Chapter 3 - Pearson Learning Solutions

98 PART 2 • THE GLOBAL MARKETING ENVIRONMENTFIGURE 3-8Map of GCCCountriesKuwaitBahrainQatarUnitedArabEmiratesSaudi ArabiaOmanagreement covering investment, petroleum, the abolition of customs duties, harmonization of bankingregulations, and financial and monetary coordination. GCC committees coordinate trade developmentin the region, industrial strategy, agricultural policy, and uniform petroleum policies and prices.Current goals include establishing an Arab common market and increasing trade ties with Asia.The GCC is one of three newer regional organizations. In 1989, two other organizationswere established. Morocco, Algeria, Mauritania, Tunisia, and Libya banded together in the ArabMaghreb Union (AMU); Egypt, Iraq, Jordan, and North Yemen created the Arab CooperationCouncil (ACC). Many Arabs see their new regional groups—the GCC, ACC, and AMU—asembryonic economic communities that will foster the development of inter-Arab trade andinvestment. The newer organizations are more promising than the Arab League, which consistsof 21 member states and has a constitution that requires unanimous decisions.Marketing Issues in the Middle EastConnection is a key word in conducting business in the Middle East. Those who take the time todevelop relationships with key business and government figures are more likely to cut throughred tape than those who do not. A predilection for bargaining is culturally ingrained, and thevisiting businessperson must be prepared for some old-fashioned haggling. Establishing personalrapport, mutual trust, and respect are essentially the most important factors leading to a successfulbusiness relationship. Decisions are usually not made by correspondence or telephone.The Arab businessperson does business with the individual, not with the company. Most socialcustoms are based on the Arab male-dominated society. Women are usually not part of thebusiness or entertainment scene for traditional Muslim Arabs.AFRICAThe African continent is an enormous landmass with a territory of 11.7 million square miles; theUnited States would fit into Africa about three and a half times. It is not really possible to treatAfrica as a single economic unit. The 54 nations on the continent can be divided into threedistinct areas: the Republic of South Africa, North Africa, and sub-Saharan or Black Africa,000200010270740623Global Marketing, Sixth Edition, by Warren J. Keegan and Mark C. Green. Copyright © 2011 by Warren J. Keegan. Published by Prentice Hall.