IBS154


COURSE:	IBS 154 Pacific Rim Countries: International Business Environment
SECTION:	xxxxx
ROOM:	xxxxx
MEETS:	xxxxxxxx, 6:30 - 8:55PM
DATES:	xxxxxxxxxxx
INSTRUCTOR:	Dianna L. Last
TEL:	993-6449
FAX:	993-8969
TEXTBOOK No Textbook required for the class, utilize the Reference Material List (attached) COURSE DESCRIPTION Pacific Rim Countries: International Business Environment examines the importance of the Pacific Rim within the scope of worldwide trade. Emphasis is on cultural/social customs, language and business practices. Class will focus on key East Asian and Southeast Asian countries and country states. Objective is to gain an understanding of the key factors involved in doing business successfully in Asia. COURSE OBJECTIVES
Understand the importance of the Pacific Rim within the scope of worldtrade including both trade agreements and trade issues between various countries. Locate sources of data, information and assistance to research the business environment (marketing, advertising, distribution, effect of culture, etc) of the Pacific Rim countries. Develop the ability to analyze foreign markets through secondary research. Define the various forms of business available when conducting international trade in the Pacific Rim. Identify and evaluate the key cultural, political, legal and economic factors that affect how business is conducted in each country. Recognize the key factors in establishing and maintaining markets in each country. Describe common regional economic goals, cultural values and practices as well as differences between Pacific Rim countries. Analyze the potential for a product in a comparative marketing guide, indicating whether the product would have a single-country market, a market throughout the Pacific Rim or a global market. Identify the types of voice, data and video communications (Infrastructures) used in this region. Connect to the Internet and search to locate a group or individual involved in International business in a Pacific Rim country. Send and receive an Internet mail message requesting "country specific" business information.
COURSE OUTLINE
Economic Boom in Pacific Rim Regional Statistics Trading Blocks Keys to Success Cultural Differences Business Opportunities in the Pacific Rim Negotiating Contracts Business Arrangements (JV, etc) Marketing, Distribution, Advertising Country Studies History, Culture and Religion Economic Background Business Customs and Practices Political and Legal Environment Competitive Marketing Summary Key Trading Nations Major Exports and Imports Business/Investor Considerations Cultural Considerations and Communications Economic Goals Channels of Distribution Regulations and Barriers Outlook - Future Opportunities
Course content will vary to meet the needs of the students in specific sections STUDENT RESOURCES Maricopa Community College Libraries and Bookstores Public Libraries Arizona State University, Libraries and Bookstores Maricopa County Libraries Thunderbird - AGSIM, Library and Bookstore EVALUATION CRITERIA


Current Events Articles	15%	15 points
Ten (10) Country Competitive Market Summaries	75%	75
Class Participation (attendance & class discussion)	10%	10
Total Grade Points	100%	100
Extra Credit: Additional Country Competitive Marketing Summary	5%	5

ASSIGNMENTS AND ASSIGNMENT DUE DATES
Each week you must turn in a copy of a current article about the covered country along with the competitive market summary for that country. All articles and summary pages are due at the end of class on the country "discussion" date (the week after the country presentation). By doing the presentation at the end of one class and the discussion of that country at the beginning of the next class you have a week to find an appropriate article and research the information required on the competitive market summary form.

NOTE: Take advantage of the country presentation or video to collect information for each country's competitive summary form.

COURSE SCHEDULE


Week	Topic/Country Discussion	Country Presentation
1	PACIFIC RIM INTRO: STATISTICS, TRADING BLOCKS, KEYS TO SUCCESS
2	CULTURE, OPPORTUNITIES	SINGAPORE PRESENTATION
3	SINGAPORE DISCUSSION	SOUTH KOREA PRESENTATION
4	SOUTH KOREA DISCUSSION	TAIWAN PRESENTATION
5	TAIWAN DISCUSSION	HONG KONG PRESENTATION
6	HONG KONG DISCUSSION	CHINA PRESENTATION
7	CHINA DISCUSSION	JAPAN PRESENTATION
8	JAPAN DISCUSSION	THAILAND PRESENTATION
9	THAILAND DISCUSSION	MALAYSIA PRESENTATION
10	MALAYSIA DISCUSSION	INDONESIA PRESENTATION
11	INDONESIA DISCUSSION	VIETNAM PRESENTATION
12	VIETNAM DISCUSSION	ASIA SUMMARY

REFERENCE MATERIAL

“PACIFIC RIM COUNTRIES”

BOOKS AND GUIDES

• Big Business Blunders: Mistakes in Multinational Marketing
David Ricks (Dow Jones-Irwin)

• Business China
• Business France
• Business Germany
• Business Italy
• Business Japan
• Business Korea
• Business Mexico
• Business Taiwan
Peggy Kenna & Sondra Lacy (NTC Business Books)

• Argentina Business
• Australia Business
• China Business
• Hong Kong Business
• Japan Business
• Korea Business
• Mexico Business
• Philippines Business
• Singapore Business
• Taiwan Business
• USA Business
• Philippines Business
World Trade Press, Country business Guides

• Chinese Etiquette & Ethics in Business
Boye De Mente (NTC Business Books)

• Communicating for Peace, Diplomacy and Negotiation
edited by Felipe Korzenny & Stella Ting-Toomey (Sage Publications)

• Do's and Taboos Around the World
Roger E. Axtell (John Wiley & Sons)

• Do's and Taboos of Hosting International Visitors
Roger E. Axtell (John Wiley & Sons)

