Apr 06

Trouble With Australia?

Source: WTO

On 4 April 2012, Honduras requested consultations with Australia under the dispute settlement system concerning the latter’s certain measures concerning trademark and other plain packaging requirements applicable to tobacco products and packaging.

Honduras challenges the following measures:
•    An Act to discourage the use of tobacco products, and for related purposes, Australia’s Tobacco Plain Packaging Act 2011, and its implementing regulations;
•    the Trade Marks Amendment (Tobacco Plain Packaging) Act 2011; and
•    any amendments, extensions, related instruments or practices.

To read more about this dispute, click here.

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Apr 05

Committee on Government Procurement Adopts Revised Agreement!

Source: WTO

The Committee on Government Procurement adopted, 30 March 2012, the revised Government Procurement Agreement after a final review required by the Ministerial Conference decision in December last year. The revised Agreement will now go to the respective parliaments for ratification.

This marks the end of a long negotiation that started in 1997. The Agreement is a plurilateral treaty that commits members to certain core disciplines regarding transparency, competition and good governance in one of the most important and growing areas of the economic activity of any country. It covers the procurement of goods, services and capital infrastructure by public authorities. To access the official news article, click here.

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Apr 04

Results of Annual 1377 Review of Telecommunications Trade Agreements

United States Trade Representative Ron Kirk today announced the results of the 2012 annual review of the operation and effectiveness of telecommunications trade agreements under Section 1377 of the Omnibus Trade and Competitiveness Act of 1988 (“1377 Review”). The report identifies barriers facing U.S. telecommunications service and equipment suppliers as well as specific telecommunications-related issues on which USTR will focus its monitoring and enforcement efforts this year. USTR also highlights the bilateral or multilateral avenues through which it monitors, engages, and seeks to resolve such issues, and describes discussions that in many cases are already underway. This year’s full Report is available here.

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Apr 03

How Have Technical Barriers to American Exports Been Successfully Reduced?

Standards-related trade measures play a critical role in shaping the flow of global trade. Yesterday, April 2, 2012, the Office of the United States Trade Representative published its third annual Report on Technical Barriers to Trade (TBT), focused on significant foreign trade barriers in the form of product standards, technical regulations, and testing, certification, and other procedures involved in determining whether products conform to standards and technical regulations. The report is intended to describe and advance U.S. efforts to identify and eliminate such barriers.

To read more on the issue, click here.

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Apr 02

International Business Jeopardy Question of the Month!

Enjoy this month’s international business jeopardy question! Post your answer as a comment and the first blog subscriber with the correct answer will be part of a drawing in May!

Don’t you want a shot at a prize?

Of the countries listed, which is the most dependent on the banana trade:

a) Belize

b) Costa Rica

c) Honduras

d) Guatemala

e) Nicaragua

f) St. Lucia

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Mar 30

AMA Global Marketing SIG Expert Forum on “International Marketing and Entrepreneurship: From Theory to Practice”


Photos from the conference!

Created with Admarket’s flickrSLiDR.

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Mar 30

Ways to Expand Participation to Improve the International Marketing Field!


The role of truthfulness and simplicity within marketing were discussed yesterday in  Setting Things Right Through Marketing! How Can Your Business Do It!. One other aspect to take into consideration is Expanding Participation.

International marketing needs to be truly international in its outlook. For example, using only English as the ‘language of business’ denigrates the use of other languages and reduces the idiosyncratic and precise participation of other nations and their citizens. If Eskimos had to talk about snow only in English, the rich diversity of this theme in their own language would be sharply diminished.

Inclusiveness
History indicates that power waxes and wanes. Just think of the Incas, the Greeks, the Icelanders, the Persians. Marketing preparation, can convert crashes into soft landings.

