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MKT560.docx
Anastasia Kreiner
Week Three: Anastasia Kreiner
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Chapter 5
Question 17: Suggest some cautions that an individual from a relationship-oriented culture should bear in mind when dealing with someone from an information-oriented culture.
If there is an individual from a relationship-oriented culture working with someone from an information-oriented culture they should keep in mind that information-oriented individuals work very differently. Information-oriented cultures are more likely to be lower-context, higher focus on individualism, have a low power distance, bribery is less common, linguistic directness, run on Monochronic time, prefer internet communications, focus on the foreground and are all about competition (Cateora, Money, Gilly, & Graham, 2020).
Question 19: Differentiate among the following: Bribery, Extortion, Lubrication and Subornation
There are several types of money exchanges that can take place legally and illegally for corporate or personal gain. To break them down a bit, when money is offered to gain an unlawful advantage over another person or company it is considered bribery. Extortion is similar to bribery, but the difference lies in if the money is offered or demanded. For it to be considered extortion, the money is demanded to then obtain advantage. Another form of bribery is called lubrication and involves small amounts of money given as a gift or service. This typically will take place with a lower-ranking person to quicken processing or services. Similar to lubrication, subornation also typically involves lower-ranking personal but is usually large amounts of money. It also differs in that it typically is requiring a largely illegal act (Cateora, Money, Gilly, & Graham, 2020).
Chapter 6
Question 10: Expropriation is considered a major risk of foreign business. Discuss ways in which this particular type of risk can be minimized somewhat as a result of company activities. Explain how these risks have been minimized by the activities of the US government.
Companies can agree to domesticate, sharing ownership, use local content, enter into labor and management agreements or share participation in export sales (Cateora, Money, Gilly, & Graham, 2020). Essentially, getting ahead of the potential of expropriation by working with the local government and letting them participate in some capacity to keep them at bay and contented with the relationship. It is also very expensive for governments to completely take over a company and it is likely that after the takeover the company will be run inefficiently as well. The United States as assisted in minimizing the risks of expropriation by demonstrating that by opening up the boarders to external companies it gives the opportunity for economic growth (Cateora, Money, Gilly, & Graham, 2020).
Question 16: Select a country and analyze it politically from a marketing viewpoint.
Let us take look at Cuba from a marketing perspective. In this country marketers need to be very conscientious of the current political environment. Some things to consider are that it is a communist country, woman do not have a lot of rights, the population is largely Roman Catholic. All of these things can, in and of themselves, be sensitive topics and if we put them all in the same country, there needs to be some careful consideration when looking at marketing strategies to ensure that the campaign or advertisement will not be offensive to the population. Additionally, brand awareness is very limited and as an outsider there will be challenges. To that, it is important that the marketer builds relationships there, takes the time to establish their brand as well as be patient because it may take some time to gain the trust and respect necessary for success (Fitzgerald, Brennan, & Stokes, 2016).
In conclusion, as a marketer, it is so important to understand the culture and current political environment of the country or area that is being entered. There are immense risks that should be considered when moving a company internationally and all should be considered prior to the endeavor. Plans should be established to mitigate the possible risks as much as possible. Companies should be open to integrating the new culture into the existing corporate culture to give themselves the best advantage
Resources:
Cateora, P. R., Money, R. B., Gilly, M. C., & Graham, J. L. (2020) International Marketing
(18th ed.) New York, NY: NcGraw Hill.
Fitzgerald, M., Brennan, J., & Stokes, R. (2016, June 2). Understanding the Evolving Cuban Consumer. Retrieved March 25, 2020, from https://www.bcg.com/publications/2016/globalization-consumer-products-understanding-evolving-cuban-consumer.aspx
Lindsay Detzler
Lindsay Detzler DB 2
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17. Suggest some cautions that an individual from a relationship-oriented culture should bear in mind when dealing with someone from an information-oriented culture.
Information-oriented nations tend to have strong individualism tendencies, coupled with low power distance and low context inclinations, compared to relationship-oriented nations that have high collectivism, power distance and context beliefs (Cateora, Money, Gilly, and Graham, 2020, pg. 163). Given the vast differences, it is important to note that information-oriented cultures hold greater value in achieving a task, while relationship-oriented cultures care more about long-standing relations with the individuals involved (Kakade, 2016). This said, when working with someone in an information-oriented culture, one would need to complete work in a punctual manner, be respectful of time, choose to avoid interruptions, and focus on task completion and efficiency.