• How to Do Business with China

• How to Do Business with Japan
Jina Bacarr (Birch Lane Press)

• How to Work for a Japanese Boss
Jina Bacarr (Birch Lane Press)

• International Business Communications Desk Reference

• International Business Information: How to Find It, How to Use It

• International Negotiation: A Cross-Cultural Perspective
Glen Fisher (Intercultural Press)

• Japanese Etiquette & Ethics in Business
Boye De Mente (NTC Business Books)

• National Negotiating Styles
Hans Binnendijk (Foreign Services Institute, U.S. Dept of State)

• Riding the Waves of Culture, Understanding Cultural Diversity in Business
Frons Trompenaars (The Economist Books)

• The Cultural Environment of International Business
Vern Terpstra (South Western Publishing)

• The Global Edge: How Your Company Can Win in the International Marketplace
Sondra Snowdon (Simon and Schuster)

• The Global Market

• The International Businesswoman: A Guide to Success in the Global Marketplace
Marlene Rossman (Praeger Publishers)

• The Travelers Guide to Asian Customs and Manners
Kevin Chambers (Simon and Schuster)

• Understanding Japanese Business

• Winning in Foreign Markets

• Working with Japan

REFERENCE MATERIAL

"PACIFIC RIM COUNTRIES"

INTERNATIONAL INFORMATION SOURCES
STATISTICAL DATA

• Asia Business Book

• Asia Pacific Securities Handbook

• Consumer Asia

• United Nations Statistical Yearbook
Published annually by the United Nations, NY, NY.
700 pages of detailed historical statistics on every aspect of world business.

• UNESCO Social Statistical Compendium
Publishing Service United Nations, NY, NY 10017

• Organization for Economic Cooperation and Development (OECD)
Series of economic reports about member nations.

• Annual, London: Euromonitor Publications:
European Marketing Data and Statistics
Consumer Europe
International Marketing data and Statistics:
- data on living standards for European & other countries
Retail Trade International:
- data on consumer purchase patterns by product & retail store

• Far East and Australasia

• Statistical Yearbook for Latin America
Statistical Bulletin for Latin America
Published annually by the United Nations, NY,NY.

• The Markets of Asia/Pacific
London: The Asia Pacific Center, LTD. Printed in NY

• Culturgrams
PVCC Library


REFERENCE MATERIAL "INTERNATIONAL MARKETING" INTERNATIONAL PUBLICATIONS PVCC, DOWNTOWN PHOENIX LIBRARY, ASU & AGSIM
NEWSPAPERS: CHINA DAILY PRC FREE CHINA JOURNAL TAIWAN TORONTO GLOBE & MAIL CANADA JAPAN TIMES JAPAN THE EUROPEAN EUROPE JERUSALEM POST ISRAEL LONDON TIMES ENGLAND ON-LINE RESOURCES: ABI/GLOBALBUSINESS DATELINE NATIONAL TRADE DATA BANK PREDICASTS NEWSPAPER ABSTRACTS BUSINESS PERIODICALS ON DISK MAGAZINES:


ADVERTISING AGE ASIAN WALL STREET JOURNAL ASIA WEEK BEIJING REVIEW BUSINESS ASIA BUSINESS CHINA BUSINESS EASTERN EUROPE BUSINESS EUROPE BUSINESS INTERNATIONAL BUSINESS LATIN AMERICA BUSINESS MEXICO BUSINESS WEEK COLUMBIA JOURNAL OF WORLD BUSINESS ECONOMIST FAR EASTERN ECONOMIC REVIEW FORBES FOREIGN AFFAIRS FORTUNE HARVARD BUSINESS REVIEW		HISPANIC HISPANIC BUSINESS HISPANIC TIMES INC. INTERNATIONAL EXECUTIVE INTERNATIONAL MANAGEMENT JOURNAL OF INTERNATIONAL BUSINESS JOURNAL OF INTERNATIONAL MARKETING JOURNAL OF JAPANESE TRADE & INDUSTRY LATIN AMERICA WEEKLY REPORT MEXICO, COUNTRY PROFILES REPORTS IN BRITAIN NIKKEI WEEKLY THE NATION TRADE AND CULTURE WALL STREET JOURNAL WORLD PRESS REVIEW WORLD TRADE


IBS 154 PACIFIC RIM COUNTRIES: INTERNATIONAL BUSINESS ENVIRONMENT COMPETITIVE MARKETING SUMMARY FORM
1. Vital Economic Statistics:
	Population: Currency: GDP: Income:
2. Language(s), Official, Spoken, Written & Dialects: 3. Religion(s) and Other Belief Systems: 4. Key Trading Nations: 5. Top Foreign Investors: 6. Major Imports: 1. Major Exports: 2. US opportunities For Exporting: 3. US Opportunities For Importing: 10. Cultural Considerations and Communications: 11. Economic Environment, Development Strategy & Goals: 12. Channels of Distribution: 13. Regulations and Barriers (Tariff, Non-Tariff, Customs, Licenses, etc.): 14. Intellectual Property Provisions: 15. Business/Investor Considerations:
	Barriers to Entry - Ownership Requirements - Profit Transfer - Government Incentives
16. Current Issues to Consider: 17. Outlook - Future Opportunities


COMPETITIVE MARKETING SUMMARY FORM SINGAPORE
1. Vital Economic Statistics:
Population: Currency: Exchange rates: GDP: Income:	2,890,468 (July 1995 est.) 1 Singapore dollar (S$) = 100 cents Singapore dollars (S$) per US$1 - 1.4524 (Jan. 95) $57 billion (1994 est.) $19,940 (1994 est.)


