./ .-.

Ipternational Marketing

Strategy and theory

Fifth edition

Sak Onkvisit and John J. Shaw

I~ ~~o~:~~n~s~~up LONDON AND NEW YORK

Contents '~:.

List of illustrations Preface

Part 1 Overview of world business

1 Nature of international marketing: challenges and opportunities Marketing strategy: the sound of "glocal" entertainment Process of international marketing International dimensions of marketing Domestic marketing vs. international marketing The applicability of marketing Multinational corporations (MNCs) Characteristics of MNC,s The process of internationalization Benefits of international marketing Conclusion Case 1.1 Medical vacation: the globalization of health care

2 Trade theories and economic cooperation Marketing strategy: Botswana - the world's fastest growing economy Basis for international trade Exchange ratios, trade, and gain Factor endowment theory The competitive advantage of nations The validity of trade theories Limitations of trade theories and suggested refinements Economic cooperation Conclusion

l --

Case 2.1 The United States of America vs. the United States of Europe

xiv xxi

1

3 4 5 7 7

10 10 12 19 20 23 24

29 30 32 35 36 42 48 49 55 63 64

viii Contents

3 Trade distortions and marketing barriers 69 Marketing strategy: the best things in life are (not) free 70 protection of local industries 71 Marketing barriers: tariffs 77 Marketing barriers: nontariff barriers 80 private barriers 90

f~ World Trade Organization (WTO) 90 \ Generalized System of Preferences (GSP) 95

Some remarks on protectionism 96

conclusion 97

Part 2 World market environment 103

4 political environment 105 Marketing strategy: the Indian Bengals of information services 106 Multiplicity of political environments 107 Types of government: political systems 108 Types of government: economic systems 114

political risks 121

Privatization 123 Indicators of political instability 123 Analysis of political risk or country risk 125 Management of political risk 127 Measures to minimize political risk 127 political insurance 133

conclusion 135 Case 4.1 Toyota: how to win friends and influence people 135

5 Legal environm~nt 141 Marketing strategy: the long arm of the law 142 Multiplicity of legal environments 143

Legal systems 143 Jurisdiction and extraterritoriality 144 Legal form of organization 148 Branch vs. subsidiary 149 Litigation vs. arbitration 151

Bribery 152 Intellectual property 159 Counterfeiting 172

conclusion 175 Case 5.1 Bribery: a matter of national perspective 176

6 culture 180 Marketing strategy: fish story 181 culture and its characteristics 182

Influence of culture on consumption Influence of culture on thinking processes Influence of culture on communication processes Cultural universals Cultural similarities: an illusion Communication through verbal language

r Communication through nonverbal language , Subculture

l --

Contents ix

185 186 187 188 189 189 198 207

Conclusion 209 Case 6.1 Cultural considerations in international marketing: a classroom simulation 21 0 Case 6.2 When in Rome do as the Romans do: useful tips for those who do business

in Russia 212 Case 6.3 Language of color 214

7 Consumer behavior in the international context: psychological and social dimensions 219 Marketing strategy: the samurai and luxury ~ars 220 Perspectives on consumer behavior 221 Motivation 222 Learning 222 Personality 226 Psycho graphics 229 Perception 230 Attitude 236 Social class 238 Group 239 Family 239 Opinion leadership 240 Diffusion process of innovation 240 Conclusion 241 Case 7.1 Tropical drink for the U.S. market 242

Part 3 Planning for international marketing

8 Marketing research and information systems Marketing strategy: phones as companions Nature of marketing research Marketing information sources Secondary research Primary research Sampling Basic methods of data collection Measurement Marketing information system Conclusion Case 8.1 Mapping Japanese tourism behavior

249

251 252 253 254 255 258 261 262 266 277 280 281

9 Foreign market entry strategies Marketing strategy: Raging Bull Foreign direct investment (FDI)

Exporting Licensing Management contract Joint venture Manufacturing Assembly operations Turnkey operations Acquisition Strategic alliances Analysis of entry strategies Free trade zones (FTZs) Conclusion Case 9.1 Taylor Candy Company and the Caribbean market

port 4 International marketing decisions

). 0 product strategies: basic decisions and product planning Marketing strategy: East is East and West is West What is a product? :New product development Market segmentation Product adoption Theory of international product life cycle Product standardization vs. product adaptation A move toward world product: international or national product? Marketing of s~rvices Conclusion Case 10.1 McDonaldization

).1 Product strategies: branding and packaging decisions Marketing strategy: global brands and mega brands Branding decisions Branding levels and alternatives Brand consolidation Brand origin and selection Brand characteristics Brand protection packaging: functions and criteria Mandatory package modincation Optional package modincation Conclusion Case 11.1 Planet Ralph: the global marketing strategy of Polo Ralph Lauren

291 292 293 296 297 301 301 305 307 308 310 314 315 317 320 320

329

331 332 333 335 337 338 340 347 359 361 369 371

375 376 377 381 394 395 398 400 410 410 411 413 413

12 Channels of distribution Marketing strategy: blood diamonds and De Beers (Part 1) Direct and indirect selling channels Types of intermediaries: direct channel Types of intermediaries: indirect channel Channel development Channel adaptation Channel decisions Determinants of channel types Distribution in Japan Selection of channel members Representation agreement and termination Black market Gray market Distribution of services Conclusion Case 12.1 Managing channel conflict in the global IT industry Case 12.2 Schwarzkopf, Inc. distribution network

13 Physical distribution and documentation Marketing strategy: booming economies and headaches Modes of transportation Cargo or transportation insurance Packing Containers Freight forwarder and customs broker Contract logistics Documentation Conclusion

! -.

Case 13.1 Who can best introduce the "City Adventurer" into Saudi Arabia?

14 Promotion strategies: personal selling, publicity, and sales promotion Marketing strategy: book worms Promotion and communication Promotion mix Personal selling Publicity Sales promotion Overseas product exhibitions Conclusion Case 14.1 Selling in the EU Case 14.2 A new system installment of Sanki Denki (Thailand)

15 Promotion strategies: advertising Marketing strategy: soft and not-so-soft drinks

xi

419 420 422 425 427 437 439 439 442 447 449 451 452 453 462 463 465 466

471 472 473 481 481 485 486 487 488 500 501

508 509 510 511 512 520 523 528 532 532 534

539 540

t" \

:i

li

I'

'11 " ii "I

xii Contents

The role of advertising Patterns of advertising expenditures Advertising and regulations Advertising media Standardized international advertising Global advertising: true geocentricity Conclusion Case 15.1 International advertising: standardized, localized, or global?

16 Pricing strategies: basic decisions Marketing illustration: the price is right The role of price Price standardization Pricing decisions Alternative pricing strategies Dumping Price distortion Price fixing Inflation Transfer pricing Conclusion Case 16.1 Blood diamonds (Part II)

17 Pricing strategies: countertrade and terms of sale/payment Marketing strategy: noncash trade Countertrade Price quotation Terms of sale Methods of M:(lncing and means of payment Conclusion Case 17.1 Countertrade: counterproductive?

