Forces Affecting Global Integration and Global Marketing

There are effective consequences of increased Global integration and growing of Global
marketing. We can see them through transportation technology, improved quality, advanced
communication and reduced cost. Some forces are mentioned which resulted increased Global
integration. Transportation and Communication Improvements has some effects that are barriers
related to time and cost have fallen, people can travel around the world within short period of
time, according to the revolutionized communication. From any part of the globe without
traveling at all, managers and executives can contact with each other using Wi-Fi, video, e-mail.
Both time and money cost have been reduced in transportation technology. Next force is
leverage. It helps to have advantage by virtue of the facts that have experience in more than one
country. It includes some types of leverage. A global company can transfer its experience in any
market. Also it has advantage of manufacturing and global strategy. There is an opportunity to
compete in world markets . All those things will be done, through leverage.

Characterize Mongolia with following seven criteria:

Type of Economie: Mongolia has mixed economy system. Mongolia has enormous mineral
deposits that are copper, coal, tin and tungsten. All these helps to growth economy. But
sometimes Mongolia is suffering from some export and import.

Type of Government: Type of government: Political system of Mongolia is parliament.

Government has 4 years term and consist of 76 members, also it’s headed by Prime Minister.

Capital Flows shows last (-31.92), Previous- 25.56, Highest- 339.98, Lowest (-1701.46) USD
million
The commanding heights: For transportation, railways are from Ulan Ude in Russia ti Erdenet
and Beijing in China through capital Ulaanbaatar. Air transportation, Chingis Khaan
International Airport offers all international flights. MIAT provide regular services. Electricity
infrastructure, over 80 percent of the total population have concentrated on electricity system and
the remaining 20 percent, who are herders and people living far from the province or villages
centers, have limited electricity resouces.

Services provided by the state and funded through taxes: Corporate Income Tax, transfer tax,
payroll tax, income tax, indirect tax, property tax, mining tax, and customs duty. Non-residents
to 15 percent; lower from 20 percent to 5 percent the tax on dividends for foreign investors; and
lower from 10 percent to 5 percent the tax on financing obtained through debt instruments.

Institutions: Corruption has been the growing problem in Mongolia. Courts were regarded as
particularly corrupt, with judges and prosecutors ranking in public opinion surveys just below
customs officials as the most corrupt governmental officials in Mongolia.

Markets: Investing into politically sensitive sectors of the Mongolian economy – such as mining
– carries higher risk.

Describe the similarities and differences between a free trade area, a customs union, a
common market, and an economic union. Give an example of each.

*A free trade area is that there are no tariffs or taxes or quotas(without restriction) on goods
and/or services from one country entering another. Because it leads to economic growth. Also for
more higher-quality, lower-priced goods. For example, Australia - China Free Trade Agreement,
EFTA,NAFTA, SAFTA and Irish issues
*Common market is formal agreement among member states adopts common external tariff.
EAC Partner States have common market for freedom and rights and for free movement of
goods, capital and persons. Each member states can adops a common external tariff.

* Customs union is an agreement between two or more countries to remove trade barriers, reduce
or abolish customs duty, and eliminate quotas. For example, Fish factor

*The economic union works for eliminating internal trade barriers between the member
countries, with the goal of economically benefitting all the member countries. Example is EU,
Central American Common Market

Similarities: - Free trade agreement

-Agreement between member states

- 2 or more countries will be included

- For eliminating tariff, quotas

- For free movement of goods

Differences: - Economic union is for eliminating internal barriers

-Common market is for eliminating external barriers

- Common markets, all members have to adopt

-In customs union, unions defined by Gatt

What is the difference between a low-context culture and a high-context culture? Name a

country that is an example of each type and offer evidence for your answer.

In a low-context culture: most of the message weight in a communication is carried on by the

verbal component. Low-context cultures do the opposite; direct verbal communication is needed
to properly understand a message being communicated and relies heavily on explicit verbal
skills. Countries that fall into this categorization are Japan, China, France, Spain, Brazil, and
more. On the flipside, low-context cultures expect communications to be explicitly stated so that
there's no risk of confusion, and if a message isn't clear enough, it will slow down the process of
communication.

In a high-context culture: the context of the communication carries more weight. The role of
lawyers is reduced, and personal obligation and trust are emphasized proportionately. High-
context cultures often exhibit less-direct verbal and nonverbal communication, utilizing small
communication gestures and reading more meaning into these less-direct messages. High-context
cultures will use communication that focuses on underlying context, meaning, and tone in the
message, and not just the words themselves. Countries that fall into this categorization are Japan,
China, France, Spain, and Brazil.