2.	Language(s), Official, Spoken, Written & Dialects: Chinese (official), Malay (official and national), Tamil (official), English (official).
3.	Religion(s) and Other Belief Systems: Buddhist (Chinese), Muslim (Malays), Christian, Hindu, Sikh, Taoist, Confucianism.
4.	Key Trading Nations: US, Japan, Malaysia.
5.	Top Foreign Investors: U.S., Japan, European Community. three U.S. investors: Seagate Technology (computers), Caltex (petroleum), and Mobil (petroleum).
6.	Major Imports: (from US 1993 in millions of US$) Electronic circuits & parts: 2,113 Data processing machines: 805 Powered aircraft: 761 Typewriter/office machine parts: 518
7.	Major Exports: (to US 1993 in millions of US$) Data processing machines: 5,272 Typewrite r/off ice machine parts: 1,484 Electronic circuits & parts: 1,368 Heterocyclic compounds: 442 Radiophone reception equipment: 314
8.	US opportunities For Exporting Electronic components, Industrial chemicals, Aircraft and parts, Electrical power systems, Computer hardware and peripherals.
9.	US opportunities For Importing: Asian banking and investment services.
10.	Cultural Considerations and Communications: The legal system is similar to that of the US but rules that might normally be passed by in the US are taken very seriously in Singapore. The objective is to create a refined society and a respect for the country and its laws as a whole.
11.	Economic Environment, Development Strategy & Goals: Singapore is a service oriented country thus the expansion of banking and investment services and an aim to be the financial center of the Pacific are goals of the future Singapore.
12.	Channels of Distribution: Sea and air ports along with trucking.
13.	Regulations and Barriers (Tariff, Non-Tariff, Customs, Licenses, etc.): Tariffs and Taxes: More than 90 percent of exports enter Singapore duty free. Licensing: Generally no licensing requirements. See the attached FAQ under Tariffs and Taxes.
14.	Intellectual Property Provisions: International treaty in place. Although a strict copyright law was enacted in 1987 that protects all types of copyrighted materials, the emphasis seems to be on software piracy. These laws were put to the test in 1993 when a major piracy ring was broken and the offenders were made to pay restitution damages and spend time in jail. On the other hand, pirated video cassettes pass freely in Singapore and the censors approve of the sale and or rental of these cassettes. One should be wary of Singapore as a market for videos until this imbalance of the law is resolved. See the attached FAQ under Intellectual Property Rights.
15.	Business/Investor Considerations: Barriers to Entry Government of Singapore has monopoly over public utilities and arms manufacturing, and control over newspaper publishing. Ownership Requirements Foreign Ownership Restrictions: Generally none. Restricted in a few strategic sectors. Also, foreign ownership of real estate is restricted. Profit Transfer Free profit transfer. Government Incentives Any lack of import tariffs or taxes along with the ease by which foreign investment is handled could be seen as an indirect government incentive.
16.	Current Issues to Consider: Singapore is highly competitive with its neighbor rival Hong Kong. With the end of Hong Kong's lease comes a possible shift in banking powers due to nervousness and uncertainty of Hong Kong's future. Given this opportunity, Singapore might seize the moment to make a surge forward towards its banking goals. The stability of Singapore compared to Hong Kong in the next few years should be watched closely because this will determine who will be the leader during the beginning of the twenty-first century.
17.	Outlook - Future Opportunities: The outlook for Singapore seems bright given its political stability and obvious ability and brain pool in the banking and investment areas. It doesn't have the pending uncertainty that might be perceived as is the case with Hong Kong while it does have a population that prides itself on striving forward and making Singapore a better place. The only area to be wary of is as Singapore continues to strive hard in more intellectual areas the industrial and manufacturing areas will start to decrease creating a top heavy society without the means for manufacture. Taking all aspects into consideration, Singapore has the best risk for foreign investment.


IBS 154 PACIFIC RIM COUNTRIES: INTERNATIONAL BUSINESS ENVIRONMENT COMPETITIVE MARKETING SUMMARY FORM SINGAPORE
1. Vital Economic Statistics:
	Population: Currency: GDP: Income:
2. Language(s), Official, Spoken, Written & Dialects: 3. Religion(s) and Other Belief Systems: 4. Key Trading Nations: 5. Top Foreign Investors: 6. Major Imports: 7. Major Exports: 8. US Opportunities For Exporting: 9. US Opportunities For Importing: 10. Cultural Considerations and Communications: 11. Economic Environment, Development Strategy & Goals: 12. Channels of Distribution: 13. Regulations and Barriers (Tariff, Non-Tariff, Customs, Licenses, etc.): 14. Intellectual Property Provisions: 15. Business/Investor Considerations:
	Barriers to Entry - Ownership Requirements - Profit Transfer - Government Incentives -
16. Current Issues to Consider: 17. Outlook - Future Opportunities:


MARKETING IN SINGAPORE
- SINGAPORE IS AN OPEN MARKET AND A FREE PORT - MORE THAN 96% OF IMPORTS ENTER DUTY FREE - GENERALLY NO RESTRICTIVE TRADE OR INVESTMENT POLICIES - NO TAXES ON CAPITAL GAINS, DEVELOPMENT OR IMPORTS - ALMOST NO RED TAPE, INCENTIVE PROVISIONS - ACCESS TO CREDIT & MODERN FINANCIAL SERVICES - BUSINESS LANGUAGE IS ENGLISH - EXCELLENT PHYSICAL/BUSINESS INFRASTRUCTURES SEVEN WAYS TO ENTER THE SINGAPORE MARKET: 1. ESTABLISH A REPRESENTATIVE OFFICE 2. EXHIBIT AT A TRADE FAIR 3. LOCAL TRADING FIRM TO ACT AS DISTRIBUTOR/AGENT 4. DIRECT MARKETING 5. OPEN YOUR OWN DISTRIBUTOR OR RETAIL STORE 6. NEGOTIATE A JOINT VENTURE WITH LOCAL COMPANY 7. ENTER A BID ON LOCAL OR INTERNATIONAL PROJECTS


MARKETING IN SOUTH KOREA ENTERING THE SOUTH KOREAN MARKET
FOUR (4) MAJOR WAYS TO GAIN ACCESS:
	- USE AN AGENT - OPEN A BRANCH OFFICE - NEGOTIATE A JOINT VENTURE - ESTABLISH A SUBSIDIARY
TWO (2) MAJOR DISTRIBUTION CHANNELS:
	- REGISTERED TRADERS
		HANDLES PAPERWORK OF IMPORTING AFFILIATED WITH CHAEBOLS CONSIDERABLE INFLUENCE CAN EXTEND CREDIT TO IMPORTERS (IMPORTANT)
	- OFFER AGENTS
		REPRESENTS FOREIGN FIRMS MAKES OFFERS ON THEIR BEHALF CAN ONLY IMPORT USING A REGISTERED TRADER OR THEIR "AUTHORIZATION"
BEST INITIAL STRATEGY IS TO:
	- EXHIBIT AT A TRADE FAIR - ADVERTISE IN A PROFESSIONAL TRADE JOURNAL - MAKE YOUR EMBASSY WORK FOR YOU


IBS 154 PACIFIC RIM COUNTRIES: INTERNATIONAL BUSINESS ENVIRONMENT COMPETITIVE MARKETING SUMMARY FORM SOUTH KOREA
1. Vital Economic Statistics:
	Population: Currency: GDP: Income:
2. Language(s), Official, Spoken, Written & Dialects: 3. Religion(s) and Other Belief Systems: 4. Key Trading Nations: 5. Top Foreign Investors: 6. Major Imports: 7. Major Exports: 8. US Opportunities For Exporting: 9. US Opportunities For Importing: 10. Cultural Considerations and Communications: 11. Economic Environment, Development Strategy & Goals: 12. Channels of Distribution: 13. Regulations and Barriers (Tariff, Non-Tariff, Customs, Licenses, etc.): 14. Intellectual Property Provisions: 15. Business/Investor Considerations:
	Barriers to Entry - Ownership Requirements - Profit Transfer - Government Incentives -
16. Current Issues to Consider: 17. Outlook - Future Opportunities:


MARKETING IN TAIWAN ENTERING THE TAIWAN MARKET
THREE (3) MAJOR CHANNELS DOMINATE DISTRIBUTION:
	- PRIVATE TRADERS
		IMPORTERS AND WHOLESALERS WHO BUY AND SELL FOR THEIR OWN ACCOUNTS
	- END USERS
		SUCH AS MANUFACTURERS, PUBLIC UTILITIES, HOSPITALS, SCHOOLS AND OTHER PUBLIC INSTITUTIONAL BUYERS
	- PUBLIC TRADING AGENCIES
		CENTRAL TRUST OF CHINA AND TAIWAN SUPPLY BUREAU
THESE CHANNELS EITHER IMPORT OR EXPORT DIRECTLY OR THROUGH SUPPLIER APPOINTED LOCAL AGENTS THE CHANNEL YOU CHOSE DEPENDS ON THE PRODUCT YOU WANT TO IMPORT ONCE ESTABLISHED YOU MAY WANT TO SET UP YOUR OWN SALES OFFICE (YOU WILL STILL NEED A LOCAL SALES AGENT). SEVEN (7) WAYS TO APPROACH THE TAIWAN MARKET
	- ESTABLISH A REPRESENTATIVE OFFICE - EXHIBIT AT TRADE FAIRS - GET A DISTRIBUTOR OR AGENT - DO DIRECT MARKETING - OPEN YOUR OWN DISTRIBUTORSHIP OR RETAIL STORE - NEGOTIATE A JOINT VENTURE WITH A LOCAL COMPANY - ENTER A BID ON PROJECTS


IBS 154 PACIFIC RIM COUNTRIES: INTERNATIONAL BUSINESS ENVIRONMENT COMPETITIVE MARKETING SUMMARY FORM TAIWAN
1. Vital Economic Statistics:
	Population: Currency: GDP: Income:
2. Language(s), Official, Spoken, Written & Dialects: 3. Religion(s) and Other Belief Systems: 4. Key Trading Nations: 5. Top Foreign Investors: 6. Major Imports: 7. Major Exports: 8. US Opportunities For Exporting: 9. US Opportunities For Importing: 10. Cultural Considerations and Communications: 11. Economic Environment, Development Strategy & Goals: 12. Channels of Distribution: 13. Regulations and Barriers (Tariff, Non-Tariff, Customs, Licenses, etc.): 14. Intellectual Property Provisions: 15. Business/Investor Considerations:
	Barriers to Entry - Ownership Requirements - Profit Transfer - Government Incentives -
16. Current Issues to Consider: 17. Outlook - Future Opportunities:


MARKETING IN HONG KONG ENTERING THE HONGKONG MARKET
WHY IS HONG KONG THE IDEAL PLACE FOR WORLD TRADE:
	- GEOGRAPHIC LOCATION
		INROADS INTO CHINA, SOUTHEAST AND EAST ASIA
	- COMMUNICATIONS
		MODERN, EFFICIENT & RELATIVELY INEXPENSIVE
	- INFRASTRUCTURE
		LARGEST CONTAINER PORT, SECOND BUSIEST AIRPORT IS THE EIGHTH BUSIEST CARGO PORT
	- LOW TAXES – - FAVORABLE REGULATORY ENVIRONMENT - LABOR FORCE
		WORK HARD, INNOVATIVE, EFFICIENT, RELIABLE
	- GATEWAY TO CHINA
		CONDUIT FOR MORE THAN 1/3 OF PRC GLOBAL TRADE A BASE FOR MANY PRC ORGANIZATIONS
STILL A CHINESE SOCIETY WITH CHINESE SUPERSTITIONS, CONFUCIAN CULTURE AND VALUES CONFORMIST - IMPORTANT TO KEEP UP WITH THE "WONGS" AGENT/DISTRIBUTORS ARE THE MOST EFFICIENT WAY TO ENTER THE MARKET, THEY UNDERSTAND THE SYSTEM:
	- DON'T GRANT EXCLUSIVITY TOO SOON,
		AGENT MAY BLOCK YOUR SALES NOT PROMOTE THEM
	- BE CAREFUL WITH TECHNICAL/COPYRIGHTED INFORMATION
		SUPPLY TECHNICAL INFORMATION IN INCREMENTS
	- MONITOR YOUR AGENT CLOSELY FOR FIRST FEW MONTHS
		ACT IMMEDIATE IF NOT PLEASED (IN A CONFUCIAN WAY)
	- RESTRICT AGENT ACTIVITY IN YOUR FIELD IF TERMINATED
		IMPLEMENT NON-COMPETE CLAUSES


IBS 154 PACIFIC RIM COUNTRIES: INTERNATIONAL BUSINESS ENVIRONMENT COMPETITIVE MARKETING SUMMARY FORM HONG KONG
1. Vital Economic Statistics:
	Population: Currency: GDP: Income:
2. Language(s), Official, Spoken, Written & Dialects: 3. Religion(s) and Other Belief Systems: 4. Key Trading Nations: 5. Top Foreign Investors: 6. Major Imports: 7. Major Exports: 8. US Opportunities For Exporting: 9. US Opportunities For Importing: 10. Cultural Considerations and Communications: 11. Economic Environment, Development Strategy & Goals: 12. Channels of Distribution: 13. Regulations and Barriers (Tariff, Non-Tariff, Customs, Licenses, etc.): 14. Intellectual Property Provisions: 15. Business/Investor Considerations:
	Barriers to Entry - Ownership Requirements - Profit Transfer - Government Incentives -
16. Current Issues to Consider: 17. Outlook - Future Opportunities:


MARKETING IN CHINA
PEOPLE IN CHINA HAVE MONEY TO SPEND ON LUXURIES:
	- DON'T BE FOOLED BY INCOME FIGURES
		- MANY CHINESE DO NOT REPORT ALL THEIR INCOME - BOOMING BLACK MARKET IN LABOR, GOODS, SERVICES - HOUSING SUBSIDIES MEAN NO MORTGAGES - ONLY 5- 10% IS SPENT ON HOUSING & UTILITIES - NATIONAL SAVINGS RATE OF 38%, ALMOST NO TAXES
	- MAJOR MARKETS
		- 22 PROVINCES - 3 MUNICIPALITIES - 5 AUTONOMOUS REGIONS - SUPPLY NOT DEMAND DRIVES THE MARKET - DISTRIBUTION SYSTEM IS THE PROBLEM - FOCUS MARKET PROGRAM IN A FEW CITIES OR "ZONES"
	- CAUTIONARY NOTE
		- RETAILERS PAY TOO MUCH FOR SPACE - INFLATION IS 15-20% IN THE CITIES - MONETARY FLUCTUATIONS
TRADE NO LONGER CONTROLLED BY FTC'S (Foreign Trading Co.)
	- CLOSED DISTRIBUTION SYSTEM ABOLISHED - MARKET FORCES ARE FREE TO MEET TRUE MARKET NEEDS - STATE PRIVATIZED MOST SMALL COMMERCIAL ENTERPRISES - CENTRAL PRICE/ALLOCATION PLANNING KEPT TO A MINIMUM
CHANGE DID NOT OCCUR BECAUSE OFANINSIGHTFUL GOVERNMENT THE BREAKDOWN OF THE OLD TRADING ORDER CANRESULTINA CONFUSING AND COMPLICATED MARKETPLACE
INVESTIGATE A PROSPECTIVE PARTNER:
- EXPERIENCE IN SELLING/SERVICING YOUR PRODUCT - FINANCIAL STATUS - GET AN INDEPENDENT ANALYSIS - REPUTATION WITH OTHER CLIENTS AND BANKER - STRENGTH - MAY BE A MOM-AND-POP OPERATION - GOALS - LONG TERM OBJECTIVES - CONFLICT OF INTEREST - NOT INVOLVED WITH COMPETITION


