International Marketing Issues. Проблемы международного маркетинга, страница 6

6) Capital flows from one country to another are explained with the help of…

7) In order to predict international movements of short-term capital you have learn the theory of…

8)  The oligopoly theory states that…

DISCUSSION

1. Get ready to discuss these questions:

1) In what ways has the role of international trade stayed the same throughout world history?

2) What is economic imperialism? How does it affect international business today?

3) Why are lesser-developed countries primarily resource suppliers for developed ones? Can you think of any exceptions to this general pattern of trade? (Use the figures in the chapter.)

4) Explain economic development.

5) How have the principal imports and exports of the countries shown in Figure 1, developed and developing, changed since 1979? (Use a current version.)

6) What factors have contributed to diversification of trade patterns since 1970?

7) How have trading patterns changed since 1970?

8) Why do developed countries trade so much with each other?

9) Explain the law of comparative advantage. What are its strengths and weaknesses in predicting trade patterns?

Follow-up Activity

In groups 2-3 students consider the differences and similarities in cultural patterns between your country and neighboring countries, e.g. Belarus vs. Russia, etc. Present your findings in class in the form of presentations.

Text 4. DERIVADOS DE LECHE SA: ENTRY OF MULTINATIONALS IN A DEVELOPING COUNTRY

Read the text and answer the questions given after it.

Derivados de Leche SA, founded in 1968, was the first firm to market yogurt in Mexico. It distributed yogurt under the brand name Delsa only in Mexico City, primarily in a limited number of upper-income areas. The company was family-owned and the capital was all local. For the first five years, Delsa was sold in food stores, particularly in the newly developing supermarkets, without any advertising or other promotion. Yogurt was a new, unfamiliar food product in the Mexican market, but Delsa depended primarily on word of mouth to provide product recognition.

During the next four years, the structure of the yogurt market changed dramatically with the entrance of three large multinational firms. In 1973, a number of laws regulating foreign investment in Mexico were modified under a single new "regulation of foreign investment" law. According to this law foreign investors were welcome in Mexico on a joint-venture basis so long as the foreign ownership share did not exceed 49 percent. Labor-intensive industries that helped to decentralize population were particularly welcome. All three of the multinationals entering the yogurt market operated on this joint-venture basis.

The first new brand, Chambourcy, was introduced by a joint-venture subsidiary of Nestle which had operated in Mexico since 1935. This company, Industrias Alimentacias Club SA, was a major Mexican food producer with 7,000 employees. Chambourcy was launched with a strong promotional campaign and wide distribution. The following year, in 1974, a subsidiary of the French food firm, BSN-Gervais, launched their Danone yogurt in the Mexican market. Danone was also heavily supported with promotion. Finally, in 1976, a third multinational entered the market. Productos de Leche SA, which was 51 percent owned by Mexican capital and 49 percent by the Borden Company of the U.S.A.; it entered the Mexican market with two brands of yogurt, Darel and Bonafina.

By 1977, the management of Derivados de Leche SA was becoming concerned about their future position in the yogurt market. All three of the multinational competitors were aggressive marketers and promoters and were strong financially. Although the foreign ownership was a minority (49 percent), management was dominated in each case by the minority ownership, so that management was competent and professional. In the short95 percent in 1972 (there were some other very small Mexican-owned competitors) to only 21 percent in 1977. The three multinationals divided 77.5 percent of the market among them. If the trends continued it was feared that Delsa's share of the market might drop so low that it would provide very little product recognition. And, it was feared that ultimately sales volume would stabilize and perhaps even decline.