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4. Regional Economic and Political Integration 115

Chapter Objectives 115
4-1 Determinants of Economic and Political Integration 117
4-1a A Common Culture 117
4-1b A History of Common Economic and Political Dominance 117
4-1c Regional Proximity 118
4-1d Economic Considerations 118
4-1e Political Considerations 119
4-2 Levels of Regional Economic and Political Integration and Examples of
Integration Successes 121
4-2a Bilateral Agreements and Multilateral Forums and Agreements 121
4-2b Free Trade Agreements 123
4-2c Customs Unions 127
4-2d Common Markets 127
4-2e Monetary Unions 130
4-2f Political Unions 132
Summary 135
Key Terms 135
Discussion Questions 136
Chapter Quiz 136
Notes 138
Case 4-1 Damianov Press 139
Case 4-2 Navigating Brexit at Majestic Interior Design Company 141
5. Cultural Influences on International Marketing 143
5-1 Culture Defined 146
5-2 Elements of Culture 148
5-2a Language 148
5-2b Religion 153
5-2c Cultural Values 156
5-2d Cultural Norms: Imperatives, Exclusives, and Adiaphoras 157
5-2e National/Regional Character 159
5-3 Cultural Variability 165
5-3a The Hofstede Dimensions 166
5-4 Cultural Change and Marketing 168
5-5 The Self-Reference Criterion and Ethnocentrism 169
5-6 The Global Consumer Culture 170
Summary 172
Key Terms 173
Chapter Quiz 174
Notes 175
Case 5-1 When Companies Fail to Understand the Local Market:
Walmart in Germany 178
Case 5-2 Disneyland Post Paris, Taking on China:
Reflections on the Past, Plans for the Future 180
Case 5-3 Target’s Departure from Canadian Market 182
International Marketing 6e -vii- Front Matter

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Part 3 International Marketing Strategy Decisions 184

6. International Marketing Research: Practices and Challenges 185
6-1 The Need for International Marketing Research 187
6-2 Defining International Marketing Research 188
6-3 The Scope of International Marketing Research 189
6-3a Research of Industry, Market Characteristics, and Market Trends 189
6-3b Buyer Behavior Research 189
6-3c Product Research 191
6-3d Distribution Research 194
6-3e Promotion Research 196
6-3f Pricing Research 198
6-4 The International Marketing Research Process 198
6-4a Defining the Research Problem and Research Objectives 199
6-4b Developing the Research Plan 199
6-4c Deciding on Information Sources 199
6-4d Determining Research Approaches 206
6-4e Designing the Data Collection Instrument 211
6-4f Deciding on the Sampling Plan 213
6-4g Collecting, Analyzing, and Interpreting the Information 214
6-5 Global Marketing Decision Support Systems (MDSS) 214
6-5a Sales Forecasting 215
Summary 217
Key Terms 218
Chapter Quiz 219
Notes 221
Case 6-1 Hilton Sorrento Palace 223
Case 6-2 Tom Ford: Euro-Luxury with an American Attitude 225
7. International Strategic Planning 227
7-1 Developing an International Marketing Strategy 228
7-1a Developing an International Marketing Plan 231
7-2 The Rationale for Target Marketing 231
7-3 International Market Segmentation 233
7-3a Requirements for International Segmentation 233
7-3b Macrosegmentation: Country Attractiveness Analysis 235
7-3c Microsegmentation: Focusing on the Target Consumer 239
7-4 Targeting International Consumers 243
7-4a Target Market Decisions: Country Screening and Selection 243
7-4b Target Market Decisions: The Target Market Strategy 244
7-5 Positioning the Brand 247
7-5a Attribute/Benefit Positioning 247
7-5b Price/Quality Positioning 247
7-5c Use or Applications Positioning 248
7-5d Product User Positioning 248
7-5e Product Class Positioning 248
7-5f Competitor Positioning 248
International Marketing 6e -viii- Front Matter

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Summary 249
Key Terms 250
Chapter Quiz 251
Notes 252
Case 7-1 Prosperity Painting Equipment 253
Case 7-2 Volkswagen Phideon in China 256
8. Expansion Strategies and Entry Mode Selection 259
8-1 Going International: Evaluating Opportunities 260
8-2 Control versus Risk in International Expansion 261
8-3 Deciding on the International Entry Mode 262
8-3a Indirect Exporting 262
8-3b Direct Exporting 264
8-3c Licensing 265
8-3d Franchising 266
8-3e Joint Ventures 269
8-3f Consortia 272
8-3g Wholly Owned Subsidiaries 272
8-3h Branch Offices 273
8-3i Strategic Alliances 274
Summary 276
Key Terms 277
Chapter Quiz 277
Notes 279
Case 8-1: Danone in a Bind 280
Case 8-2 sweetFrog’s Expansion to Egypt and the Dominican Republic 282
Part 4 Managing and Implementing the International Marketing Mix 284
9. Products and Services: Branding Decisions in International Markets 285
9-1 Standardization versus Adaptation 286
9-1a Global Standardization 287
9-1b Regional Standardization 289
9-1c Global Localization 291
9-1d Mandatory Adaptation 292
9-1e Local, Nonmandatory Adaptation 293
9-2 Private-Label (Retailer) Brands 294
9-3 Global Branding and Country-of-Origin Information 294
9-3a Product-Country and Service-Country Stereotypes 296
9-3b Country Branding 296
9-3c Country of Origin and Ethnocentrism 297
9-3d The Brand Name 298
9-4 The Service Side: Tariff and Nontariff Barriers to Entry 299
9-5 Products, Services, and Culture 300
9-6 Protecting Brand Names 301
9-6a Identifying Types of Counterfeiting 301
9-6b Combating Counterfeiting 304
International Marketing 6e -ix- Front Matter

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9-7 International Perspectives of Industrial Products and Services 304

9-7a Product Standards 306
Summary 307
Key Terms 308
Chapter Quiz 308
Notes 310
Case 9-1 Can the smart Make a Comeback in the U.S.? 312
Case 9-2 The Landwind X7: Counterfeiting Design for the Home Market 314
10. International Product and Service Strategies 317
10-1 The International Product Life Cycle (IPLC) 318
10-1a The Product Introduction Stage 319
10-1b The Growth Stage 320
10-1c The Maturity Stage 321
10-1d The Decline Stage 322
10-2 Managing the International Product and Service Mix 322
10-2a Length 323
10-2b Width 324
10-2c Depth 324
10-3 New Product Development 324
10-3a Generating New Product Ideas 326
10-3b Screening New Product Ideas 327
10-3c Developing and Evaluating Concepts 328
10-3d Performing a Product Business Analysis 328
10-3e Designing and Developing the Product 329
10-3f Test Marketing 330
10-3g Launching the Product Internationally 332
10-4 Degree of Product/Service Newness 334
10-5 Product Diffusion 336
10-5a Product Factors 337
10-5b Country (Market) Factors 337
10-5c Consumer Adopters 338
Summary 339
Key Terms 339
Chapter Quiz 340
Notes 342
Case 10-1 FrieslandCampina 344
Case 10-2 The Gigafactory: A Partnership between Tesla and Panasonic 346
11. Managing International Distribution Operations and Logistics 349
11-1 Issues Related to International Distribution 351
11-1a Using Established Channels 351
11-1b Building Own Channels 351
11-2 Intermediaries Involved in International Distribution 351
11-2a Home-Country Intermediaries 352
11-2b Foreign-Country Intermediaries 356
International Marketing 6e -x- Front Matter

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11-2c Alternative International Distribution Structures 357

11-3 International Logistics 357
11-3a International Transportation 357
11-3b Logistics Facilitators 362
11-3c Warehousing and Inventory Control 365
11-4 Challenges to International Distribution and Logistics 366
11-4a Challenges to Distribution in Developing Countries 366
11-4b Parallel Imports 366
11-5 International Retailing 368
11-6 Retail Formats: Variations in Different Markets 370
11-6a General Merchandise Retailing 370
11-6b Food Retailers 376
11-6c Nonstore Retailing 378
11-7 Issues and Trends in International Retailing 383
11-7a Variation in Retail Practices: A Consumer Perspective 384
11-7b Variation in Retail Practice: Salespeople and Management 385
Summary 386
Key Terms 388
Chapter Quiz 389
Notes 391
Case 11-1 Mondelēz China’s Distribution Challenges 394
Case 11-2 Shipping Doo Kingue 396
Case 11-3 Stefanel Canada 397
12. International Promotional Mix: Advertising, Publicity, Public Relations, and Sales Pro-
motion Strategies 399
12-1 The International Promotional Mix 401
12-2 The International Communication Process 402
12-3 Advertising 405
12-3a The Media Infrastructure 405
12-3b The Advertising Infrastructure 413
12-3c The Advertising Strategy 416
12-4 Publicity and Public Relations 420
12-4a Publicity 422
12-4b Public Relations 424
12-5 Consumer Sales Promotion 429
12-5a Adaptation of Sales Promotion 432
12-5b The Online Venue for Sales Promotion 433
12-5c Legal and Ethical Issues in Consumer Sales Promotion 434
12-6 International Trade Promotion (Trade Shows and Exhibitions) 435
Summary 436
Key Terms 437
Chapter Quiz 438
Notes 440
Case 12-1 Selling the Donnelly Brand in Romania 443
Case 12-2 Promoting Coke in South Africa 445
International Marketing 6e -xi- Front Matter

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13. International Personal Selling and Personnel Management 449

13-1 International Presence and Personnel Issues 450
13-1a Expatriates 454
13-1b Host-Country Nationals (Locals) 457
13-1c Another Alternative: Long-Distance International Selling 457
13-2 Managing International Employees 458
13-2a Managing Relationships 458
13-2b Understanding the International Buyer-Seller Relationship 458
13-2c Understanding Cultural Values and the Relationship between
Buyer and Seller 459
13-3 Successfully Managing Expatriates 460
13-3a Recruiting Expatriates 460
13-3b Attenuating Culture Shock 461
13-3c Training for International Assignments 463
13-3d Motivating Expatriates 463
13-3e Obstacles to the International Sales Mission 465
13-3f Repatriation Issues 467
Summary 468
Key Terms 468
Chapter Quiz 469
Notes 471
Case 13-1 Manufacturing in China: Information Technology Challenges 472
Case 13-2 The Expatriate Spouse: Managing Change 474
14. International Pricing Strategy 477
14-1 Pricing Decisions and Procedures 478
14-1a Production Facilities 478
14-1b Ability to Keep Track of Costs 479
14-2 Environment-Related Challenges and Pricing Decisions 479
14-2a The Competitive Environment 479
14-2b The Political and Legal Environment 483
14-2c The Economic and Financial Environment 485
14-3 International Pricing Decisions 489
14-3a Price Setting 489
14-3b Aggressive Export Pricing 494
14-3c Penetration Pricing and Skimming Strategies 495
Summary 495
Key Terms 496
Chapter Quiz 497
Notes 498
Case 14-1 Travel Turkey: Pricing Decisions in a Changing Environment 500
Part 5 International Marketing Strategy: Implementation 504
15. Organizing and Controlling International Marketing Operations
and Perspectives for the Future 505
International Marketing 6e -xii- Front Matter

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15-1 Organizing for International Marketing Operation
15-1a Factors in the Firm’s Environment 507
15-1b Factors within the Firm 508
15-2 Examining International Organizational Designs 508
15-2a The International Division Structure 509
15-2b The Worldwide Regional Division Structure 509
15-2c The Product Division Structure 510
15-2d The Matrix Structure 510
15-2e The Holacracy Structure 512
15-3 Controlling International Marketing Operations 512
15-3a Formal Controls 513
15-3b Informal Controls 514
15-4 International Marketing: Some Future Perspectives 514
Summary 518
Key Terms 518
Chapter Quiz 519
Notes 521
Case 15-1 Qantas’ New Organizational Design 521
Case 15-2 iPhone: A Gem – But Not without Controversy 523
Appendix A: The International Marketing Plan 527

Appendix B: Glossary 557
Appendix C: Index: Subject and Company/Brand 582
International Marketing 6e -xiii- Front Matter