IBS 154 PACIFIC RIM COUNTRIES: INTERNATIONAL BUSINESS ENVIRONMENT COMPETITIVE MARKETING SUMMARY FORM PEOPLES REPUBLIC OF CHINA
1. Vital Economic Statistics:
	Population: Currency: GDP: Income:
2. Language(s), Official, Spoken, Written & Dialects: 3. Religion(s) and Other Belief Systems: 4. Key Trading Nations: 5. Top Foreign Investors: 6. Major Imports: 7. Major Exports: 8. US Opportunities For Exporting: 9. US Opportunities For Importing: 10. Cultural Considerations and Communications: 11. Economic Environment, Development Strategy & Goals: 12. Channels of Distribution: 13. Regulations and Barriers (Tariff, Non-Tariff, Customs, Licenses, etc.): 14. Intellectual Property Provisions: 15. Business/Investor Considerations:
	Barriers to Entry - Ownership Requirements - Profit Transfer - Government Incentives -
16. Current Issues to Consider: 17. Outlook - Future Opportunities:


MARKETING IN JAPAN BARRIERS TO THE JAPANESE MARKET
JAPAN HAS A COMPLEX SYSTEM OF DISTRIBUTION AND BUSINESS PRACTICES WHICH ARE OFTEN SEEN AS BARRIERS TO THE JAPANESE MARKET:
	- IT COSTS A LOT OF MONEY TO DO BUSINESS IN JAPAN
		- RENTS, SALARIES, TRANSPORTATION, FOOD IS EXPENSIVE - EXCESSIVE COST CONTRIBUTE TO COMPANY FAILURE
	- WE DO NOT UNDERSTAND THE JAPANESE MARKET - "KEIRETSU" STRUCTURE MAKES IT DIFFICULT - PRICING PRACTICES IGNORE THE MARKET & INFLATE PRICES
		- US RETAIL SALES RATIO IS @ 1.5 THE WHOLESALE PRICES - JAPAN RATIO IS 4 TO 1 DUE TO NUMBER OF MIDDLEMEN - CONSUMPTION TAX LEVIED AT EACH STEP IN PROCESS
	- PRODUCT TESTING FORMALITIES ARE:
		- COMPLEX - NEEDLESSLY TIME CONSUMING - NOT STANDARDIZED WITH OTHER COUNTRIES
	- HARD TO FIND QUALIFIED JAPANESE EMPLOYEES
		- NATIONALISM DENIGRATES WORKING AT FOREIGN FIRMS - NO LIFETIME EMPLOYMENT WITH FOREIGN FIRMS
DESPITE ALL THESE BARRIERS (ACTUALLY BECAUSE OF THEM) THERE IS A HUGE UNTAPPED MARKET FOR IMPORTED PRODUCTS AND COMMODITIES. GROWING AT 40% PER YEAR A MARKET FULL OF HIGH-INCOME SOPHISTICATED BUYERS YEARNING TO TRY FOREIGN GOODS


IBS 154 PACIFIC RIM COUNTRIES: INTERNATIONAL BUSINESS ENVIRONMENT COMPETITIVE MARKETING SUMMARY FORM JAPAN
1. Vital Economic Statistics:
	Population: Currency: GDP: Income:
2. Language(s), Official, Spoken, Written & Dialects: 3. Religion(s) and Other Belief Systems: 4. Key Trading Nations: 5. Top Foreign Investors: 6. Major Imports: 7. Major Exports: 8. US Opportunities For Exporting: 9. US Opportunities For Importing: 10. Cultural Considerations and Communications: 11. Economic Environment, Development Strategy & Goals: 12. Channels of Distribution: 13. Regulations and Barriers (Tariff, Non-Tariff, Customs, Licenses, etc.): 14. Intellectual Property Provisions: 15. Business/Investor Considerations:
	Barriers to Entry - Ownership Requirements - Profit Transfer - Government Incentives -
16. Current Issues to Consider: 17. Outlook - Future Opportunities:


MARKETING IN THAILAND ENTERING THE THAILAND MARKET
MOVING FROM AN AGRICULTURE TO PRODUCT PRODUCER
	- MAINLY EXPORT DRIVEN MANUFACTURING
AGRICULTURE IS STILL LARGEST ECONOMIC SECTOR TOURISM IS GREATEST SOURCE OF FOREIGN EXCHANGE LEARNING TO BE A SOPHISTICATED WORLD MARKETEER
	- ADAPTING QUICKLY TO CHANGING MARKETS - GOOD PLACE TO INVEST
MAJOR COMPETITIVE ADVANTAGES
	- STRONG PRIVATE SECTOR IN INDUSTRY & AGRICULTURE
		- DYNAMIC ENTREPRENEURS, UNDERSTAND PROFIT
	- EASILY TRAINED, INEXPENSIVE LABOR
		BUDDHIST CULTURE - EDUCATION IS IMPORTANT
	- LIMITED GOVERNMENT INVOLVEMENT - GROWING NUMBER OF WESTERN-EDUCATED PEOPLE - WELCOME FOREIGN PRIVATE INVESTMENT
DESPITE THE ADVANTAGES, THERE ARE DRAWBACKS
	- OUTSTRIPPING CAPABILITIES OF INFRASTRUCTURE - LACKS SUPPORTING INDUSTRIES FOR MANUFACTURING - INCONSISTENT AND AMBIGUOUS APPLICATION OF LAWS - FOREIGN CURRENCY EXCHANGES ARE REGULATED - STILL PROBLEMS WITH INTELLECTUAL PROPERTY - GOVERNMENT OFFICIALS DISTRUST PRIVATE SECTOR