Part 5 Financial decisions

18 Financial Strategies: financing and currencies Marketing strategy: the Big Mac Index Trade finance N on:6.nancial institutions Financial institutions Government agencies International financial institutions/development banks International Monetary Fund (IMF) Money Foreign exchange Foreign exchange market

541 541 542 542 555 566 567 568

574 575 576 576 577 584 585 589 590 591 598 602 602

605 606 607 613 614 618 632 632

637

639 640 642 642 644 649 653 653 654 659 659

Foreign exchange rate Exchange rate systems Official classification of exchange rate regimes Evaluation of floating rates Financial implications and strategies Conclusion Case 18.1 Ups and downs: a foreign exchange simulation game

Index

l -.

xiii

663 666 671 672 674 684 685

690

( Company and trademark index

A&S-MRS Co., Ltd 259 Abbot 170 ABN Amro 312 Absolut 447 AC Nielsen 376 ACCION International 647 Accor Group 301 Accutron 388 Acer Inc. 388, 525, 539 Acura 390 Advair Diskus 406 Advanced Micro Devices Inc. 302 Agere Systems 168, 395-6 AIG 134 Airbus Industrie 106, 153, 584-5 Airwick 149 Ajinomoto 521, 555 Alba 390 Alcatel168 Alcatel Alsthom 153 Allegra 406 Allen-Edmonds Shoe Corporation 80-1, 548 Allianz Group 14 Alpine Map Co. 528 Alstom 591 Altima400 Altima Systems 400 Ambasa Whitewater 337 America Online 314 American Express 338, 598 American International Group (AI G) 134 American Motors Co. 392

American Society for Industrial Security 264 American Tourister 388 Amoco C~rporati6n 394-5 Amway Corp. 448, 515-16 Andrex 394 Anheuser-Busch Cos. £99, 388-9, 392,406, 525 Ansco 395 Apple Computer Inc. 106, 174, 360, 388, 402-3, 444 Apple House.Music 402-3 Applied Electronics 625 Aprica 394, 399, 444 Arabian American Oil Co. 146 Archer-Daniels-Midland Co. 98 Areva SA 591 Arie1385 Arrow Electronics Inc: 446 Arthur C. Be11429 Ashton-Tate 174 ASI Market Research (Japan), Inc. 259 Asian Wall Street lournal546 Assuag-SSIH 394 Aston Martin 312-3 AT&T (American Telephone & Telegraph Co.) 168,

202,209,386 Audi 378, 456 Austin Nichols 438 Austin-Rover 311 Austrian Air Autodesk 174 Avaya Inc. 168 Avnet Inc. 446 Avon 515

B. F. Trappey Sons 409 BAE Systems PLC 176 Bailey's Irish Cream 410 Banadex 133 Banco Santander Central Hispano 13 Bangkok Hospital 24 Ban~of America 13, 126, 651 Ban~e 335 Barbie 356 Barclays Bank 121, 312 BASF 304 Baskin-Robbins 225 Bass PLC 301 Bata Ltd. 253, 390 Bayer 346, 408 BBC 176, 544-5 Bechtel Group Inc. 159 Bell & Howell433 Bell Labs 168 Bemo Securitisation 614 Benson & Hedges 311 Beretta 143 BertelsmannAG312, 314, 509 Bharti Enterprises 442 Bibendum 378 Bird, U.S.A., Inc. 22 Black & Decker 359 BMG Music 312 BMW 312,580 BNP Paribas 13-14 Boeing 106, 491,585 Borg-Warner 431 Braun 392 Breguet 390 Bridgestone Corp. 147,314 British Aerospace 133 British Leyland 308,311 British Petroleum (BP) 14, 122, 303, 395 Brother Industries 386, 426 BSR410 Budejovicky Budvar Narodni Podnik 392 Budweiser 395, 558 Bulova 388 Bumble Bee Seafood Inc. 314 Burnrungrad (BI) 24-6 Business Electronics Corp. 455 Business Software Association 174-5

C. Itoh 434 Caclillac 356 Calvin Klein 390, 443

Camel 406, 542 Cameron Gas 614 Campbell Soup Co. 358, 387 Canon168,387,455,457,582 Caravelle 388 Carnival Cruise Lines 209 Carrefour 442, 449 Cartier 173-4, 444, 580, 599 Casio 390 Caterpillar Inc. 346, 665 Cathay Pacific Airways 129 Cato Institute 116 Celebrex 40 Centrino 388 Chanel174,395 Channel V 545

, Charles of the Ritz Group 426 Chef America 312 Chernogorneft 122 Chestnut Global Partners 225 Chicago Mercantile Exchange 677-8 Chiquita Brands 133 Chrysler Corporation 387, 392, 400, 438 Chubb Corp. 128, 134 Cialis 346 Ciba-Geigy Corporation 149 Cif 395 CIGNA Companies 482 Cisco Systems 106, 472 Citigroup 12-14 Citizen 388 Claritin 167 Close-Up 392, 412 Club Med 133, 143, 301 CNN 544 Cnooc Ltd. 108

691

Coca-Cola Co. 3, 6, 23, 121, 157-9, 169, 185, 298, 337,376-7,381,392,406,453,522,540, 552,566-7,677

Cold Stone Creamery 349 Colgate 526, 558 Compaq Computer Corp. 388, 582 Conference Board 351 Conoco 122 Controlled Risks 126 Cooper Industries 643 Copaco 455 Cosmopolitan 562 Costco 449 Cott Corp. 386 Creative Technology 168

692 Compa

Credit Suisse 62 Crest 209 Crosse & Blackwe1l387 Cyanamid 408

D. Porthault 580 Daihatsu Motor Co. Ltd. 398 ," \ Dai-Ichi 448 Daimler-Benz 408 Daiwa Securities Co. Ltd. 661 D&M385 Datsun 394 Dax Properties 407 De Beers 382,421,602-3 Dell Computer Corp. 332, 440, 487-8, 582 Deutsche Bank 90 Deutsche Post 13 Dewar's 556-7 DHL Corp. 601 Direct Marketing Association 550 Directed Electronics Inc. 400 Discover 391 Disney 167, 173,315,366,377 Dodge 387, 400 Dow304 Dow-Badische 303 Dragon Airline 129 Dresser Industries 683 Dreyer's Grand Ice Cream Inc. 312 Du Pont 53,351 Duracell 558

E. Remy Martin & Co. 438 Eastern Air Lines 584 Eastman Kodak 169,242,356,358,406,

682 Economist 640 eHarmony.com 6 Electrolux 332 Eli Lilly 346 Eltron 392 Emery Worldwide 399 Enjoy China Holdings 555 Epson 582 Ernst & Young 300,600 Esmark438 ESOMAR266 Eterna 394 Euromoney 127 Eveready 406 ExxonMobill2, 131, 149, 160,399

FASL LLC 302 " ...... -

Financial Times 546,-548

Firestone Tire & Rubber Co. 147, 314, 395, 521 Flextronics 344 Ford Motor Company 14, 129, 147, 305, 311-13,

360-1,488,521,683 Foremost 444, 513 Four Seasons Hotels Inc. 369 Foxconn Technology Co. 305 Fresh & Easy 439 Fresh Choice 371 Fuji 445 Fujitsu Ltd. 302, 582 Future Brands 447 Fuyo 448

GAF Corp. 395, 677 Galaxy 398 Galician Institute for Economic Promotion 305-6 Gallaher Group PLC 311 Gasbank 591 Gateway 388 GE Capital Services 14, 149, 645 General Electric Co. 7, 12, 14, 149, 310, 357, 359,

377,391,431,435,.610 General Foods 378-9 General Motors Corp. 14, 16, 126, 168,203,307,

346-7,349,391,541,584 Gillette Co. 378-9 Glenmore Distilleries 438 Godiva 312 Gola 260 Goldman Sachs 20, 106 Goldstar Co. 53 Goodyear Tire & Rubber Company 378,408 Grey 392 Gruma 590 Grundig 345, 579 GSK346 Guangzhou Automobile Group Co. 391 Guangzhou Cosmetics Factory 515 Guardian 548 Gucci 299 Gulf Oil 153 Guess Inc. 426-7, 443

