1 Globalization Imperative 1 Why Global Marketing Is Imperative 4 Saturation of Domestic Markets 4 Emerging Markets 4 Global Competition 5 Global Cooperation 6 Internet Revolution 7 The Fluid Nature of Global Competition 8 Globalization of Markets: Convergence and Divergence 12 International Trade versus International Business 13 Who Manages International Trade? 17 Evolution of Global Marketing 19 What Is Marketing? 19 Domestic Marketing 20 Export Marketing 22 International Marketing 23 Multinational Marketing 24 Global Marketing 24 The Impact of Economic Geography and Climate on Global Marketing 26 Summary 28 Key Terms 28 Review Questions 28 Discussion Questions 28 Further Reading 29 Appendix: Theories of International Trade and the Multinational Enterprise 30 2 Economic Environment 38 Intertwined World Economy 40 Foreign Direct Investment 42 Portfolio Investment 44 Country Competitiveness 46 Changing Country Competitiveness 46 Human Resources and Technology 46 Emerging Markets 48 Evolution of Cooperative Global Trade Agreements 51 General Agreements on Tariffs and Trade 51 World Trade Organization 51 Information Technology and the Changing Nature of Competition 59 Value of Intellectual Property in Information Age 59 Proliferation of E- Commerce and Regulations 61 Regional Economic Arrangements 62 Free Trade Area 63 Customs Union 65 Common Market 66 Monetary Union 66 Political Union 67 Multinational Corporations 67 Summary 69 Key Terms 70 Review Questions 70 Discussion Questions 71 Further Reading 72 3 Financial Environment 73 Historical Role of the U.S. Dollar 74 Development of Today''s International Monetary System 75 The Bretton Woods Conference 75 The International Monetary Fund 76 The International Bank for Reconstruction and Development 77 Fixed versus Floating Exchange Rates 78 Currency Blocs 80 Foreign Exchange and Foreign Exchange Rates 81 Purchasing Power Parity 81 Forecasting Exchange Rate Fluctuation 83 Coping with Exchange Rate Fluctuations 83 Spot versus Forward Foreign Exchange 86 Exchange Rate Pass- Through 88 Cryptocurrencies: A New Development 88 Balance of Payments 89 The Internal and External Adjustments 93 Economic and Financial Turmoil around the World 94 Asian Financial Crisis (1997-1998) and Its Aftermath 94 The South American Financial Crisis (2001-2002) and Its Aftermath 95 The U.S. Subprime Mortgage Loan Crisis and the Subsequent Global Financial Crisis (2007-2009) 95 The COVID- 19 Pandemic (2020-Present) Causing the Worst Recession Since World War II 96 Economic and Financial Crises in Perspective 97 Responses to the Global Financial Crises 97 Marketing in the Euro Area 101 Historical Background 101 Ramifications of the Euro for Marketers 104 Summary 107 Key Terms 108 Review Questions 108 Discussion Questions 108 Further Reading 109 4 Global Cultural Environment and Buying Behavior 110 Meaning of Culture 112 Elements of Culture 113 Material Life 113 Language 114 Social Interactions 118 Aesthetics 119 Religion 121 Education 123 Value Systems 125 Cross- Cultural Comparisons 126 High- versus Low- Context Cultures 126 Hofstede''s Classification Scheme 127 World Value Survey (WVS) 131 Schwartz Value Survey (SVS) 131 Cultural Distance 134 Adapting to Cultures 135 Culture and the Marketing Mix 137 Product Policy 138 Pricing 140 Distribution 140 Promotion 141 Summary 144 Key Terms 145 Review Questions 145 Discussion Questions 145 Further Reading 147 5 Political and Legal Environment 148 Political Environment-- Individual Governments 149 Home Country versus Host Country 149 Structure of Government 151 Government Policies and Regulations 154 Political Environment-- Social Pressures and Political Risk 163 Social Pressures and Special Interests 164 Managing the Political Environment 166 Terrorism and the World Economy 171 International Agreements 174 Group of Seven (G7) Group of Eight (G8 now defunct) and Group of Twenty (G20) 176 Wassenaar Arrangement 177 International Law and Local Legal Environment 179 International Law 179 Local Legal Systems and Laws 179 