International Marketing
Date Submitted: 09/10/2006 01:34:40
International Marketing
Protectionism: Although trade generally benefits a country as a whole, powerful interests within countries frequently put obstacles--i.e., they seek to inhibit free trade. There are several ways this can be done:
Tariff barriers: A duty, or tax or fee, is put on products imported. This is usually a percentage of the cost of the good.
Quotas: A country can export only a certain number of goods to the importing country. For example,
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to disallow "cookies," files that contain information about their computers and shopping habits.
Cyber-consumer behavior. In principle, it is fairly easy to search and compare online, and it was feared that this might wipe out all margins online. More recent research suggests that consumers in fact do not tend to search very intently and that large price differences between sites persist. We saw above the problem of keeping consumers from prematurely departing from one's site.
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