H. J. Heinz Co. 15,378,387 Haagen Dazs 231,312 Habitat Mothercare PLC 356 Halliburton Co. 11 Harley-Davidson 77, 378

Harman-Kardon 571 Harris Ranch 477 Hattori Seiko 388 Hawley Group 132, 686 Heineken 411,590 Helier International Corporation 648 HeJiitage Foundation 116 Her\nes 333 Hewlett-Packard (HP) 16,53,388,440,582 Hindustan Lever Ltd. 411 Hirarn Walker 424 Hitachi Ltd. 151, 168,386,582,586 Hoechst 312,401 Holiday Inn 301 Honda Motor Co. 262, 305, 350, 360, 390-1, 408 Hong Kong Trade Development Council 450 How About Lunch 6 HSBC Group 13 Hughes Electronics 491 Humphreys & Glasgow Consultants Pvt. Ltd. 150 Humphreys & Glasgow Ltd. 150 Hynix Semiconductor 586 Hyster-Yale 589 Hyundai235-6,376,683

IBM (International Business Machines, Inc.) 106, 151,168,315,344-5,356,377,558,567, 582

IG 128 lKEA 356, 395 IMD 364 Infiniti 511 Infosys Technologies 106 Institutional Investor 127 Intel Corp. 7, 25, 29, 169,377,446 Interbrand 331 Interbrew 590 International Monetary Market 677 International Semi-Tech Microelectronics Inc. 378 iPod 168 ITT 359,492 iTunes 403 Ivory 406

J. D. Power & Associates 236, 376 J. Osawa 433 J. P. Morgan Chase 13 J. Sainbury PLC 385-6 Jaguar 312-13 James B. Beam 199, 429 Japan Airlines 477

Japan Tobacco Inc. 311 JC Penney 209 Jean Lassale 388, 442 Jean Patou 408 Jeep 392, 408 JETRO 257 Jif 395

}' ..-,

Jim Beam Brands Co. 199, 429 John Labatt Ltd. 386 Johnson & Johnson 358, 521 Jontue 399 JTI-Macdonald 452

Kao Corporation 336 KBR 11 Keisei Electric Railway 298

, Kellogg's 339, 525 KFC 20, 169,357,445 Kikkoman Corporation 424

rk index 693

Knorr 358 Kodak169,242,356,358,406,682 Komatsu 664, 683 Korea Pacific Chemical 304 Korean Air Kraft, 15, 17,358 Krating Daeng 292,411 KSR International Corp. 168 Kunnan 387

Labatt 406 Lacoste 388 Land Rover 312-13 Lassale 388, 442 Le Bua Hotel 335 Le Galion 408 Lego Group 395 Lenovo 332 Levi Strauss 580 Levitra 346 Lexis 400 Lexmark 582 Lexus220, 236,376,400 LG Electronics 357, 376, 388 LIFFE 677 Lloyd's of London 128 Loblaw Cos. 386 Lockheed Corp. 153,492 Longines 390, 426 Loral Space and Communications 492 Lorus 390 Lotus 174

694

Lowenbrau 234, 299 Lucky Strike 527 Lufthansa 8

McCann 567 McCollum Spielman Worldwide 566 McDonald's 13, IS, 132,209,260,298-9,315,348, ,. .

\ 355,371-3,377,393,407,640-1 McDonnell Douglas 585, 612 Maersk Line 591 MAG Engineering & Manufacturing 409 Maggi 358 Mahatma Gandhi Hospital 183 Majorica S.A. 417 Mamiya 433 Mangrove Capital Partners 643 Marion Merrell Dow Inc. 312 Marks & Spencer 512 Marlboro 542, 568, 570 Mars!M&M 541 Marubeni 436 Maruti Suzuki 472 Matchbox 395 Matsushita Electrical Industrial Co. 345, 385-6 Mattel86, 356 Maxim's 299 Maxxium447 MCI209 Mead Data Central Inc. 400 Mediators 612 Melex 587-8 Mercedes Benz 309, 377, 456 Mercer Management Consulting Inc. 314 Merck 167 Meridian Group 430 Merrill Lynch 614 MG312,426 Michelin 378, 387, 395, 444 Microsoft 12, 173, 174,356,377 MIGA 134 Miller Brewing Co. 234, 299 Minolta 455,462 Mirinda 392 Misawa Homes 526 Mishawaka Rubber and Woolen Manufacturing Co.

382 Mitsubishi Corp. 386-7, 434-5, 438, 445, 448, 574,

591 Mitsubishi UFJ Financial 13 Mitsui & Co. 298, 434, 448, 589 Monet-Hennessy 438

,-Monsieur Henri 429 Morgan Stanley 391 Morrison & Foerster 145 Motel 6 301 Motorola Inc. 134, 168,263 Moussy 185 MTV 315,544 MY Hospital 183

Nanodata 434 Nashua 387 National Coffee Association 405 National Federation of Colombian Coffee Growers

235 NEC Corp. (Nippon Electric Corp.) 168,446 Nescafe 355 Nestle SA 15-17, 312, 387, 394,485,521 New United Motor Mfg., Inc. (NUMMI) 357 Newmont Mining Corp. 159 News Corp. 644 Nexium406 Nickelodeon 315, 5~4 Nike 520 Nikkei 547-9 Nipper 378 Nippon Telegraph & Telephone Public Corp. (NTT)

87 Nissan Motor Co 394,400 Nissin Food Products 336 Nivea 376 Nokia 252,336-7,377,472,568 Norelco 357, 395 North American Philips (N.A.P.) ISO, 395 Northwest Airlines 200-1 Nova 398 Novopharm 170

OAO Gazprom 303 Occidental Petroleum 95, 121-2 Office Tiger 53 Okal526 Oki Electric Industry Co. Ltd. 683 Oleg Cassini 385 Olympus 386, 394 Omega 390,440 Opel307 Opium 426 Oracle 106, 264, 356 Overseas Operations, Inc. 430 Overseas Private Investment Corporation (OPIC)

122, 134

1

Pall Mall 542 P&O Nedlloyd 591 Parker Pens Co. 206, 563 Patek Philippe 440-1 Patio 392 Paxi1406 P,G: Magazine 310 P.DVSA 122 . Peninsula Hotels 568-9 Penthouse 297 Peoplesoft 278 PepsiCo, Inc. 169,337, 522 Pernod Ricard 438 Perrier 520 Persil385 pfizerInc. 15, 17 Philadelphia Cream Cheese Philip Morris Cos. 307, 398, 455, 527, 542, 558 Philips 150, 345, 356, 395 Piaggio 355 Pierre Cardin 299, 395 Pillsbury 302, 358-9, 445 Pizza Hut 130, 267 Playboy 205, 297, 360 Playtex 392 Plymouth 387 Polar Light 122 Polaroid 169 Ponder and Best 386 Pop Tarts 339 Porsche 222-4, 236, 333-4, 376 Premier Wine Merchants 438 Procter & Gamble 17, 209, 385, 392, 473, 523,

541 PT Gudang Guram 558 Pulsar 390 Putinka 402

Quanta Computer Inc. 388

R. H. Macy 417 R. J. Reynolds 307, 455, 542 R. R. Donnelley Japan K.K. Ralph Lauren 378,413-16,443 Ralston Purina 312 Rank Xerox 611 RCA378,386 Reader's Digest 189 Red Bu1l292, 411 Regent International Hotels Ltd. 369 Remington 395

Rena~lt 54, 392 Reuters Holdings PLC 25 i Rexona 411 Ricoh 386-7, 584 Rio Tinto 159 Ritz 351 Roadway Services Inc. 488 Rolleiflex 386 Rosoboronexport 5 Royal Challenge 540 Royal Dutch/Shell 303

