date

Topic

Other(asapplicable)

1

01/02

IntroductiontoInternationalMarketing

Chapters1&2

2

08/02

Cultural&SocialEnvironment

Chapter3

3

TBA

ThePoliticalandLegalEnvironment

Chapter4

4

22/02

InternationalMarketingResearchandMarketSelectionandEntry

Chapters6&7

5

01/03

ModifyingProductsandServicesforInternationalMarkets

Chapters13&14

6

08/03

InternationalPromotionandAdvertisingOverseas

Chapter15

7

15/03

InternationalPricingforProfit

Chapter16

8

22/03

InternationalDistribution

Chapter17

9

29/03

EnvironmentalGroupPresentations

10

05/04

PlanningandInternationalStrategy

Chapter8

EASTERBREAK

6Aprilto13April

11

19/04

Competitive

Strategies

Chapter9&10

12

26/04

RelationshipManagementIssuesinInternationalMarketing

Chapter12

Examinationperiod3Mayto11May

WeekDateTopicOther(asappl69AssessmentAssessment70BlackboardYoumustbeenrolledAllcoursedocuments(PPTs,outline)ExternalSourceLinksDiscussionForumAnnouncementsTurnitinGradebookBlackboardYoumustbeenrolled71TurnitinMajorAssignmentmustbesubmittedLogonthroughBlackboardMultiplerevisions24hourturnaroundonrevisionsTurnitinMajorAssignmentmust72StudentManualGeneralInformationWorkinginGroupsAssignmentsupportReferencingTimeManagementExamAnxietyStudentManualGeneralInformat73YourTurnNameNationalityOccupationorbackgroundProgram(MBA,MMktg,MISetc)Numberandtypesofsubjectsalreadycompleted***Don’tforgettosigntheattendancesheetYourTurn74OHNo!!!!–NotGroupsOHNo!!!!–NotGroups75SubjectRecapCaseStudyPresentationsMajorAssignmentConsultationExamENJOYandhaveFUNSubjectRecap76IntroductionGlobalversuslocalapproachtointernationalmarketingExportersintheAustralasianregion:Indigenoussmallandmedium-scaleexporters(SMEs)Localsubsidiariesoftransnationalfirms0IntroductionGlobalversusloca77DefinitionofInternationalMarketing

“Internationalmarketingistheprocessofplanning&undertakingtransactionsacrossnationalboundariesthatinvolveexchange”DefinitionofInternationalMa78TheNewInternationalMarketingEnvironmentShrinkingcommunicationsMajorchangesintheinternationaltradingsceneFirmsfocusontheinterestsofstakeholders0TheNewInternationalMarketin79StakeholdersoftheInternationalFirm0StakeholdersoftheInternatio80DrivingForcesinInternationalMarketingMarketneedsTechnologyCostCommunicationsDrivingForcesinInternationa81RestrainingForcesinInternationalMarketingPoliticalsystemsLegalrequirementsCulturalnormsEconomicdevelopmentTechnologicalenvironmentRestrainingForcesinInternat82RestrainingForcesinInternationalMarketing(Cont.)ControlsoverentryandaccesstomarketsActualorperceivedriskCommercialCross-culturalCountryFinancialRestrainingForcesinInternat83DriversofGrowthintheInternationalEconomyDrivenbychangeinmanagementorientationEthnocentricOrientationPolycentricOrientationRegiocentricOrientationGeocentricOrientationInternationalmonetaryframeworkDriversofGrowthintheInter84DriversofGrowthintheInternationalEconomy(Cont.)WorldtradingsystemInternationalmonetaryframeworkCommunicationsandtransportTechnologyDriversofGrowthintheInter85ApproachestoInternationalMarketingFromdomestictotransnationalDomesticorientation-exporttooverseasagentMovetointernationalmarketing-commitresourcestooverseasmarketTakemultinationalstance-adaptforthemarketMovetoglobalmarketing-providecompetitiveglobalofferingApproachestoInternationalMa86ApproachestoInternationalMarketing(Cont.)FromexporttoholisticfocusExportthroughlocal(Australian)agentExportdirectEstablishoverseasofficeManufacturetheproductinthecountryunderlicenseSetupfactory&operationsindestinationcountryApproachestoInternationalMa87ConceptsUnderlyingInternationalMarketingComparativeadvantageProductlifecycleextensionInternalisationRelationships&networksConceptsUnderlyingInternati88TheWheelofInternationalMarketingTheWheelofInternationalMar89TheFirmsEnvironmentTheFirmsEnvironment90DomesticCountryEnvironmentDomesticCountryEnvironment91ForeignEnvironmentForeignEnvironment92TheWorldfromAnAustralianBusinessPerspectiveTheWorldfromAnAustralianB93Australia’sMerchandiseExportsbyDestination,2003-4Australia’sMerchandiseExport94Australia’sImportsbySector,2003-4Australia’sImportsbySector,95TheGlobalEconomicSceneRecentTrends:Globalmarkets&competitorsReductionoftradebarriersSurgeincapitalmovementsIncreasesinmanufacturingproductivityWorldeconomyimpactsonlocaleconomiesSpreadofmarketdriveneconomiesGrowthofe-commerce0TheGlobalEconomicSceneRecen96EconomicSystems&StructureSystemsMarketallocationsystemCommandallocationsystemMixedsystemStructureAgriculture,Industry,ServicesDevelopmentStageGNPpercapitaIncomelevels0EconomicSystems&StructureSy97InternationalTradeDebatefocusedonissueofprotectionism

