TAILIEUCHUNG - Lecture International marketing (15/e): Chapter 10 - Philip R. Cateora, Mary C. Gilly, John L. Graham

Chapter 10 - Europe, Africa, and the Middle East. What you should learn from Chapter 10: The reasons for economic union, patterns of international cooperation, the evolution of the European Union, evolving patterns of trade as eastern Europe and the former Soviet states embrace free-market systems, strategic implications for marketing in the region, the size and nature of marketing opportunities in the European/African/Middle East regions. | International Marketing 15th edition Philip R. Cateora, Mary C. Gilly, and John L. Graham Geographic and Temporal Proximity and Cultural Factors Geographic and temporal proximity Recent research demonstrates that differences across time zones are more important than physical distances Trade tends to travel more easily in north-south directions then it did in ancient times Countries that are widely separated geographically have major barriers to overcome in attempting economic fusion Cultural factors The more similar the culture, the more likely a market is to succeed because members understand the outlook and viewpoints of their colleagues Roy Philip Patterns of Multinational Cooperation (1 of 3) Regional cooperation groups Governments agree to participate jointly to develop basic industries beneficial to each economy Free trade area An agreement between two or more countries To reduce or eliminate customs duties and nontariff trade barriers among partner countries Members maintain individual tariff schedules for external countries Roy Philip Patterns of Multinational Cooperation (2 of 3) Customs union Enjoys free trade area’s reduced or eliminated internal tariffs Adds a common external tariff on products imported from countries outside the union Common market Eliminates all tariffs and other restrictions on internal trade, Adopts a set of common external tariffs Removes all restrictions on the free flow of capital and labor among member nations Roy Philip Patterns of Multinational Cooperation (3 of 3) Political union Involves complete political and economic integration, either voluntary or enforced Commonwealth – a voluntary organization that provides for the loosest possible relationship classified as economic integration Two new political unions came into existence in the 1990s The Commonwealth of Independent States (CIS) The European Union (EU) Roy Philip European Union Roy Philip Economic and Monetary Union .

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