S. S. Kresge 382 SAB Miller 226, 540 Safeway 386 Sarnpoerna 558 Samsonite 388, 443

index 695

Samsung International Inc. 169, 233, 376, 388, 446, 582

Sarnsung Shipbuilding and Heavy Industries 683 Sanwa 448,651 Sanyo 387 SAP 194, 356, 512 Savin 387 Schering-Plough 167 Schick 395 Schieffelin 438 Schlumberger 15 Schneider 390 Schwarzkopf Inc. 466-8 Scott Paper Co. 394 Seagate 582 Sea-Land Service 591 Sears Roebuck & Company 209, 387 Seiko 426, 440, 442, 454, 469 Serfin 335 7-Eleven 439 Shanghai Automotive Industry Corp. 391 Sharp Electronics Corp. 255 Shell Sekiyu 662 Sidanco 122 Siemens 13,15,142,153,591 Sikorsky 311 Silk Cut 311 Singapore International Monetary Exchange

(SIMEX) 677, 679 Singer 378,431 Sinovac Biotech Ltd. 644 Smith Kline 170 Snob 408 Snow Brand 302, 445

896 Company

Sofite1301 Solectron 344 Somerset Importers 438 Sony Corp. 4-5,84, 168,242,345,360,378,394,

399,423,438,468,580 Spalding 378, 395 Sperry 386 ,.

\ Sportsman's Guide 514 Sprint 209 Star Group 545 Starbucks 405 Subaru 514 Sumitomo 448 Sun Microsystems 5, 582 Sunsilk 411 Superscope 438

. Sure 392 Suzuki 337, 386 Swatch Group 390

Tabasco 409 Table for Six 6 Tagamet 170 Tai Hua International Enterprise Co., Ltd. 302 Taiwan Pan Asia 301 Taixing Lock Industry Manufacturing 409 Tantus 376 TCL Corp. 390 Teleflex Corp. 168 Tesco PLC 439,449 Texas Instruments Incorporated 132, 169,663 3M 339,391-2 Thresher 239 ThumsUp 540 Tiffany & Co. 439, 444 " Timberland 388 Time Warner Entertainment 301 Tirnken 346

•. 'I;issot 390 Tomen Corp. 90 Toshiba Corp. 168,339,582 Totino's 358 Toyota Motors Corporation 90, 130, 135-7, 220,

236,262~3,360,377,400, 555 TNK 122, 303 Transparency International 159 Traumbuge1392 Triumph Acclaim 308 Trust 392 Tyco International Ltd. 643 Tyleno1521

UBS 13-14 Unicord 314 Unilever PLC 15, 307, 312, 385, 391-5, 411 Union Carbide 150-1, 523 Uniroya1399 United Brands 129 United Steel Workers of America 74 Universal International 395 Unocall08, 148 UPS 363, 479, 488 U.S. Council for Energy Awareness 76 U.S. Homes 526 U.S. Rubber 399 USA Today 546

Vaillant 361 Vaseline 412 Vega 388 Venture 387 Vespa 355 VH1544 Via Technologies ,169 Viacorn Ine. 315 Viagra 346, 406 Victor Co. 345 Vin & Sprit 447 Vioxx406 Viper 400 VISA 337,518 Vivendi 312 Vivitar 386 Vodafone 14 Volkswagen AG 70, 378, 391, 456, 591 Volvo 312-13

W. Haking Enterprises 395 Walkman399 Wall Street Journal 51 Wall's 444 Wal-Mart Stores Inc. 13, 143, 234, 386,440,442 Walt Disney Company 167, 173,315,366,377 Warner Bros 590 Waterford 578 W earGuard Work Clothes 488 Wells Fargo 13 Western Digital 582 Westinghouse Electric Company 381,426 Westland 311 Whirlpool Corp. 253 White 385 Wieseview 376

Willy Motors 408 Winston 307, 455 Wipro Ltd. 106 WizzAir 575 Word Perfect 174 World Economic Forum 159 W~dd Markets Research Center 132 W~ld Trade Centers Association 255 Worlds of Wonder 625 Wow 392 Wrigley Corp. 146 WSJ International 434 Wyeth 395, 397

Xerox 336, 438, 445, 582

Yamazaki-Nabisco 351 Yaohan International Group 16

Yash R~i Films 366 ! -

Yellow Butterflies 392 Yellow Freight System 476 Yepp 376 Yugo 54, 234 Yum355 Yves St. Laurent 299,395

Zantac 167 Zenith 586 Zenith Hotels International 301 Ziff-Davis Publishing 310 Zocor 406 Zoloft406 Zyrtec 406

index 697

~. Country/city index

Bribes Payers Index (BPl) 166

car prices 594-5 Corruption Perceptions Index (CPI) 161-5 countries accepting carnets 530 countries requiring a consular invoice 496 currency 660

Global Competitiveness Index rankings 45-8 gross and net hourly pay 41

Human Development Index (HD!) 43

index of economic freedom rankings 117-19

inflation 657-8

languages 190

prices around the globe 5..92-3 prices of services 367-8

regional trading arrangements 56-7

wages 37-8 working hours and vacation days 39-40 working time required to buy ... 596-7 world television standards 354

Name index

Aharoni, Yair 28 Ahlstrom, David 688 Ahmed, Zafar U. 247 Akhter, Syed H. 139 Alam, lan 374 Alden, Dana L. 417 Alderson, Wroe 139 Alexander, Nicholas 28, 469 Al-Khatib, Jamal A. 246 Al-Olayan, Fahad S. 573 Al-Shehabi, Nada F. 538 Alvarez, Begona Alvarez 538 Amir,Sarit246 Anders, George 641 Anderson, Rolph E. 604 Andreeva, 1. 216 Ang, Swee Hoon 245,290 Angelidis, John A. 635 Anholt, Simon 246 Aninat, Eduardo 51 Antia, Kersi D. 470 Arning, H. K. 218 Ashkanasy, Neal M. 245 Attour, Suleiman 573 Aulakh, Preet S. 27 Aung San Suu Kyi 105

Baack, Daniel 572 Baack, Sally A. 538 Backhaus, Klaus 572 Bakacsi, Gyula 246 Baker, Susan 247

Balassa, Bela 68 Baldauf, Artur 325 Balmer, John M.T. 417: Banai, Moshe 538 Bang, Hae-Kyong 573 Banting, Peter M. 469 Barrio-Garcia, Salvador del 290 Baumgartner, Hans 271, 274, 290 Baumol, William J. 139 . Bates, Robert H. 139 Batra, Rajeev 417 Beamish, Paul W. 325 Bearden, William 0.469,572 Beck, John C. 571 Belderbos, Rene A. 538 Belk, Russell W. 218 Belkin, Liuba Y. 538, Berg, Andrew 101, 689 Bedo, David R. 218 Bems, Sjors 325 Bettis, Richard A. 139 Bieler, Heinz 466 Bird, Deidre 413 Birtwistle, Grete 469 Blinder, Alan S. 69, 688 Blodgett, Linda Longfellow 325 Blomstermo, Anders 327 Blumentritt, Timothy P. 139 Bobek, Samo 374 Bodur, Muzaffer 245 Boush, David M. 469 Braunstein, Daniel N. 28

700 Name

Brewer, Paul A. 325 Briley, Donnel A. 218 Broadman, Harry G. 469, 604 Brouthers, Keith D. 325-6 Brouthers, Lance Eliot 326 Brouton, Garry 688

," Brown, Patters on 507 \ Bruce, Nei128

Budhwar, Pawan 538, Bulla, Martin 27 Burford, Marion 288 Burns, Robert 220Burt, Steve 417,469 Butler, John 538

