Question

A common market and a monetary union are basically the same thing.

True

False

A _______________ strategy implementation is when each market is approached independently of other markets.

The balance of payments (BOP) is an important metric for countries to track and for marketers to understand the implications of the BOP. List and briefly describe two key BOP measures that should be tracked.

Because of its complexities, __________ _________ development presents one of the stiffest challenges for international managers.

There are five identifiable stages in the evolution of marketing across national boundaries.  The first stage is:

global marketing
		international marketing
		export marketing
		direct marketing
		domestic marketing

Answer 1

False: According to Balassa (1961, p. 174) a customs union and a common market are successive forms of economic integration. The EU 'passed' them both in 1968 and 1993, correspondingly, moving from trade in goods liberalization and common customs tariff to liberalization in movement of production factors. So, my answer for your question would be that the European economic integration does not affect the customs union and the common market but includes them both as successive steps. (Actually, establishment of the economic and monetary union within the EU was the next step after the common market).

A One Unilever strategy implementation is when each market is approached independently of other markets.

Two key BOP measures that should be tracked:

1. Trade Policy Measures: Expanding Exports and Restraining Imports: Trade policy measures to improve the balance of payments refer to the measures adopted to promote exports and reduce imports. Exports may be encouraged by reducing or abolishing export duties and lowering the interest rate on credit used for financing exports. Exports are also encour­aged by granting subsidies to manufacturers and exporters.

2. Expenditure-Reducing Policies: The important way to reduce imports and thereby reduce deficit in balance of payments is to adopt monetary and fiscal policies that aim at reducing aggregate expenditure in the economy. The fall in aggregate expenditure or aggregate demand in the economy works to reduce imports and help in solving the balance of payments problem.

Because of its complexities, Global Strategy development presents one of the stiffest challenges for international managers.

The first stage in the evolution of marketing across national boundaries is Domestic Marketing.