INTERNATIONAL MARKETING 200094

PRE-CLASS ACTIVITIES
CHAPTERS 3 & 4

IM
200094
 OVERVIEW
– Connectivity Exercise: Choice of Country
– Discussion Question 1:
Role of transnational institutions, regional institutions
and FTAs
– Discussion Question 2:
Usefulness of family income indicator
– Discussion Question 3:
Trade Barriers
– Discussion Question 4:
Legal & political regulations & risks
 CHOICE OF COUNTRY
Have you chosen wisely and realistically? You have to be able to
sufficient data on it to make your report detailed, meaningful and easy to
complete. Choose a country:
• you have a connection to if possible, such as one you speak the
language of, come from or know well (This will allow you to access the
country’s websites, e.g. competing firms, Gov’t).
• for which you are likely to find plenty of marketing -relevant data (e.g.
avoid Albania, Yemen and North Korea)
• for which there is a realistic market for your product (e.g. avoid bikinis
to Yemen or fish to Iceland)
• that is a new market. DO NOT choose a country in which your
company is already established in
• DO NOT choose New Zealand, USA, Canada and United Kingdom.
• For countries such as China and India, choose a region or major city
 DISCUSSION QUESTION 1

1. Discuss the role of the major transnational

institutions, regional institutions and FTAs
that affect world trade.
2. Discuss the effect of FTAs on the trading
profile of Australia.
 DISCUSSION QUESTION 2
1. How important is international trade for Australia?
2. Go to this link 
http://dfat.gov.au/trade/resources/trade-at-a-glance/Pages/default.aspx
 toaccess an interactive map of two-way trading
partners for Australia. Which ones are the most
important countries for Australia’s future economic
growth and why?
 DISCUSSION QUESTION 3
It is sometimes said that as tariff barriers go down, non-
tariff barriers (NTB) go up.
What are the major trade disputes that Australia is involved
in at the moment?
Check government websites (e.g. DFAT, Austrade, MFAT,
NZTE and various ministry websites such as Agriculture)

Useful links when answering this question include the following:

Australia trade disputes:

https://www.ibisworld.com.au/media/2018/05/18/australian-winemakers-cannot-afford-a-c
hina-australia-trade-dispute/
.
New Zealand Trade disputes:
http://www.wto.org/english/thewto_e/countries_e/ new_zealand_e.htm.
All World Trade Organisation disputes: https://www.wto.org/english/tratop_e/dispu_e/
dispu_current_status_e.htm
 Discussion Question 4
What regulatory structure exists in a country of your choice?
Determine the most important components specific to a
product/industry of your choice.
• What is the gov’t’s attitude to the product/industry?
• What is its regulatory structure?
• What are the most important laws governing it?
• Are there FTAs that apply?
• What trade barriers are there?
• What tariffs are applied to imports? What percentages are being applied?
• What non-tariff barriers apply?
Political risk may exist in that country: determine whether it’s
an important factor and where it exists.
• What is the level of political risk?
• What forms of political risk are likely to occur?
• Are there examples of political risk occurring in the last 10 years?
 USEFUL SOURCES FOR YOUR PROJECT
The first place you go to in seeking market intelligence is the Australian Government.
Here are the three main sources of Australian Gov’t information on foreign markets:

• Dept of Foreign Affairs & Trade (DFAT) > Trade section > Countries, economies &
regions: http://www.dfat.gov.au/geo/Pages/countries-and-regions.aspx . Check
also whether your country has a Free Trade Agreement with Australia:
http://dfat.gov.au/trade/agreements/pages/trade-agreements.aspx .
(Data: Political & trade data, see country fact sheet for economic summary)
• Austrade > Exporters > Export Markets:
http://www.austrade.gov.au/Export/Export-Markets/Countries (Data: General
country information + industry profiles)
• Export Finance & Insurance Corporation (EFIC) > Education & tools > Country
Profiles: http://www.efic.gov.au/education-and-tools/country-profiles/
(Data: Not all countries; economic & political risk data)