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 -vii-

4. Regional Economic and Political Integration 115

Chapter Objectives 115
4-1 Determinants of Economic and Political Integration 117
4-1a A Common Culture 117
4-1b A History of Common Economic and Political Dominance 117
4-1c Regional Proximity 118
4-1d Economic Considerations 118
4-1e Political Considerations 119
4-2 Levels of Regional Economic and Political Integration and Examples of
Integration Successes 121
4-2a Bilateral Agreements and Multilateral Forums and Agreements 121
4-2b Free Trade Agreements 123
4-2c Customs Unions 127
4-2d Common Markets 127
4-2e Monetary Unions 130
4-2f Political Unions 132
Summary 135
Key Terms 135
Discussion Questions 136
Chapter Quiz 136
Notes 138
Case 4-1 Damianov Press 139
Case 4-2 Navigating Brexit at Majestic Interior Design Company 141
5. Cultural Influences on International Marketing 143
Chapter Objectives 143
5-1 Culture Defined 146
5-2 Elements of Culture 148
5-2a Language 148
5-2b Religion 153
5-2c Cultural Values 156
5-2d Cultural Norms: Imperatives, Exclusives, and Adiaphoras 157
5-2e National/Regional Character 159
5-3 Cultural Variability 165
5-3a The Hofstede Dimensions 166
5-4 Cultural Change and Marketing 168
5-5 The Self-Reference Criterion and Ethnocentrism 169
5-6 The Global Consumer Culture 170
Summary 172
Key Terms 173
Discussion Questions 173
Chapter Quiz 174
Notes 175
Case 5-1 When Companies Fail to Understand the Local Market:
Walmart in Germany 178
Case 5-2 Disneyland Post Paris, Taking on China:
Reflections on the Past, Plans for the Future 180
Case 5-3 Target’s Departure from Canadian Market 182

International Marketing 6e -vii- Front Matter

 -viii-

Part 3 International Marketing Strategy Decisions 184

6. International Marketing Research: Practices and Challenges 185
Chapter Objectives 185
6-1 The Need for International Marketing Research 187
6-2 Defining International Marketing Research 188
6-3 The Scope of International Marketing Research 189
6-3a Research of Industry, Market Characteristics, and Market Trends 189
6-3b Buyer Behavior Research 189
6-3c Product Research 191
6-3d Distribution Research 194
6-3e Promotion Research 196
6-3f Pricing Research 198
6-4 The International Marketing Research Process 198
6-4a Defining the Research Problem and Research Objectives 199
6-4b Developing the Research Plan 199
6-4c Deciding on Information Sources 199
6-4d Determining Research Approaches 206
6-4e Designing the Data Collection Instrument 211
6-4f Deciding on the Sampling Plan 213
6-4g Collecting, Analyzing, and Interpreting the Information 214
6-5 Global Marketing Decision Support Systems (MDSS) 214
6-5a Sales Forecasting 215
Summary 217
Key Terms 218
Discussion Questions 218
Chapter Quiz 219
Notes 221
Case 6-1 Hilton Sorrento Palace 223
Case 6-2 Tom Ford: Euro-Luxury with an American Attitude 225
7. International Strategic Planning 227
Chapter Objectives 227
7-1 Developing an International Marketing Strategy 228
7-1a Developing an International Marketing Plan 231
7-2 The Rationale for Target Marketing 231
7-3 International Market Segmentation 233
7-3a Requirements for International Segmentation 233
7-3b Macrosegmentation: Country Attractiveness Analysis 235
7-3c Microsegmentation: Focusing on the Target Consumer 239
7-4 Targeting International Consumers 243
7-4a Target Market Decisions: Country Screening and Selection 243
7-4b Target Market Decisions: The Target Market Strategy 244
7-5 Positioning the Brand 247
7-5a Attribute/Benefit Positioning 247
7-5b Price/Quality Positioning 247
7-5c Use or Applications Positioning 248
7-5d Product User Positioning 248
7-5e Product Class Positioning 248
7-5f Competitor Positioning 248

International Marketing 6e -viii- Front Matter

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Summary 249
Key Terms 250
Discussion Questions 250
Chapter Quiz 251
Notes 252
Case 7-1 Prosperity Painting Equipment 253
Case 7-2 Volkswagen Phideon in China 256
8. Expansion Strategies and Entry Mode Selection 259
Chapter Objectives 259
8-1 Going International: Evaluating Opportunities 260
8-2 Control versus Risk in International Expansion 261
8-3 Deciding on the International Entry Mode 262
8-3a Indirect Exporting 262
8-3b Direct Exporting 264
8-3c Licensing 265
8-3d Franchising 266
8-3e Joint Ventures 269
8-3f Consortia 272
8-3g Wholly Owned Subsidiaries 272
8-3h Branch Offices 273
8-3i Strategic Alliances 274
Summary 276
Key Terms 277
Discussion Questions 277
Chapter Quiz 277
Notes 279
Case 8-1: Danone in a Bind 280
Case 8-2 sweetFrog’s Expansion to Egypt and the Dominican Republic 282
Part 4 Managing and Implementing the International Marketing Mix 284
9. Products and Services: Branding Decisions in International Markets 285
Chapter Objectives 285
9-1 Standardization versus Adaptation 286
9-1a Global Standardization 287
9-1b Regional Standardization 289
9-1c Global Localization 291
9-1d Mandatory Adaptation 292
9-1e Local, Nonmandatory Adaptation 293
9-2 Private-Label (Retailer) Brands 294
9-3 Global Branding and Country-of-Origin Information 294
9-3a Product-Country and Service-Country Stereotypes 296
9-3b Country Branding 296
9-3c Country of Origin and Ethnocentrism 297
9-3d The Brand Name 298
9-4 The Service Side: Tariff and Nontariff Barriers to Entry 299
9-5 Products, Services, and Culture 300
9-6 Protecting Brand Names 301
9-6a Identifying Types of Counterfeiting 301
9-6b Combating Counterfeiting 304

