CH1 MKTG INTER

• Macro criteria to analyse before choosing a new market (8)

  • Macroeconomics indicator
  • Offer exportation
  • Demand importation
  • Physical accessibility
  • Distribution
  • Credit risks
  • Regulatory accessibility
  • Culture
• Gross domestic product (PIB)

  GDP = a comprehensive scorecard of the country's economic health
• GDP

  Monetary or market value of all the finished goods and services produced within a country's borders in a specific time period
• Types of GDP

  • GDP
  • GDP / capita
  • GDP growth
• Belgium's GDP is 25
• Unemployment rate

  The share of the labor force that is jobless, expressed as a percentage
• Belgium's unemployment rate is 93
• Balance of trade

  The difference between the value of a country's export and imports for a given period
• Belgium's balance of trade is 123
• Offer exportation

  An export in international trade is a good or service produced in one country that is sold into another country
• Demand importation


  Imports consist of transactions in goods and services to a resident of a jurisdiction (such as a nation) from non-residents
• Wallonian clusters

  • Innovation
  • Competitiveness
• Cluster

  A grouping of companies or other actors (research centers, universities, government...)
• Competitive clusters

  Leading and innovative sector of the economy
• Business clusters

  Big sector of the economy
• Questions to ask about physical accessibility

  • What's the distance?
  • Cargo transport is possible?
  • What are the costs?
  • What's the climate?
• Transport risks

  • Breakage
  • Loss
  • Theft
  • Vandalism
  • Accident
  • Seizure
  • Contamination
• Credit insurance

  How to cover risks in a specific country
• Scale of risk

  • 1 → 7 = country the least to the highest likelihood of risks being caused by political and assimilated events
• EU = a single territory for customs purposes = no customs duty
• In EU = Free movement of goods
• EU ≠ espace schengen → a territory of European countries that have abolished their mutual borders, allowing for passport-free movement of people
• Quotas


  Permanent quantitative restrictions
• Free trade agreement


  Less or no taxes anymore depending on the agreement
• The EU has set the largest trade network in the world, with over 40 individual agreements with countries and regions
• Knowledge & sensitivity = Be aware of the nuances of the different cultures & same facts can be interpreted differently depending on the culture
• Non tariff barriers

  → technical measures  = Sanitary rules & technical standards

  → trade defence measures = avoid unfair competition

  → quotas = permanent quantitative restrictions
• trade defence measures

  • Anti-dumping measures
  • Anti-subsidy measures
  • Safeguards measures
• • Anti-dumping measures = Make sure the product is introduced at not less than its normal value → additional taxes to bring the price of the cheap imported product to a normal value in the country
• • Anti-subsidy measures = Financial measures to countervail the injuries caused to subsidies granted in the production country →  additional taxes to bring the price of the subsidised imported product to a normal value in the country
• • Safeguards measures =  temporary border measure to prevent or remedy serious injury caused by increased imports → additional taxes because too many goods are imported
• Culture :

  • Knowledge & sensitivity = Be aware of the nuances of the different cultures & same facts can be interpreted differently depending on the culture
  • Key culture element
• • Key culture element:
  • Time
  • Space
  • Language
  • Social hierarchy
  • Business habits
• Wallonian competitive clusters (6)

  • BIO WIN
  • Logistics wallonia
  • Skywin
  • GREEN WIN
  • Pôle mecatech
  • Wagralim
• Wallonian business clusters (8)

  • CAP construction
  • Cluster H2O
  • INFOpole
  • Plasti WIN
  • Cluster eco construction
  • Equisfair
  • Twist
  • Cluster Tweed
• Credit risk (counterparty risk) = the risk of not collecting an account receivable.
• 2 types of credit risks:

  • business environment risk
  • political risk
• • Business environment risk (risque sectoriel) = Risk resulting from the deterioration of the debtor's financial situation, leading to the incapacity to pay the debt.
• Political risk (risque pays) = Any event occurring abroad which assumes the nature of force majeure for the insured or for the debtor

  ex: wars, natural disasters,...
•  for non EU countries there are 3 possibilities for regulatory accessibility:

  • Tariff barriers
  • Non tariff barriers
  • Free trade