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Preface
The sixth edition of International Marketing arrives at a time of considerable upheav-
al and uncertainty about international trade and globalization. The era of global trade agree-
ments and lower tariff barriers appears to be over – or, at minimum, this trend has stalled.
Notwithstanding that globalization and international trade were largely responsible for lift-
ing millions of people out of poverty, by 2016, trade and trade agreements had become
thorny political topics in Europe and in the United States. With the loss of so many manufac-
turing jobs in the U.S., trade had come to be considered as the main reason for the disap-
pearance of U.S. manufacturing jobs and the stagnation of middle class wages. In addition,
the global influence of multinational companies on local economies and government poli-
cies has become a major concern.
By late 2018, as the new edition of International Marketing was being finalized, the
U.S. and China were in the midst of a major rift over U.S. complaints about China’s trade
policies: unfair government subsidies, currency manipulation, and the theft of intellectual
property. Starting with U.S. tariff hikes on Chinese steel and aluminum exports, new tariffs
have been imposed by the U.S. on billions of dollars’ worth of Chinese goods. Not surpris-
ingly, this led to retaliatory tariffs by China on key U.S. exports. In addition, the U.S. finds
itself at odds with Canada and the European Union over trade and tariffs. The U.S. govern-
ment is also insisting on major changes to the NAFTA agreement with Canada and Mexico,
to reduce the current U.S. trade imbalances with the two countries. The U.S. has threatened
to pull out of NAFTA altogether if a satisfactory agreement could not be reached. Many
business leaders, academics, and public sector officials are worried about this escalation of
trade disputes. Some have suggested the possibility of an all-out global trade war, not seen
since the 1930s.
Notwithstanding these current controversies, international trade continues to grow.
People around the world seek expanded economic opportunities, improved standards of
living, and communities free from armed conflicts. Against this backdrop, the authors would
like to share a quote from one of the founders of the Thunderbird School of Global Manage-
ment.
“Borders frequented by trade seldom need soldiers.”
Dr. William Schurz, President
Thunderbird School of Global Management 1949-52
The sixth edition of International Marketing has been fully updated to provide anal-
yses about current economic and political challenges, trade disputes, and other develop-
ments in international marketing. In addition to updating the comprehensive materials
about multinational firms, the new edition features important discussions about interna-
tional marketing and small and medium-size exporting firms. The sixth edition also includes
new coverage on services exports and the booming international e-commerce and e-
payments sectors. The authors continue to expand the materials on international marketing
and developing countries, with a number of new illustrations focused on Latin America and
Africa.
All cases have been revised and updated to offer current company examples and
overviews of industry developments. Several new cases were added. Each chapter has at
least one case study that helps students apply the knowledge acquired in the chapter.
International Marketing reflects the authors’ teaching philosophy: presenting vivid,
real-world examples that help students to better understand international marketing theo-
ry. Professor Lascu shares her own perspectives as a product of different cultures who has
International Marketing 6e -xiv- Front Matter

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experienced and observed marketing on five continents, both as an expatriate and as a lo-
cal, in a free-market system and under a repressive, anti- consumerist command economy.
Professor Hiller has substantial experience with international trade promotion, as well as
business and management in Latin America that complements Dr. Lascu’s research back-
ground and extensive work in Europe and Asia.
ANCILLARY MATERIALS
Textbook Media is pleased to offer a competitive suite of supplemental materials for
instructors using its textbooks. These ancillaries include a Test Bank, PowerPoint Slides, and
an Instructor’s Manual. This text comes with a test bank created by the author, and it in-
cludes questions in a wide range of difficulty levels for each chapter. All Textbook Media
test banks offer not only the correct answer for each question but also a rationale or expla-
nation for the correct answer and a reference to the location in the chapter where materials
addressing the question content can be found. The Test Item Files are available in files that
are readily adaptable to the major Learning Management Systems. The software files allows
the instructor to easily create customized or multiple versions of a test and include the op-
tion of editing or adding to the existing question bank.
A full set of PowerPoint® Slides, written by the author, is available for this text. This
is designed to provide instructors with comprehensive visual aids for each chapter in the
book. These slides include outlines of each chapter, highlighting important terms, concepts,
and discussion points.
The Instructor’s Manual for this book has also been written by the author and offers
suggested syllabi for 10- and 14-week terms; lecture outlines and notes; in-class and take-
home assignments; recommendations for multimedia resources such as films and Web sites;
and long and short essay questions and their answers, appropriate for use on tests.
The authors express their deep gratitude for the immense support received in the
process of developing the sixth edition of International Marketing. They would especially
like to thank Tom Doran and Ed Laube for their unrelenting support and creativity and for
their exacting oversight of this project for almost a decade. They would also like to thank
the instructors who have used previous editions. Dana Lascu expresses thanks to her family,
to Bram, Michael, and Daniel Opstelten, and to her parents, Lucia and Damian Lascu, for the
formidable international experiences that this book is based on and for creating and facili-
tating the foundations for this text. George Hiller would like to thank his wife, Laura, for her
support, and also to acknowledge his inspiring students and colleagues at the University of
Richmond.
International Marketing 6e -xv- Front Matter

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About the Authors

Dana-Nicoleta Lascu is Professor of Marketing in the Mar-
keting Department at the University of Richmond. She has a Ph.D.
in marketing from the University of South Carolina, a master’s in
international management from the Thunderbird School of Global
Management, and a B.A. in English and French from the University
of Arizona. She was a Fulbright Distinguished Chair in International
Business at the Johannes Kepler University of Linz, Austria, and a
Fulbright Specialist at Ider University, Mongolia, from where she
holds an honorary doctorate. She is Associate Editor for the Journal of Global Marketing,
Managing Editor for the Journal of Global Business and Technology, and she is on the editorial
review board of several journals. She has published in International Marketing Review, Inter-
national Business Review, European Journal of Marketing, Journal of Business Research, Jour-
nal of Business Ethics, Journal of Euromarketing, Journal of East-West Business, and Multina-
tional Business Review, among others, and is the co-author of Marketing: Essentials 5e. Dr.
Lascu has consulted with companies such as Ford Motor Company, Stihl, IDV North America,
Yellow Book International and others, and was a simultaneous and consecutive translator in
English, French, and Romanian in Romania and Rwanda. She also worked as an international
training coordinator in the United States, teaching managerial skills to bankers, corporate
managers, and government employees.
George L. Hiller is a Lecturer of International Business at

the University of Richmond. He has almost 35 years of experience
in export promotion, trade finance, international trade law, and
economic development. He has served as an instructor at the Uni-
versity of Richmond business and law schools since 1991. He devel-
oped the Doing Business in Latin America course, an experiential-
learning course in which teams of business and law students de-
velop market entry strategies in Latin America for Virginia compa-
nies. He has also taught at universities in Colombia and Germany. Professor Hiller has re-
ceived numerous international business education grants from the U.S. Department of Edu-
cation, U.S. Department of Commerce, and other governmental and nongovernmental or-
ganizations. He also consults with colleges and universities on grant strategies. Originally
from Albuquerque, New Mexico, Prof. Hiller holds an undergraduate degree in history from
the University of New Mexico, master’s degree from the Thunderbird School of Global Man-
agement, and law degree from the University of Richmond School of Law.
International Marketing 6e -xvi- Front Matter

Part 1
The Introduction to
International Marketing
Chapter 1
Scope, Concepts, and Drivers
of International Marketing
Learning Objectives
Chapter Outline
Learning Objectives
1-1 The Importance of International Marketing
1-2 Levels of International Marketing Involvement
1-3 The Ethnocentric, Polycentric, Regiocentric, and Geocentric Framework
and International Marketing Concepts
After studying
1-3a Ethnocentric Orientation
this chapter, 1-3b Polycentric Orientation
you should be able to: 1-3c Regiocentric Orientation
1-3d Geocentric Orientation
1-4 Drivers of International Expansion
• Define international marketing
1-4a Drivers in the Business Environment
and identify the different levels
1-4b Firm-Specific Drivers
of international involvement.
1-5 Obstacles to Internationalization
1-5a Self-Reference Criterion
• Describe the different company
orientations and philosophies
1-5b Government Barriers
toward international marketing. 1-5c Ethnocentrism
1-5d International Competition
• Identify environmental and firm-
specific drivers that direct firms Summary
toward international markets. Key Terms
Discussion Questions
• Identify obstacles preventing Chapter Quiz
firms from engaging in successful Notes
international ventures. Case 1-1 Alpaca Luxe: Marketing Opportunities in the Emerging Market of
Mongolia
Case 1-2 Zhang National Steel Company
Chapter 1 -3- Scope, Concepts and Drivers of
Shanghai Disneyland, which opened its

doors in 2016, cost over $5 billion to build. It is a
joint venture between Disney and the Shanghai
Shendi Group, a 100 percent state-owned enter-
prise, which owns 57 percent of Shanghai Dis-
neyland. This park has the largest castle in Dis-
ney’s history, a high-speed rail system, and a
large shopping center and it is expected to be
one of the most successful ventures in the Dis-
ney portfolio.
Disney’s experience in international mar-
kets is extensive, and the company’s
hard-learned lessons have paved the way to this
ArtisticPhoto/shutterstock.com
new enterprise. Over the years, Disney has readi-
ly applied its tried and true U.S.-centered formula to its international ventures: the mouse, Cinderel-
la, Main Street U.S.A., Frontierland, Adventureland, Tomorrowland, and, in 2018, Toy Story Land—in
other words, America and its present, past, and future in a cute package of several fun-packed
acres. This formula worked well in the United States and in Japan at Tokyo Disney Resort. However,
exporting the concept to France and Hong Kong was not an easy task. In Europe, consumers were
unhappy with the U.S. themes resonating exclusively throughout the park. Disneyland Resort Paris
had to reinvent Disney and adapt it to local preferences, creating entertainment based on European
fairy tales, serving food that would appeal to European consumers, and creating a more lax ap-
proach to the dress code for the park’s French staff. At the Hong Kong Disneyland, which opened in
2005, attendance fell short of expectations, with visitors complaining of mistreatment; the number
of attractions as well as size of the park were considered insufficient. Shortly after opening, during
the Chinese New Year, the park had to close due to ticketing problems, and ticket holders forced
their way in by storming through gates or climbing over them. Today, however, Hong Kong Disney-
land is thriving, and, along with Disneyland Paris and the Disneyland Resort in California, it leads in
the introduction of new rides and themes, such as Iron Man, and Star Wars Avengers and Marvel
superheroes.
Over the years, Disney’s internationalization strategy has changed from a blanket applica-
tion of its winning formula described above, to a greater localization and more precise targeting to
better serve consumers in its different markets, where environmental forces dictate distinct, region-
specific strategies.
This chapter introduces the different internationalization philosophies of international firms
and explores the motivations for going international, addressing the environmental and firm-
specific drivers of international expansion. It also provides an overview of the challenges and obsta-
cles encountered in international expansion.
1-1 The Importance of International Marketing

The United States constitutes one of the most important target markets in the world, con-
suming a high percentage of worldwide products and services; according to the World Bank, it is
the world’s largest consumer market. International firms are eager to invest in the U.S. – to the tune
of about to $4 trillion, employing more than 6 million Americans. But, as wealth is on the rise world-
wide due to rapid economic development, it is essential for U.S. companies to look beyond the Unit-
ed States for opportunities, and to tap into international markets to take advantage of global mar-
International Marketing 6e -3- Part 1

ket opportunities, to keep pace with competition, and to maximize the potential of their product
mix.
Throughout history, companies have become leaders of industry despite the smaller size
and limited markets of their home countries. It should be noted, however, that an international
presence was essential for their success. Take, for example, successful global companies from the
Netherlands, a small country in Western Europe, that are giants of industry worldwide. Among
them are Philips, a leading electronics manufacturer; Royal Ahold, a large retailer; Royal Dutch Shell,
a major Dutch-British oil company; and Unilever, a Dutch-British leading consumer products compa-
ny. Japan, also a comparatively small country, boasts a number of firms that are industry leaders.
Among them are Mitsui and Mitsubishi (electronics, banking, import-export, among others), Dentsu
(advertising), Sony and Panasonic (electronics), and Ito Yokado (retail).
International companies such as Apple, General Motors, Mitsubishi, Microsoft, and Procter
& Gamble earn profits greater than the gross domestic product of many low-income countries.
U.S.-based Fortune 500 companies employ almost thirty million workers around the world. More
than 300,000 US companies export. Nearly 98 percent of these firms are smaller and medium-size
companies (SMEs) with fewer than 500 employees.1 Companies find that products in the late stage
of their life cycle can experience a new life in emerging markets in middle-and low-income coun-
tries.
Avon in China
China may be the most difficult place to be an Avon Lady: The sign-up process takes many
weeks, and candidates must take a written test on China’s sales regulations and attend a related
class. Then they have to abide by many regulations, including a cap on sales commission. But be-
ing an Avon Lady is at least an option now: China lifted its ban on direct sales in 2005, after being
required to liberalize its retail industry.
In spite of these restrictions, however, Avon
has been doing reasonably well in China, reporting
double-digit increases in sales for the company, as it
changed gears to focus primarily on store sales – un-
til recently. In 2012, Avon was accused of breaching
the U.S. Foreign Corrupt Practices Act, promoting
their business interests by bribing Chinese govern-
ment officials. And its reputation suffered subse-
quently, when Coty, the fragrance company, re-
neged on a buyout offer. By 2015, Avon paid nearly
$350 million on legal challenges and compliance fees,
more than double the penalties it incurred. And yet,
despite these challenges, Avon has been able to pen-
etrate markets in large and small cities in even the
most remote areas in China. In Figure 1-1, an Avon
store in Lhasa, Tibet, has a prominent central loca-
tion and a local clientele vying for Western beauty
products.2 1.1 Avon display at 13,000 feet
in Lhasa, Tibet.