International Marketing 6e -ix- Front Matter

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9-7 International Perspectives of Industrial Products and Services 304

9-7a Product Standards 306
Summary 307
Key Terms 308
Discussion Questions 308
Chapter Quiz 308
Notes 310
Case 9-1 Can the smart Make a Comeback in the U.S.? 312
Case 9-2 The Landwind X7: Counterfeiting Design for the Home Market 314
10. International Product and Service Strategies 317
Chapter Objectives 317
10-1 The International Product Life Cycle (IPLC) 318
10-1a The Product Introduction Stage 319
10-1b The Growth Stage 320
10-1c The Maturity Stage 321
10-1d The Decline Stage 322
10-2 Managing the International Product and Service Mix 322
10-2a Length 323
10-2b Width 324
10-2c Depth 324
10-3 New Product Development 324
10-3a Generating New Product Ideas 326
10-3b Screening New Product Ideas 327
10-3c Developing and Evaluating Concepts 328
10-3d Performing a Product Business Analysis 328
10-3e Designing and Developing the Product 329
10-3f Test Marketing 330
10-3g Launching the Product Internationally 332
10-4 Degree of Product/Service Newness 334
10-5 Product Diffusion 336
10-5a Product Factors 337
10-5b Country (Market) Factors 337
10-5c Consumer Adopters 338
Summary 339
Key Terms 339
Discussion Questions 340
Chapter Quiz 340
Notes 342
Case 10-1 FrieslandCampina 344
Case 10-2 The Gigafactory: A Partnership between Tesla and Panasonic 346
11. Managing International Distribution Operations and Logistics 349
Chapter Objectives 349
11-1 Issues Related to International Distribution 351
11-1a Using Established Channels 351
11-1b Building Own Channels 351
11-2 Intermediaries Involved in International Distribution 351
11-2a Home-Country Intermediaries 352
11-2b Foreign-Country Intermediaries 356

International Marketing 6e -x- Front Matter

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11-2c Alternative International Distribution Structures 357

11-3 International Logistics 357
11-3a International Transportation 357
11-3b Logistics Facilitators 362
11-3c Warehousing and Inventory Control 365
11-4 Challenges to International Distribution and Logistics 366
11-4a Challenges to Distribution in Developing Countries 366
11-4b Parallel Imports 366
11-5 International Retailing 368
11-6 Retail Formats: Variations in Different Markets 370
11-6a General Merchandise Retailing 370
11-6b Food Retailers 376
11-6c Nonstore Retailing 378
11-7 Issues and Trends in International Retailing 383
11-7a Variation in Retail Practices: A Consumer Perspective 384
11-7b Variation in Retail Practice: Salespeople and Management 385
Summary 386
Key Terms 388
Discussion Questions 388
Chapter Quiz 389
Notes 391
Case 11-1 Mondelēz China’s Distribution Challenges 394
Case 11-2 Shipping Doo Kingue 396
Case 11-3 Stefanel Canada 397
12. International Promotional Mix: Advertising, Publicity, Public Relations, and Sales Pro-
motion Strategies 399
Chapter Objectives 399
12-1 The International Promotional Mix 401
12-2 The International Communication Process 402
12-3 Advertising 405
12-3a The Media Infrastructure 405
12-3b The Advertising Infrastructure 413
12-3c The Advertising Strategy 416
12-4 Publicity and Public Relations 420
12-4a Publicity 422
12-4b Public Relations 424
12-5 Consumer Sales Promotion 429
12-5a Adaptation of Sales Promotion 432
12-5b The Online Venue for Sales Promotion 433
12-5c Legal and Ethical Issues in Consumer Sales Promotion 434
12-6 International Trade Promotion (Trade Shows and Exhibitions) 435
Summary 436
Key Terms 437
Discussion Questions 437
Chapter Quiz 438
Notes 440
Case 12-1 Selling the Donnelly Brand in Romania 443
Case 12-2 Promoting Coke in South Africa 445

International Marketing 6e -xi- Front Matter

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13. International Personal Selling and Personnel Management 449

Chapter Objectives 449
13-1 International Presence and Personnel Issues 450
13-1a Expatriates 454
13-1b Host-Country Nationals (Locals) 457
13-1c Another Alternative: Long-Distance International Selling 457
13-2 Managing International Employees 458
13-2a Managing Relationships 458
13-2b Understanding the International Buyer-Seller Relationship 458
13-2c Understanding Cultural Values and the Relationship between
Buyer and Seller 459
13-3 Successfully Managing Expatriates 460
13-3a Recruiting Expatriates 460
13-3b Attenuating Culture Shock 461
13-3c Training for International Assignments 463
13-3d Motivating Expatriates 463
13-3e Obstacles to the International Sales Mission 465
13-3f Repatriation Issues 467
Summary 468
Key Terms 468
Discussion Questions 469
Chapter Quiz 469
Notes 471
Case 13-1 Manufacturing in China: Information Technology Challenges 472
Case 13-2 The Expatriate Spouse: Managing Change 474
14. International Pricing Strategy 477
Chapter Objectives 477
14-1 Pricing Decisions and Procedures 478
14-1a Production Facilities 478
14-1b Ability to Keep Track of Costs 479
14-2 Environment-Related Challenges and Pricing Decisions 479
14-2a The Competitive Environment 479
14-2b The Political and Legal Environment 483
14-2c The Economic and Financial Environment 485
14-3 International Pricing Decisions 489
14-3a Price Setting 489
14-3b Aggressive Export Pricing 494
14-3c Penetration Pricing and Skimming Strategies 495
Summary 495
Key Terms 496
Discussion Questions 496
Chapter Quiz 497
Notes 498
Case 14-1 Travel Turkey: Pricing Decisions in a Changing Environment 500
Part 5 International Marketing Strategy: Implementation 504
15. Organizing and Controlling International Marketing Operations
and Perspectives for the Future 505

