International Marketing

Europe, Africa, and the Middle East

1. Define: Multinational market regions, Free-trade area, European Parliament,

Customs union, Single European Act, Common market, Political union, Maastricht
treaty, Treaty of Amsterdam.
 a. Multinational market regions: is the groups of countries that seek mutual
economic benefit from reducing interregional tariffs and barriers to trade.
b. Free-trade area: it is a type of regional cooperation that involves an agreement
between two or more countries to reduce or eliminate custom duties and nontariff
trade barriers among partner countries while members maintain individual tariff
schedules for external countries.
c. European parliament: it is the legislative body of the European Union, similar in
concept to the U.S. House of Representatives. That is, more populous countries have
more representatives.
d. Customs union: it is a stage in economic cooperation that benefits from a free
trade area’s reduced or eliminated internal tariffs and adds a common external tariff
on products imported from countries outside the union.
e. Single European Act: it is an agreement ratified in 1987, and it is designed to
remove all barriers to trade and to make the European Community a single internal
market.
f. Common market: an agreement that eliminates all tariffs and other restrictions on
internal trade, adopts a set of common external tariffs, and removes all restrictions
on the free flow of capital and labor among member nations.
g. Political union: it is fully integrated form of regional cooperation that involves
complete political and economic integration, either voluntary or enforced. The most
notable example was the now disbanded Council group for Mutual Economic
Assistance, a centrally controlled group of countries organized by the Soviet Union.
h. Maastricht Treaty: it is Treaty signed by 12 nations of the European Community
creating the European Union.
i. Treaty of Amsterdam: it increases the authority of the institutions of the European
Union and is designed to accommodate the changes brought about by the
monetary union and the admission of new members.

2. Elaborate on the problems and benefits for international marketers from

multinational market groups.
 a. Regulatory complexity: multinational market groups often have complex
regulations, laws, and standards that vary among member countries. This can
create challenges for international marketers in terms of compliance, product
adaptation, and navigating different legal frameworks.
b. Market access barriers: despite the efforts to reduce trade barriers, some multinational
market groups may still have remaining restrictions on market access, such as quotas,
tariffs, or non-tariff barriers, which can impact international marketer’s ability to enter
and compete in the market
c. cultural and linguistic diversity: member countries of multinational market groups often
have different cultures, languages, and consumer preferences. International marketers
need to understand and adapt to these difference to effectively target and communicate
with consumers in different markets.
d. competition challenges: multinational market groups can also lead to increased
competition, as companies from different member countries gain access to each other’s
markets. This can pose challenges for international marketers in terms of competition
intensity, pricing and differentiation strategies.

3. Explain the political role of multinational market groups

 The political role of a multinational market group is of importance if such a
market is to be economically successful. This is a touchy subject because any
nation has created throughout history a sensitive image called national
sovereignty, feelings, rights and often imaginary national power. A nation is not
likely to give up these things easily, but some have realized that they must, to
gain the benefits a multinational market group can yield

4. Identify the factors on which one may judge the potential success or failure of a
multinational market group.
 The political factors necessary for a successful common market are:
a. Similar political base, views and objectives
b. Willingness to give up some national authority to cooperate for the total benefit
of all.

5. Explain the marketing implications of the factors contributing to the successful

development of a multinational marketing group
 A. increased market access: the development of a multinational marketing group
can lead to increased market access for member countries’ businesses. This
increased market access provides businesses with new opportunities to market
their products and services to consumers in other member countries.
B. Greater economies of scale: a multinational marketing group can create
economies of scale for businesses by enabling them to produce and distribute
their products and services more efficiently across multiple countries. This can
lead to cost savings and increased competitiveness for businesses.
C. Standardization of marketing strategies: the standardization of marketing
strategies across member countries can provide businesses with greater
consistency in their branding and messaging. This can lead to increased
consumer recognition and loyalty across different markets.

6. Imagine that the United States was composed of many separate countries with
individual trade barriers. What marketing effects might one visualize?
 A. Fragmented market: the market for products and services would be highly
fragmented, with different regulations, tariffs, and trade barriers in each country.
This would make it difficult for businesses to market their products and services
effectively across different regions, resulting in a highly segmented market.
B. Increased costs: the presence of individual trade barriers would result in increased
costs for businesses. For examples, businesses would need to navigate different
regulations and tariffs in each country, which would increase the cost of production and
distribution. This would result in higher prices for consumers and reduced
competitiveness for businesses.
C. Limited market access: individual trade barriers would also limit market access for
businesses. Businesses would be constrained by the trade barriers in each country,
making it difficult for them to expand their market reach. This would be particularly
challenging for small and medium-sized businesses that lack the resources to navigate
complex trade barriers.