To excel in international business, companies must constantly monitor the international en-
vironment for opportunities. For over two decades, privatization in countries previously dominated
by government monopolies has made it possible for multinationals to compete for local energy,
airline, railway, and telecommunications industries. In the future, postal services might constitute
the new competitive territory of international companies. Already, in many markets, post offices are
enterprising competitors to established private sector firms, increasingly and effectively competing
not only for mailing services, but also for banking services.
1-2 Levels of International Marketing Involvement

All companies are affected by elements of the international marketing environment. In
terms of international marketing involvement, however, companies have different degrees of com-
mitment. A company engaging in domestic marketing has the least commitment to international
marketing. This company focuses solely on domestic consumers and on the home-country environ-
ment. The home-country environment, however, is affected by developments in the international
environment; furthermore, the local company is directly affected by local competition, which could
come from global companies. For example, Pep-Up, Inc. provides top-grade petroleum products,
including heating oil and propane, to customers living on the Eastern Shore of Virginia. The compa-
ny focuses entirely on local consumers living in the area. However, the price of its heating oil and
propane is affected by the price of oil and propane, which is determined by international markets.
At the next level, export marketing, a firm could be involved in exporting indirectly— the
company takes orders from international clients—or directly—the company actively seeks interna-
tional clients. For both export marketers and domestic marketers, the international market may
constitute an extension of the domestic market and might not be given special consideration. Such
firms would have an ethnocentric philosophy to internationalization, as will be shown in Section 1-
3a, “Ethnocentric Orientation.”
International marketing activities require a substantial focus on international consumers in
a particular country or countries. (When more countries are involved, international marketing is of-
ten referred to as multinational marketing.) International marketing is thus defined as the process-
es involved in the creation, production, distribution, promotion, and pricing of products, services,
ideas, and experiences for international markets. The international company (see Figure 1-2) is pre-
sent in different countries with sales offices and subsidiaries or is an active partner in strategic alli-
ances with local companies. It is important to note that, in this case, international activities are not
coordinated across the different countries or across different regions. An international company,
according to this definition, has a polycentric, or regiocentric, philosophy to internationalization, as
will be seen in Sections 1-3b, “Polycentric Orientation,” and 1-3c, “Regiocentric Orientation.”
1.2 Coca-Cola in Estonia

1-3 Consumers North America and Europe have a strong preferences for pastries – croissants, danishes,
brioches, you name it. Thus they are similar in preferences. Where they differ is in their tolerance for
high prices: in Berlin upscale stores (1-3a), such pastries are about $2.00, whereas in similar stores
in Helsinki (1-3b), they cost about almost $6.00.
Global marketing involves marketing activities across different countries without focusing
primarily on national or regional segmentation. Global marketing is possible due to the emergence
of global consumer segments with similar preferences (see Figures 1-3a and 1-3b) and due to effi-
cient global allocation of company talent and resources. A company engaging in global marketing
has a geocentric philosophy to internationalization.
It should be noted, however, that the terms defined in the preceding paragraphs are often
used interchangeably by nonbusiness and business alike—even by international managers. Interna-
tional, global, and multinational are used to refer to any company crossing borders, without particu-
lar reference to the global strategy used. The descriptions of the levels of international marketing
involvement should primarily guide one to understand when distinctions are made. Another widely-
used approach to distinguishing between companies’ international orientation and philosophy is
the ethnocentric, polycentric, regiocentric, and geocentric (EPRG) framework.
1-3 The Ethnocentric, Polycentric, Regiocentric, and Geocentric

Framework and International Marketing Concepts
Management’s orientation toward the internationalization of the firm’s operations affects
each of the functional areas of the firm and, as such, has a direct effect on the marketing functions
within the firm. Management’s philosophy on international involvement affects decisions such as
the firm’s response to global threats and opportunities and related resource allocation. Companies’
philosophies on international involvement can be described, on the basis of the EPRG framework,
as ethnocentric, polycentric, regiocentric, and geocentric.3
1-3a Ethnocentric Orientation

Eli Lilly has been described traditionally as an ethnocentric firm; in fact, even recently, in
2017, it cut jobs to divert more funds to product research and development in an effort to bring to
the marketplace high-performance pharmaceutical products. Firms with an ethnocentric orienta-
tion are guided by a domestic market extension concept. In general, top management of firms with
an ethnocentric orientation consider that domestic strategies, techniques, and personnel are supe-

rior to foreign ones and therefore provide the most effective framework for the company’s over-
seas involvement; consequently, international operations and customers are considered secondary
to domestic operations and customers.4
Ethnocentric firms are likely to be highly centralized and consider that the purpose of their
international operations is to identify markets that could absorb surplus domestic production; alter-
natively, international operations could represent a cash cow that generates revenue and necessi-
tates only minimal attention and investment. As a result, plans for international markets are devel-
oped primarily in-house by an international division and are similar to those for the domestic mar-
ket.5
Firms in the tobacco industry,6 as well as firms at the forefront of technology, tend to have
an ethnocentric marketing orientation. It should be mentioned that, often, ethnocentric firms ap-
proach globalization by internationalizing at the level of the function, rather than the firm; for ex-
ample, the marketing department may have a geocentric strategy even if top management has an
ethnocentric orientation.7 Alternatively, in the case of Wal-Mart, while merchandise is fully adapted
to local preferences, staffing clearly indicates an ethnocentric philosophy; top management come
from the company’s headquarters, in Arkansas.
In many cases, U.S. firms sell American brands along with their related U.S. lifestyles and
traditions—for example, blue jeans and entertainment are often marketed internationally using
marketing themes and strategies used in the U.S.
1-3b Polycentric Orientation

Firms with a polycentric orientation are
guided by a multidomestic market concept. Man-
agers of polycentric firms are very much aware
of the importance of individual international
markets to the success of their business and are
likely to establish individual businesses, typically
wholly owned subsidiaries or marketing subsidi-
aries, in each of the countries where they oper-
ate. The assumption the company makes is that
each market is unique and needs to be ad-
dressed individually. Consequently, the compa-
ny is fully decentralized and engages in minimal
coordination with the headquarters. rawpixel.com/shutterstock.com
Each subsidiary has its own marketing plans and objectives and operates autonomously as
an independent profit center on an individual country basis to achieve its goals; all marketing activi-
ties are performed in each country independently of the company headquarters.8 To address local
consumer needs, marketing research is conducted independently in each overseas market, and
products are fully adapted to meet these needs. Alternatively, separate product lines are developed
to meet the needs of the individual markets.
In the process of developing individual strategies for each market, the company does not
coordinate activities across the different countries and cannot benefit from economies of scale that
such coordination would allow. Furthermore, numerous functions are duplicated, and, ultimately,
final product costs are higher to the end consumer. For decades, Ford used a polycentric strategy in

meeting the needs of budget-conscious consumers by developing a Ford Escort automobile for the
United Kingdom that looked different from the one sold in the United States or Southeast Asia. 9
Currently, the Ford automobile addressing the needs of the budget-conscious consumer, the Ford
Focus, looks identical in each market: Ford has adopted a geocentric approach to product develop-
ment.
1-3c Regiocentric Orientation

Firms with a regiocentric or a geocen-
tric orientation are guided by a global marketing
concept. Companies adopting a regiocentric
orientation view world regions as distinct mar-
kets that share economic, political, and cultural
traits such that they would be viable candidates
for a regionwide marketing approach. A regio-
centric orientation is now possible due to the
success of regional economic and political inte-
gration that allows for implementing a uniform
marketing strategy in the entire region. Mem-
ber countries of the European Union, for exam-
rawpixel.com/shutterstock.com
ple, are candidates for Pan-European marketing
strategies, whereas signatory countries of the
North American Free Trade Agreement (NAFTA) lend themselves to a successful marketing strategy
aimed at the North American market. PepsiCo appears to have a regiocentric orientation; Its divi-
sions are organized on the basis of location, with regional offices coordinating all local marketing
activities. For example, Pepsi’s South-Eastern European operations are coordinated by its Turkey-
based PepsiCo subsidiary, which devises the company’s regional objectives and oversees the imple-
mentation of the company’s marketing strategy in the region.
1-3b Geocentric Orientation

Firms in which top management adopts a
geocentric orientation perceive the entire
world—without national and regional distinc-
tions—as a potential market with identifiable, ho-
mogeneous segments that need to be addressed
with similar marketing strategies, regardless of
geographic location or nationality. Coordinated
management policies are designed to reflect the
full integration among worldwide operations.
The objective of a geocentric company is
most often to achieve a position as a low-cost
manufacturer and marketer of its product line;
such a firm achieves a strategic competitive 1-4 McDonald’s restaurants pepper the landscape in
China, even in the more remote districts of large cities.
advantage by developing manufacturing process-
es that add more value per unit cost to the final product than its rivals.10 An example of a geocentric
company is McDonald’s (see Figure 1-4).
McDonald’s has been successful as a result of its geocentric philosophy. The company uses
local products to ultimately offer a similar service to consumers from Mexico City to Mumbai. In Eu-

rope, McDonald’s uses Polish potatoes, which do not lend themselves to a thin, McDonald’s-style
cut French fry but are touted to be the best in the region. It also uses local beef from the European
regions not affected or threatened by livestock disease. The company is also sensitive to the ban on
genetically-modified foods in the European Union. In India or Pakistan, for example, McDonald’s
serves lamb or vegetarian burgers. Throughout the world, it provides a uniform service that offers,
in addition to the fast food it is known for, clean restrooms, air conditioning, and service with a
smile—even in markets where a smile is a rare occurrence in a service encounter.
IBM
IBM has been going through massive reorganizations to keep abreast of the ever-
changing international market; IBM is a dynamic geocentric company. Under IBM’s old system,
a corporate customer with operations in several countries had to contract with small IBM offic-
es in each country, and each IBM office had its own regulations. The IBM organization was, at
the time, polycentric. The reorganization placed IBM’s
employees into 14 customer-focused groups, such as
financial services, entertainment, and oil and gas, to be
able to work with a central sales office to have IBM
computers installed in the entire client organization.
Organizing on the basis of function, rather than on
country of operations, demonstrates a geocentric mar-
ket orientation. Currently, the company’s main focus is
on what it considers its strategic imperatives, which
include analytics, cloud, mobile, social, and security
products. 11
humphrey/shutterstock.com
1-4 The Drivers of International Expansion

Few companies operate in an isolated, country-specific environment, and even fewer can
effectively avoid international involvement. Local firms manufacturing for local consumers are de-
pendent on equipment, parts, and raw materials originating abroad. They sell to clients and final
consumers who have had exposure to international trade practices and to international products. A
complete isolation from international influence is possible only in a closed environment such as
North Korea, where consumers are shielded from international influence.
Increasingly, companies cannot afford to avoid involvement in international marketing.
Avoiding international expansion could mean losing market share to competitors and missing nu-
merous opportunities created by changes in the international environment. Among reactive motiva-
tions for going international is the desire to remain competitive and maintain global market share
relative to competitors. In addition, evading trade barriers and other government regulations in the
home country can motivate a company to go international.
Firms should be proactive in their approach to internationalization. A proactive rationale for
internationalization can be, among others, the search for new markets, new customers, increased
market share and profits, tax advantages, or lower costs, as described in the next sections.
Drivers in the business environment and firm-specific drivers, addressed in Sections 1-4a,
“Drivers in the Business Environment,” and 1-4b, “Firm-Specific Drivers,” as well as Table 1-1, help
international companies benefit from such opportunities.