International Marketing 6e -xii- Front Matter

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Chapter Objectives 505

15-1 Organizing for International Marketing Operation
15-1a Factors in the Firm’s Environment 507
15-1b Factors within the Firm 508
15-2 Examining International Organizational Designs 508
15-2a The International Division Structure 509
15-2b The Worldwide Regional Division Structure 509
15-2c The Product Division Structure 510
15-2d The Matrix Structure 510
15-2e The Holacracy Structure 512
15-3 Controlling International Marketing Operations 512
15-3a Formal Controls 513
15-3b Informal Controls 514
15-4 International Marketing: Some Future Perspectives 514
Summary 518
Key Terms 518
Discussion Questions 518
Chapter Quiz 519
Notes 521
Case 15-1 Qantas’ New Organizational Design 521
Case 15-2 iPhone: A Gem – But Not without Controversy 523

Appendix A: The International Marketing Plan 527

Appendix B: Glossary 557
Appendix C: Index: Subject and Company/Brand 582

International Marketing 6e -xiii- Front Matter

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Preface
The sixth edition of International Marketing arrives at a time of considerable upheav-
al and uncertainty about international trade and globalization. The era of global trade agree-
ments and lower tariff barriers appears to be over – or, at minimum, this trend has stalled.
Notwithstanding that globalization and international trade were largely responsible for lift-
ing millions of people out of poverty, by 2016, trade and trade agreements had become
thorny political topics in Europe and in the United States. With the loss of so many manufac-
turing jobs in the U.S., trade had come to be considered as the main reason for the disap-
pearance of U.S. manufacturing jobs and the stagnation of middle class wages. In addition,
the global influence of multinational companies on local economies and government poli-
cies has become a major concern.
By late 2018, as the new edition of International Marketing was being finalized, the
U.S. and China were in the midst of a major rift over U.S. complaints about China’s trade
policies: unfair government subsidies, currency manipulation, and the theft of intellectual
property. Starting with U.S. tariff hikes on Chinese steel and aluminum exports, new tariffs
have been imposed by the U.S. on billions of dollars’ worth of Chinese goods. Not surpris-
ingly, this led to retaliatory tariffs by China on key U.S. exports. In addition, the U.S. finds
itself at odds with Canada and the European Union over trade and tariffs. The U.S. govern-
ment is also insisting on major changes to the NAFTA agreement with Canada and Mexico,
to reduce the current U.S. trade imbalances with the two countries. The U.S. has threatened
to pull out of NAFTA altogether if a satisfactory agreement could not be reached. Many
business leaders, academics, and public sector officials are worried about this escalation of
trade disputes. Some have suggested the possibility of an all-out global trade war, not seen
since the 1930s.
Notwithstanding these current controversies, international trade continues to grow.
People around the world seek expanded economic opportunities, improved standards of
living, and communities free from armed conflicts. Against this backdrop, the authors would
like to share a quote from one of the founders of the Thunderbird School of Global Manage-
ment.
“Borders frequented by trade seldom need soldiers.”
Dr. William Schurz, President
Thunderbird School of Global Management 1949-52
The sixth edition of International Marketing has been fully updated to provide anal-
yses about current economic and political challenges, trade disputes, and other develop-
ments in international marketing. In addition to updating the comprehensive materials
about multinational firms, the new edition features important discussions about interna-
tional marketing and small and medium-size exporting firms. The sixth edition also includes
new coverage on services exports and the booming international e-commerce and e-
payments sectors. The authors continue to expand the materials on international marketing
and developing countries, with a number of new illustrations focused on Latin America and
Africa.
All cases have been revised and updated to offer current company examples and
overviews of industry developments. Several new cases were added. Each chapter has at
least one case study that helps students apply the knowledge acquired in the chapter.
International Marketing reflects the authors’ teaching philosophy: presenting vivid,
real-world examples that help students to better understand international marketing theo-
ry. Professor Lascu shares her own perspectives as a product of different cultures who has

International Marketing 6e -xiv- Front Matter

 -xv-

experienced and observed marketing on five continents, both as an expatriate and as a lo-
cal, in a free-market system and under a repressive, anti- consumerist command economy.
Professor Hiller has substantial experience with international trade promotion, as well as
business and management in Latin America that complements Dr. Lascu’s research back-
ground and extensive work in Europe and Asia.

ANCILLARY MATERIALS
Textbook Media is pleased to offer a competitive suite of supplemental materials for
instructors using its textbooks. These ancillaries include a Test Bank, PowerPoint Slides, and
an Instructor’s Manual. This text comes with a test bank created by the author, and it in-
cludes questions in a wide range of difficulty levels for each chapter. All Textbook Media
test banks offer not only the correct answer for each question but also a rationale or expla-
nation for the correct answer and a reference to the location in the chapter where materials
addressing the question content can be found. The Test Item Files are available in files that
are readily adaptable to the major Learning Management Systems. The software files allows
the instructor to easily create customized or multiple versions of a test and include the op-
tion of editing or adding to the existing question bank.
A full set of PowerPoint® Slides, written by the author, is available for this text. This
is designed to provide instructors with comprehensive visual aids for each chapter in the
book. These slides include outlines of each chapter, highlighting important terms, concepts,
and discussion points.
The Instructor’s Manual for this book has also been written by the author and offers
suggested syllabi for 10- and 14-week terms; lecture outlines and notes; in-class and take-
home assignments; recommendations for multimedia resources such as films and Web sites;
and long and short essay questions and their answers, appropriate for use on tests.
The authors express their deep gratitude for the immense support received in the
process of developing the sixth edition of International Marketing. They would especially
like to thank Tom Doran and Ed Laube for their unrelenting support and creativity and for
their exacting oversight of this project for almost a decade. They would also like to thank
the instructors who have used previous editions. Dana Lascu expresses thanks to her family,
to Bram, Michael, and Daniel Opstelten, and to her parents, Lucia and Damian Lascu, for the
formidable international experiences that this book is based on and for creating and facili-
tating the foundations for this text. George Hiller would like to thank his wife, Laura, for her
support, and also to acknowledge his inspiring students and colleagues at the University of
Richmond.

