Question

1. Describe the global legal environment a firm faces in doing business overseas. What is the role of jurisdiction clause? Describe the different ways in which disputes can be resolved. Why is ‘arbitration’ a preferred approach?

2. Why should global marketing research be conducted? Describe the reasons for global marketing research being broader in scope than domestic marketing? Why companies should use ‘secondary research’ and the limitations of these information?

3. Describe your understanding of the ‘Total Product’ and its relevance in the global marketing. Describe the various product strategies. Under what situations, product approach will be justified?

4. Describe the role of communication in global marketing effort. What factors you will consider in determining promotion strategy and the problems you will encounter in developing the strategy?

5. Why pricing decisions are important in global marketing efforts? What are the pricing challenges the U.S. companies face in marketing overseas? Describe the various pricing strategies .

Answer 1

1. The global legal environment a firm faces in doing business overseas are as follows:

1. Legal Systems:

There are four major bases for legal systems:

• Common law: found in the UK, the US, Canada and other countries under English influence
• Islamic Law: Derived from the Koran and found in Islamic States
• Commercial legal system: Found in Marxist-socialist economies and states like China, and the former Soviet Union
• Civil or Code law: found in Germany, France, Japan and non-Islamic and non-Marxist countries.

2. Jurisdiction in International Legal Disputes: There are three different types of international legal disputes; those between governments, between a company and a government and between two companies. There is no absolute international law system, so there are many ways to handle conflict.

The role of jurisdiction clause is that the parties have agreed to the courts of a named country taking over (in other words, having the right to hear) any disputes that may arise. Usually a will provide for either "exclusive" or "non-exclusive" .

The different ways in which disputes can be resolved are as follows:

• On the basis of jurisdictional clauses in contracts
• On the basis of where a contract was entered into
• On the basis of where the provisions of the contract were performed

Arbitration is a method of resolving disputes without going to court. Sometimes an attorney will recommend arbitration to a client as the best means to resolve a claim. In arbitration, the dispute is submitted to a third party (the arbitrator) who resolves the dispute after hearing a presentation by both parties. It is a preferred approach because it is quicker, less expensive, and provides greater flexibility of process and procedure.