Business Environment Drivers Firm-Specific Drivers

Competition Product life-cycle considerations
Regional economic and political integration High new-product development costs
Technology Standardization, economies of scale, and

low-cost labor
Improvements in the transportation and Experience transfers

telecommunication infrastructure
Economic growth
Transition to a market economy
Converging consumer needs
Table 1-1
1-4a Drivers in the Business Environment

Competition
Competitive pressure is often a driver of internationalization. Over time, service providers
and client firms develop close relationships that last as long as the firms move together into new
international markets. Service providers could include accounting, legal, banking, and advertising
firms. However, the relationship is in jeopardy when the service provider does not follow the client
into the new market. McCann has been, for many years, the primary advertising agency for Coca-
Cola and has followed the company into new markets, as illustrated in the following example.
McCann Erickson and Coca-Cola

McCann Erickson, a leading advertising agency, has followed for many years its longtime
client Coca-Cola in most countries where the company was present around the globe: McCann Er-
ickson had been handling the Coca-Cola account in 129 countries since 1942.12 That sometimes
meant McCann Erickson lost money in countries where its accounts were limited but where, never-
theless, it chose to be present to serve the advertising needs of Coke. If McCann Erickson chose not
to serve its client in a market, Coca-Cola might resort to the services of a competitor, and on the
basis of its experience with the competitor, Coca-Cola might replace McCann Erickson with the
competing advertising firm.
However, in spite of efforts to serve their client firm, even the most dedicated service pro-
viders can be replaced. In 2007, Coca-Cola moved the management of its dedicated Red Lounge
China marketing unit from McCann Erickson to Leo Burnett, a competing advertising agency, deal-
ing McCann a significant blow. Coca-Cola executives decided that they needed to change the way
they worked with agency partners. They placed Leo Burnett in charge of teams from different
agencies because company executives felt that creating independence and tension between them
and their agencies would lead to better ideas and better thinking. They will likely use this strategy
in other markets as well, which does not bode well for McCann Erickson.13
(Continued on next page…)

However, more recently, Coca-Cola and McCann have been working together on a number
of blockbuster campaigns. In the final moments of the Mad Men television series, Coca-Cola’s
famed 1971 Hilltop ad took center stage, suggesting that a character in the series created the spot.
This created much social media buzz for both Coca-Cola and McCann. 14 Another campaign, aimed at
the Indian market, attempts to bring Coke to the masses through an ad series underlining the joy in
everyday situations. 15
Regional Economic and Political Integration

In addition to cultural similarities—language and religion, for example—economic and polit-
ical integration play an important part in facilitating international trade. Regional trade agreements
such as NAFTA, and the politically and economically integrated European Union are focused on low-
ering or eliminating barriers among member countries and promoting trade within the perimeter of
each common market. It permits subsidiaries incorporated in the respective markets to benefit
from free trade within the region and allows firms outside the integrated regions to conduct busi-
ness within the common market without the impediments typically posed by crossing national bor-
ders—customs paperwork, separate tariffs for each country, and so on. For example, STIHL, the
large German manufacturer of outdoor power equipment and chainsaws, has a large manufacturing
facility in Virginia Beach, Virginia. Stihl uses the Virginia location to export products to buyers in
North and South America, taking advantage of the free trade agreements that the United States
has with countries in this region.
A company from the United States exporting products to multiple countries in the Europe-
an Union, for example, will cross borders once. The company will do the customs paperwork and
pay the required customs duties only once, instead of applying for an import license and paying cus-
toms duties in every country where it exports products. A subsidiary of a company from the United
States incorporated in any country of the European Union is a corporate citizen of the European
Union. Consequently, the subsidiary does not have to pay duties or foreign exchange costs when it
crosses borders of most European Union member states because all transactions are conducted in
euros. See the following example of Ford Germany.
Ford Germany
Although Ford is a U.S. compa-
ny, Ford Germany is a citizen of Germa-
ny and the European Union. As such,
Ford Germany can freely ship its Ford
Focus, Ford Ka, Ford Mondeo, Ford Fu-
sion, Ford C-Max and S-Max, Ford
Transit Euroline, the Ford Ranger, and
its other models to dealers in the coun-
tries of the European Union without
going through customs and engaging
in related paperwork. Moreover, the
company does not incur any foreign
exchange cost because all the transac-
tions take place in euros.

Technology
Technology has created opportu-
nities for firms involved in international
business. In terms of media develop-
ment, consumers worldwide are exposed
to programming originating in other
countries. Entertainment programming
from the United States in particular domi-
nates the international airways. CNN is
popular with business-people around the
world, and NBC eagerly exports its mix of
late-night comedy and news magazines
rawpixel.com/shutterstock.com
to the rest of the world.
Advertising also crosses borders, exposing consumers to brands from other countries. The
Internet has revolutionized the way many companies conduct business, offering businesses instant
and unlimited international exposure—something that brick-and-mortar stores and traditional man-
ufacturers have taken years to achieve. Such exposure offers tremendous opportunities to small
businesses that do not normally have the advertising budget to communicate with the international
market. For example, a Havasu-owned small business in Nevada, located two hours by car and an-
other two on horseback from Las Vegas, can advertise weekend vacation opportunities to French
businesspeople in the southern state of Languedoc-Roussillon planning to attend Las Vegas confer-
ences or to French couples in the eastern state of Alsace looking for a unique honeymoon.
Improvements in the Transportation and Telecommunication Infrastructure
Closely linked to technology are the leaps in the area of transportation and, particularly, in
the technology infrastructure. In 1982, a Mercedes-Benz service station in Bujumbura, Burundi (sub-
Saharan East Africa), attempting to contact the company factory in Stuttgart, Germany, to order a
part, would tie up an English-or German-speaking employee for quite some time for this purpose.
The employee would book the telephone call with the operator early in the morning and would typi-
cally be contacted by the afternoon. The call would be facilitated by an operator in Brussels, Bel-
gium (calls to Burundi went via cable from Belgium to its former colonies in East Africa), who would
link the factory to the service station. The quality of the connection would often be problematic,
necessitating a second request for a telephone connection. An alternative would have been placing
the request via telex (faxing was not an option at that time, nor was the use of e-mail or video con-
ferencing).
Today, a telephone connection to Burundi would be handled via satellite, for just pennies,
and the communication would be crisp and clear, or the company could use video teleconferencing.
Job interviews using Skype or FaceTime are used in interviews with potential Western employees in
the United Arab Emirates, with the only challenge encountered in the process being the time that
would be convenient to both parties, as 8 A.M. in the United States is 4 P.M. in the U.A.E.
Transportation has also greatly improved. The use of containers for international inter-
modal (ship, truck, train) shipping greatly facilitates the transportation of physical goods, and
sellers can check the exact location of the merchandise at any time. In 2018, following the latest ex-
pansion of the Panama Canal, giant Super Panamax ships carrying up to 13,000 containers dramati-
cally changed international shipping logistics. For passenger transport, efficient and rapid air travel
has become more affordable, allowing for frequent interaction between expatriate or local employ-

ees and employees from the company

headquarters. Alternatively, high-speed
train travel on inter-city routes allows for
rapid transportation in Japan, China, and
many countries in the European Union
(see Figure 1-5). Emerging markets are al-
so rapidly developing their transportation
infrastructure; for example, in China,
high-speed trains take merely a fraction of
the time it used to take to travel between
Shanghai and its Pudong Airport.
Economic Growth
Economic growth constitutes an
photocritical/shutterstock.com important driver of internationalization.
1-5 An infrastructure that can support high-speed train
Economic development in has led to the
travel is characteristic of large European and Asian cities. emergence of a strong middle class in
large markets, such as those of Brazil and
India, leading to increased buying power, creating great potential for international brands. Econom-
ic growth has also opened markets that were previously closed or that have had limited internation-
al competition. A case in point is China, which now welcomes foreign direct investment. Emerging
economies are likely to be more open to free trade and no longer severely limit international firms
from entering and operating in these markets.
Transition to a Market Economy
The transition of formerly closed economies, such as those of China, Kazakhstan, Mongolia,
and Vietnam, and, more recently, Cuba, to a market economy has led to rapid economic develop-
ment in these countries and has created important new markets for international brands. An im-
portant outcome of the transition to a market economy has been the deregulation and privatization
of former government monopolies. For example, under the former Communist regimes and other
forms of government and military rule, all industry was run by inefficient government bodies. The
demise of these regimes created opportunities for multinationals such as Philip Morris, Whirlpool,
Unilever, Procter & Gamble, Colgate-Palmolive, and others, to purchase or partner with local com-
panies operating at a loss, producing low-quality goods and to turn them around into successful
enterprises.
Service providers, from Accenture to Pizza Hut, have actively targeted these markets, en-
gaging in the highest level of international commitment: foreign direct investment. Similarly, small
and medium-size firms have also benefited, expanding from the saturated home-country markets
into the newly-opened emerging markets.
Currently, international companies, joint ventures between multinationals and local compa-
nies, private local businesses, as well as some remnants of the former system—for example, state-
owned enterprises—compete for local consumers in these transition markets. At the same time,
satellite television, cellular telephones, and the Internet expose these consumers to programming,
information, and advertising for international brands, shaping consumer desires and brand prefer-
ences. Companies that have, initially, ignored these markets due to the obstacles they posed to in-
ternational trade — for instance, limiting consumer-goods companies’ access to hard currency and
restricting the repatriation of profits — have finally entered these promising markets to take ad-

vantage of the many untapped opportunities. Investing in transition econ0mies has proved to be a
brilliant strategy for company growth. Most rewards are reaped by those companies investing in
the larger transition economies, such as China, Brazil, and India. Take Yum! Brands, in the following
example.
Yum! Brands
Yum! Brands, the largest fast food restaurant company in terms of total number of restau-
rants, boasting the popular fast-food chains Taco Bell, KFC, and Pizza Hut, has not had a stellar per-
formance in recent years in the United States. Internationally, however, its restaurant business has
been booming, with the company serving 1.4 billion consumers. Yum! Brands’ highest growth is in
China, where KFC is a dominant player, with restaurants in more than 1,000 cities (see Figure 1-6). In
fact, China’s division is leading Yum!’s growth – Yum! has 6900 stores in China, — as the company
continues an aggressive strategy of opening restaurants around the world.16
1-6 Yum! Brands is omnipresent in China and Taiwan.
Converging Consumer Needs

Exposure to global brands in one’s home country and, while traveling abroad, exposure to
media advertising other brands has created demand for many global products. Consumers world-
wide are loyal to international brands such as Nike sneakers, Levi’s jeans, Coca-Cola, Heineken beer,
and Ralph Lauren shirts. Uniform consumer segments are emerging in high-income countries and
low-income countries: One such segment is the youth market. Young consumers in the United
States and in Southeast Asia are loyal to the same soft-drink brands, wear the same brands of cloth-
ing, listen to the same music, have the same teen idols, use the same social media, and see the same

television shows. Another uniform segment is the luxury segment. Luxury consumers in Latin Amer-
ica, Asia, Europe, and Africa vie for the same international luxury brands. New York’s Fifth Avenue
and 57th street boutiques carry the same brands as those found in Place Vendôme, in Paris, on the
Isle of Capri, in Italy, or on Shanghai’s historic Bund.
Brand websites, social media buzz, and television exposure to international brands have
created brand familiarity and, indeed, brand desire with consumers in many markets where the
brand might not be available. Similarly, consumers traveling abroad encounter new product offer-
ings and develop desires for brands that may not be available in their home country. These consum-
ers represent a ready market for international brands. In Kazakhstan, for example, consumers dedi-
cate a larger portion of their budget to luxury goods; Kazakhs do not have a habit of saving money
and, compared to most Europeans, spend substantially more on luxury and leisure. In Almaty, even
emerging luxury brands such as MSGM shoes and Marc Cross couture sold out as soon as they ar-
rived at the point of retail when they were first introduced to Kazakh consumers. 17
Converging consumer needs have created homogeneous segments of consumers that can
be addressed similarly, regardless of their location. Figure 1-7 shows a bagel shop in Berlin. Bagels
started with a Jewish baker in Vienna, who made a hard roll for the king of Poland, Jan Sobieski, in
the shape of a riding stirrup-Bugel (commemorating the king’s favorite pastime, riding) to thank
him for protecting his countrymen from Turkish invaders. From there, the bagel made its way to
Poland, Russia, and, eventually to Manhattan’s Lower East Side. Surprise! The bagel made it back
across the Atlantic, to Germany, where Salomon Bagels (www.salomon-bagels.de) at Berlin’s
trendy Potsdamer Platz is very popular. Here, the schmear (spread) consists of not just cream
cheese and lox (salmon), but marmalade, hazelnut spread, honey, hummus, and Parmesan. Or one
can have a pizza bagel with schinken (ham, oy!) or spinach.
1.7 Bagels are back in Berlin, serving the needs of the city’s cosmopolitan consumers.
1-4b Firm-Specific Drivers

Product Life-Cycle Considerations
A main driver of international expansion is a firm’s attempt to prolong the life cycle of its
products and thus create higher profits for the company from a larger customer base. Products that
are in late maturity, or even in the decline stage, can change their position on the global product
life-cycle stage by going into markets where the product is in high demand. To illustrate this point,
the cigarette industry is in either the late maturity stage or in the decline stage in many industrial-
ized countries. By entering large emerging markets where cigarettes are in the growth stage and
consumers have increasing purchase power, such as China, India, Republic of South Africa, and
countries in Central Asia, the cigarette industry is in fact prolonging its product life cycle.