International Marketing 6e -xv- Front Matter

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 -xvi-

About the Authors

Dana-Nicoleta Lascu is Professor of Marketing in the Mar-
keting Department at the University of Richmond. She has a Ph.D.
in marketing from the University of South Carolina, a master’s in
international management from the Thunderbird School of Global
Management, and a B.A. in English and French from the University
of Arizona. She was a Fulbright Distinguished Chair in International
Business at the Johannes Kepler University of Linz, Austria, and a
Fulbright Specialist at Ider University, Mongolia, from where she
holds an honorary doctorate. She is Associate Editor for the Journal of Global Marketing,
Managing Editor for the Journal of Global Business and Technology, and she is on the editorial
review board of several journals. She has published in International Marketing Review, Inter-
national Business Review, European Journal of Marketing, Journal of Business Research, Jour-
nal of Business Ethics, Journal of Euromarketing, Journal of East-West Business, and Multina-
tional Business Review, among others, and is the co-author of Marketing: Essentials 5e. Dr.
Lascu has consulted with companies such as Ford Motor Company, Stihl, IDV North America,
Yellow Book International and others, and was a simultaneous and consecutive translator in
English, French, and Romanian in Romania and Rwanda. She also worked as an international
training coordinator in the United States, teaching managerial skills to bankers, corporate
managers, and government employees.

George L. Hiller is a Lecturer of International Business at

the University of Richmond. He has almost 35 years of experience
in export promotion, trade finance, international trade law, and
economic development. He has served as an instructor at the Uni-
versity of Richmond business and law schools since 1991. He devel-
oped the Doing Business in Latin America course, an experiential-
learning course in which teams of business and law students de-
velop market entry strategies in Latin America for Virginia compa-
nies. He has also taught at universities in Colombia and Germany. Professor Hiller has re-
ceived numerous international business education grants from the U.S. Department of Edu-
cation, U.S. Department of Commerce, and other governmental and nongovernmental or-
ganizations. He also consults with colleges and universities on grant strategies. Originally
from Albuquerque, New Mexico, Prof. Hiller holds an undergraduate degree in history from
the University of New Mexico, master’s degree from the Thunderbird School of Global Man-
agement, and law degree from the University of Richmond School of Law.

International Marketing 6e -xvi- Front Matter

 Part 1

The Introduction to
International Marketing
 Chapter 1

Scope, Concepts, and Drivers

of International Marketing
Learning Objectives

Chapter Outline

Learning Objectives
1-1 The Importance of International Marketing
1-2 Levels of International Marketing Involvement
1-3 The Ethnocentric, Polycentric, Regiocentric, and Geocentric Framework
and International Marketing Concepts
After studying
1-3a Ethnocentric Orientation
this chapter, 1-3b Polycentric Orientation
you should be able to: 1-3c Regiocentric Orientation
1-3d Geocentric Orientation
1-4 Drivers of International Expansion
• Define international marketing
1-4a Drivers in the Business Environment
and identify the different levels
1-4b Firm-Specific Drivers
of international involvement.
1-5 Obstacles to Internationalization
1-5a Self-Reference Criterion
• Describe the different company
orientations and philosophies
1-5b Government Barriers
toward international marketing. 1-5c Ethnocentrism
1-5d International Competition
• Identify environmental and firm-
specific drivers that direct firms Summary
toward international markets. Key Terms
Discussion Questions
• Identify obstacles preventing Chapter Quiz
firms from engaging in successful Notes
international ventures. Case 1-1 Alpaca Luxe: Marketing Opportunities in the Emerging Market of
Mongolia
Case 1-2 Zhang National Steel Company
 Chapter 1 -3- Scope, Concepts and Drivers of
International Marketing

Shanghai Disneyland, which opened its

doors in 2016, cost over $5 billion to build. It is a
joint venture between Disney and the Shanghai
Shendi Group, a 100 percent state-owned enter-
prise, which owns 57 percent of Shanghai Dis-
neyland. This park has the largest castle in Dis-
ney’s history, a high-speed rail system, and a
large shopping center and it is expected to be
one of the most successful ventures in the Dis-
ney portfolio.
Disney’s experience in international mar-
kets is extensive, and the company’s
hard-learned lessons have paved the way to this
ArtisticPhoto/shutterstock.com
new enterprise. Over the years, Disney has readi-
ly applied its tried and true U.S.-centered formula to its international ventures: the mouse, Cinderel-
la, Main Street U.S.A., Frontierland, Adventureland, Tomorrowland, and, in 2018, Toy Story Land—in
other words, America and its present, past, and future in a cute package of several fun-packed
acres. This formula worked well in the United States and in Japan at Tokyo Disney Resort. However,
exporting the concept to France and Hong Kong was not an easy task. In Europe, consumers were
unhappy with the U.S. themes resonating exclusively throughout the park. Disneyland Resort Paris
had to reinvent Disney and adapt it to local preferences, creating entertainment based on European
fairy tales, serving food that would appeal to European consumers, and creating a more lax ap-
proach to the dress code for the park’s French staff. At the Hong Kong Disneyland, which opened in
2005, attendance fell short of expectations, with visitors complaining of mistreatment; the number
of attractions as well as size of the park were considered insufficient. Shortly after opening, during
the Chinese New Year, the park had to close due to ticketing problems, and ticket holders forced
their way in by storming through gates or climbing over them. Today, however, Hong Kong Disney-
land is thriving, and, along with Disneyland Paris and the Disneyland Resort in California, it leads in
the introduction of new rides and themes, such as Iron Man, and Star Wars Avengers and Marvel
superheroes.
Over the years, Disney’s internationalization strategy has changed from a blanket applica-
tion of its winning formula described above, to a greater localization and more precise targeting to
better serve consumers in its different markets, where environmental forces dictate distinct, region-
specific strategies.
This chapter introduces the different internationalization philosophies of international firms
and explores the motivations for going international, addressing the environmental and firm-
specific drivers of international expansion. It also provides an overview of the challenges and obsta-
cles encountered in international expansion.

