Unit Four

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Unit Four

• The Role of Governments

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tainted baby formula scandal

• China's Health Ministry announced Sunday that
  12,892 infants and young children have been
  sickened by tainted milk powder

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• African governments have stopped importing
  Chinese dairy products as the crisis which has
  seen more than 52,000 Chinese children poisoned
  by melamine-tainted goods spreads.
• Burundi, Gabon and Tanzania have joined
  governments closer to China -- including
  Indonesia, Taiwan, Japan, Singapore and Malaysia
  -- in banning Chinese dairy products. At least 11
  countries have banned imports

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• Discuss
• what measures can chinas central government
  adopt in this event?
• Requirements
• measure---purpose/objective
• Tips
• 1. time sequence (long-term, short-term)
• 2. domestic /overseas
• 3. public/companies/foreign countries

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4.1 Trade Barriers

• 4.1.1 Trade barriers an international marketers
  minefield
• 1. Tariffs to controls the in-flow of foreign
  goods across its borders
• 2. inspections the governments right and duty
  to protect its citizens health and welfare (food
  stuffs, medical equipment, farm animals,etc.)

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• 3. import licensing????? governments legitimate
  function licensed by the importers government
  a fee paid by the importer
• Inspection control the product quality
• Licensing control both involved sides of the
  transaction

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• 4. Environmental control Government are
  protecting the environment within their borders.
  Restrictions on packaging ( amount, size,
  recyclability), product content labeling
  (chemical proportions), and pollution controls
  can be placed on foreign exporters before
  licensing will be granted.

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• 5. Technology transfers ????
• Most developing markets insist on technology
  transfers if a product is to be sold within their
  national boundaries
• a way to catch up with competitors without
  expensive research or investment.
• That is why a target company insists that joint
  venture, product importation or manufacture under
  license with a foreign marketer must ultimately
  involve a transfer of technology (physical,
  process design, managerial, etc.)

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• 6. customs delays????
• product held without a stated cause for extended
  periods (software, music CDs, videos)
• They are delayed by customs for various purposes
  to protect local markets

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• 7. quotas??
• An import quota is a non-tariff barrier to
  restrict the quantity of imports, to protect
  local producers from foreign trading practice or
  be used as a punishment for political problems
  between rival powers.
• The strictest form embargo

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• 8. Anti-dumping laws ?????
• to prevent foreigners from selling products at
  extremely low prices into a market to drive out
  competition only countries with sophisticated
  commercial law can use this type of legislation

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• 4.1.2 Trade intervention ????
• 1. Arguments---intervention possibilities of
  agricultural policy
• Food security has top priority on the political
  agenda
• The developed worlds have an interest in getting
  more open access to the Chinese market for their
  products

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• 4.1.3 Intervention by the government
• 1. embargo
• disastrous effect on exporters
• marketers be aware of the political
  environment and be prepared to calculate, as well
  as manage risk

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• 2. national security issues
• Goods nuclear materials, strategic minerals,
  chemicals, computer chips, technical manuals, or
  military surplus too strategic militarily and
  economically to be freely marketed to other
  nations, regardless of the profit potential.
• Countries have restrictions to delineate them
  quite clearly
• 3. export tariffs
• Government tax exports primarily as a source of
  revenue and use as a means of promoting or
  punishing particular industries
• Export tariffs can be used to control flow and
  businesses

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• 4. export licensing ?????
• Export licensing is a flow control just like
  export tariffs.
• It is often used as a means of denying a rival
  economy access to both raw and finished products
  without instituting a full embargo

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• 4.1.4 unofficial intervention
• 1. public relations
• Public relations play an important role in
  marketing. From poor translated brand names to
  the lack of locally hired management personnel,
  bad public relations can sidetrack the best of
  products

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• 2. nationalism
• Competitors, host government officials and
  political activists cry out that the marketing
  efforts are bad for the nation.
• It is a very powerful force, it will threaten the
  products continued survival or strength, and
  whats more, it is difficult to control

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• 3. religion
• Religion plays a greater factor in business every
  year, with much of it centering around Islamic
  beliefs regarding profit taking and interest
  rates. Because religion carries such an emotional
  impact, pure reasoning and factual presentation
  will do little to get the product back on track

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• 4. ethnic problems
• Ethnic conflicts that are centuries old still
  burn hot. Belief that the product is ethnically
  dangerous or inferior can stymie your marketing
  efforts whether the accusations are true or not.
  Overcoming ethnic stereotypes takes years of work
  and enormous amounts of money.