High New Product Development Costs

The concept of high costs for new product development is related to the product life cycle.
Companies often spend long periods and significant amounts of money to develop new products.
Nike, on the average, spends close to a year to develop, test, and manufacture new product designs
that then last on the shelves in the United States for only six months. Despite the size and purchase
power of the U.S. market, it is unlikely that Nike would fully recover its product development costs
and make a profit as well if it limited its sales to this country. This is especially true for companies at
the forefront of technology (manufacturers of high-tech equipment and electronics, pharmaceuti-
cal firms, and others), which need to tap large markets for long periods to recoup costs and to
make a profit as well; as a result, for these companies, going international is not a choice—it is a
precondition for survival.
The Audi A3 cabriolet, a small luxury sedan, was introduced in Europe in the mid 1990s, in
the U.S. in 2006, and in India in late 2014. In 2015, Mercedes offered its own small luxury sedan mod-
el, the CLA, which Consumer Reports described at one point as a very nice Honda. The Audi and the
Mercedes brands benefited greatly
from a broader launch of their small
luxury models; they were able to reap
greater profits worldwide by selling
their offering to India’s rapidly grow-
ing upper middle class. With a popula-
tion of 1.2 billion and a middle class
expected to make up over half a bil-
lion consumers in a decade, selling
affordable luxury brands is a safe bet.
It is also an astute strategy that can
help recoup the costs involved in de-
veloping new models of their automo-
biles and thus to maximize return on
Hadrian/shutterstock.com investment.
Standardization, Economies of Scale, and Cheap Labor
During the maturity stage of the product life cycle, the core product is likely to achieve a
standard in a particular industry: Competitors—typically an oligopoly—respond to consumer needs
by offering products whose components are interchangeable and which converge toward the
brand experiencing the greatest consumer demand. To offer historical illustrations, standards were
established in the personal computer industry, which converged on the IBM standard; more recent-
ly, smart phones appear to have converged to the iPhone standard.
Also during maturity, firms increasingly compete on price: Typically, they attempt to lower
the product manufacturing costs by achieving economies of scale in production. In addition, firms
with mature brands also move manufacturing operations and facilities abroad, to developing coun-
tries, in an attempt to take advantage of significantly lower labor costs.
Increasingly, firms may not even wait for a standard to develop before they attempt to ob-
tain economies of scale and/or move their production to low-labor-cost countries. Apple, for exam-
ple, produced the iPhone in China and Taiwan from the very beginning to take advantage of low
labor costs.

Even startups, which usually launch their products first in wealthy countries, are increasing-
ly introducing products in emerging markets first, taking advantage of faster approvals and less reg-
ulatory oversight. For example, Diagnostics for All, a Boston-area startup developed miniature diag-
nostic tests that contain small amounts of chemicals that react with samples of blood, urine, saliva,
or sweat, displaying a reading with a change of color. Their technology is revolutionary because
they deliver a low-cost laboratory testing technique, in contrast to existing diagnostic machines that
cost over $30,000. As hospitals in emerging markets
cannot afford such expensive machines, physicians
are likely to adopt this product much faster, which
helps the company demonstrate that its concept
works. Also, selling this product in emerging markets
will keep the product off the radar of the competitors
manufacturing the expensive machines. In the pro-
cess of delivering this product in emerging markets
first, Diagnostics for All delays expensive and lengthy
clinical trials in high-income countries until it has a bet-
ter control of the technology and it is more broadly
accepted by the market. 18
Experience Transfers VGstockstudio/shutterstock.com
International firms benefit from lessons they learn in the different parts of the world. Col-
gate-Palmolive, for example, developed its successful Axion dishwashing paste for its Latin Ameri-
can market after noting that women washed dishes by hand, dunking their hands in a small tub with
a few slivers of soap. The same product was then offered to consumers in Central and Eastern Eu-
rope after noting that they washed dishes using a similar method— and the product was a hit. Ser-
vice providers such as Pizza Hut found that they were more successful with consumers in general,
but especially with younger generations of consumers in Eastern Europe and Central Asia, if they
played loud pop music in their restaurants. As a result, they started entering new markets by part-
nering with radio stations and clubs.
Similar experience transfers have been helpful to retailers in the process of internationaliza-
tion. The Tesco Extra hypermarket (superstore) in the city of Newcastle, United Kingdom, and the
popular and busy Tesco hypermarket in the southern Czech Republic, in Cesky Budeovice, are based
on Tesco hypermarkets first introduced by the same U.K. retailer elsewhere in Eastern Europe. Tak-
ing advantage of experience transfers, the company is able to go to different international markets
and thus reduce its dependence on any one market.
1-5 Obstacles to Internationalization

Companies attempting to establish and maintain an international presence are likely to en-
counter obstacles to internationalization both from within the company and from outside. Such
obstacles can be financial in nature — the company might not have the finances to expand beyond
national frontiers. Others are psychological — fear of an unknown international environment or of
local business practices may keep the company from international engagement. These two types of
barriers, however, could equally affect the company’s local expansion efforts. Companies may not
have the finances to expand beyond a small regional market, or they fear going into new markets
where consumers may not be familiar with their products and hence may not respond to their mar-
keting strategy. (However, it bears repeating that in 2018, some 300,000 smaller and medium-size
businesses or SMEs are exporters.)

There are obstacles that are typically encountered by firms in their process of international-
ization—obstacles that they are unlikely to encounter in other expansion efforts. They are the self-
reference criterion, government barriers, and international competition.
1-5a Self-Reference Criterion

Of crucial importance to international operations is the ability of the firm, and especially of
its marketing strategy, to adapt to the local business environment to serve well the needs of local
consumers and to address the requirements of local government, industry, and channels of distri-
bution. An impediment to adaptation is the self-reference criterion, defined as individuals’ con-
scious and unconscious reference to their own national culture and to home-country norms and
values, as well as to their knowledge and experience, in the process of making decisions in the host
country. At the company level, self-reference may lead the firm to fail to understand local consum-
ers and their needs and to fail to understand the local business culture and deal effectively with
local nationals.
Self-reference can lead to a breakdown in communication between parties from different
cultures. For example, an employee of a large international company from the United States has
been trained by career counselors in the United States that looking one’s counterpart in the eyes
conveys directness and honesty. When this individual conducts business in Japan using direct eye
contact, he or she is likely to be perceived as
abrasive, challenging the Japanese counterpart.
Similarly, if an employee proceeds directly to
transacting the business deal in Latin America or
southern Europe instead of first interacting in a
social setting to establish rapport, he or she
would be perceived as arrogant, interested only
in the bottom line, rather than in a long-term
working relationship.
A first step to minimizing the effect of
the self-reference criterion is selecting the ap-
propriate personnel for international assign-
rawpixel.com/shutterstock.com ments. Such employees are sensitive to others
and have experience working in different environments. Second, it is important to train internation-
al sales managers who travel overseas as well as in-country expatriates to focus on and be sensitive
to the local culture, rather than limit their personal interactions to own-country nationals or to ex-
patriates from countries with cultures that are similar to their own. In fact, it is advisable that firms
institute an organization-wide general orientation that instills and demonstrates sensitivity to inter-
national environments and openly rejects value judgments and national stereotyping.
1-5b Ethnocentrism
Ethnocentrism is related to the self-reference criterion. Individuals who are ethnocentric
judge other cultures only from the perspective of their own culture; and, importantly, they judge
their own culture as superior to other cultures. As the United States has played a leading role in the
world economy for the past decades, and as a U.S. management style has caught on all over the
world, many U.S. managers have come to assume that the American business model is the accept-

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DANCE ON STILTS AT THE GIRLS’ UNYAGO, NIUCHI
Newala, too, suffers from the distance of its water-supply—at least

the Newala of to-day does; there was once another Newala in a lovely
valley at the foot of the plateau. I visited it and found scarcely a trace
of houses, only a Christian cemetery, with the graves of several
missionaries and their converts, remaining as a monument of its
former glories. But the surroundings are wonderfully beautiful. A
thick grove of splendid mango-trees closes in the weather-worn
crosses and headstones; behind them, combining the useful and the
agreeable, is a whole plantation of lemon-trees covered with ripe
fruit; not the small African kind, but a much larger and also juicier
imported variety, which drops into the hands of the passing traveller,
without calling for any exertion on his part. Old Newala is now under
the jurisdiction of the native pastor, Daudi, at Chingulungulu, who,
as I am on very friendly terms with him, allows me, as a matter of
course, the use of this lemon-grove during my stay at Newala.
FEET MUTILATED BY THE RAVAGES OF THE “JIGGER”
(Sarcopsylla penetrans)
The water-supply of New Newala is in the bottom of the valley,