1-1 The Importance of International Marketing

The United States constitutes one of the most important target markets in the world, con-
suming a high percentage of worldwide products and services; according to the World Bank, it is
the world’s largest consumer market. International firms are eager to invest in the U.S. – to the tune
of about to $4 trillion, employing more than 6 million Americans. But, as wealth is on the rise world-
wide due to rapid economic development, it is essential for U.S. companies to look beyond the Unit-
ed States for opportunities, and to tap into international markets to take advantage of global mar-

International Marketing 6e -3- Part 1

 Chapter 1 -4- Scope, Concepts and Drivers of
International Marketing

ket opportunities, to keep pace with competition, and to maximize the potential of their product
mix.
Throughout history, companies have become leaders of industry despite the smaller size
and limited markets of their home countries. It should be noted, however, that an international
presence was essential for their success. Take, for example, successful global companies from the
Netherlands, a small country in Western Europe, that are giants of industry worldwide. Among
them are Philips, a leading electronics manufacturer; Royal Ahold, a large retailer; Royal Dutch Shell,
a major Dutch-British oil company; and Unilever, a Dutch-British leading consumer products compa-
ny. Japan, also a comparatively small country, boasts a number of firms that are industry leaders.
Among them are Mitsui and Mitsubishi (electronics, banking, import-export, among others), Dentsu
(advertising), Sony and Panasonic (electronics), and Ito Yokado (retail).
International companies such as Apple, General Motors, Mitsubishi, Microsoft, and Procter
& Gamble earn profits greater than the gross domestic product of many low-income countries.
U.S.-based Fortune 500 companies employ almost thirty million workers around the world. More
than 300,000 US companies export. Nearly 98 percent of these firms are smaller and medium-size
companies (SMEs) with fewer than 500 employees.1 Companies find that products in the late stage
of their life cycle can experience a new life in emerging markets in middle-and low-income coun-
tries.

Avon in China
China may be the most difficult place to be an Avon Lady: The sign-up process takes many
weeks, and candidates must take a written test on China’s sales regulations and attend a related
class. Then they have to abide by many regulations, including a cap on sales commission. But be-
ing an Avon Lady is at least an option now: China lifted its ban on direct sales in 2005, after being
required to liberalize its retail industry.
In spite of these restrictions, however, Avon
has been doing reasonably well in China, reporting
double-digit increases in sales for the company, as it
changed gears to focus primarily on store sales – un-
til recently. In 2012, Avon was accused of breaching
the U.S. Foreign Corrupt Practices Act, promoting
their business interests by bribing Chinese govern-
ment officials. And its reputation suffered subse-
quently, when Coty, the fragrance company, re-
neged on a buyout offer. By 2015, Avon paid nearly
$350 million on legal challenges and compliance fees,
more than double the penalties it incurred. And yet,
despite these challenges, Avon has been able to pen-
etrate markets in large and small cities in even the
most remote areas in China. In Figure 1-1, an Avon
store in Lhasa, Tibet, has a prominent central loca-
tion and a local clientele vying for Western beauty
products.2 1.1 Avon display at 13,000 feet
in Lhasa, Tibet.

International Marketing 6e -4- Part 1

 Chapter 1 -5- Scope, Concepts and Drivers of
International Marketing

To excel in international business, companies must constantly monitor the international en-
vironment for opportunities. For over two decades, privatization in countries previously dominated
by government monopolies has made it possible for multinationals to compete for local energy,
airline, railway, and telecommunications industries. In the future, postal services might constitute
the new competitive territory of international companies. Already, in many markets, post offices are
enterprising competitors to established private sector firms, increasingly and effectively competing
not only for mailing services, but also for banking services.

1-2 Levels of International Marketing Involvement

All companies are affected by elements of the international marketing environment. In
terms of international marketing involvement, however, companies have different degrees of com-
mitment. A company engaging in domestic marketing has the least commitment to international
marketing. This company focuses solely on domestic consumers and on the home-country environ-
ment. The home-country environment, however, is affected by developments in the international
environment; furthermore, the local company is directly affected by local competition, which could
come from global companies. For example, Pep-Up, Inc. provides top-grade petroleum products,
including heating oil and propane, to customers living on the Eastern Shore of Virginia. The compa-
ny focuses entirely on local consumers living in the area. However, the price of its heating oil and
propane is affected by the price of oil and propane, which is determined by international markets.
At the next level, export marketing, a firm could be involved in exporting indirectly— the
company takes orders from international clients—or directly—the company actively seeks interna-
tional clients. For both export marketers and domestic marketers, the international market may
constitute an extension of the domestic market and might not be given special consideration. Such
firms would have an ethnocentric philosophy to internationalization, as will be shown in Section 1-
3a, “Ethnocentric Orientation.”
International marketing activities require a substantial focus on international consumers in
a particular country or countries. (When more countries are involved, international marketing is of-
ten referred to as multinational marketing.) International marketing is thus defined as the process-
es involved in the creation, production, distribution, promotion, and pricing of products, services,
ideas, and experiences for international markets. The international company (see Figure 1-2) is pre-
sent in different countries with sales offices and subsidiaries or is an active partner in strategic alli-
ances with local companies. It is important to note that, in this case, international activities are not
coordinated across the different countries or across different regions. An international company,
according to this definition, has a polycentric, or regiocentric, philosophy to internationalization, as
will be seen in Sections 1-3b, “Polycentric Orientation,” and 1-3c, “Regiocentric Orientation.”