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???????????
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• 1991?,?????????????????????????????????????,??
  ???????????????????????,???????????????,??????
  ?????!???140????,???40???????,???????????,???????
  ????????????????????????????,?????????????????,?
  ????????????,?????????????????????,????????
• ??DARLIE?DARKIE?????????? ?????1994??106?
  ???????????????????????  1991?5?,????????,?????
  ????????????????DARLIE????????????,???????552362
  ?552364(DARLIE????)?1992?5?,??????,?????,???????
  ?DARKIE??,????????????????,?????,???????????????
  ????552362?552364???????????,??????????????DARKIE
  IS NOW DARLIE??,??????????????????????DARKIE??
  ????????????,?????????????,??????????????
  1992?6?,???????????????????,???????????????????
  ??????DARKIE?????(?????1992??189?)??????????
  ???????,?????????????552362???552364????????(???
  1992??038?)?

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• ????????????????????,??????????????????????????,??
  ???????????????,?????????????,????????????,???????
  ????????1994?1?4?,?????????????DARLIE??????????
  (?????1994??1?),???????????552362??552364????????
  ???? ??????,???????????,????????????,??DA
  RLIE?DARKIE???????????
  ???552362??552364?DARLIE????????????????????,???
  ????????????????????????????,??????????,??????????
  ??????? ??DARKIE??????????????,??????????
  ?????,??????????????,?????????????????????,?????
  ??? ??????????????????,?????????,?????????
  ?????????

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• 5. society
• Since some societies have a structure not to
  accept certain products, marketers must often
  approach a market several times before they are
  permitted to entry. Some industries are bound by
  edict not to promote foreign products
• 6. education training must be part of the
  marketing plan when educational levels are key to
  a products acceptance

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•  1?????????????????????????,??????????????????????
  ??,?????????????????????,????????????????,????????
  ???????????????,??????(?????)?????????,???????????
  ???????????,??????????,??????????????????
      2????????????????????????,???????????????????
  ????????,???????????????????,?????????????????????
  ???????????????????,??????????????????????????????
  ??????????????,???????????????     3?????????????
  ??????????????????????????????,????????????,????
  ?????????????????????????????????????????,????,?
  ???????,?????????????????     4??????????????????
  ??????????????????????,????????????????????????,??
  ?????????,??????????

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• ?????
•     1??????????,?????????????,????????????????????
  ??????????????,????????????,?????????????,????????
  ??????????,???????????     2?????????????????????
  ??????????????,???????????????,???????????????????
  ??????GAP?????,???????????????????????????????????
  ????????????????????????     3???????????????????
  ??,???????????????,?????????????????,??????????,??
  ??????     4?????????,???????????????????????????
  ????????????,????????????,??????,???????????,?????
  ????     5???????,??????????????,??????????,?????
  ??,????????????????,????????????
      6??????????????????????????????????????????
  ??????,???????????????????????,???????????????
      7??????????????????????,???????????????,?????
  ???,????????????,???????

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• ?????????????????,???????????????,???????,????????
  ??????????,????????,???????????????????????????,??
  ????????????,????????,?????,??????????

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• 7. environment
• If the product has any potential ill effect on
  the environment, marketers can expect major
  market resistance, even without restrictive
  legislation, once such effects are brought to
  light. Environmental action groups enlist anyone
  they can in their effort and are unabashed when
  it comes to emotionalizing an issue.

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• 1982???,????????????????????????????????,?7???????
  ?????????????,???????????,????????????????????????
  ????,??????????????????????11??????????????????,??
  ?????????????????,??????????????,????????????,????
  ??????????

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• 8. science
• Product lines that are radically innovative may
  have a difficult time overcoming the skepticism
  of the target market. When entering foreign
  markets, medicines, business software, securities
  and so on will suffer intense scrutiny. Its best
  to assemble the proof beforehand and tailor its
  delivery to the target market.