some 1,600 feet lower down. The way is not only long and fatiguing,
but the water, when we get it, is thoroughly bad. We are suffering not
only from this, but from the fact that the arrangements at Newala are
nothing short of luxurious. We have a separate kitchen—a hut built
against the boma palisade on the right of the baraza, the interior of
which is not visible from our usual position. Our two cooks were not
long in finding this out, and they consequently do—or rather neglect
to do—what they please. In any case they do not seem to be very
particular about the boiling of our drinking-water—at least I can
attribute to no other cause certain attacks of a dysenteric nature,
from which both Knudsen and I have suffered for some time. If a
man like Omari has to be left unwatched for a moment, he is capable
of anything. Besides this complaint, we are inconvenienced by the
state of our nails, which have become as hard as glass, and crack on
the slightest provocation, and I have the additional infliction of
pimples all over me. As if all this were not enough, we have also, for
the last week been waging war against the jigger, who has found his
Eldorado in the hot sand of the Makonde plateau. Our men are seen
all day long—whenever their chronic colds and the dysentery likewise
raging among them permit—occupied in removing this scourge of
Africa from their feet and trying to prevent the disastrous
consequences of its presence. It is quite common to see natives of
this place with one or two toes missing; many have lost all their toes,
or even the whole front part of the foot, so that a well-formed leg
ends in a shapeless stump. These ravages are caused by the female of
Sarcopsylla penetrans, which bores its way under the skin and there
develops an egg-sac the size of a pea. In all books on the subject, it is
stated that one’s attention is called to the presence of this parasite by
an intolerable itching. This agrees very well with my experience, so
far as the softer parts of the sole, the spaces between and under the
toes, and the side of the foot are concerned, but if the creature
penetrates through the harder parts of the heel or ball of the foot, it
may escape even the most careful search till it has reached maturity.
Then there is no time to be lost, if the horrible ulceration, of which
we see cases by the dozen every day, is to be prevented. It is much
easier, by the way, to discover the insect on the white skin of a
European than on that of a native, on which the dark speck scarcely
shows. The four or five jiggers which, in spite of the fact that I
constantly wore high laced boots, chose my feet to settle in, were
taken out for me by the all-accomplished Knudsen, after which I
thought it advisable to wash out the cavities with corrosive
sublimate. The natives have a different sort of disinfectant—they fill
the hole with scraped roots. In a tiny Makua village on the slope of
the plateau south of Newala, we saw an old woman who had filled all
the spaces under her toe-nails with powdered roots by way of
prophylactic treatment. What will be the result, if any, who can say?
The rest of the many trifling ills which trouble our existence are
really more comic than serious. In the absence of anything else to
smoke, Knudsen and I at last opened a box of cigars procured from
the Indian store-keeper at Lindi, and tried them, with the most
distressing results. Whether they contain opium or some other
narcotic, neither of us can say, but after the tenth puff we were both
“off,” three-quarters stupefied and unspeakably wretched. Slowly we
recovered—and what happened next? Half-an-hour later we were
once more smoking these poisonous concoctions—so insatiable is the
craving for tobacco in the tropics.
Even my present attacks of fever scarcely deserve to be taken
seriously. I have had no less than three here at Newala, all of which
have run their course in an incredibly short time. In the early
afternoon, I am busy with my old natives, asking questions and
making notes. The strong midday coffee has stimulated my spirits to
an extraordinary degree, the brain is active and vigorous, and work
progresses rapidly, while a pleasant warmth pervades the whole
body. Suddenly this gives place to a violent chill, forcing me to put on
my overcoat, though it is only half-past three and the afternoon sun
is at its hottest. Now the brain no longer works with such acuteness
and logical precision; more especially does it fail me in trying to
establish the syntax of the difficult Makua language on which I have
ventured, as if I had not enough to do without it. Under the
circumstances it seems advisable to take my temperature, and I do
so, to save trouble, without leaving my seat, and while going on with
my work. On examination, I find it to be 101·48°. My tutors are
abruptly dismissed and my bed set up in the baraza; a few minutes
later I am in it and treating myself internally with hot water and
lemon-juice.
Three hours later, the thermometer marks nearly 104°, and I make
them carry me back into the tent, bed and all, as I am now perspiring
heavily, and exposure to the cold wind just beginning to blow might
mean a fatal chill. I lie still for a little while, and then find, to my
great relief, that the temperature is not rising, but rather falling. This
is about 7.30 p.m. At 8 p.m. I find, to my unbounded astonishment,
that it has fallen below 98·6°, and I feel perfectly well. I read for an
hour or two, and could very well enjoy a smoke, if I had the
wherewithal—Indian cigars being out of the question.
Having no medical training, I am at a loss to account for this state
of things. It is impossible that these transitory attacks of high fever
should be malarial; it seems more probable that they are due to a
kind of sunstroke. On consulting my note-book, I become more and
more inclined to think this is the case, for these attacks regularly
follow extreme fatigue and long exposure to strong sunshine. They at
least have the advantage of being only short interruptions to my
work, as on the following morning I am always quite fresh and fit.
My treasure of a cook is suffering from an enormous hydrocele which
makes it difficult for him to get up, and Moritz is obliged to keep in
the dark on account of his inflamed eyes. Knudsen’s cook, a raw boy
from somewhere in the bush, knows still less of cooking than Omari;
consequently Nils Knudsen himself has been promoted to the vacant
post. Finding that we had come to the end of our supplies, he began
by sending to Chingulungulu for the four sucking-pigs which we had
bought from Matola and temporarily left in his charge; and when
they came up, neatly packed in a large crate, he callously slaughtered
the biggest of them. The first joint we were thoughtless enough to
entrust for roasting to Knudsen’s mshenzi cook, and it was
consequently uneatable; but we made the rest of the animal into a
jelly which we ate with great relish after weeks of underfeeding,
consuming incredible helpings of it at both midday and evening
meals. The only drawback is a certain want of variety in the tinned
vegetables. Dr. Jäger, to whom the Geographical Commission
entrusted the provisioning of the expeditions—mine as well as his
own—because he had more time on his hands than the rest of us,
seems to have laid in a huge stock of Teltow turnips,[46] an article of
food which is all very well for occasional use, but which quickly palls
when set before one every day; and we seem to have no other tins
left. There is no help for it—we must put up with the turnips; but I
am certain that, once I am home again, I shall not touch them for ten
years to come.
Amid all these minor evils, which, after all, go to make up the
genuine flavour of Africa, there is at least one cheering touch:
Knudsen has, with the dexterity of a skilled mechanic, repaired my 9
× 12 cm. camera, at least so far that I can use it with a little care.
How, in the absence of finger-nails, he was able to accomplish such a
ticklish piece of work, having no tool but a clumsy screw-driver for
taking to pieces and putting together again the complicated
mechanism of the instantaneous shutter, is still a mystery to me; but
he did it successfully. The loss of his finger-nails shows him in a light
contrasting curiously enough with the intelligence evinced by the
above operation; though, after all, it is scarcely surprising after his
ten years’ residence in the bush. One day, at Lindi, he had occasion
to wash a dog, which must have been in need of very thorough
cleansing, for the bottle handed to our friend for the purpose had an
extremely strong smell. Having performed his task in the most
conscientious manner, he perceived with some surprise that the dog
did not appear much the better for it, and was further surprised by
finding his own nails ulcerating away in the course of the next few
days. “How was I to know that carbolic acid has to be diluted?” he
mutters indignantly, from time to time, with a troubled gaze at his
mutilated finger-tips.
Since we came to Newala we have been making excursions in all
directions through the surrounding country, in accordance with old
habit, and also because the akida Sefu did not get together the tribal
elders from whom I wanted information so speedily as he had
promised. There is, however, no harm done, as, even if seen only
from the outside, the country and people are interesting enough.
The Makonde plateau is like a large rectangular table rounded off
at the corners. Measured from the Indian Ocean to Newala, it is
about seventy-five miles long, and between the Rovuma and the
Lukuledi it averages fifty miles in breadth, so that its superficial area
is about two-thirds of that of the kingdom of Saxony. The surface,
however, is not level, but uniformly inclined from its south-western
edge to the ocean. From the upper edge, on which Newala lies, the
eye ranges for many miles east and north-east, without encountering
any obstacle, over the Makonde bush. It is a green sea, from which
here and there thick clouds of smoke rise, to show that it, too, is
inhabited by men who carry on their tillage like so many other
primitive peoples, by cutting down and burning the bush, and
manuring with the ashes. Even in the radiant light of a tropical day
such a fire is a grand sight.
Much less effective is the impression produced just now by the
great western plain as seen from the edge of the plateau. As often as
time permits, I stroll along this edge, sometimes in one direction,
sometimes in another, in the hope of finding the air clear enough to
let me enjoy the view; but I have always been disappointed.
Wherever one looks, clouds of smoke rise from the burning bush,
and the air is full of smoke and vapour. It is a pity, for under more
favourable circumstances the panorama of the whole country up to
the distant Majeje hills must be truly magnificent. It is of little use
taking photographs now, and an outline sketch gives a very poor idea
of the scenery. In one of these excursions I went out of my way to
make a personal attempt on the Makonde bush. The present edge of
the plateau is the result of a far-reaching process of destruction
through erosion and denudation. The Makonde strata are
everywhere cut into by ravines, which, though short, are hundreds of
yards in depth. In consequence of the loose stratification of these
beds, not only are the walls of these ravines nearly vertical, but their
upper end is closed by an equally steep escarpment, so that the
western edge of the Makonde plateau is hemmed in by a series of
deep, basin-like valleys. In order to get from one side of such a ravine
to the other, I cut my way through the bush with a dozen of my men.
It was a very open part, with more grass than scrub, but even so the
short stretch of less than two hundred yards was very hard work; at
the end of it the men’s calicoes were in rags and they themselves
bleeding from hundreds of scratches, while even our strong khaki
suits had not escaped scatheless.
NATIVE PATH THROUGH THE MAKONDE BUSH, NEAR

MAHUTA
I see increasing reason to believe that the view formed some time
back as to the origin of the Makonde bush is the correct one. I have
no doubt that it is not a natural product, but the result of human
occupation. Those parts of the high country where man—as a very
slight amount of practice enables the eye to perceive at once—has not
yet penetrated with axe and hoe, are still occupied by a splendid
timber forest quite able to sustain a comparison with our mixed
forests in Germany. But wherever man has once built his hut or tilled
his field, this horrible bush springs up. Every phase of this process
may be seen in the course of a couple of hours’ walk along the main
road. From the bush to right or left, one hears the sound of the axe—
not from one spot only, but from several directions at once. A few
steps further on, we can see what is taking place. The brush has been
cut down and piled up in heaps to the height of a yard or more,
between which the trunks of the large trees stand up like the last
pillars of a magnificent ruined building. These, too, present a
melancholy spectacle: the destructive Makonde have ringed them—
cut a broad strip of bark all round to ensure their dying off—and also
piled up pyramids of brush round them. Father and son, mother and
son-in-law, are chopping away perseveringly in the background—too
busy, almost, to look round at the white stranger, who usually excites
so much interest. If you pass by the same place a week later, the piles
of brushwood have disappeared and a thick layer of ashes has taken
the place of the green forest. The large trees stretch their
smouldering trunks and branches in dumb accusation to heaven—if
they have not already fallen and been more or less reduced to ashes,
perhaps only showing as a white stripe on the dark ground.
This work of destruction is carried out by the Makonde alike on the
virgin forest and on the bush which has sprung up on sites already
cultivated and deserted. In the second case they are saved the trouble
of burning the large trees, these being entirely absent in the
secondary bush.
After burning this piece of forest ground and loosening it with the
hoe, the native sows his corn and plants his vegetables. All over the
country, he goes in for bed-culture, which requires, and, in fact,
receives, the most careful attention. Weeds are nowhere tolerated in
the south of German East Africa. The crops may fail on the plains,
where droughts are frequent, but never on the plateau with its
abundant rains and heavy dews. Its fortunate inhabitants even have
the satisfaction of seeing the proud Wayao and Wamakua working
for them as labourers, driven by hunger to serve where they were
accustomed to rule.
But the light, sandy soil is soon exhausted, and would yield no
harvest the second year if cultivated twice running. This fact has
been familiar to the native for ages; consequently he provides in
time, and, while his crop is growing, prepares the next plot with axe
and firebrand. Next year he plants this with his various crops and
lets the first piece lie fallow. For a short time it remains waste and
desolate; then nature steps in to repair the destruction wrought by
man; a thousand new growths spring out of the exhausted soil, and
even the old stumps put forth fresh shoots. Next year the new growth
is up to one’s knees, and in a few years more it is that terrible,
impenetrable bush, which maintains its position till the black
occupier of the land has made the round of all the available sites and
come back to his starting point.
The Makonde are, body and soul, so to speak, one with this bush.
According to my Yao informants, indeed, their name means nothing
else but “bush people.” Their own tradition says that they have been
settled up here for a very long time, but to my surprise they laid great
stress on an original immigration. Their old homes were in the
south-east, near Mikindani and the mouth of the Rovuma, whence
their peaceful forefathers were driven by the continual raids of the
Sakalavas from Madagascar and the warlike Shirazis[47] of the coast,
to take refuge on the almost inaccessible plateau. I have studied
African ethnology for twenty years, but the fact that changes of
population in this apparently quiet and peaceable corner of the earth
could have been occasioned by outside enterprises taking place on
the high seas, was completely new to me. It is, no doubt, however,
correct.
The charming tribal legend of the Makonde—besides informing us
of other interesting matters—explains why they have to live in the
thickest of the bush and a long way from the edge of the plateau,
instead of making their permanent homes beside the purling brooks
and springs of the low country.
“The place where the tribe originated is Mahuta, on the southern
side of the plateau towards the Rovuma, where of old time there was
nothing but thick bush. Out of this bush came a man who never
washed himself or shaved his head, and who ate and drank but little.
He went out and made a human figure from the wood of a tree
growing in the open country, which he took home to his abode in the
bush and there set it upright. In the night this image came to life and
was a woman. The man and woman went down together to the
Rovuma to wash themselves. Here the woman gave birth to a still-
born child. They left that place and passed over the high land into the
valley of the Mbemkuru, where the woman had another child, which
was also born dead. Then they returned to the high bush country of
Mahuta, where the third child was born, which lived and grew up. In
course of time, the couple had many more children, and called
themselves Wamatanda. These were the ancestral stock of the
Makonde, also called Wamakonde,[48] i.e., aborigines. Their
forefather, the man from the bush, gave his children the command to
bury their dead upright, in memory of the mother of their race who
was cut out of wood and awoke to life when standing upright. He also
warned them against settling in the valleys and near large streams,
for sickness and death dwelt there. They were to make it a rule to
have their huts at least an hour’s walk from the nearest watering-
place; then their children would thrive and escape illness.”
The explanation of the name Makonde given by my informants is
somewhat different from that contained in the above legend, which I
extract from a little book (small, but packed with information), by
Pater Adams, entitled Lindi und sein Hinterland. Otherwise, my
results agree exactly with the statements of the legend. Washing?
Hapana—there is no such thing. Why should they do so? As it is, the
supply of water scarcely suffices for cooking and drinking; other
people do not wash, so why should the Makonde distinguish himself
by such needless eccentricity? As for shaving the head, the short,
woolly crop scarcely needs it,[49] so the second ancestral precept is
likewise easy enough to follow. Beyond this, however, there is
nothing ridiculous in the ancestor’s advice. I have obtained from
various local artists a fairly large number of figures carved in wood,
ranging from fifteen to twenty-three inches in height, and
representing women belonging to the great group of the Mavia,
Makonde, and Matambwe tribes. The carving is remarkably well
done and renders the female type with great accuracy, especially the
keloid ornamentation, to be described later on. As to the object and
meaning of their works the sculptors either could or (more probably)
would tell me nothing, and I was forced to content myself with the
scanty information vouchsafed by one man, who said that the figures
were merely intended to represent the nembo—the artificial
deformations of pelele, ear-discs, and keloids. The legend recorded
by Pater Adams places these figures in a new light. They must surely
be more than mere dolls; and we may even venture to assume that
they are—though the majority of present-day Makonde are probably
unaware of the fact—representations of the tribal ancestress.
The references in the legend to the descent from Mahuta to the
Rovuma, and to a journey across the highlands into the Mbekuru
valley, undoubtedly indicate the previous history of the tribe, the
travels of the ancestral pair typifying the migrations of their
descendants. The descent to the neighbouring Rovuma valley, with
its extraordinary fertility and great abundance of game, is intelligible
at a glance—but the crossing of the Lukuledi depression, the ascent
to the Rondo Plateau and the descent to the Mbemkuru, also lie
within the bounds of probability, for all these districts have exactly
the same character as the extreme south. Now, however, comes a
point of especial interest for our bacteriological age. The primitive
Makonde did not enjoy their lives in the marshy river-valleys.
Disease raged among them, and many died. It was only after they
had returned to their original home near Mahuta, that the health
conditions of these people improved. We are very apt to think of the
African as a stupid person whose ignorance of nature is only equalled
by his fear of it, and who looks on all mishaps as caused by evil
spirits and malignant natural powers. It is much more correct to
assume in this case that the people very early learnt to distinguish
districts infested with malaria from those where it is absent.
This knowledge is crystallized in the
ancestral warning against settling in the
valleys and near the great waters, the
dwelling-places of disease and death. At the
same time, for security against the hostile
Mavia south of the Rovuma, it was enacted
that every settlement must be not less than a
certain distance from the southern edge of the
plateau. Such in fact is their mode of life at the
present day. It is not such a bad one, and
certainly they are both safer and more
comfortable than the Makua, the recent
intruders from the south, who have made USUAL METHOD OF
good their footing on the western edge of the CLOSING HUT-DOOR
plateau, extending over a fairly wide belt of
country. Neither Makua nor Makonde show in their dwellings
anything of the size and comeliness of the Yao houses in the plain,
especially at Masasi, Chingulungulu and Zuza’s. Jumbe Chauro, a
Makonde hamlet not far from Newala, on the road to Mahuta, is the
most important settlement of the tribe I have yet seen, and has fairly
spacious huts. But how slovenly is their construction compared with
the palatial residences of the elephant-hunters living in the plain.
The roofs are still more untidy than in the general run of huts during
the dry season, the walls show here and there the scanty beginnings
or the lamentable remains of the mud plastering, and the interior is a
veritable dog-kennel; dirt, dust and disorder everywhere. A few huts
only show any attempt at division into rooms, and this consists
merely of very roughly-made bamboo partitions. In one point alone
have I noticed any indication of progress—in the method of fastening
the door. Houses all over the south are secured in a simple but
ingenious manner. The door consists of a set of stout pieces of wood
or bamboo, tied with bark-string to two cross-pieces, and moving in
two grooves round one of the door-posts, so as to open inwards. If
the owner wishes to leave home, he takes two logs as thick as a man’s
upper arm and about a yard long. One of these is placed obliquely
against the middle of the door from the inside, so as to form an angle
of from 60° to 75° with the ground. He then places the second piece
horizontally across the first, pressing it downward with all his might.
It is kept in place by two strong posts planted in the ground a few
inches inside the door. This fastening is absolutely safe, but of course
cannot be applied to both doors at once, otherwise how could the
owner leave or enter his house? I have not yet succeeded in finding
out how the back door is fastened.
MAKONDE LOCK AND KEY AT JUMBE CHAURO