1.2 Coca-Cola in Estonia

International Marketing 6e -5- Part 1

 Chapter 1 -6- Scope, Concepts and Drivers of
International Marketing

1-3 Consumers North America and Europe have a strong preferences for pastries – croissants, danishes,
brioches, you name it. Thus they are similar in preferences. Where they differ is in their tolerance for
high prices: in Berlin upscale stores (1-3a), such pastries are about $2.00, whereas in similar stores
in Helsinki (1-3b), they cost about almost $6.00.

Global marketing involves marketing activities across different countries without focusing
primarily on national or regional segmentation. Global marketing is possible due to the emergence
of global consumer segments with similar preferences (see Figures 1-3a and 1-3b) and due to effi-
cient global allocation of company talent and resources. A company engaging in global marketing
has a geocentric philosophy to internationalization.
It should be noted, however, that the terms defined in the preceding paragraphs are often
used interchangeably by nonbusiness and business alike—even by international managers. Interna-
tional, global, and multinational are used to refer to any company crossing borders, without particu-
lar reference to the global strategy used. The descriptions of the levels of international marketing
involvement should primarily guide one to understand when distinctions are made. Another widely-
used approach to distinguishing between companies’ international orientation and philosophy is
the ethnocentric, polycentric, regiocentric, and geocentric (EPRG) framework.

1-3 The Ethnocentric, Polycentric, Regiocentric, and Geocentric

Framework and International Marketing Concepts
Management’s orientation toward the internationalization of the firm’s operations affects
each of the functional areas of the firm and, as such, has a direct effect on the marketing functions
within the firm. Management’s philosophy on international involvement affects decisions such as
the firm’s response to global threats and opportunities and related resource allocation. Companies’
philosophies on international involvement can be described, on the basis of the EPRG framework,
as ethnocentric, polycentric, regiocentric, and geocentric.3

1-3a Ethnocentric Orientation

Eli Lilly has been described traditionally as an ethnocentric firm; in fact, even recently, in
2017, it cut jobs to divert more funds to product research and development in an effort to bring to
the marketplace high-performance pharmaceutical products. Firms with an ethnocentric orienta-
tion are guided by a domestic market extension concept. In general, top management of firms with
an ethnocentric orientation consider that domestic strategies, techniques, and personnel are supe-

International Marketing 6e -6- Part 1

 Chapter 1 -7- Scope, Concepts and Drivers of
International Marketing

rior to foreign ones and therefore provide the most effective framework for the company’s over-
seas involvement; consequently, international operations and customers are considered secondary
to domestic operations and customers.4
Ethnocentric firms are likely to be highly centralized and consider that the purpose of their
international operations is to identify markets that could absorb surplus domestic production; alter-
natively, international operations could represent a cash cow that generates revenue and necessi-
tates only minimal attention and investment. As a result, plans for international markets are devel-
oped primarily in-house by an international division and are similar to those for the domestic mar-
ket.5
Firms in the tobacco industry,6 as well as firms at the forefront of technology, tend to have
an ethnocentric marketing orientation. It should be mentioned that, often, ethnocentric firms ap-
proach globalization by internationalizing at the level of the function, rather than the firm; for ex-
ample, the marketing department may have a geocentric strategy even if top management has an
ethnocentric orientation.7 Alternatively, in the case of Wal-Mart, while merchandise is fully adapted
to local preferences, staffing clearly indicates an ethnocentric philosophy; top management come
from the company’s headquarters, in Arkansas.
In many cases, U.S. firms sell American brands along with their related U.S. lifestyles and
traditions—for example, blue jeans and entertainment are often marketed internationally using
marketing themes and strategies used in the U.S.

1-3b Polycentric Orientation

Firms with a polycentric orientation are
guided by a multidomestic market concept. Man-
agers of polycentric firms are very much aware
of the importance of individual international
markets to the success of their business and are
likely to establish individual businesses, typically
wholly owned subsidiaries or marketing subsidi-
aries, in each of the countries where they oper-
ate. The assumption the company makes is that
each market is unique and needs to be ad-
dressed individually. Consequently, the compa-
ny is fully decentralized and engages in minimal
coordination with the headquarters. rawpixel.com/shutterstock.com

Each subsidiary has its own marketing plans and objectives and operates autonomously as
an independent profit center on an individual country basis to achieve its goals; all marketing activi-
ties are performed in each country independently of the company headquarters.8 To address local
consumer needs, marketing research is conducted independently in each overseas market, and
products are fully adapted to meet these needs. Alternatively, separate product lines are developed
to meet the needs of the individual markets.
In the process of developing individual strategies for each market, the company does not
coordinate activities across the different countries and cannot benefit from economies of scale that
such coordination would allow. Furthermore, numerous functions are duplicated, and, ultimately,
final product costs are higher to the end consumer. For decades, Ford used a polycentric strategy in

International Marketing 6e -7- Part 1

 Chapter 1 -8- Scope, Concepts and Drivers of
International Marketing

meeting the needs of budget-conscious consumers by developing a Ford Escort automobile for the
United Kingdom that looked different from the one sold in the United States or Southeast Asia. 9
Currently, the Ford automobile addressing the needs of the budget-conscious consumer, the Ford
Focus, looks identical in each market: Ford has adopted a geocentric approach to product develop-
ment.