Caldwell, Helen M. 413 Callow, Michael 573 Camdessus, Miche1419 Camp bell-Hunt, Colin 28 Cash, Harold C. 538 Cashin, Paul 68 Casielles, Rodolfo Vazquez 538 Cavusgil, S. Tamer 28, 178,289,459,461,470,

604 Chan, Chi-fai 28 Chan, Christine M. 327 Chan, Kara 572 Chandler, Jr., Alfred D. 139 Chang, Chingching 572 Chao, Paul 246 Chen, Ivy S.N. 604 Chen, Shih-Fen S. 326 Cheon, Hongsik John 572 Chesbrough, Henry 417 Chetty, Sylvie 28 Chi, Shu-Cheng 218 Cho, Chang-Hoan 572 Choi, Amanda 538, Choi, Chang-Bum 325 Chow, Simeon 246 Christmann, Petra 27 Chua, Amy 139 Chung, Henry F. L. 572 Click, Reid W. 139 Clougherty, Joseph A. 27 Collins, James M. 245, 573 Conway, Craig 290 Cooksey, Ray W. 246 Copacino, William C. 507 Comwell, Bettina 178, 219 Cossett, Jean-Claude 139 Craig, C. Samuel 289-90

f _.

Cravens, David W: 3.25, 538 Crissy, W. J. E. 538 Crockett, R. 572 Croft, Sarah L. 178 Cuervo-Cazurra, Alvaro 178 Cullen, John B. 326

Dalenberg, Douglas R. 507 Daley, James M. 507 Dallmann, Katharina M. 573 Deligonul, Seyda 289 Desai, Raj 635 Dhanaraj, Charles 325 Djursaa, Malene 246 Diamantopoulos, Adamantios 604 Diamond, Sidney A. 418 Dickson, Peter R. 572 Doh, Jonathan P. 326 Doherty, Anne Marie 469 Dolan, John F. 636 Donthu, Naveen 245 Doom, Jenny Van 572 Dorfrnan, Peter 245 Douglas, Susan P. 218, 289-90 Doukas, John A. 688 -Dow, Douglas 373 Du, Jianjun 28 Dunning, John H. 139 Durvasula, Srinivas 290 Dwyer, Sean 373

Eamshaw, Louise 245 Ebrill, Liam 100 Eckhardt, Giana M. 418 Eden, Lorraine 604 . Edwards, Ron 28 Edwards, Steven M. 247 Ellis, Howard S. 68 Ellis, Paul 325 Emerson, Ralph Waldo 605 Endresen, lver 327 Engelken, Julia 247 Erdogan, B. Zafer 219 Erumban, Abdul Azeez 373 Escriba-Esteve, Alejandro 28 Estrin, Sau1326 Ettenson, Richard 290 Evans, Daniel M. 466

Faff, Robert W. 689 Fam, Kim Shyan 219

Federman, Thomas M. 470 Ferle, Carrie La 247 Fischer, Stanley 139 Fitzgerald, Bruce 635 Fogel, Kathy 139 Fox, Justin 218 F~mpton, Jez 331 FAmke, George R. 572 Frankfurter, Felix 375 Freeman, Susan 28 Friedman, Ray 218 Friedman, Thomas 1. 28 Fryxell, Gerald E. 538 Fu, Ping Ping 246 Fuld, Leonard M. 289

Gaba, Vibha 326 Gabrielsson, Peter 373 Galan, Jose 1. 326 Gandhi, Mahatma 180 Gao, Gerald Yong418 Gardberg, Naomi A. 538 Gates, Susan 374 Gattoma, John 507 Gavlen, Morten 327 Gentry, James W. 538 Gerritsen, Marinel 572 Gerstner, Jr., Louis V. 27 Geyskens, Inge 572, Gibson, Cristina B. 245 Gilbert, David 538 Goldberg, Itzhak 635 Gonzalez-Benito, Javier 326 Gouchtchina, Y oanna A. 507 Gould, Step hen J. 573 Grabner-Krauter, Sonja 573 Gregory, Gary 374 Griffith, DavidA. 178,326,374,469,604 Grove, Andrew 29 Gu, Flora Fang 571 Guermat, Cherif 244 Gupta, Pola B. 573 Gupta, Vipin 245 Gurhan-Canli, Zeynep 246 Gutierrez, Juan Antonio Trespalacios 417

Ha, Jungbok 290 Haahti, Antti 27 Habib, Mohsin 325 Hall, Edward T. 218 Hamilton, Kate 245

Hamilton, R.T. 325 Han, Jin K. 218 Hanges, Paul J. 245 Hardy, Daniel 51

Name index 701

Harichaux de Tourdonnet, Beatrice 178 Harris, Greg 573 Harvey, Michael G. 469, 538 Hebert, Louis 374 Heckscher, Eli 68 Heggie, Ian G. 507 Heijtjes, Marielle G. 538 Heitmann, Mark 218 Hennart, Jean-Francois 326, 607, 609, 635 Herk, Hester van 289 Herrmann, Andreas 218 Hersch, Usa 325 Hervey, Jack 1. 604, 634-5, 688 Hewett, Kelly 469,572 Hightower, Roscoe 374 Ho, Shu Hsun 470 Hofstede, Frenkel ter 247 Hofstede, Geert 245 Homburg, Christian 247 Honeycutt Jr., Earl D. 290 Hooley, Graham 290 House, Robert J. 245 Hsu, Maxwell 373 Hu, Xiaorui 572 Huang, Jen-Hung 470 HUi, Alice S. Y. 418 Hui, Michael K. 246 Hult, G. Tomas M. 271, 374 Hung, Kineta 571 Hutchinson, Karise 28 Hyder, Akmal S. 246 Hyun, Yong J. 538,

Ibanez-Zapata, Jose-Angel 290 Ibeh, Kevin I.N. 325 Ibrahim, Nabil A. 635 Isdel, E. Neville 3 Isobe, Takehiko 327 Issenberg, Sasha 477

. J all at, Frederic 245 Javidan, Mansour 245 Jefferson, Thomas 141 Jesuino, Jorge Correia 246 Jevons, Colin 571 Ji, Mindy F. 573 Johnson, James P. 325

702 Nam.e

Johnson, Jean 1. 326 Johnson, Keith F. 246 Johnston, R. Barry 51 Jong, Simon B. de 373 Julian, Craig 373 Jun, Sunkyu 538 Joy, Annamma 219,247

Kabasakal, Hayat 245 Kachra, Ariff 325 Kan, Ozgur B. 688 Kandemir, Destan 271,374 Kang, Jikyeong 219 Kara, Ali 246, 290 Karande, Kiran 178, 290, 573 Kaynak, Erdener 246,290 Keillor, Bruce D. 271, 374 Kent, Robert J. 572 Keynes, John Maynard 639 Kim, Youn-Kyung 219 Kimmel, Allan J. 245 Kirkrnan, Bradley 1. 245 Kiuchi, Takashi 574 Klein, Jill Gabrielle 290 Klein, Michaell0l, 507 Klitgaard, Robert 178 Knight, Gary A. 28 Kobrin, Stephen J. 178 Kolk, Ans 178 Kotabe, Masaaki 27, 290, 326 Kotlov, Vassili 604 Kragh, Simon Ulrik 246 Krasnova, Anna 507 Krishnan, Balaji C. 290 Krueger, Anne 101 Kucukerniroglu, Orsay 246 Kuga, Masashi 373 Kumar, Vikas 572 Kwok, Chuck CY 179, 688

Ladwig, Kit 140 Lages, Cristiana Raquel 290 Lages, Luis Filipe 290, 325, 373 Lamey, Lien 417 Lancaster, K. 68 Lane, Michael H. 507 Lankes, Hans Peter 100, 604 Laroche, Michel 572 Laurent, Robert D. 688 Laux, Paul A. 689 Lecraw, Donald J. 635

