Describe some of the sources of political risk. Specifically, what forms can political risk take?

Part one:
1. Describe some of the sources of political risk. Specifically, what forms can political risk take?

2. Global marketers can avoid legal conflicts by understanding the reasons conflicts arise in the first place. Identify and describe several legal issues that relate to global commerce.
3. You are an American traveling on business in the Middle East. As you are leaving country X, the passport control officer at the airport tells you there will be a passport “processing” delay of 12 hours. You explain that your plane leaves in 30 minutes, and the official suggests that a contribution of $50 would probably speed things up. If you comply with the suggestion, have you violated U.S. law? Explain.
4. “See you in court” is one way to respond when legal issues arise. Why can that approach backfire when the issue concerns global marketing?

Part 2:
11-1. What are the basic factors that affect price in any market? What considerations enter into the pricing decision?

11-2. Define the various types of pricing strategies and objectives available to global marketers.
11-3. Identify some of the environmental constraints on global pricing decisions.
11-4. Why do price differences in world markets often lead to gray marketing?
11-5. What is a transfer price? Why is it an important issue for companies with foreign affiliates? Why did transfer pricing in Europe take on increased importance in 1999?
11-6. What is the difference between ethnocentric, polycentric, and global pricing strategies?
Which one would you recommend to a company that has global market aspirations?
11-7. If you were responsible for marketing computerized tomography (CT) scanners worldwide (average price, $1,200,000) and your country of manufacture was experiencing a strong and appreciating currency against almost all other currencies, what options are available to you to maintain your competitive advantage in world markets?
11-8. Compare and contrast the different forms of countertrade.
Case 11-1: Global Automakers Target Low-Income Consumers
Overview: The Logan is a case study in driving down costs. Established automakers in developing countries are racing to develop low-cost vehicles for the entry-level buyers. The question is: Can the auto companies come up with the optimal value proposition?
11-9. What is the key to the Logan’s low price?
11-10. Do you think Tata will be able to save the Nano? What steps should the company take?
11-11. Assess Carlos Ghosn’s plan to revive the Datsun nameplate. Can a car that sells for $ 3,000 make a profit for the parent company?
11-12. Low-cost cars such as the Nano and Datsun lack the multilayered safety and quality features required by regulators in high-income markets. Is it appropriate to create “bare-bones” cars with fewer safety features for emerging markets?

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