IBS 154 PACIFIC RIM COUNTRIES: INTERNATIONAL BUSINESS ENVIRONMENT COMPETITIVE MARKETING SUMMARY FORM THAILAND
1. Vital Economic Statistics:
	Population: Currency: GDP: Income:
2. Language(s), Official, Spoken, Written & Dialects: 3. Religion(s) and Other Belief Systems: 4. Key Trading Nations: 5. Top Foreign Investors: 6. Major Imports: 7. Major Exports: 8. US Opportunities For Exporting: 9. US Opportunities For Importing: 10. Cultural Considerations and Communications: 11. Economic Environment, Development Strategy & Goals: 12. Channels of Distribution: 13. Regulations and Barriers (Tariff, Non-Tariff, Customs, Licenses, etc.): 14. Intellectual Property Provisions: 15. Business/Investor Considerations:
	Barriers to Entry - Ownership Requirements - Profit Transfer - Government Incentives -
16. Current Issues to Consider: 17. Outlook - Future Opportunities:


MARKETING IN MALAYSIA ENTERING THE MALAY MARKET
MALAYSIA HAS TWO ASSETS FOR AMERICANS:
	- LEADING SOURCE OF RAW MATERIALS - LOW-COST LABOR FOR MEDIUM TECH GOOD TO RE-EXPORT
BROADENING INDUSTRIAL BASE & UPGRADING INDUSTRY
	- OVER MANAGEMENT HAS SLOWED A BOOMING ECONOMY - GOVERNMENT CONTROL HAS INTERFERED IN THE FINANCIAL AND COMMODITY MARKETS
WANT TO MOVE FROM PLANTATIONS TO TECHNOLOGY
	- HEAVY INDUSTRIAL FACILITIES HAVE BEEN CREATED - PENANG ISLAND - THE ORIGINAL BRITISH OUTPOST, HOUSES SEVERAL MULTINATIONAL ELECTRONIC COMPANIES
GROWING AFFLUENT MIDDLE CLASS = WESTERN GOODS
	- STORES ARE ALWAYS LOOKING FOR NEW PRODUCTS - GROWING DEMAND FOR CONVENIENCE ITEMS
WELCOME FOREIGN PRIVATE INVESTMENT SELL THROUGH ESTABLISHED TRADING COMPANIES
	- BEST ONES ARE BRITISH OR BASED IN SINGAPORE - LOCAL COMPANIES ARE MALAY OR CHINESE OWNED - MAY BE EASIER TO ENTER VIA SINGAPORE
AMERICAN BUSINESS OPPORTUNITIES IN:
	- TELECOMMUNICATIONS - BEING PRIVATIZED - COMPUTERS AND PERIPHERALS - GROWING PC MARKET - SOFTWARE - FAIRLY NEW COPYRIGHT LAW - FOOD PROCESSING AND PACKAGING - INFRASTRUCTURE - INVESTMENT IN ROADS, ENERGY, ETC


IBS 154 PACIFIC RIM COUNTRIES: INTERNATIONAL BUSINESS ENVIRONMENT COMPETITIVE MARKETING SUMMARY FORM MALAYSIA
1. Vital Economic Statistics:
	Population: Currency: GDP: Income:
2. Language(s), Official, Spoken, Written & Dialects: 3. Religion(s) and Other Belief Systems: 4. Key Trading Nations: 5. Top Foreign Investors: 6. Major Imports: 7. Major Exports: 8. US Opportunities For Exporting: 9. US Opportunities For Importing: 10. Cultural Considerations and Communications: 11. Economic Environment, Development Strategy & Goals: 12. Channels of Distribution: 13. Regulations and Barriers (Tariff, Non-Tariff, Customs, Licenses, etc.): 14. Intellectual Property Provisions: 15. Business/Investor Considerations:
	Barriers to Entry - Ownership Requirements - Profit Transfer - Government Incentives -
16. Current Issues to Consider: 17. Outlook - Future Opportunities:


MARKETING IN INDONESIA ENTEMG THE MONESIAN MARKET
INDONESIA IS RICH IN HUMAN AND NATURAL RESOURCES
	- AGRICULTURE ACCOUNTS FOR ONE FOURTH OF GNP - ENERGY AND MINING FOR ONE FIFTH - MANUFACTURING FOR ONE TENTH - CONSTRUCTION AND SERVICES THE REMAINDER
ECONOMIC PROJECT TO DEVELOP BATAM ISLAND
	- ROWTH TRIANGLE WITH SINGAPORE AND MALAYSIA (JOHOR) - GOVERNMENTS COOPERATED IN CONCEPT & INFRASTRUCTURE - LOW COST LABOR/LAND IN INDONESIA - LOW COST BUT SKILLED LABOR IN JOHOR - FINANCIAL AND TECHNICAL RESOURCES IN SINGAPORE
MARKET EXISTS TO SUPPORT INDUSTRIAL DEVELOPMENT
	- GOVERNMENT EXPENDITURES ON INFRASTRUCTURE - EXPANSION OF MANUFACTURING SECTORS
NOT YET A MAJOR MARKET FOR CONSUMER PRODUCTS
	- BUT THERE IS AN EXPANDING, AFFLUENT MIDDLE CLASS
GOVERNMENT IS STILL INWARD LOOKING, NATTONALIST, PROTECT10NIST AND BUREAUCRATIC
	- PREFERS SELF-SUFFICIENCY, "WE CAN DO IT" ATTITUDE - FOREIGN INVESTMENT - "WE'LL TAKE IT ON OUR TERMS" - MANY BARRIERS TO TRADE, HIGH TAXES, TARIFFS, ETC. - RULES AND REGULATIONS INCONSISTENT AND ARBITRARY - CORRUPTION IS A MAJOR IMPEDIMENT - NEED A LOCAL PARTNER BUT FEW QUALIFIED ENTITIES
AMERICAN BUSINESSES ARE LARGE MULTI-NATIONALS