Tariffversusnon-tariffbarriersTheWorldTradeOrganization(WTO)EconomicintegrationPreferentialTradingarrangementsFreetradeareasCustomsUnionsEconomicUnionsInternationalTradeDebatefocu98WithintheAsianTradingRegionASEANFreeTradeAreaSingapore,Malaysia,Thailand,Indonesia,Philippines,Brunei,Vietnam,Laos,Cambodia,&MyanmarASEAN+3(Japan,China,&SouthKorea)APECASEANnations,Australia,NewZealand,Canada,USA,Japan,SouthKorea,Chile&MexicoViewedasapossiblecounterbalancetoEU&NAFTABilateralFreeTradeAgreementsForexample,Australia-USA,Thailand,&Singapore...WithintheAsianTradingRegio99ConsumptionPatternsEngel’sLaw-expenditureon‘otheritems’ProductsaturationMerchandisetradeServicestradeConsumptionPatternsEngel’sLa100TradingEnvironmentRegulatedbyGovernmentsGovernmentsdesiretocontroltradeflowstendstobemotivatedby:FinancialissuesSecurityissuesSafetyissuesHealthissuesProtectionistissuesTradingEnvironmentRegulatedb101MeasuringMarkets(Cont.)LevelsofIncomePopulationQualityoflifeovertimeInfrastuctureDebtResourcesMeasuringMarkets(Cont.)Level102MarketingImplicationsNeedtomonitortheeconomicenvironmentonbothaglobalandindividualcountrybasisProvidesknowledge:TotargetspecificmarketsNatureofcustomersanddemandMostimportantsegmentsEntrystrategyMarketingmixMarketpotentialMarketingImplicationsNeedto103TheFinancialEnvironmentForeignexchangeissuesRatesofexchangefluctuateSpotmarketrateForwardmarketrateExchangeratesmayormaynotbesettofloatindependentlyForecastingexchangeratesPurchasingpowerparityEconomicfactorsPoliticalfactorsTheFinancialEnvironmentForei104ForeignExchangeIssues(Cont.)ManagingforeignexchangeriskexposureTransactionexposureTranslationexposureEconomicexposureGovernmentinterventionMultipleexchangeratesForeignExchangeIssues(Cont.105FinancialManagementFinancing-justasimportantaspriceSourcesoffundsBanksandgovernmentsForfeitingandfactoringTypesoffinancialriskCommercialriskPoliticalriskForeignexchangeriskFinancialManagementFinancing106CopingwithRecessionPulloutEmphasizeaproduct’svalueChangetheproductmixRepackagethegoodsMaintainstricterinventoryLookoutsidetheregionforexpansionopportunitiesIncreaseadvertisingintheregionIncreaselocalprocurementCopingwithRecessionPullout107InternationalFinancialSystemInternationalMonetaryFund(IMF)CooperativemonetarypolicyManagesinternationalfinancialsystem-liquidityWorldBankEconomic&socialinfrastructureprojectsFosterderegulation&marketactivitiesInternationalAidPoliticalFinancialAltruisticInternationalFinancialSystem108MarketingImplicationsNeedtoknowthesourcesoffundswhendoingbusinessoverseasNeedtomonitorthefinancialsituationintheeconomyoftheoverseascountryProvidesanindicationofthelikelystabilityoftheexchangerate,availabilityoffunds,andthecostoffundsMechanismsexisttoassessandminimisefinancialrisksMarketingImplicationsNeedto1092.Theglobalpoliticalandlegalenvironment2.Theglobalpoliticalandle110PoliticalEnvironment-IndividualGovernmentsGovernmentaffectsalmosteveryaspectofbusinesslifeinacountry.Nationalpoliticsaffectbusinessenvironmentdirectly,throughchangesinpolicies,regulations,andlaws.Thepoliticalstabilityandmoodinacountryaffecttheactionsagovernmentwilltake.HomeCountryvs.HostCountry.PoliticalEnvironment-Indivi111PoliticalEnvironment-IndividualGovernmentsStructureofGovernment:IdeologyCommunismCapitalismSocialismPoliticalPartiesSingle-party-dominantcountryDual-partysystemMulti-partysystemGovernmentPoliciesandRegulations:Itistheroleofgovernmenttopromoteacountry’sinterestsintheinternationalarenaforvariousPoliticalEnvironment-Indivi112Political–HostGovernmentActionsGovernmentprocurementTenders:localcontentrequirementsBuylocalcampaignsDickSmith’sproductsOwnershipcontrolsQantasandTelstraInvestmentcontrolsFIRBControlofportfolioandFDIPolitical–HostGovernmentAc113Political-HostGovernmentActionsOwnershipChangesExpropriationgove