19. Differentiate among bribery, extortion, lubrication, subornation.
Bribery is a willingly presented payment that aims to gain improper advantage in return, while extortion regards financial disbursement under coercion by an individual in power from a person wishing to obtain what is legitimately owed (Cateora et al., 2020, pg. 156). Further, lubrication describes a small compensatory reward set to entice expedited services and subornation involves offering extensive funds of money to an official to execute illegal activities for the briber’s intended gain (Cateora et al., 2020, pg. 156). Bruce Klaw, at the time, an Assistant Professor of Law at Keimyung University in South Korea, made interesting points regarding issues with the FCPA in bribery and extortion. He states that the organization is focused on the supply-side of the payer of the bribe, neglecting the unethical recipient, as well as creates a situation that encourages firm’s to remain silent when illegal behavior is discovered internally, as firms who have openly shared such findings were penalized (Klaw, 2012). Klaw went on to further offer remedy to these shortcomings, including Congress to enact stronger bribery payment requests disclosure requirements and safe harboring those entities that willingly comply. As a means to cease damaging bribery activity in international affairs, providing adequate means of communicating the unjust activities would surly mitigate reoccurring practice, as well as discourage future entities to engage in the activities if they are held responsible for receiving an unlawful payment.
10. Discuss ways in which expropriation can be minimized somewhat as a result of company activities. Explain how these risks have been minimized by the activities of the U.S. government.
Per Philip Stansbury, the best practice for avoidance of expropriation in foreign countries is to reduce the physical presence of assets and ongoing activities under the alien nation's authority (1990, pg. 678). Thus, maintaining most of the equity within the home country would mitigate significant risk of expropriation in a business venture. Stansbury further suggests that patents, trademarks, copy rights, and other intellectual property rights should be registered in the home country, as well as in the intended operational country (1990, pg. 681). Though some countries may not honor said documentation, this does provide an additional level of protection that can be taken to action in court proceedings. Cornell Law School detail U.S. Code § 2370a Expropriation of United States property which detail efforts the United States has established in order to limit the risk of expropriation. If a nation has expropriated the property of any United States person either by nationalization, nullified contract, imposed discriminatory taxes, or seized ownership and has not remedied the activity, then the U.S will refuse funds made available by the Foreign Assistance Act of 1961 and the Arms Export Control Act. In other words, the U.S. will not provide foreign investment to countries that don’t play nicely with the U.S. entity.
16. Select a country and analyze it politically from a marketing viewpoint.
According to www.theglobaleconomy.com, Australia has maintained an average of 1 point in the political stability index from 1996 to 2018. The website indicates that the score of a -2.5 is deemed “weak” in political stability and 2.5 indicates “strong” political stability. The world average in 2018 (based on 195 countries), was -0.05. Based on this analysis, Australia would be considered a safer foreign investment. Australia has generally lower set-up costs and offers benefits including preferable access to the Asia Pacific region and a time region compatible with many established economies in matured countries (Corrs Chambers Westgarth, 2019). Further, the country appreciates foreign investment, as it generates employment opportunities for its citizens and enriches its abilities in new technologies (Corrs Chambers Westgarth, 2019). The Australian government is similar to that of the Unites States’ in that foreign investment opportunities must be in cooperation with Federal and State or Territory law (Corrs Chambers Westgarth, 2019). Continued research further supports the stable political environment that exists in Australia.
Australia: Political stability. (n.d.). Retrieved from https://www.theglobaleconomy.com/Australia/wb_political_stability/
Cateora, P. R., Money, R. B., Gilly, M. C., & Graham, J. L. (2020) International Marketing. (18th ed.) New York, NY: McGraw Hill.
Corrs Chambers Westgarth. (2019, February 7). Doing Business in Australia 2019. Retrieved from https://corrs.com.au/insights/doing-business-in-australia-2019
Kakade, M. (2016, March 11). Task Oriented vs. Relationship Oriented Cultures. Retrieved from https://manasikakade.com/blog/2015/04/decode-a-culture-task-oriented-vs-relationship-oriented/
Klaw, B. (2012, August 27). A New Strategy For Preventing Bribery And Extortion In International Business Transactions. Retrieved from http://fcpaprofessor.com/a-new-strategy-for-preventing-bribery-and-extortion-in-international-business-transactions/
Stansbury, P. R. (1990). Planning Against Expropriation. The International Lawyer, 24(3), 677–688. Retrieved from https://www-jstor-org.cmich.idm.oclc.org/stable/40706448
William Tuominen
Bill Tuominen, Week 3
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Chapter 5 Questions:
17. Suggest some cautions that an individual from a relationship-oriented culture should bear in mind when dealing with someone from an information-oriented culture.
