Global Transportation Issues To Keep In Mind

An important aspect of the global supply chain is that of physical distribution and transportation mode choice. Transportation is one major factor to consider because it determines how and when goods will be received. It can be further divided into three components: infrastructure, the availability of modes, and the choice of modes among the given alternatives. It is the role of the international manager to then understand the transportation infrastructures in other countries and the various modes of transportation. The choice of these modes will depend on the customer’s demands and the firm’s transit time, predictability, and cost requirements. In addition, noneconomic factors, such as government regulations, weigh heavily in this decision.

Source: Czinkota, Michael R., Ilkka A. Ronkainen, and Michael H. Moffett. Fundamentals of International Business. Mason, OH: Thomson/South-Western, 2004. 311.

Trabajando en la Redefinición del Marketing Internacional – El Contexto en el Campo

In “Marketing Internacional Curativo: Nuevo Enfoque en el Campo”, Professor Michael Czinkota addresses different ways in which the redefinition of International Marketing can be worked with. He classifies them into four groups: The context in the field, the world and its problems, integration and proximity, and doing the right thing and in the correct manner.

Today we will discuss:

El Contexto en el Campo – Context in the Field
The main objective of International Marketing is to guarantee that transactions are carried out in the most effective and efficient manner, to understand there are many unmet necessities around the world, and to improve people’s standard of living.

The aim should always be to make a breakthrough in global society. And it is important that simplicity be maintained.

To view the entire section, click here.

 

To read the previous postings on this editorial, click on the following links:
1.¡Marketing Internacional y Su Importancia!

2. Marketing Internacional – ¿Cuales Son Los Beneficios?

3. ¡Estudios Académicos Sobre Marketing Internacional! ¿Por Qué Es Importante?

4.¿Qué Pueden Hacer Actualmente los Profesionales de Marketing Para Reanimar el Área y Para Volver a Asumir un Rol de Liderazgo en Nuestro Futuro?.

¡Marketing Internacional y Su Importancia!

The following is the first installment of Professor Michael Czinkota’s  article “Marketing Internacional Curativo: Nuevo Enfoque en el Campo”.

In this segment, the importance of international marketing is touched on. It has not only led to the accumulation of benefits amongst consumers but also entire countries, businesses and their employees.

You can find the rest of part 1 in Spanish here.

Coming soon: The second installment of Professor Michael Czinkota’s “Marketing Internacional Curativo: Nuevo Enfoque en el Campo“. Stay tuned.

As I Was Saying…Observations on International Business and Trade Policy, Exports, Education, and the Future

New Book from Professor Czinkota! As I Was Saying…Observations on International Business and Trade Policy, Exports, Education, and the Future

In Stock:  March 6, 2012.     To Pre-order, Click Here.

With a Foreword by Philip Kotler, the S.C. Johnson & Son Distinguished Professor of International Marketing at the Kellogg School of Management at Northwestern University, and the artistic touch by David Clark—an award winning and syndicated cartoonist—this exciting new title by Michael Czinkota is the perfect read for business people to better understand just what is at stake in understanding and strategizing about international issues and opportunities.

Czinkota quickly takes the reader on a voyage between sight and word, and even hard core analysts will not be able to avoid cracking the occasional smile. A long-term vision, accompanied by ongoing analysis of the key international business and marketing issues that shape our global world is just a little of what you’ll find inside.

There is the old saying that “When storms come about, little birds seek to shelter, while eagles soar.” By reading and enjoying this book, you are hopefully likely to prefer the altitude of the eagles!

The Rising Cost of Freedom

We are finding that the cost of freedom seems to be increasing lately. Terms like free trade or free choice have been misleading since they all come with a price, which international marketers pay in terms of preparing their shipments, scrutinizing their customers, and conforming to government regulations of tariffs or taxes. They pay ofr it when subsidies are reduced and markets are opened further, resulting in more intense competition.

Now prices are going up when international marketers have to file special paperwork or comply with security guidelines, which slow down the flow of merchandise. Every time a shipment is delayed, international transactions are less profitable and the subsequent business dealings become less competitive. Customers talk about unmet expectations and domestic firms point to the vagaries of itnernational markets.

We are all paying a higher price due to global terrorism, which has permeated the global marketplace. In most instances, terrorism is not an outgrowth of choice but rather the lack of it. Terrorists may succeed in reducing the freedom of others but not in increasing their own. The prinicpal choices played out between those exercising terrorism and those exposed to it are those consistent with economic theory of return on investment. When terrorists select targets in response to governmental implementation of anti-terrorism policies, the harder targets are likely to motivate them to go for easier ones. Increased protection of past targets may result in attacks on new and unexpected targets that are more likely to succeed. Similarly, if terrorists can no longer enter a country, they may attack that country’s symbols and representatives abroad. If embassies are then more secured and fortified, terrorists may attack that nation’s individuals and companies.

Who is typically most affected by terrorist acts? Attacks aimed at business, such as the infamous bombings of U.S. franchises abroad do not bring MNCs to their knees. The local participants, the local employees, the local investors and the local customers are affected most. Who can protect tehmselves against such attacks and who can afford to protect targets? Only the more wealthy countries and companies can. They have the choice of where to place etheir funds, with whom to trade, and whether to hold the enemy at bay through a security bubble created via exports, a franchise, or a wholly owned subsidiary. The poor players do not have any choices and ther alternatives are not improved by any gruesome act. The local firms, the nations with economies in development, and the poor customers continue to be out there, exposed to further acts of terrorism without the ability to influence events.

But international marketing can enable the disenfranchised to develop alternatives. As suggested by Prahalad and Hammond (2002), multinational firms can invest in the world’s poorest markets and increase their own revenue while reducing poverty. With support from shareholders and the benefit of good governance, marketers can, and should continue in their role as social change agents. It should be kept in mind that international marketing has value maximization at its heart. If it is worthwhile to fulfill the needs of large segments of people even at low margins, then it will be done.