Communicate with Critics
Opponents are a constituency that must be brought into the tent. Human tendency is to focus on and celebrate winners. But not everyone touched by international marketing will come out a winner. International marketing relies on a fundamental belief into the virtues of risk, competition, profit and private property. Yes, not everyone considers these four dimensions as crucial or acceptable. When the rising tide lifts all boats, it becomes crucial that the vessels don’t leak, that the crew has been trained, and that the sails are tight and strong. Otherwise there is only a ‘winner takes all’ approach.

Personal Responsibility
In international marketing, distance can mean abdication of responsibility. Marketers sometimes demonstrate their desire not to know—by appointing a middleman about whose behavior one can later on be suitably astonished, and mortified. Though the chairman of the multinational corporation may feel removed from local issues, be assured that the locals take all of the firm’s actions very personally.

Though many say that we understand each other so well, the reality is quite different.  The actual overlap between societies is typically miniscule. Some Chinese leaders may have developed a good understanding of the world, but they represent a very small fraction of the Chinese populace. The average Chinese person may understand as much about Columbus, Ohio as the average American knows about Tianjin.

The goal for international marketers is not only to apply existing frameworks to new situations but also to develop new frameworks from the insights that they garner from working in different and diverse environments.

Governments
They are playing a new and growing role. In part, this has been the outgrowth of global crises which had not been anticipated or addressed by market forces. Today there are new global regulations and restrictions. However, it is not clear whether the signals of the market place or the plans and mandates of governments are more accurate. Markets are not always successful in their constraints and self-regulation, and governments are not always free of fault and ambition.

We need to set reasonable boundaries for firms. A key tenet of marketing is reverence for the customer. Many firms stray and take a predatory approach. Skuba works on the phenomenon of Vampire Marketing to highlight inappropriate, unjust, and ultimately counterproductive actions by firms. Typically, this takes place when the key consumption decision has already been made, but circumstances allow for additional offers. High minibar charges in a hotel, or pillows for rent on an airplane are examples.

For international marketers change is a key opportunity. Curative Marketing can help us all, by overcoming past shortcomings and avoiding future ills. Marketers are the agents of change and need to be directly involved in change. As the great Ludwig von Wittgenstein stated: “A philosopher who is not taking part in discussions is like a boxer who never goes into the ring.”  It is time for international marketers to enter the ring.

From “ From Professor Michael R. Czinkota’s editorial, “Curative International Marketing: The Next Step Up.”

To access the full editorial visit the Published Work section of the site. Then proceed by clicking on the recent publications or editorial articles link on the page.

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Mar 29

Setting Things Right Through Marketing! How Can Your Business Do It!

Image Source: Magneto Themes & Extensions

We have already discussed the proposed new approach of international marketing in Curative International Marketing: The Next Step Up, and the need to assume responsibility for the problems caused through marketing Claiming Ownership of the Problems Caused Through Marketing. Today, we will address how marketing can set things right through truthfulness and simplicity.

From Professor Michael R. Czinkota’s editorial, “Curative International Marketing: The Next Step Up.”

Truthfulness
On many occasions international marketing has either actively mislead expectations, or left its participants with a sense of substantial ambiguity. Marketing must base itself on fact rather than emotion, on insights rather than speculation, and do so within societal changes of context. Just as human beings change, social science truths may not be eternal but rather subject to change over time. When a customer feels gauged by marketing, the discipline is weakened. This responsibility for the entire field places a requirement of honesty on each marketing actor.

Simplicity
Marketing must find new ways to simplify life. Simplicity adds value. Research finds that up to 23 percent of consumers are willing to spend extra for an uncomplicated experience. Simplification is also linked to truthfulness and making sure that people understand the implications of their decisions. It is hard for a front line marketer to be truthful about something, if one does not understand how the system works. The understanding of how a product or even a system works and is interconnected is a valuable product attribute in itself.

Marketers need to eliminate incongruities. It makes little sense when customers call, are on hold, and hear that ‘your call is important to us’. If the call were truly important, then the firm would hire more employees to answer phones.

To find out how expanding participation can help marketing set things right, stay tuned to michaelczinkota.com.

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