, -Lee, Bruce C. y"470 Lee, Cho1374, 604-Lee, Christina Kwai-Choi 218 Lee, James A. 218 Lee-Kelley, Liz 538 Leidy, Michael 604 Lenartowicz, Tomasz 219 Lenway, Stephanie Ann 373 Leonidou, Leonidas C. 290, 375 Leontief, WassilyW.68 Levinson, Marc, 507 Li, Dan 604 Lichtenstein, Donald R. 290 Liddawi, Tarek 636 Liesch, Peter W. 469 Lim, Kai H. 245 Lin, Carolyn A. 573 Lipsey, R. G. 68 Litan, Robert E. 139 Litvak, Isaiah A. 469 Liu, LeighAnne 218 Liu, Scott S. 246 Loungani, Prakash 324 Low, George S. 538 Lowe, Kevin B. 245 -Lu, Jane W. 326 Ludolph, Josephine 374 Luna, David 218 Luo, Yadong 28, 139, 178,325 Luque-Martinez, Teodoro 290 Lye, Ashley 325 Lynch, Patrick D. 571-2 Lynn, Monty 1. 374 Lytle, Richard S. 374

McCullough, Wayne R. 573 MacDonald, Roberta 288 MacDougall, G. D. A. 68 McGuirk, Anne 80 McKinnon, D. Grant 636 McNeal, James U. 573 Madden, Thomas J. 373 Madsen, Tage Koed 28 Magee, John F. 507 Maheswaran, Durairaj 246 Makino, Shige 327 Maksimov, Sergey Sergeevich 214 Manev, Ivan M. 538 Marshall, Andrew 689 Marshall, R. Scott 469 Marta, Janet K. M. 178

,

I

1 1 1

j I l I 1

j I I j

I l ~ I

I

Martin, Ana Maria Diaz 417 Martin, Brett A. S. 218 Martin, Drew 281 Masterson, Jr., John T. 470 Matlack, Dean 179 Mattus, Rose 246 M?tzler, Lloyd A. 68 Mbro, Paolo 68 Mayer, Charles S. 290 Maynard, Michael1. 573 Mayrhofer, Ulrike 326 Meade, J. E. 68 Melewar, T.e. 417 Mellahi, Kamel244 Merchant, Hemant 325 Mesak, Hani 373 Metcalf, Lynn E. 218 Meyer, Klaus E. 326 Mezias, John M. 538 Michalski, Tony 470 Mieres, Celina Gonzalez 417 Miller, Kent D. 139 Milner, Laura M. 246, 573 Minford, Patrick 68 Mitra, Pradeep K. 139 Mixon Jr., Franklin G. 327 Mizuno, Yutaka 247 Moen, Oystein 327 Moll, Jennifer R. 374 Money, R. Bruce 373 Montgomery, David B. 325, 373 Moon, Young Sook 572 Moore, Christopher M. 469 Moore, Mike 488, 507 Morris, Michael W. 218 Moser, James T. 689 Mottner, Sandra 325 Mudambi, Ram 326 Muhlfeld, Katrin 572 Mukhopadhyay, Kausiki 178 Mullen, Michael R. 290 Munch, James M. 374 Munuera, Jose Luis 538 Murdock, George P. 218 Murphy, Paul R. 507 Murtha, Thomas P. 373 Myers, Matthew B. 470,604

Nakata, Cheryl289 Nelson, Michelle R. 573 Netemeyer, Richard G. 290

! ~

Newburry, William 245,374,538 Nigh, Douglas 139 -Nijssen, Edwin J. 417 Nisbett, Richard 218,246

O'Cass, Aron 373 Oetzel, Jennifer M. 139 Ohlin, Bertil 68 Okazaki, Shintaro 572-3 Okoroafo, Sam e. 635 O'Leary, Chris 290 Olsen, Svein Ottar 290 Onishi, Jun 320, SOl, 534

703

Onkvisit, Sak 72, 139,341,373,383,565,572-3 Ostergard, Jr., Robert 1. 179

Paek, Hye-Jin 573 Paik, Yongsun 538 Pan, Yigang 325-6 Pantzalis, Christos 688-9 Pappu, Ravi 246 Park, Seung Ho 325 Pattillo, Catherine 689 Paul, Pallab 178 Pecotich, Anthony 325 Peng, Mike W. 469 Pennant-Rea, Rupert 507 Peracchio, LauraA, 218 Perry, Chad 290 Pesotskij, E. 216 Peterson, Mark 374 Piercy, Nigel F. 538 Piron, Frands 247 PIa-Barber, Jose 28, 375 Poortinga, Ype H. 289 Porter, Michael E. 68 Pothukuchi, Vijay 325 Powell, Irene 571 Prokopenko, 1. A. 212

Quester, Pascale G. 246 Quigley, Lesley 374 Quinn, Barry 28

. Ragozzino, Roberto 326 Ralston, David A. 244 Rao, e.P. 178 Rao, Sally 290 Rasskazova, 0.216 Rawwas, Mohammed y. A. 246 Razin, Assaf324

" \

704

Reade, Carol 465 Reardon, James 245 Reinhart, Carmen M. 604 Reisel, William D. 538 Renfrew, Glen McG. 251 Reuer, Jeffrey 1. 326 Ricardo, David 67 Ring, Ann 635, 688 Riordan, C. M. 289 Robb, Jim 152, 507 Rogoff, Kenneth S. 655 Roman, Sergio 538 Root, Franklin R. 139 Roper, Angela 572 ~osenfield, Donald B. 507 Ross, David 507 Roth, Kendall 219 Roth, Martin S. 373 Roy, Abhijit 178 Roy, Jean 139 Rugman, Alan M. 27 Rundh, Bo 27 Russell, Craig J. 326

Sahay, Ratna 68, 139 Sakano, Tomoaki 326 Sallis, James 327 Salzberger, Thomas 289 Samiee, Saeed 247 Samuel, Craig, C. 218 Sanchez-Peinado, Esther 374 Sarracino, Jaylene M. 404 Saunders, John 417 Savastano, Miguel A. 604 Scandura, Terri A. 538 Schaffer, B. S. 289 Schiffrnan, Leon G. 573 Schmitt, Bernd H. 218, 418 Schramm, Carl J. 139 Schramm, Wilbur 538 Schroder, Bill 28 Schuh, Arnold 373 Schuiling, Isabelle 418 Schweiger, David M. 326 Sekaran, Uma 290 Selowsky, Marcelo 139 Sergeeva, E. A. 212 Servais, Per 28 Shapiro, Michae1245 Sharer, Robert 57, 101 Sharma, D. Deo 327

, -. Sharma, Subhash 245,247 Shaw, JohnJ. 72, 139,341,373,383, 565, 572-3 Shay, Jeffrey P. 538 Shenkar, Oded 28, 326 Shimp, Terence A. 245, 247 Shin, Jeongshin 245 Sikora, Ed459, 461, 470 Simintiras, Antonis C. 532 Simkins, Betty J. 689 Simonson, Itamar 218 Singh, Jang 178 Singh, Nitish 572., Singh, Sangeeta 373 Singhapakdi, Anusorn 178, 290 Sinisi, Vincenzo 470 Sinkovics, Rudolf R. 289 Siu, Noel Y. M. 418 Sivakumar, K. 289 Slangen, Arjen H. L. 326 Sloot, Laurens M. 417 Smith, Adam 67, 291 Snowdon, Brian 68 Sohn, Junghoon Derick 538 Solberg, Carl Arthur 573, 604 Spielman, Harold M. 5-73 Srinil, Buarat 242 Srinivasan, Srini S. 27, 572 Stafford, Maria Royne 374 Stanton, Angela D'Auria 246 Starr-Glass, David 27 Steenkamp, Jan-Benedict E.M. 247, 271, 274, 290,

