Discussions:
1. Consult the resources available on the World Economic Forum (www.weforum.org/issues/globalrisks), the Eurasia Group (www.eurasiagroup.net), and other websites. Identify three of the top global risks that international marketing firms should consider in their work abroad.
Student answers will vary. Apart from the resources mentioned in the question, students can also avail themselves of other online resources-www.economywatch.com/international-trade/risks.html.
Some of the global risks that international marketing firms should consider
• A firm should make a careful consideration of legal provisions that can be applied in instances of breach of contract or non-payment for products or services as legal protection may be low in foreign markets.
• Firms should also improvise strategies and control measures that will cushion them from any impact arising out of the fluidity and dynamics of exchange rates as well as a volatile business environment.
• A firm should also deliberate over cultural differences that exist across different countries
For the latest year, what are the five leading country exporters of world merchandise? What are the five leading country exporters of commercial services? (Use data from www.wto.org.)
The five leading country exporters of world merchandise are United States, China, Germany, Japan and France.
The five leading country exporters of commercial services are Extra-EU, United States, China, Japan, and India.
Many companies, such as Intercultural Group, provide cross-cultural consulting, coaching, and training. Using the company's website (www.interculturalgroup.com), assess the different ways such consultants can play an important role in mastering cultural competency.
Companies that specialize in cultural training and providing information about adjusting to the international marketplace from the cultural point of view provide both general and company specific advice and training. As seen from the website, the consultants work with clients to identify improvement opportunities within their policy and program. There are a number of sessions available from Intercultural Group. The text states that cultural preparation can range from factual to analytical to experiential. All of these services are available. The Intercultural Group developed a new approach to cross cultural training-Intercultural Intelligence-to provide global firms with the cross cultural training, and the cross cultural management tools needed to make international ventures and assignments a success. Their cross cultural training programs represent a paradigm shift that is necessary for successful business without borders in the global economy of the 21st century.
Alibaba.com (www.alibaba.com) is a business-to-business e-commerce company. It operates two marketplaces: the first is an international marketplace based in English and tailored to global importers and exporters in China; the second is a Chinese marketplace that focuses on suppliers and buyers trading domestically in China. Is a company able to operate in both capacities?
Alibaba.com, the China's largest listed e-commerce company, links Chinese businesses with overseas buyers. More than half of its sales come from the international marketplace. The e-commerce company recorded its lowest quarterly profit in two years. The drop in profits came when the shareholders were advised to vote for a privatization plan. Stagnant membership base caused by global economic woes and a shift in business models has led to the deterioration profits. According to these facts mentioned in (https://www.chinadaily.com.cn/cndy/2012-04/25/content_15132217.htm), it becomes evident that this company is not able to operate in both capacities. Students may refer to (https://online.wsj.com/article/SB10001424052702303459004577361311772327598.html) for further details.
1. What are the key provisions of the U.K, Bribery Act of 2010? (Go to www.justice.gov.uk/guidance/docs/bribery-act-2010-guidance.pdf).
Section 1: Offences of bribing another person; Section 6: Bribery of a foreign public official; Section 7: Failure of commercial organizations to prevent bribery; Principle 1: Proportionate procedures; Principle 2: Top-level commitment; Principle 3: Risk assessment; Principle 4: Due diligence; Principle 5: Communication (including training); and Principle 6: Monitoring and review
Governments are important consumers of products and services. Suppose you work for a firm seeking to market its offerings to the governments of Mexico and Norway. You can learn a lot about the governments in these countries by visiting www.doingbusiness.org, a site sponsored by the World Bank. Visit this site and research the governments in these countries. Write a report on your findings.
Answers will vary.
Mexico ranked 39 in 2015 Doing Business List whereas, it ranks 43 in 2014.
Norway ranked 6 in 2015 Doing Business List whereas, it ranks 6 in 2014.
The students could visit the following links for detail:
https://www.doingbusiness.org/data/exploreeconomies/mexico
https://www.doingbusiness.org/data/exploreeconomies/norway