Answers to International Business Jeopardy Question 1 – 5

Half of our series of international business jeopardy questions have been posted. Have you submitted your answers to us? Remember, we are going to give out prize at the end of the series. (For more information about the prize) Please hurry up to submit your answers to us by commenting at the posts.

Answers to previous Jeopardy Questions:

  • Question 1. What is the name of the largest island in the world? (Hint: It is first visited by the notorious Viking, Eric the Red)

Answer: Greenland, with an area of 840,000 square miles. New Guinea is second largest with 306,000 square miles. Australia, often called an island, is a continent.

  • Question 2. As the 2012 London Olympic Games kick off, do you know what is the difference between the United Kingdom and Great Britain?

Answer: The United Kingdom is made up of England, Scotland, Wales, and Northern Ireland. Great Britain is the main island in the United Kingdom, on which England, Scotland, and Wales are located.

  • Question 3. America’s top three export markets are Canada, Mexico and China. Two of the three are close to the United States geographically. Do you know what other country is closest to the U.S. ? (Hint: The country is close to U. S. islands)

Answer: Russia. In the Bering Strait, Russian and United States islands are only 3 miles apart.

  • Question 4. Do you know in what country is the world’s largest pyramid?

Answer: The largest pyramid is that of Quetzalcoatl in Mexico, whose volume is 3.3 million cubic meters. The pyramid of Cheops in Egypt has a volume of only 2.5 million cubic meters.

  • Question 5. What is the name of the beer in Timbuktu?A. Bomako; B. Tombigber; C. Brekhorn; D. Tim Buck II; E. Bou Bou Tou

Answer: Bomako is the beer of Timbuktu.

 

 

 

Politics of Iceland-UK Relations

The effects of politics on international marketing is determined by both the bilateral political relations between home and host countries and the multilateral agreements governing the relations among groups of countries.

The government-to-government relationship can have a profound effect, particularly if it becomes hostile. Numerous examples of the linkages between international politics and international marketing exist. One such example involves British-Icelandic relations, following the Icelandic government’s 2008 decision to assume control of three of the country’s largest banks hit hard by the global credit crunch.

Iceland initiated a deposit freeze that affected deposits of approximately 4.5 billion pounds from British citizens.

The British government promptly used its anti-terror law to seize and estimated 4 billion of Icelandic resources, which, in turn, forced Iceland to cover the losses of British depositors at a cost to Icelandic taxpayers of more than 2.2 billion pounds. With a population base of only 300,000 people, such new debt was huge.

While the U.K. chose to adopt this “stick” approach, the Dutch government secured a commitment from Iceland to pay back its savers using a different tactic, perhaps more conducive to long-term good neighborly relations. It offered to loan Iceland the money.

Excerpt from the 9th Edition of International Marketing by Michael Czinkota and Ilkka Ronkainen.

Private Label Products: Competition or a New Opportunity

Branded products are facing increasing competition worldwide from private label goods from intermediaries. Thanks to an increase in price sensitivity and a decrease in brand loyalty as consumers look to save money, private label products are enjoying significant penetration in many regions. A study of seven countries by the Private Label Manufacturers Association revealed that private label market share has exceeded 40 percent in the United Kingdom, Germany, Belgium, and Switzerland. Market share for retailer brands is at an all-time high in France and Spain, where one of every three products sold carries a private label.

While private brand success is known to be strongly affected by economic conditions and the self-interest of retailers who want to improve their bottom lines, other factors contributing to the growth include improved quality and the development of segmented private brand products. Some private label brands even have a premium category now. Emboldened by the success of private label brands, manufacturers have expanded this “privatization” to new product categories, hoping to expand the success.

This is an excerpt from Dr. Czinkota’s book Global Business: Positioning Ventures Ahead, co-authored by Dr. Ilkka Ronkainen.

Michael R Czinkota and Ilkka A Ronkainen, Global Business: Positioning Ventures Ahead (New York: Routledge, 2011), pg. 187. 

The Royal Wedding: Tying the Knot between the United States and the United Kingdom

On Friday April 29th 2011, the royal wedding of Prince William of England and Kate Middleton will take place. Millions of eyes around the world will be glued to televisions transmitting the momentous event. In the U.S. at around six in the morning, many Americans will be tuning in to live coverage of the royal wedding. Every major media network in the country will be broadcasting from London.

According to a study by Nielsen, a leader in market research, “United States news and media outlets have out-published their U.K. counterparts in terms of wedding coverage.” The fascination and romanticism that the United States has for the royal family and the increase in attention ever since the engagement was announced last November, demonstrates the strong ties between the United States and the United Kingdom.

This cultural connection is an excellent example of a concept often seen in international business. Psychological distance is the perceived distance from a firm to a foreign market, caused by cultural variables, legal factors, and other societal norms. A common model used to demonstrate this theory is a comparison between the link between the United States and Canada, and the United States and Mexico. Americans tend to identify more with Canada than with Mexico. Both countries border the United States, however for reasons of language and culture, there appears to be much less psychological distance between Canada and the United States than there is between United States and Mexico.

While the U.S. and the U.K. share the same language and have a linked history, one can also see the allure of royalty in both cultures. Disney princesses have a strong presence in every young girl’s childhood in the United States and many movies center around the plot of a fairytale with the prince and princess living happily ever after. Women want to be treated like princesses and it is culturally very common to rejoice when one has “found their prince.” Even though the U.S. hasn’t had a royal leader in centuries, news on royal families is a regular part of television and magazine entertainment. A large portion of the American population maintains a high level of interest in all that is royal.

However, as international business theory shows us, the best psychological proximity is  close but not too close. Closeness does make it easier for firms to enter markets, but too much of a focus on similarities can let managers lose sight of important differences. The fact that England still has a royal family and a society quite different from the U.S. makes the wedding interesting. But interest does not mean that Americans would want to have royalty at home. Actually, many Americans would quite resent attempts to crown a domestic king. But that is discussed best over a spot of tea.  

Michael R. Czinkota, with Mariele Marki

Georgetown University