MARKETING IN VIETNAM ENTERING THE VIETNAMESE MARKET
MARKET ENTRY STRATEGY DEPENDS ON BUSINESS/GOALS
	- CONSUMER GOODS DIFFERENT THAN INFRASTRUCTURE PROJECT - MULTINATIONAL COMPANIES VS SMALL-MEDIUM ENTRY
AVOID THE COMMON MISTAKES:
	1. DO YOUR HOMEWORK
		- THOROUGHLY RESEARCH A PROJECT BEFOREHAND - MARKET CONDITION, LAWS, INVESTMENTS, PARTNER
	2. IDENTIFY AND FORMALIZE THE PROJECT
		- MEET WITH RELEVANT VIETNAMESE ORGANIZATIONS - DOES THE PROJECT FIT INTO THE GOVERNMENT'S PLANS - VISIT LAWYERS, ACCOUNTANTS, ETC FOR PROS & CONS
	3. CONSIDER ALL OPTIONS/CREATE A BUSINESS PLAN
		- FEASIBILITY, TARGET MARKETS, TIMING, FINANCING, ETC. - DETERMINE THE ENTRY MODE (JV, ETC)
	4. FIND GOOD ADVISORS
		- SELECT YOUR LOCAL CONSULTANT CAREFULLY
	5. TAKE YOUR TIME TO FIND THE RIGHT PARTNER
		- BE CLEAR AS TO WHAT KIND OF PARTNER YOU WANT
	6. CHECK WITH RELEVANT AUTHORITIES/PERFORM DUE DILIGENCE
		- BEWARE OF PHANTOM DEALS, ASCERTAIN THE TRUE LEVEL
	7. NEGOTIATION AS EDUCATION
		- LACK OF EXPERIENCE WILL CAUSE MANY PROBLEMS
	8. LICENSING PROCESS
		- START THE PROCESS LONG BEFORE YOU INTEND TO APPLY
From "Doing Business in Vietnam, Chamber of Commerce and Industry of Vietnam"


IBS 154 PACIFIC RIM COUNTRIES: INTERNATIONAL BUSINESS ENVIRONMENT COMPETITIVE MARKETING SUMMARY FORM VIETNAM
1. Vital Economic Statistics:
	Population: Currency: GDP: Income:
2. Language(s), Official, Spoken, Written & Dialects: 3. Religion(s) and Other Belief Systems: 4. Key Trading Nations: 5. Top Foreign Investors: 6. Major Imports: 7. Major Exports: 8. US Opportunities For Exporting: 9. US Opportunities For Importing: 10. Cultural Considerations and Communications: 11. Economic Environment, Development Strategy & Goals: 12. Channels of Distribution: 13. Regulations and Barriers (Tariff, Non-Tariff, Customs, Licenses, etc.): 14. Intellectual Property Provisions: 15. Business/Investor Considerations:
	Barriers to Entry - Ownership Requirements - Profit Transfer - Government Incentives -
16. Current Issues to Consider: 17. Outlook - Future Opportunities:


CRITICAL FACTORS TO WATCH IN THE PACIFIC RIM REGION Many Of These Factors Point To Problems Or Opportunities
Virtually every country in the Pacific Rim is in the midst of a major economic transition
	1. Developing nations are improving their technological capabilities.
		Japan moving into basic research, Singapore & Hong Kong into research/R&D, China and ASEAN into applying more advanced technologies.
	2. The ASEAN nations' attitude about trade and investment is changing.
		Concerned about overdependence on their trading partners, sources of technology and cultural domination.
	3. Watch for trends toward privatization of formerly state run enterprises.
		Will they be able to function and operate efficiently in the private sector.
	4. Look to the growth of regionalization.
		One purpose of ASEAN is to foster trade among member nations.
	5. The pattern of foreign investment is important.
		Influence follows money, the extent to which Japan, Taiwan, Korea & Australia make "no-strings-attached" loans and grants can shift U.S. influence.
	6. Take into account the China factor, keep an eye on the "Greater China" phenomenon.
		Taiwan's engineering, Hong Kong's financial and managerial skill and China's market and resources.
	7. The population of the Pacific Rim is growing rapidly.
		Unemployment is growing in Indonesia, China, Japan, and even Korea.
	8. Keep an eye on patterns of political transition and succession.
		Can current leaders maintain control, will anti-economic leaders (Vietnam, Burma, Laos) move toward economic development.
	9. U.S. policies impact Pacific Rim markets.
		U.S. wants to open markets and improve protection of intellectual property but trade policy may be moving toward protectionism.

	<< GO BACK	<< GO TO INTERNATIONAL STUDIES HOMEPAGE


	Last updated: May 27, 2005 Paradise Valley Community College- URL-http://www.pvc.maricopa.edu © 2005 Maricopa County Community College District. All Rights Reserved. Please send your questions and comments via email to Michele Marion at michele.marion@pvmail.maricopa.edu