In dealing with individuals from information-oriented cultures, a relationship-oriented person should remember that information-oriented individuals are more competitive, a trait often associated with Americans. They may deal with people with linguistic directness, which is a trait of most Nordic peoples. The personal viewpoint of information-oriented cultures is more egalitarian and not concerned with power distance, so they may have a tendency to correct facts or disagree with superiors. Finally, they will often exhibit monochronic time values and expect punctuality, which is a cultural trait the British are known for, and have an individualistic viewpoint, a trait often associated with Australians. Marketing professionals who are emotionally intelligent may have an advantage in dealing with other cultures during their career. Lin, Chen, and Song (2012) wrote that being aware of the need to increase cultural intelligence and Emotional Intelligence can facilitate work adjustments and interactions with foreigners.
19 Differentiate between bribery, extortion, lubrication, and subornation. Bribery is the voluntary offer of payment or goods for favorable treatment or an unlawful advantage. The goal of extortion is the same - favorable treatment or an unfair advantage, but that advantage is compelled by the extortionist under duress or threat. Lubrication involves a small amount of cash or a gift to a low ranking individual to persuade that individual to expedite or facilitate a normal bureaucratic or administrative process. Subornation involves large amounts of money to commit given to a person of authority to commit an illegal act or neglect their duty or responsibility. An example would be a high-ranking customs official changing inspection schedules for goods being imported from a specific nation or importer.
Chapter 6 Questions
16: Select a country and analyze it politically from a marketing viewpoint.
Finland is a Nordic country of approximately 5.5 million people and a population density of 18 per square kilometer, the lowest of any European union state. It has a well-educated populace that has two official languages, Finn and Swedish, and very well developed public health and education systems. The Finnish per capita GDP shrunk to 51,252 Euro in the first quarter of 2020, down from a high of 51,667 in July of 2019 (Observatory of Economic Complexity, n.d)., making GDP income in Finland on par with the United States.
The Finnish government is a Republic governed under a parliamentary democracy where elected leaders are directly elected every four years. The Finnish government is stable, and Finnish politics are generally pragmatic and trade-friendly. Finland abides by all European Union and World Trade Organization regulations concerning trade.
Market conditions are marked by relative stability, but slow growth (Observatory of Economic Complexity, n.d). Finland’s imports have decreased at an annual rate of 1.7% during the past 5 years. Those imports were primarily crude oil, machinery, and automobiles. Finland has a modern and robust transportation network, as well as a world-class communications network.
Finally, Finland has the 8th most complex economy in the world, as ranked by the Observatory of Economic Complexity.
1. Write a political analysis highlighting potential problem areas for a company interested in investing in Italy.
Italian politics have been marked by instability since World War II. One of the most infamous scandals was the “clean hands” operation in the early 1990’s which exposed corruption at the highest level of the Italian government. Italy still has the highest corruption index of any of the original European Union states, and is currently guided by a nationalistic-leaning party majority, even though the Prime Minister is a noted populist (British Broadcasting Corporation, n.d) Political problems that are a risk to trade are the high level of corruption, the nationalistic-leanings of the current government, the threat of early elections, and the effect that increased benefits and higher taxes, a goal of the current Prime Minister, would have on per capita income and trade balance.
References
Lin, Y-C., Chen, A., and Song, Y-C, (2012), Does your intelligence help to survive in a foreign jungle? The effects of cultural intelligence and emotional intelligence on cross-cultural adjustment, International Journal of Cultural Relations, Vol 36, pg 541-552
British Broadcasting Corporation, Italy Country Profile, (n.d.), https://www.bbc.com/news/world-europe-17433142
The Observatory of Economic Complexity, Economic Data, Finland, (n.d.) https://oec.world/en/profile/country/fin/
Trading Economics, Finland GDP Constant Prices,(n.d.) https://tradingeconomics.com/finland/gdp-constant-prices
Shine with Facts about Finland, (n.d.), https://finland.fi/facts-stats-and-info/finland-in-facts/
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