CASES ON

INTERNATIONAL
MARKETING
1.

• McDonald's, Philips Electronics, 3M International and

many other similar well known global corporations are
operating in Central and Eastern Europe. Some
countries in the region are still recovering from decades
of command economies. What makes the region so
attractive for global business corporations?
2.

• Although the ASEAN countries are geographically close, they have historically been
divided in many respects. Elaborate on this statement and highlight the important
economic development of member countries within ASEAN. How does Singapore
represent a special case within the ASEAN nations?
3.

• A decade ago, a number of countries in Central Europe, Latin America, and Asia were
expected to experience rapid economic growth. Today much attention is focused on
opportunities in Brazil, Russia, India, and China. Give reasons for this shift using an
example of a manufacturer.
4.

• A laptop manufactured in Canada and imported by Chile would not be subjected to duty.
If the same laptop was manufactured in the USA and exported to Chile, it will have to pay
duty. In order to avoid duty, can the manufacturer in the USA send the computer via
Canada?
5.

• Historically, most of the Latin American nations have witnessed decades of slow or no
growth, crippling inflation, increasing foreign debt, protectionism, the bloated
government payrolls, money laundering problems, and currency fluctuations. What
measures are now being taken by countries in that region that will begin the process of
economic transformations?
6.

• The formation and enlargement of the European Union have wide everlasting impact on
marketing strategies and marketing mix. Discuss this giving example from member
nations.
7.

• The European Union has concluded over 20 different trade pacts with other nations. The business environment in
Europe has undergone considerable transformation with significant implications for all elements of the marketing mix.
For example, there is harmonization of product standards, thereby reducing the number of adaptations needed in each
country. Similarly, from a pricing point of view the environment has become more competitive. Common guidelines
are also set for promotion and distribution. Thus, all components of the marketing mix are getting standardized and
harmonized. Corporations are beginning to treat the entire region as one entity with very little adaptation. For example,
France will be able to shop around for distributions of products or services and select the best one in any member
country. This selection can be based on cost, quality, or local preferences. Food safety laws can also be made uniform
with some modifications that can be adapted. The members in the European Union will find it easier to do business at
any of the member countries including setting up of manufacturing plants or headquarters.It will also help in balancing
the inventory and moving products from one country to another in case of shortages.
8.

• The extraordinary political and economic reforms that swept through Central and Eastern Europe in the
1990s attracted the attention of many corporations toward the new 430-million person market. The
transition in the region from command to market economies has toppled a number of entrenched
institutions. New pacts such as Central European Free Trade association (CEFTA) are being formed. The
signatories are pledging cooperation in areas such as infrastructure and telecommunications. The
governments of Russia and Belarus agreed to form a customs union and remove border posts between
their two countries. Ford opened a $10 million vehicle assembly plant outside Minsk, predicting future
economic growth in that region. The markets of central and Eastern Europe present interesting
opportunities since they are in the process of transition. Also, with wage rates in these regions being much
lower than those in Spain or Portugal, the region offers attractive locations for low-cost manufacturing.
8.

• The Association of Southeast Asian Nations (ASEAN) was established as an organization for economic, political, social,
and cultural cooperation among its member countries. Brunei, Indonesia, Malaysia, the Philippines,Singapore, and
Thailand were the original six members. Vietnam, Cambodia, Laos, and Myanmar joined later on. Individually and
collectively, ASEAN countries are active in regional and global trade. However, all the above-mentioned countries were
under different political orders, and the population is very different from the religious and cultural point of view. Some
of these countries are advancing rapidly whereas others still have a long way to go.There are different natural resources
in each of the member countries. Some have undergone political unrest and wars recently. For example, Singapore
transformed itself from a British colony to a vibrant industrial power. One of the reasons for its success is its extremely
efficient infrastructure. The Port of Singapore is the world's second-largest container port. It has a high standard of
living, second only to Japan. There is 93-percent literacy rate and is very much advanced in business. Many foreign
companies are attracted to Singapore. Singapore alone accounts for more than one-third of U.S. trading activities with
ASEAN countries.
9.

• The allure of the Latin American market has been its considerable size, its strategic location, and
huge resource base. Many countries are implementing economic reforms such as priority to have a
balanced budget and privatization of certain industries. Free markets, open economies, and
deregulation are becoming governmental priorities. Tariffs are being lowered, and free trades are
being encouraged. Global corporations are encouraged by import liberalization, lower tariffs, and
the potential for establishing more efficient regional production. Many observers envision a free
trade area within the entire region. The four most important preferential trading arrangements in
Latin America are the SICA, the Andean Community, the Common Market of the South
(Mercosur), and the Caribbean Community and Common Market (CARICOM). TARIFFS ARE
LOWERED AND FREE TRADE IS BEING ENCOURAGED.
10.

• These four countries are collectively known as BRIC (Brazil, Russia, India, and China).
Microsoft's experience illustrates the nature of the market opportunity in these countries:
In fiscal 2008, the software giant's collective revenues from BRIC grew 54%, compared
with overall global revenue growth of 18%. Experts predict that the BRIC nations will be
key players in global trade even as their track records on human rights, environmental
protection, and other issues come under closer scrutiny by their trading partners. The
BRIC government leaders will also come under pressure at home as their developing
market economies create greater income disparity. BRIS is experience market growth in
Microsoft products.
11.

• There is a Free Trade Area (FTA) which is formed when two or more countries agree to
eliminate tariffs and other barriers that restrict trade. However, there are rules of origin
that discourage the importation of goods into the member country with the lowest
external tariff for transshipment to one or more FTA members with higher external tariffs.
Thus, even though the laptop can be shipped via Canada, it will have the label as "made
in USA" and therefore subject to duty.
12.

• Conducting business in the Japanese market demands understanding, flexibility,

ambitions, and long-term commitment. Although the Japanese market has changed from a
closed market to just being a tough market, there are still several barriers that need to be
overcome. These barriers include differences in business attitude as well as laws.
Companies interested in doing business with Japan should be willing and able to provide
top-quality products and services. Also, the products and services should be tailored to
local tastes. All this requires countless visits and socializing to build trust as well as
mutual understanding. Marketers must also master the "keiretsu" system of tightly knit
corporate alliances.
• 13. When a company succeeds in creating more value for customers than its competitors, that company is said to enjoy“ competitive
advantage." It is measured relative to rivals in a given industry. For example, Coca-Cola and Pepsi are trying to maintain a
competitive advantage in global markets. Globalization presents companies with unprecedented opportunities as well as challenges.
Achieving competitive advantage in a global industry requires executives and managers to maintain a well-defined strategic focus.
Globalization provides companies with opportunities to develop new products, get new ideas, develop markets, expand brand
recognition, and eventually profits.

• What are some of the marketing problems in the Middle East and how are these problems different than faced by other regions of the
world?

• Why does NAFTA create a free trade area as opposed to a customs union or a common market? Explain the difference by giving
examples.

• Explain with examples the benefits of competitive advantage and show how globalization presents companies with unprecedented
opportunities?

• What are some of the challenges faced by marketers in relation to the newly formed smaller countries? Explain giving examples.