This is the general way of closing a house. The Makonde at Jumbe
Chauro, however, have a much more complicated, solid and original
one. Here, too, the door is as already described, except that there is
only one post on the inside, standing by itself about six inches from
one side of the doorway. Opposite this post is a hole in the wall just
large enough to admit a man’s arm. The door is closed inside by a
large wooden bolt passing through a hole in this post and pressing
with its free end against the door. The other end has three holes into
which fit three pegs running in vertical grooves inside the post. The
door is opened with a wooden key about a foot long, somewhat
curved and sloped off at the butt; the other end has three pegs
corresponding to the holes, in the bolt, so that, when it is thrust
through the hole in the wall and inserted into the rectangular
opening in the post, the pegs can be lifted and the bolt drawn out.[50]
MODE OF INSERTING THE KEY
With no small pride first one householder and then a second

showed me on the spot the action of this greatest invention of the
Makonde Highlands. To both with an admiring exclamation of
“Vizuri sana!” (“Very fine!”). I expressed the wish to take back these
marvels with me to Ulaya, to show the Wazungu what clever fellows
the Makonde are. Scarcely five minutes after my return to camp at
Newala, the two men came up sweating under the weight of two
heavy logs which they laid down at my feet, handing over at the same
time the keys of the fallen fortress. Arguing, logically enough, that if
the key was wanted, the lock would be wanted with it, they had taken
their axes and chopped down the posts—as it never occurred to them
to dig them out of the ground and so bring them intact. Thus I have
two badly damaged specimens, and the owners, instead of praise,
come in for a blowing-up.
The Makua huts in the environs of Newala are especially
miserable; their more than slovenly construction reminds one of the
temporary erections of the Makua at Hatia’s, though the people here
have not been concerned in a war. It must therefore be due to
congenital idleness, or else to the absence of a powerful chief. Even
the baraza at Mlipa’s, a short hour’s walk south-east of Newala,
shares in this general neglect. While public buildings in this country
are usually looked after more or less carefully, this is in evident
danger of being blown over by the first strong easterly gale. The only
attractive object in this whole district is the grave of the late chief
Mlipa. I visited it in the morning, while the sun was still trying with
partial success to break through the rolling mists, and the circular
grove of tall euphorbias, which, with a broken pot, is all that marks
the old king’s resting-place, impressed one with a touch of pathos.
Even my very materially-minded carriers seemed to feel something
of the sort, for instead of their usual ribald songs, they chanted
solemnly, as we marched on through the dense green of the Makonde
bush:—
“We shall arrive with the great master; we stand in a row and have
no fear about getting our food and our money from the Serkali (the
Government). We are not afraid; we are going along with the great
master, the lion; we are going down to the coast and back.”
With regard to the characteristic features of the various tribes here
on the western edge of the plateau, I can arrive at no other
conclusion than the one already come to in the plain, viz., that it is
impossible for anyone but a trained anthropologist to assign any
given individual at once to his proper tribe. In fact, I think that even
an anthropological specialist, after the most careful examination,
might find it a difficult task to decide. The whole congeries of peoples
collected in the region bounded on the west by the great Central
African rift, Tanganyika and Nyasa, and on the east by the Indian
Ocean, are closely related to each other—some of their languages are
only distinguished from one another as dialects of the same speech,
and no doubt all the tribes present the same shape of skull and
structure of skeleton. Thus, surely, there can be no very striking
differences in outward appearance.
Even did such exist, I should have no time
to concern myself with them, for day after day,
I have to see or hear, as the case may be—in
any case to grasp and record—an
extraordinary number of ethnographic
phenomena. I am almost disposed to think it
fortunate that some departments of inquiry, at
least, are barred by external circumstances.
Chief among these is the subject of iron-
working. We are apt to think of Africa as a
country where iron ore is everywhere, so to
speak, to be picked up by the roadside, and
where it would be quite surprising if the
inhabitants had not learnt to smelt the
material ready to their hand. In fact, the
knowledge of this art ranges all over the
continent, from the Kabyles in the north to the
Kafirs in the south. Here between the Rovuma
and the Lukuledi the conditions are not so
favourable. According to the statements of the
Makonde, neither ironstone nor any other
form of iron ore is known to them. They have
not therefore advanced to the art of smelting
the metal, but have hitherto bought all their
THE ANCESTRESS OF
THE MAKONDE
iron implements from neighbouring tribes.
Even in the plain the inhabitants are not much
better off. Only one man now living is said to
understand the art of smelting iron. This old fundi lives close to
Huwe, that isolated, steep-sided block of granite which rises out of
the green solitude between Masasi and Chingulungulu, and whose
jagged and splintered top meets the traveller’s eye everywhere. While
still at Masasi I wished to see this man at work, but was told that,
frightened by the rising, he had retired across the Rovuma, though
he would soon return. All subsequent inquiries as to whether the
fundi had come back met with the genuine African answer, “Bado”
(“Not yet”).
BRAZIER
Some consolation was afforded me by a brassfounder, whom I

came across in the bush near Akundonde’s. This man is the favourite
of women, and therefore no doubt of the gods; he welds the glittering
brass rods purchased at the coast into those massive, heavy rings
which, on the wrists and ankles of the local fair ones, continually give
me fresh food for admiration. Like every decent master-craftsman he
had all his tools with him, consisting of a pair of bellows, three
crucibles and a hammer—nothing more, apparently. He was quite
willing to show his skill, and in a twinkling had fixed his bellows on
the ground. They are simply two goat-skins, taken off whole, the four
legs being closed by knots, while the upper opening, intended to
admit the air, is kept stretched by two pieces of wood. At the lower
end of the skin a smaller opening is left into which a wooden tube is
stuck. The fundi has quickly borrowed a heap of wood-embers from
the nearest hut; he then fixes the free ends of the two tubes into an
earthen pipe, and clamps them to the ground by means of a bent
piece of wood. Now he fills one of his small clay crucibles, the dross
on which shows that they have been long in use, with the yellow
material, places it in the midst of the embers, which, at present are
only faintly glimmering, and begins his work. In quick alternation
the smith’s two hands move up and down with the open ends of the
bellows; as he raises his hand he holds the slit wide open, so as to let
the air enter the skin bag unhindered. In pressing it down he closes
the bag, and the air puffs through the bamboo tube and clay pipe into
the fire, which quickly burns up. The smith, however, does not keep
on with this work, but beckons to another man, who relieves him at
the bellows, while he takes some more tools out of a large skin pouch
carried on his back. I look on in wonder as, with a smooth round
stick about the thickness of a finger, he bores a few vertical holes into
the clean sand of the soil. This should not be difficult, yet the man
seems to be taking great pains over it. Then he fastens down to the
ground, with a couple of wooden clamps, a neat little trough made by
splitting a joint of bamboo in half, so that the ends are closed by the
two knots. At last the yellow metal has attained the right consistency,
and the fundi lifts the crucible from the fire by means of two sticks
split at the end to serve as tongs. A short swift turn to the left—a
tilting of the crucible—and the molten brass, hissing and giving forth
clouds of smoke, flows first into the bamboo mould and then into the
holes in the ground.
The technique of this backwoods craftsman may not be very far
advanced, but it cannot be denied that he knows how to obtain an
adequate result by the simplest means. The ladies of highest rank in
this country—that is to say, those who can afford it, wear two kinds
of these massive brass rings, one cylindrical, the other semicircular
in section. The latter are cast in the most ingenious way in the
bamboo mould, the former in the circular hole in the sand. It is quite
a simple matter for the fundi to fit these bars to the limbs of his fair
customers; with a few light strokes of his hammer he bends the
pliable brass round arm or ankle without further inconvenience to
the wearer.
SHAPING THE POT
SMOOTHING WITH MAIZE-COB
CUTTING THE EDGE

