S3: Economic Environment Flashcards
Why should market potentials be viewed in the context of regions of the world rather than country by country?
Globalization of markets, worldwide trend toward economic cooperation, enhanced global competition.
Name two areas of international marketing opportunities mentioned in the lesson.
Multinational Market Region and Emerging Markets & Developing Countries.
Define a multinational market region.
A group of countries seeking mutual economic benefit from reducing trade and tariff barriers.
What factors are needed for success in a multinational market region?
Economic, political, geographic and temporal proximity, cultural factors.
List the patterns of multinational cooperation mentioned in the lesson.
Economic Union, Common Market, Customs Union, Free Trade Area (FTA).
What is the primary characteristic of Free Trade Areas (FTA)?
They reduce or eliminate customs duties and non-tariff trade barriers among partner countries.
What is the largest Free Trade Area in terms of population mentioned in the lesson?
ASEAN – China Free Trade Area (China, Cambodia, Laos, Indonesia, Malaysia, Philippines).
Describe Customs Unions.
Customs Union includes a Free Trade Area plus a common external tariff on products imported from countries outside the union.
What does a Common Market include beyond a Customs Union?
A Common Market includes the free flow of capital and labor among member nations.
Explain Economic Unions and provide an example mentioned in the lesson.
Economic Unions include the elimination of internal barriers to trade, common external barriers, free movement of factors of production. Example: The European Union (EU).
What is the legal system’s role in a specified jurisdiction?
The legal system is the mechanism for creating, interpreting, and enforcing laws.
Name two types of legal systems mentioned in the lesson.
Common law and Civil law.
Why must intellectual property be registered in each country where business is conducted?
Intellectual property must be registered to ensure legal protection in each jurisdiction
Define counterfeiting in the context of intellectual property.
Unauthorized copying and production of a product.
What is the purpose of antitrust laws?
Antitrust laws are designed to combat restrictive business practices and encourage competition.