1-3c Regiocentric Orientation

Firms with a regiocentric or a geocen-
tric orientation are guided by a global marketing
concept. Companies adopting a regiocentric
orientation view world regions as distinct mar-
kets that share economic, political, and cultural
traits such that they would be viable candidates
for a regionwide marketing approach. A regio-
centric orientation is now possible due to the
success of regional economic and political inte-
gration that allows for implementing a uniform
marketing strategy in the entire region. Mem-
ber countries of the European Union, for exam-
rawpixel.com/shutterstock.com
ple, are candidates for Pan-European marketing
strategies, whereas signatory countries of the
North American Free Trade Agreement (NAFTA) lend themselves to a successful marketing strategy
aimed at the North American market. PepsiCo appears to have a regiocentric orientation; Its divi-
sions are organized on the basis of location, with regional offices coordinating all local marketing
activities. For example, Pepsi’s South-Eastern European operations are coordinated by its Turkey-
based PepsiCo subsidiary, which devises the company’s regional objectives and oversees the imple-
mentation of the company’s marketing strategy in the region.

1-3b Geocentric Orientation

Firms in which top management adopts a
geocentric orientation perceive the entire
world—without national and regional distinc-
tions—as a potential market with identifiable, ho-
mogeneous segments that need to be addressed
with similar marketing strategies, regardless of
geographic location or nationality. Coordinated
management policies are designed to reflect the
full integration among worldwide operations.
The objective of a geocentric company is
most often to achieve a position as a low-cost
manufacturer and marketer of its product line;
such a firm achieves a strategic competitive 1-4 McDonald’s restaurants pepper the landscape in
China, even in the more remote districts of large cities.
advantage by developing manufacturing process-
es that add more value per unit cost to the final product than its rivals.10 An example of a geocentric
company is McDonald’s (see Figure 1-4).
McDonald’s has been successful as a result of its geocentric philosophy. The company uses
local products to ultimately offer a similar service to consumers from Mexico City to Mumbai. In Eu-

International Marketing 6e -8- Part 1

 Chapter 1 -9- Scope, Concepts and Drivers of
International Marketing

rope, McDonald’s uses Polish potatoes, which do not lend themselves to a thin, McDonald’s-style
cut French fry but are touted to be the best in the region. It also uses local beef from the European
regions not affected or threatened by livestock disease. The company is also sensitive to the ban on
genetically-modified foods in the European Union. In India or Pakistan, for example, McDonald’s
serves lamb or vegetarian burgers. Throughout the world, it provides a uniform service that offers,
in addition to the fast food it is known for, clean restrooms, air conditioning, and service with a
smile—even in markets where a smile is a rare occurrence in a service encounter.

IBM
IBM has been going through massive reorganizations to keep abreast of the ever-
changing international market; IBM is a dynamic geocentric company. Under IBM’s old system,
a corporate customer with operations in several countries had to contract with small IBM offic-
es in each country, and each IBM office had its own regulations. The IBM organization was, at
the time, polycentric. The reorganization placed IBM’s
employees into 14 customer-focused groups, such as
financial services, entertainment, and oil and gas, to be
able to work with a central sales office to have IBM
computers installed in the entire client organization.
Organizing on the basis of function, rather than on
country of operations, demonstrates a geocentric mar-
ket orientation. Currently, the company’s main focus is
on what it considers its strategic imperatives, which
include analytics, cloud, mobile, social, and security
products. 11
humphrey/shutterstock.com

1-4 The Drivers of International Expansion

Few companies operate in an isolated, country-specific environment, and even fewer can
effectively avoid international involvement. Local firms manufacturing for local consumers are de-
pendent on equipment, parts, and raw materials originating abroad. They sell to clients and final
consumers who have had exposure to international trade practices and to international products. A
complete isolation from international influence is possible only in a closed environment such as
North Korea, where consumers are shielded from international influence.
Increasingly, companies cannot afford to avoid involvement in international marketing.
Avoiding international expansion could mean losing market share to competitors and missing nu-
merous opportunities created by changes in the international environment. Among reactive motiva-
tions for going international is the desire to remain competitive and maintain global market share
relative to competitors. In addition, evading trade barriers and other government regulations in the
home country can motivate a company to go international.
Firms should be proactive in their approach to internationalization. A proactive rationale for
internationalization can be, among others, the search for new markets, new customers, increased
market share and profits, tax advantages, or lower costs, as described in the next sections.
Drivers in the business environment and firm-specific drivers, addressed in Sections 1-4a,
“Drivers in the Business Environment,” and 1-4b, “Firm-Specific Drivers,” as well as Table 1-1, help
international companies benefit from such opportunities.