FINISHING THE BOTTOM
LAST SMOOTHING BEFORE

BURNING
FIRING THE BRUSH-PILE

LIGHTING THE FARTHER SIDE OF
THE PILE
TURNING THE RED-HOT VESSEL
NYASA WOMAN MAKING POTS AT MASASI

Pottery is an art which must always and everywhere excite the
interest of the student, just because it is so intimately connected with
the development of human culture, and because its relics are one of
the principal factors in the reconstruction of our own condition in
prehistoric times. I shall always remember with pleasure the two or
three afternoons at Masasi when Salim Matola’s mother, a slightly-
built, graceful, pleasant-looking woman, explained to me with
touching patience, by means of concrete illustrations, the ceramic art
of her people. The only implements for this primitive process were a
lump of clay in her left hand, and in the right a calabash containing
the following valuables: the fragment of a maize-cob stripped of all
its grains, a smooth, oval pebble, about the size of a pigeon’s egg, a
few chips of gourd-shell, a bamboo splinter about the length of one’s
hand, a small shell, and a bunch of some herb resembling spinach.
Nothing more. The woman scraped with the
shell a round, shallow hole in the soft, fine
sand of the soil, and, when an active young
girl had filled the calabash with water for her,
she began to knead the clay. As if by magic it
gradually assumed the shape of a rough but
already well-shaped vessel, which only wanted
a little touching up with the instruments
before mentioned. I looked out with the
MAKUA WOMAN closest attention for any indication of the use
MAKING A POT. of the potter’s wheel, in however rudimentary
SHOWS THE a form, but no—hapana (there is none). The
BEGINNINGS OF THE embryo pot stood firmly in its little
POTTER’S WHEEL
depression, and the woman walked round it in
a stooping posture, whether she was removing
small stones or similar foreign bodies with the maize-cob, smoothing
the inner or outer surface with the splinter of bamboo, or later, after
letting it dry for a day, pricking in the ornamentation with a pointed
bit of gourd-shell, or working out the bottom, or cutting the edge
with a sharp bamboo knife, or giving the last touches to the finished
vessel. This occupation of the women is infinitely toilsome, but it is
without doubt an accurate reproduction of the process in use among
our ancestors of the Neolithic and Bronze ages.
There is no doubt that the invention of pottery, an item in human
progress whose importance cannot be over-estimated, is due to
women. Rough, coarse and unfeeling, the men of the horde range
over the countryside. When the united cunning of the hunters has
succeeded in killing the game; not one of them thinks of carrying
home the spoil. A bright fire, kindled by a vigorous wielding of the
drill, is crackling beside them; the animal has been cleaned and cut
up secundum artem, and, after a slight singeing, will soon disappear
under their sharp teeth; no one all this time giving a single thought
to wife or child.
To what shifts, on the other hand, the primitive wife, and still more
the primitive mother, was put! Not even prehistoric stomachs could
endure an unvarying diet of raw food. Something or other suggested
the beneficial effect of hot water on the majority of approved but
indigestible dishes. Perhaps a neighbour had tried holding the hard
roots or tubers over the fire in a calabash filled with water—or maybe
an ostrich-egg-shell, or a hastily improvised vessel of bark. They
became much softer and more palatable than they had previously
been; but, unfortunately, the vessel could not stand the fire and got
charred on the outside. That can be remedied, thought our
ancestress, and plastered a layer of wet clay round a similar vessel.
This is an improvement; the cooking utensil remains uninjured, but
the heat of the fire has shrunk it, so that it is loose in its shell. The
next step is to detach it, so, with a firm grip and a jerk, shell and
kernel are separated, and pottery is invented. Perhaps, however, the
discovery which led to an intelligent use of the burnt-clay shell, was
made in a slightly different way. Ostrich-eggs and calabashes are not
to be found in every part of the world, but everywhere mankind has
arrived at the art of making baskets out of pliant materials, such as
bark, bast, strips of palm-leaf, supple twigs, etc. Our inventor has no
water-tight vessel provided by nature. “Never mind, let us line the
basket with clay.” This answers the purpose, but alas! the basket gets
burnt over the blazing fire, the woman watches the process of
cooking with increasing uneasiness, fearing a leak, but no leak
appears. The food, done to a turn, is eaten with peculiar relish; and
the cooking-vessel is examined, half in curiosity, half in satisfaction
at the result. The plastic clay is now hard as stone, and at the same
time looks exceedingly well, for the neat plaiting of the burnt basket
is traced all over it in a pretty pattern. Thus, simultaneously with
pottery, its ornamentation was invented.
Primitive woman has another claim to respect. It was the man,
roving abroad, who invented the art of producing fire at will, but the
woman, unable to imitate him in this, has been a Vestal from the
earliest times. Nothing gives so much trouble as the keeping alight of
the smouldering brand, and, above all, when all the men are absent
from the camp. Heavy rain-clouds gather, already the first large
drops are falling, the first gusts of the storm rage over the plain. The
little flame, a greater anxiety to the woman than her own children,
flickers unsteadily in the blast. What is to be done? A sudden thought
occurs to her, and in an instant she has constructed a primitive hut
out of strips of bark, to protect the flame against rain and wind.
This, or something very like it, was the way in which the principle
of the house was discovered; and even the most hardened misogynist
cannot fairly refuse a woman the credit of it. The protection of the
hearth-fire from the weather is the germ from which the human
dwelling was evolved. Men had little, if any share, in this forward
step, and that only at a late stage. Even at the present day, the
plastering of the housewall with clay and the manufacture of pottery
are exclusively the women’s business. These are two very significant
survivals. Our European kitchen-garden, too, is originally a woman’s
invention, and the hoe, the primitive instrument of agriculture, is,
characteristically enough, still used in this department. But the
noblest achievement which we owe to the other sex is unquestionably
the art of cookery. Roasting alone—the oldest process—is one for
which men took the hint (a very obvious one) from nature. It must
have been suggested by the scorched carcase of some animal
overtaken by the destructive forest-fires. But boiling—the process of
improving organic substances by the help of water heated to boiling-
point—is a much later discovery. It is so recent that it has not even
yet penetrated to all parts of the world. The Polynesians understand
how to steam food, that is, to cook it, neatly wrapped in leaves, in a
hole in the earth between hot stones, the air being excluded, and
(sometimes) a few drops of water sprinkled on the stones; but they
do not understand boiling.
To come back from this digression, we find that the slender Nyasa
woman has, after once more carefully examining the finished pot,
put it aside in the shade to dry. On the following day she sends me
word by her son, Salim Matola, who is always on hand, that she is
going to do the burning, and, on coming out of my house, I find her
already hard at work. She has spread on the ground a layer of very
dry sticks, about as thick as one’s thumb, has laid the pot (now of a
yellowish-grey colour) on them, and is piling brushwood round it.
My faithful Pesa mbili, the mnyampara, who has been standing by,
most obligingly, with a lighted stick, now hands it to her. Both of
them, blowing steadily, light the pile on the lee side, and, when the
flame begins to catch, on the weather side also. Soon the whole is in a
blaze, but the dry fuel is quickly consumed and the fire dies down, so
that we see the red-hot vessel rising from the ashes. The woman
turns it continually with a long stick, sometimes one way and
sometimes another, so that it may be evenly heated all over. In
twenty minutes she rolls it out of the ash-heap, takes up the bundle
of spinach, which has been lying for two days in a jar of water, and
sprinkles the red-hot clay with it. The places where the drops fall are
marked by black spots on the uniform reddish-brown surface. With a
sigh of relief, and with visible satisfaction, the woman rises to an
erect position; she is standing just in a line between me and the fire,
from which a cloud of smoke is just rising: I press the ball of my
camera, the shutter clicks—the apotheosis is achieved! Like a
priestess, representative of her inventive sex, the graceful woman
stands: at her feet the hearth-fire she has given us beside her the
invention she has devised for us, in the background the home she has
built for us.
At Newala, also, I have had the manufacture of pottery carried on
in my presence. Technically the process is better than that already
described, for here we find the beginnings of the potter’s wheel,
which does not seem to exist in the plains; at least I have seen
nothing of the sort. The artist, a frightfully stupid Makua woman, did
not make a depression in the ground to receive the pot she was about
to shape, but used instead a large potsherd. Otherwise, she went to
work in much the same way as Salim’s mother, except that she saved
herself the trouble of walking round and round her work by squatting
at her ease and letting the pot and potsherd rotate round her; this is
surely the first step towards a machine. But it does not follow that
the pot was improved by the process. It is true that it was beautifully
rounded and presented a very creditable appearance when finished,
but the numerous large and small vessels which I have seen, and, in
part, collected, in the “less advanced” districts, are no less so. We
moderns imagine that instruments of precision are necessary to
produce excellent results. Go to the prehistoric collections of our
museums and look at the pots, urns and bowls of our ancestors in the
dim ages of the past, and you will at once perceive your error.
MAKING LONGITUDINAL CUT IN
BARK
DRAWING THE BARK OFF THE LOG
REMOVING THE OUTER BARK

BEATING THE BARK
WORKING THE BARK-CLOTH AFTER BEATING, TO MAKE IT

SOFT
MANUFACTURE OF BARK-CLOTH AT NEWALA

To-day, nearly the whole population of German East Africa is
clothed in imported calico. This was not always the case; even now in
some parts of the north dressed skins are still the prevailing wear,
and in the north-western districts—east and north of Lake
Tanganyika—lies a zone where bark-cloth has not yet been
superseded. Probably not many generations have passed since such
bark fabrics and kilts of skins were the only clothing even in the
south. Even to-day, large quantities of this bright-red or drab
material are still to be found; but if we wish to see it, we must look in
the granaries and on the drying stages inside the native huts, where
it serves less ambitious uses as wrappings for those seeds and fruits
which require to be packed with special care. The salt produced at
Masasi, too, is packed for transport to a distance in large sheets of
bark-cloth. Wherever I found it in any degree possible, I studied the
process of making this cloth. The native requisitioned for the
purpose arrived, carrying a log between two and three yards long and
as thick as his thigh, and nothing else except a curiously-shaped
mallet and the usual long, sharp and pointed knife which all men and
boys wear in a belt at their backs without a sheath—horribile dictu!
[51]
Silently he squats down before me, and with two rapid cuts has
drawn a couple of circles round the log some two yards apart, and
slits the bark lengthwise between them with the point of his knife.
With evident care, he then scrapes off the outer rind all round the
log, so that in a quarter of an hour the inner red layer of the bark
shows up brightly-coloured between the two untouched ends. With
some trouble and much caution, he now loosens the bark at one end,
and opens the cylinder. He then stands up, takes hold of the free
edge with both hands, and turning it inside out, slowly but steadily
pulls it off in one piece. Now comes the troublesome work of
scraping all superfluous particles of outer bark from the outside of
the long, narrow piece of material, while the inner side is carefully
scrutinised for defective spots. At last it is ready for beating. Having
signalled to a friend, who immediately places a bowl of water beside
him, the artificer damps his sheet of bark all over, seizes his mallet,
lays one end of the stuff on the smoothest spot of the log, and
hammers away slowly but continuously. “Very simple!” I think to
myself. “Why, I could do that, too!”—but I am forced to change my
opinions a little later on; for the beating is quite an art, if the fabric is
not to be beaten to pieces. To prevent the breaking of the fibres, the
stuff is several times folded across, so as to interpose several
thicknesses between the mallet and the block. At last the required
state is reached, and the fundi seizes the sheet, still folded, by both
ends, and wrings it out, or calls an assistant to take one end while he
holds the other. The cloth produced in this way is not nearly so fine
and uniform in texture as the famous Uganda bark-cloth, but it is
quite soft, and, above all, cheap.
Now, too, I examine the mallet. My craftsman has been using the
simpler but better form of this implement, a conical block of some
hard wood, its base—the striking surface—being scored across and
across with more or less deeply-cut grooves, and the handle stuck
into a hole in the middle. The other and earlier form of mallet is
shaped in the same way, but the head is fastened by an ingenious
network of bark strips into the split bamboo serving as a handle. The
observation so often made, that ancient customs persist longest in
connection with religious ceremonies and in the life of children, here
finds confirmation. As we shall soon see, bark-cloth is still worn
during the unyago,[52] having been prepared with special solemn
ceremonies; and many a mother, if she has no other garment handy,
will still put her little one into a kilt of bark-cloth, which, after all,
looks better, besides being more in keeping with its African
surroundings, than the ridiculous bit of print from Ulaya.
MAKUA WOMEN

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(eBook PDF) International Marketing

6th Edition By Dana-Nicoleta

4. Regional Economic and Political Integration 115

International Marketing 6e -vii- Front Matter

Part 3 International Marketing Strategy Decisions 184

International Marketing 6e -viii- Front Matter

International Marketing 6e -ix- Front Matter

9-7 International Perspectives of Industrial Products and Services 304

International Marketing 6e -x- Front Matter

11-2c Alternative International Distribution Structures 357

International Marketing 6e -xi- Front Matter

13. International Personal Selling and Personnel Management 449

International Marketing 6e -xii- Front Matter

Chapter Objectives 505

Appendix A: The International Marketing Plan 527

International Marketing 6e -xiii- Front Matter

International Marketing 6e -xiv- Front Matter

International Marketing 6e -xv- Front Matter

About the Authors

George L. Hiller is a Lecturer of International Business at

International Marketing 6e -xvi- Front Matter

Scope, Concepts, and Drivers

Shanghai Disneyland, which opened its

1-1 The Importance of International Marketing

International Marketing 6e -3- Part 1

International Marketing 6e -4- Part 1

1-2 Levels of International Marketing Involvement

1.2 Coca-Cola in Estonia

International Marketing 6e -5- Part 1

1-3 The Ethnocentric, Polycentric, Regiocentric, and Geocentric

1-3a Ethnocentric Orientation

International Marketing 6e -6- Part 1

1-3b Polycentric Orientation

International Marketing 6e -7- Part 1

1-3c Regiocentric Orientation

1-3b Geocentric Orientation

International Marketing 6e -8- Part 1

1-4 The Drivers of International Expansion

International Marketing 6e -9- Part 1

Business Environment Drivers Firm-Specific Drivers

Regional economic and political integration High new-product development costs

Technology Standardization, economies of scale, and

Improvements in the transportation and Experience transfers

Transition to a market economy

Converging consumer needs

1-4a Drivers in the Business Environment

McCann Erickson and Coca-Cola

International Marketing 6e -10- Part 1

Regional Economic and Political Integration

International Marketing 6e -11- Part 1

International Marketing 6e -12- Part 1

ees and employees from the company

International Marketing 6e -13- Part 1

1-6 Yum! Brands is omnipresent in China and Taiwan.

Converging Consumer Needs

International Marketing 6e -14- Part 1

1-4b Firm-Specific Drivers

International Marketing 6e -15- Part 1

High New Product Development Costs

International Marketing 6e -16- Part 1

1-5 Obstacles to Internationalization

International Marketing 6e -17- Part 1

1-5a Self-Reference Criterion