Professional Documents
Culture Documents
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criminal)
Islamic Law
Encompasses religious duties and obligations and the secular aspect of the law
Islamic law
Koran is the basis for Shariah (Islamic law) It encompasses:
religious duties and obligations patterns of social and economic behavior for all individuals property rights, economic decision making and types of economic freedom
The overriding objective of the Islamic system is social justice Advocates risk sharing Prohibits the payment of interest Prohibits investment in activities that violate the Shariah, e.g., the
codes
USSR and China need an entire commercial legal system with respect to
Tourism Australia
Please read the pdf file labeled Tourism Australia on D2L.
Price
Government price controls
Communications
Deceptive, misleading or fraudulent practices Propriety and taste Promoting certain products to certain markets
many countries do not recognize trademarks and patents registered in other countries.
McDonald had to buy its trademark back in Japan
are McDonalds restaurants, Microsoft software, and Safeway groceries all legally belonging to a Jordanian
Japan
Operates under the first to
invent rule Protects individual inventors Patents Applications secret Granted in up to 24 mos. Valid for 17 years after approval
register policy Promotes technology sharing Patents Applications public Granted in 4-6 years Valid for 20 years from time of application
Cyber-law
Existing internet law does not completely cover the protection of domain
names, taxes, jurisdiction in cross-border transactions and contractual issues clearly addressed by current law
Countries are drafting legislation to address the myriad legal questions not Examples of unresolved issues
Cyber squatters register descriptive nouns, geographic names, ethnic groups,
pharmaceutical substances and other similar descriptors and hold them until they are sold at an inflated price they should be collected, and by whom
The collection of taxes on sale of products, i.e., when taxes should be collected, where
Take a
Countries are clustered by market size, growth, intensity, infrastructure, receptivity, free market structure, risk from the perspective of the US Cluster 1:
Mozambique, Senegal, Bangladesh, Yemen, Nepal, Kenya
Cluster 2:
South Africa, Egypt, Honduras, Morocco, Ghana, Indonesia, Algeria, Nigeria,
Pakistan
Cluster 3:
Malaysia, Slovak Republic, Dominican Republic, Tunisia, Vietnam, Syria
More..
Cluster 4:
Mexico, Thailand, Georgia, Turkey, Philippines, Peru, Jordan, Albania, Armenia,
Cluster 5:
Russia, Brazil, Argentina, Uruguay, Kuwait, Croatia, Bolivia, Saudi Arabia, El
Cluster 6:
Singapore, Ireland, S Korea, Spain, Chile, Portugal, Estonia, Slovenia, UAE,
Greece, Czech Republic, Hungary, Poland, Costa Rica, Latvia, Lithuania, Panama
More
Cluster 7:
Japan, Germany, UK, Belgium, Netherlands, Hong Kong, France, Denmark,
Cluster 8:
Canada, Australia, Finland, Sweden, Norway, New Zealand
Cluster 9:
China, India
E.g.
Country Country A Country B Country C Country D Weight Per capita Income 50 20 60 20 25 Population 25 50 30 20 40 Competition Political Risk 30 40 10 70 25 40 10 70 80 10 Score 3400 3600 3650 3850
Rate the new/potential countries on each indicator Predict performance in prospective markets
Plug into earlier regression
Prioritize
E.g. of underlying questionnaire for placing countries on a market attractiveness/ competitive strength matrix
Discussion Question
Read the Tata Nano case on pp 198-99 of your text. Ignore the questions on p. 199 but answer this
Using any two examples of the market screening
approaches in these notes (as well as your text), identify logical countries for Tata Nano to enter.
Note you will need to identify a potentially relevant pool of countries to consider, justify your screening criteria and work through the two market screening approaches.
The international market segmentation/screening process: an example of the proactive and systematic approach
Timing of entry
Tricky area
Easy to get burned
Very idiosyncratic Applies to both initial market entry as well as product launches
of products, competitors are already there, willing to use non-equity modes (Gaba et al. 2002)
Time
Advanced countries
Developing countries
A guerilla approach:
Product Factors
Market Factors Marketing Factors
E.g. low volume vs. high volume business E.g. standardized vs. customized offer
E.g. small niche vs. large markets E.g. low vs. high loyalty
E.g. low vs. high costs to target/support markets E.g. standardized vs. customized communications
Underlying everything?
Cooperative relationships
aka strategic alliances
a coalition of 2 or more organizations to achieve strategically significant goals that are mutually beneficial
Key characteristics
Each party has something the other values The partnership is autonomous and is flexible Have commitment and support of top management Parties are complementary and not too different Start narrow grow over time
Important Note:
Why would you exit (de-internationalize)?
Exit considerations
Barriers to exit?
Fixed costs of exit Getting rid of assets Signals to your other markets Long-term opportunities
Guidelines
Salvage what you can, if you
can
But be aware of escalation bias