415,572 Stein, Jon 681, 689 Stern, Robert 68 Stevenson, Robert Louis 508 Stevenson, William B. 538 Stonehouse, George 68 Stottinger, Barbara 604 Stroh, Linda K. 538 Stull, James B. 210 Styles, Chris 325 Suri, Rajneesh 604 Szabo, Erna 246

Tadesse, Solomon 179, 688 Taff, Charles A. 507 Tan, Soo 1. 246 Tavassoli, Nader T. 218 Taylor, Charles R. 289, 563, 572-3 Taylor, Glen 27 Tedlow, Richard S.68

Teegen, Hildy 32 Thelan, Shawn T. 290 Theodosiou, Marios 290,374 Thompson, Keith E. 247 Tihanyi, Laszlo 326 Toften, Kje1l290 Toft, Soo Min 538 Tr&bold, Harald 469 Trevino, Len J. 327 Trevor-Roberts, Edwin 245 Trimarchi, Michael 469 Tse, David K. 571

Uhlenbruck, Klaus 326 Ungson, Gerardo R. 28, 326

Valdez, Luis F. Juarez 604 Valy-Durbin, Stacey J. 538, Van Tulder, Rob 178 Varma, Arup 538 Veloutsou, Cleopatra 290 Verb eke, Alain 27 Verhallen, Theo M. M. 289 Verhoef, Peter C. 417 Very, Philippe 326 Verzariu, Pompiliu 635 Viswanathan, N anda K. 572

Wagner, Ralf27 Wagner, Udo 325 Waldman, DavidA. 246 Waller, David S. 219 Wang, Cheng-Lu 418 Wang, J. T. 539 Watson, John J. 246

Wedel, Miche1247 Wei, Shang-Jin 101 Weidenbaum, Sasha 471 Weitzel, Utz 325

," .,..-.

Welch, Jack 139, 310 Welch, Suzy 139,310 Wells, William 217 Wiehagen, Katherine 179 Wilkin, Sam 140 Wilson, John 507 Wolfe, Claudia 28 W ong, Veronica 604 Woodside, Arch G. 288 Wright, Katrina 246

Yakova, Nevena 245,374 Yang, Feng 218 Yaprak, Attila 289,604 Yeh, Kuang S. 688 Yoo, Boonghee 245 York, Anne S. 469 Young, Stephen 325

Zakaria, Fareed 139 Zenner, Marc 139 Zhang, Chun 178 Zhang, Shi 218,418 Zhao, Hongxin 572. Zhao, John Hongxin 28 Zhou, Lianxi 246 Zhou, Nan 218,469 Zhuang, GUijun 469 Zonis, Marvin 140 Zou, Shaoming 572 Zurawicki, Leon 325

me index 705

( Subiect index

absolute advantage 33 acquisition 310-14 ad valorem duties 78 adjustable peg 667-8 advertising 539-73; adaptation 556-66; expenditures

541-2; media 542-55; regulations 542; role 541; and standardization 555-66

advertising specialties 555 African Financial Community 56 African Intellectual Property Organization (OAPI) 405 AFTA56 agent 422 Agreement on Trade-related Aspects of Intellectual

Property Rights 168 air waybill 498 Andean Group 56 anthropology 221 ANZCERTA56 APEC 56 ArablMiddle East Arab Common 56 arbitration 151-2 Arrangement of Nice 405 ASEAN 56 assembly operations 307-8 Association of Southeast Asian Nations, see ASEAN

bankers' acceptance 624 barter 610 Benelux 56 Berne Convention 167 Big Mac Index 640-1 bill of exchange 622-4 bill of lading 498-500

/ --

black market 452-3 blended credit 624-9 branch 149-51 branding 375-418; characteristics 398-400;

consolidation 394-5; decisions 377-93; levels 377-93; origin 395-8; protection 400-9; and selection 395-400 -

Bribe Payers Index (BPI) 166 bribery 152-9, 176-77 Brussels Convention 144 buyback610

CAEMC 56 Calvo Doctrine 146 capitalism 115-20 cargo insurance 481 . CARICOM (Caribbean Community and Common

Market) 56 carnet 528-31 cash in advance 620 CEE-lO CEMAC 56 Central American Arrangement 405 Central American Community 56 centrally planned economies 114 certificate of origin 496-7 CETSCALE 269 CF A Franc Zone 56 CFR 616 chaebol90 channel length 439-42 channel width 440 channels of distribution 419-70; adaptation 439;

decisions 439--42; determinants of channel types 437-9; development 437-9; direct channel 422-7; indirect channel 427-36; Japan 447-9; representation agreement 451-2; and selection of members 449

CIA 258 CIF,-616 CIS\56 clearing agreement 611 clustering 229-30 code of conduct 157-9 COMESA57 commercial invoice 493--4 commodity 382 common market 59 communication 510-1 communism 114 comparative advantage 34-5 comparative marketing 7 compensation trade 610 competitive advantage of nations 42 concessionary financing 649 conference line 478 confiscation 121 consignment 618 consular invoice 494 consumer behavior 221--47; attitude 236; diffusion

process of innovations 240; family 239; group 239; learning 222-5; motivation 222; opinion leadership 241; perception 230-6; personality 226; psychographies 229-30; and social class 238

container 485-6 contract logistics 487-8 copyright 167 corruption 152-9 Corruption Perceptions Index (CPI) 161-5 counterfeiting 172-5 counterpurchase 610 countertrade 605-13; problems and opportunities

611-13; and types 608-11 country credit rating 126 country image 231-6 country of origin 232-7 creeping expropriation 122 culture 180-219; characteristics 182-5;

communieation process 187-207; consumption 185; high context 187; low context 187; monochronic culture 187; non-verbal language 198-207; polychronic culture 187; thinking processes 186; universals 188; and verbal language 189-98

currencies 659-84

/ --. customs and entry procedur"s 84-87 customs broker 487 customs union 58

DDP 616-17 debt financing 642 democracy 113 DEQ 616 devaluation 664-6 diffusion process of innovations 240-1 direct mail 550-1 direct marketing 550 directories 554 distribution see channels of distribution dock receipt 493 documentation 488-500; collection documents

493-500; and shipping documents 490-3 domestic marketing 7-9 domestication 121 draft (bill of exchange) 622--4

707

dumping 585-89; how to dump 588-9; legal aspect 587-8; and types 585-7

EAC57 early warning systems 676 East Africa Customs Union 56 economic cooperation/integration 55-63 economic systems 114-20 economic union 59-60 ECOWAS 56 EEA56 EFTA (European Free Trade Association) 55-6 equity financing 644 esperanto 195-7 ETFs (exchange traded funds.) 677 ethics 155-9 ethnocentricity 16 ETNs (exchange traded notes) 677 EU see European Union euro 59-60 European Patent Convention (EPC) 170 European Union (EU) 56, 64-66 evergreen contract 452 exchange rate 663 exchange ratios 35 exchange-rate systems 666-71; crawling peg 668-9;

flexible (floating) system 670-1; gold standard 666-7; par value 667-8; wide band 669-10

exhibitions 528-32 expatriate personnel 517-20 export license 490-1 export processing zones 318