Jurisdiction 183 Issues Transcending National Boundaries 184 ISO 9000 and 14000 184 Intellectual Property Protection 185 International Treaties for Intellectual Property Protection 191 Antitrust Laws of the United States 194 Antitrust Laws of the European Union 196 U.S. Foreign Corrupt Practices Act of 1977 197 Summary 200 Key Terms 200 Review Questions 201 Discussion Questions 201 Further Reading 203 6 Global Marketing Research 204 Research Problem Formulation 208 Secondary Global Marketing Research 210 Secondary Data Sources 210 Problems with Secondary Data Research 212 Primary Global Marketing Research 214 Focus Groups 214 Survey Methods for Cross- Cultural Marketing Research 215 Observational Research 222 Leveraging the Internet for Global Market Research Studies 222 Market Size Assessment 225 Method of Analogy 225 Trade Audit 228 Chain Ratio Method 228 Cross- Sectional Regression Analysis 229 New Market Information Technologies 230 Managing Global Marketing Research 232 Selecting a Research Agency 232 Coordination of Multicountry Research 233 Summary 234 Key Terms 235 Review Questions 236 Discussion Questions 236 Further Reading 237 7 Global Segmentation and Positioning 238 Reasons for International Market Segmentation 239 Country Screening 239 Global Marketing Research 240 Entry Decisions 240 Positioning Strategy 241 Resource Allocation 241 Marketing Mix Policy 243 International Market Segmentation Approaches 243 Segmentation Scenarios 244 Bases for International Market Segmentation 246 Demographics 247 Socioeconomic Variables 249 Behavior- Based Segmentation 251 Lifestyle and Values 252 International Positioning Strategies 254 Uniform versus Localized Positioning Strategies 257 Universal Positioning Appeals 259 Global Foreign and Local Consumer Culture Positioning 260 Summary 263 Key Terms 263 Review Questions 263 Discussion Questions 263 Further Reading 264 Appendix: Segmentation Tools 265 8 Global Marketing Strategies 269 Information Technology and Global Competition 270 Real- Time Management 270 Blockchain Technology 271 On- Time Communication 272 Electronic Commerce (E- Commerce) 272 E- Company 274 Faster Product Diffusion and Connectivity 274 Global Strategy 275 Global Industry 275 Competitive Industry Structure 279 Competitive Advantage 281 Hypercompetition 286 Interdependency 287 Global Marketing Strategy 288 Benefits of Global Marketing 289 Limits to Global Marketing 291 R&D Operations and Marketing Interfaces 293 R&D/Operations Interface 294 Operations/ Marketing Interface 296 Marketing/R&D Interface 298 Regionalization of Global Marketing Strategy 299 Cross- Subsidization of Markets 302 Identification of Weak Market Segments 302 Use of the "Lead Market" Concept 303 Marketing Strategies for Emerging Markets 304 Competitive Analysis 307 Summary 308 Key Terms 309 Review Questions 309 Discussion Questions 309 Further Reading 310 9 Global Market Entry Strategies 312 Country Selection 313 Scale of Entry 316 Choosing the Mode of Entry 317 Decision Criteria for Mode of Entry 317 Exporting 321 Indirect Exporting 322 Cooperative Exporting 323 Direct Exporting 323 Licensing 323 Benefits 324 Caveats 324 Franchising 325 Benefits 326 Caveats 326 Expanding through Joint Ventures and Alliances 327 Benefits 329 Caveats 329 Drivers behind Successful International Joint Ventures 330 Wholly Owned Subsidiaries 333 Benefits 333 Caveats 334 Acquisitions and Mergers 334 Greenfield Operations 338 Dynamics of Entry Strategies 338 Timing of Entry 340 Exit Strategies 342 Reasons for Exit 343 Risks of Exit 345 Guidelines 346 Summary 346 Key Terms 347 Review Questions 347 Discussion Questions 347 Further Reading 349 Appendix A: Country Screening-- Converting Raw Data into a 10- Point Scale 349 Appendix B: Alternative Country Screening Procedure 350 Appendix C: Mode of Entry Choice-- Three Theoretical Perspectives 351 10 Global Product Policy Decisions I: Developing New Products for Global Markets 353 Standardization versus Customization 355 Drivers toward Standardization 355 Modular Product De.