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• Requirements that certain goods be imported into
  Japan via ports a long distance from their final
  destinations
• Prohibitions on containers of imported goods over
  a certain size traveling on Japanese roads
• Lengthy customs procedures
• Insistence that imported products undergo several
  safety checks, each one having to be conducted by
  an official from a different government
  department
• Application of separate customs, importation and
  other documentation procedures to imports of the
  same product of the same company but which enter
  Japan via different subsidiaries of the supplying
  company

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4.2 trade organization

• 4.2.1 The regional trade organization
• 4.2.2 the WTO
• objective work towards the realization
  of full employment, expansion or production and
  trade as well as the optimal use of the resources
  of the world so as to raise the income level and
  standard of living of its member countries.

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• An important role to play in settlement of trade
  disputes and supervision of the implementation of
  trade policies and measures
• More powerful because of its institutional
  foundation and its dispute settlement system

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• 4.2.3 types of regional economic arrangements
• 1. free trade areas
• customs duties, non-tariff barriers, no
  common external tariff
• 2. customs union ????common external tariffs

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• 3. common market????
• elimination of all tariffs and other barriers
• nonmembers a common set of external tariffs
• members remove all restrictions on the flow
  of capital and labor

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• 4. monetary union????
• a single currency among independent countries
• 5. political union

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• 4.2.4 the trade risks
• Marketing abroad can be a very risky pursuit as
  the legal landscape in some countries is
  extremely fluid. Laws are sometimes unmodified
  and even when they are, interpretation can
  arbitrary.

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• 1. taxation
• Governments view business as a source of tax
  revenue.
• Some authorities lure foreign business with
  initially low tax rates, with the full intention
  that once the company has been committed and is
  operating successfully, tax rates will soar
  almost to the point of being confiscator.
• There are no universal international laws
  governing the levy of taxes on companies that do
  business across national boundaries.
• The taxation polices of the home and host nations
  can have negative and positive effects on a
  company

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• 2.expropriationdefinition
• Expropriation refers to governmental action to
  dispossess a company or investor of property for
  which compensation is provided.
• reasons extreme political stress, inordinate
  levels of greed

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• 3.sponsored competition
• Sponsored competition puts a favored local
  company or person under a government protection.
  These sponsorship are further aided by technology
  transfers that were mandated by the government as
  part of allowing the foreign company to operate
  within its borders.
• 4.bribery
• ignore bribery and act as if it does not exist
• recognize the existence of bribery and
  evaluate its effect on the purchase decision as
  if it were just another element of the market mix

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• ??????????????????????????????????,???????????,???
  ?????????????????????,????????????????????????????
  ?,???????????????????????,?????????????????
• ????????? talk is cheap. ????????,??????(??)540?
  ??,???? Ben Olken ??????????????????????????? 600
  ??????????? 9000 ????????????,???????????????????
  ??,???????????????????????????????,? 600
  ??????(?????)????????,???????????????????,?????
  ??,????????????????????,??????????????????

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• ????????30????,???????????????20,?????????????
  ???????????????,????????????????

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• ?)????????     1?????     ????????????????????
  ???????,????????     (1) ????
•     ???1989????????????,??? 17?????,????????,????
  ??????????????????,??????????     ???????????
      A. ???????????,?????????     B.
  ?????????????????????????????????????????????
      C. ?????????????????????????,???????????????
  ????????????     ????????????,????????12,??????
  ?????70,?????????????????????????????????????????
  ????    

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• (2) ????     ???????,?????????,????????????????
  ???,??????????????????????????????    
  ?????????????????1-6?????????????????????????
  ???????????????????????????????????     (3)
  ????     ????????????????????,??????????????,??
  ?????????????????????????   

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•   (4) ??????     ?????????,????????????????????
  ??????,???????,????????,?????????????
• (5) ?????????     ????????????????????????
  ????????????????????????????????????????
  ???????????????????????????     (6) ???????
      ?1974?????406???,?????????????,
  ?????????????????????????,???????????,?????????,??
  ????????????????,???????    

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• (7)???     ????,????????60???????,??????,??????
  ???????,??????????     (8) ???    
  ???????????????????????????????????????????
  ?????????????????????????,?????????,??????????????
  ?????????????     (9) ?????????    
  ????????????????????????????,??????????????????
      (10)????     ??,?????????????,????????,??
  ?????????????1994?,????????????????????????  

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•    2?????     ?????????????,??????????????,?????
  ????,????????????????     ????????????????????
  ???????????????????????????????,??????????????????
  ?????,????????????????,?????