708 Subject i

exporting strategy 296-7 expropriation 121 extraterritoriality 144-8 EXW615

factor endowment 36 factor mobility 53-4 factoring 646 factors of production 49-51 FAS (free alongside ship) 615-16 financial control 88-90 financial strategies 674-84 financing 642-54; financial institutions 644-9;

government agencies 649-53; intern~tional financial institutions 653-4; and non-financial institutions 642-4

floating system 670-4 FOB (free on board) 616 Foreign Corrupt Practices Act (FCPA) 152-4 foreign customs invoice 494-5 foreign direct investment (FDI) 293-6 foreign exchange 659-84; exchange rate systems

666-71; foreign exchange market 659-63; and foreign exchange rate 663-84

foreign marketing 7 foreign trade zone (FTZ) 317-19 forfaiting 646 forward market 676-82 free trade area 55-6 freight forwarder 486-7 FTAA66 futures market 676-7

" GATT90-2 GCC56 geocentricity 16-19 gifts 206-7 global advertising 566-7 Global Competitiveness Index rankings 45-8 global marketing 7 GLOBE (project) 228-9 government procurement 82 governments 108-20; economic systems 114-20; and

political systems 108-14 gray market 453-62 group 239 Group of Three 56 GSP (Generalized System of Preferences) 95-6

hazardous certificate 493 Heckscher-Ohlin theory 42 hedging 660, 676-82

'Human Developnie~t Index (HDI) 43 hysteresis 582 -

ICSID Convention 146 IMF (International Monetary Fund) 653-4 Incoterrns 614-5 independence of patents 170 independent line 478 Index of Economic Freedom 117-19 indirect channel 427-36 inflation 591-8, 657-8 infringement 169 inspection certificate 498 insurance 481 insurance certificate 498 intellectual property 159-75 Inter-American Convention 170 International Bank for Reconstruction and

Development see World Bank International Convention for the Protection of

Industrial Property 170 international marketing 5-10; benefits 20-3;

definition 5; dimensions 7; and process 5-7 international product life cycle (IPLC) 340-7 internationalization process 19 Internet 552 -

J curve 665 joint ventures 301-3 jurisdiction 144-8

keiretsu 90

LAIA 56 language 189-98 least dependent perso~ hypothesis 387 legal environment 141-79 legal form'of organization 148 legal systems 143-4 Leontief Paradox 48 letter of credit 624-31 LIBOR (London Interbank Rate) 126 licensing 297-301 litigation 151-2

Madrid Convention 170, 404 magazine 548 Maghreb Economic Community 56 management contract 301 manufacturing strategy 305-7 marine cargo insurance 481 market entry strategies 291-327; acquisition 310-14;

, ~ !

analysis 315; assembly operations 307-8; exporting 296-7; joint venture 301-3; licensing 297-301; management contract 301; manufacturing 305-7; and turnkey operations 308-10

market segmentation 337-8 marketing information system 277-80 mlirketing research 251-81; data collection methods

\262-6; measurement 266-77; primary data 254; primary research 258-60; sampling 261-2; secondary data 254; and secondary research 255-8

measurement scales 270-1 media 542-55 merchant 422 Mercosur 56 metric system 352 micro credit 646-7 . MIGA (Multilateral Investment Guarantee Agency) •

134 mixed credit 649 modes of transportation 473-81 monetary union 59-60 money 654-8 money laundering 50-1 Most Favored Nation (MFN) 91 motivation 223 multinational corporations 10-19; behavioral

definition 16-19; performance definition 15; pros and cons 11-12; size definition 12-15; and structural definition 15

NAFTA (North American Free Trade Agreement) 55, 57, 64-6

national character 226-8 national treatment 170 nationalization 121 negotiation 514-15 new product development 335-7 New York Convention 145-6 newspaper 545-8 nontariff barriers 80-90 nonverbal language 198-207 NTR (normal trade relations) 91

observation 263-4 OECD (Organization for Economic Cooperation and

Development) 57,154,176 OECD Anti-bribery Convention 154 offset 611 offshoring 51 open account 620 OPIC (Overseas Private Investment Corporation) 134 opinion leadership 240

Subject index 709

options 677 orderly marketing arrangements (OMAs) 88 outdoor 551

packaging 410-13; mandatory modification 410-11; and optional modification 411-13

packing 481-5 packing list 493 parallel barter 610 Paris Convention 404 Paris Union 170 patent 167 Patent Cooperation Treaty (PCT) 170 pay (hourly) 41 payment methods 618-32 personal selling 512-20 physical distribution 471-507; cargo insurance 481;

modes of transportation 473-81; and packing 481-5

political environment 103-39 political insurance 133-5 political risks 121-35; analysis 125-7; indicators

123-5; management 127-33; and political insurance 133-5

political systems 108-14 political union 60-1 polycentricity 16 positive externalities 95 price distortion 589-90 price fixing 590-1 price quotation 613-7; quotation guidelines 617; and

terms of sale 614-17 pricing 574-604; alternative strategies 584-5;

decisions 577-84; distortion 589-90; role 576; standardization 576-7; and transfer pricing 598-601

primary data 254 Principal Register 406 priority in registration 171 priority in use 171 priority right 170 private barriers 90 private branding 385-8 privatization 123 pro forma invoice 493-4 product 331-74; adaptation 349-59; adoption

338-40; definition 333; international product life cycle 340-7; market segmentation 337-8; new product 335-7; regulations 351; standardization 347-8; and world product 359-61

product adoption 338-40 product standardization 347-8

710 Subject

production possibility curve 32 profit remittance 89-90 project GLOBE 228-9 promotion 508-38 protectionism 71-7; cost/price equalization 75;

infant industry 75; keeping money at home 73; national security 75; and reduction of unemployment 73

psychology 221 publicity 520-3

questioning 265-6 quotas 87-8 quotation 613-17

radio 545 RCD (Regional Cooperation for Developm~nt) 57 regional cooperation 55-63 regional trade agreements (R T As) 63 relative advantage 34-35 reliability 267 religion 204 representation agreement 451-2 resource curse hypothesis 42 RIFF 57 rural media 554

SACU 57 SADC 57 sales promotion 523-7 sampling 261-2 screen 553 secondary data 254 Section 301 173 self reference criterion (SRC) 186 services 361-19, 462-3 sheltered profit 83 shipper's export declaration (SED) 492-3 shipper's letter of instructions 493 SICA 57 Social Charter 61 social class 238 socialism 114 sociology 221 special purpose documents 498 Special 301 173 spot market 676 stadium 554 strategic alliances 314-15 subculture 207-9 submarine patent 172

subsidiary 149-51-­subsidies 82-3 Super 301 173 superstition 205-6 Supplemental Register 406 switch trading 610

tariffs 77-79; ad valorem 78; cascade 79; combined rates (compound duty) 78; countervailing duty 77; excise 79; protective 77; revenue 77; single-stage sales tax 78; specific 78; surcharge 77; and value added tax 78-79, 99-100

telemarketing 515-7 television 543-5 theory of second best 55 tied aid 649 trade barriers 69-101 trade finance 642 trade secret 169 trade terms 614-7 trade theories 29-68; basis 32-5; exchange ratios,

trade, and gain 35-6; factor endowment theory 36--42; and validity 48-9

trademark 167 trademark laws 400-9 Trademark Registration Treaty (TRT) 170,405 trading company 434-5 tramp vessel 4 78 transfer pricing 598-601 translation 272-3 Transparency Intemational161-6 turnkey operations 308-10

United Nations Conference on Trade and Development (UNCTAD) 95

validated export license 491 validity 267, 275-6 value-added tax (VAT) 78-9,99-100 voluntary export restraint (VER) 88 voluntary quotas 88

WAEMU56-7 wages 37-8 WIPO (World Intellectual Property Organization)

159, 170 working hours 39--40 World Bank 653 world product 359-61 World Trade Organization (WTO) 39--40