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International Marketing

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See attached case study: Chinese Refrigerator Maker Finds U.S. Chilly

1. Why has Haier faced difficulties in marketing its high end refrigerator in the US? How might it solve these problems?

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1. Why has Haier faced difficulties in marketing its high end refrigerator in the US?

Haier is having difficulties in marketing its high end refrigerator in the US because its brand name is relatively unknown in the USA. Even though Haier is a very large manufacturer of refrigerators in the world, in the US it is only known as a marketer of small appliances. It is relatively unknown for making refrigerators. The second reason why Haier has been unsuccessful in marketing refrigerators in the USA is that its manufacturing costs in the US are 10 times its costs in China. The high costs translate into higher prices, which make Haier high end refrigerators unattractive to the consumers.

Another reason for the weak sales in the USA ...

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International Marketing is discussed very comprehensively in this explanation..

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Establishing a Greenfield in an International Market

As part of its international expansion program, Acme, a U.S. multinational enterprise (MNE), is currently in the planning stages of establishing a Greenfield (see text glossary for definition) production facility overseas. You have been asked to present a proposal to the steering committee comparing the advantages and disadvantages of starting operations in one of two selected foreign countries.

The steering committee has determined that one alternative must be a member of the European Union (EU) while the other cannot be a member of the EU. Subject to these conditions, you may choose any two foreign countries, except China, India, Czech Republic, and Romania for comparison.

Deliverable: There are many factors to consider in your comparative analysis. Please be sure to include, among other topics, a discussion of the different countries' currencies, trade policies and cultural variables that may affect operations and profitability in each country. Your report should conclude with a recommendation and supporting rationale as to which country should be selected for the new facility.

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