International Marketing 6e -9- Part 1

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dense black of her dress, and found himself wondering whether any
shimmer of colour would have become her half so well.
Towards the end of their journey together he was once
summoned to speak with her alone. It was about the forthcoming
book. Nothing could be more brief, more businesslike than her
words, more unemotional than her manner. She asked for his
instructions; she discussed, criticised, concurred. It was obvious
that, when she chose, her brain could act with quite remarkable
clearness. It was also obvious that she had completely capitulated to
his wishes; and yet never was victory more savourless.
At the conclusion of this conversation she settled with him that,
when she had accomplished her part of the task, she would send for
him. And as he withdrew, he felt himself dismissed from her
thoughts, except as a mere instrument in what now seemed more
her undertaking than his own. At heart he found it increasingly
difficult to accept the position with good grace.
After this, during the few days of ship life together left to them,
Lady Gerardine seldom admitted him to her company; and thus
Raymond was the more thrown with Aspasia. The girl,
unconventional by temperament and somewhat set apart by her
position of "Governor's niece," unhesitatingly profited by a situation
which afforded her unmixed amusement. She was not in love as yet
with the Major of Guides. Indeed, she had other and higher
ambitions. Aspasia's dream-pictures of herself were ever of a
wonderful artist of world-wide celebrity, surrounded by a sea of
clapping hands, graciously curtseying her thanks from the side of a
Steinway grand.... But Bethune interested her, and there was
something piquantly pleasant in being able to awaken that gleam in
his cold, light eye, in noticing that the lines of his impassive face
relaxed into softness for her alone.
One afternoon, as they sat on deck—the great ship cutting the
blue waters of the Adriatic, between the fading of a glorious red and
orange sunset and the rising of a thin sickle moon, Aspasia wrapped
against the chilly salt airs in some of her aunt's sables, out of which
richness the hardy, wild-flower prettiness of her face rose in
emphatic contrast—she told him the story of her short life.
She spoke of her musical career, of the bright student days at
Vienna; the hard work of them, the anguish, the struggle, the joy.
Then of the death of her mother, and the falling of all her high hopes
under the crushing will of Sir Arthur, her appointed guardian.
"When mother went," said Aspasia, "everything went." As she
spoke two tears leaped out of her eyes, and hung poised on the
short, thick eyelashes. "The Runkle thinks it's a disgrace for a lady to
do anything in life. 'And, besides,' he says, 'she can't, and she'd
better not attempt it.' But wait till I'm twenty-one," cried the girl,
vindictively, "and I'll show him what his 'dear Raspasia's' got in her!"
She smiled in her young consciousness of power, and the big
tears, detaching themselves, ran into her dimples. Raymond, looking
at her with all the experience of his hard life behind him, and all the
disillusion of his five-and-thirty years, felt so sudden a movement at
once of pity and tenderness that he had to stiffen himself in his seat
not to catch her in his arms and kiss her on those wet dimples as he
would have kissed a child.
"Oh, you'll do great things," said he, in the tone in which one
praises the little one's sand castle on the beach, or tin soldier
strategy. "And may I come with a great big laurel crown, tied with
gold ribbons, when you give your first concert in the Albert Hall?"
"Albert Hall," mocked she, "the very place for a piano recital!"
Then she let her eyes roam out across the heaving space. Once
more she saw herself the centre of an applauding multitude; but, in
the foremost rank, there was the lean, brown face, and it was
moved to enthusiasm, too. And, somehow, from that evening forth,
the dream-visions of her future glory were never to be quite
complete without it.

* * * * *

A mist-enwrapped, rain-swept shore, parting the dim grey sea and

sky in twain, was their first glimpse of England after years of exile.
"Ugh," said Aspasia, shivering, "isn't it just like England to go
and be damp and horrid for us!"
Lady Gerardine, looking out with eager straining gaze towards
the weeping land, turned with one of her sudden, unexpected
movements of passion upon the girl.
"I'm glad it's raining," she said. "I'm glad it's cold, and bleak,
and grey. I'm glad to feel the raindrops beating on nay face. I'm sick
of hard blue skies and fierce sunshine.... And the trees at Saltwoods
will be all bent one way by the blowing of the wet sea wind. It's
England, it's home; and, oh, I'm glad to be home!"

BOOK II
 CHAPTER I

Rosamond Gerardine and Aspasia Cuningham lay back, silent, each

in her corner of the railway carriage, while the English landscape
flew by them, wet and green and autumn brown, gleaming in a
fugitive yellow sunlight.
Aspasia still felt the pressure of Bethune's unconsciously hard
hand-grip. His image, as he had stood bareheaded looking after the
moving train, was still vivid before her eyes. His last words: "It is not
good-bye," were ringing in her ears. His face had looked wistful, she
thought; his cold glance had taken that warm good look she claimed
as her own. She was glad it was not good-bye. And yet, as they
steamed away, she, watching him as long as she could, saw, and
could not hide it from herself, that it was upon Lady Gerardine his
eyes were fixed at the last—fixed with an expression which had
already become familiar to her. "One would think he hated her—
sometimes," said shrewd Baby to herself, "and yet, when she's
there, he forgets me. I might as well be dead, or a fright."
This puzzled her and troubled her, too, a little. She glanced
across now at her aunt's abstracted countenance. "I am sure," she
thought, in loyal admiration, "if he were madly in love with her, it
would be only natural. But it's not love—it's more like hate and a
sort of pain." With all her sageness, Baby was only eighteen.
How completely had Raymond Bethune passed from Lady
Gerardine's mind—even before he had passed from her sight!
She had nearly reached the end of her journey. The burning
land she had left behind her—once the land of her desire—seemed
now but a place visited in long evil dreams, where she had
undergone unimaginable sufferings during the bondage of sleep.
The humid air of England beat upon her face through the open
window with a comforting assurance as of waking reality.
She had told herself she was travelling with her dead. Never for
one hour of her long journey had she forgotten the meaning of that
box under Jani's care. But, with every sunrise that marked a wider
distance between her and India, she drew a freer breath. With every
stage she felt herself less Lady Gerardine, wife; and more Mrs.
English, widow. There was beginning to be an extraordinary
restfulness in the sensation.
They sped through the New Forest glades, sodden after the
rain, now flashing gold-brown with that shaft of sun; now black-
green, cavernous, mysterious, where the pines grow close. And then
came the moorland stretches, reaching up to a pale-blue cleft in the
storm-weighted clouds. How cool it all was! How soft the colours!
How benign the wet sky, how different from the metal glare of the
land that had betrayed her!
And, by-and-by, white gleams of sunshine began to deepen into
primroses and ambers; towards the west the sky grew ever clearer,
and the leaden wrack, parting, showed an horizon like to a honey
sea against the rising mists of evening. How beautiful was England!
When they got out at the little country station, in the rural heart
of Dorset, the day was closing in. The vault of the heavens brooded
over the earth with a cup-like closeness. November though it was,
the air struck upon their cheeks as gently as a caress, all
impregnated with the fragrance of wet green indefinably touched
with the tart accent of decay.
 Rosamond drew a long deep breath; it had a poignant pleasure
in it; tears sprang to her eyes, but, for the first time in God knew
how many years, there was a sweetness in them. Jani at her elbow
shivered with an aguish chatter of teeth. With one hand she clutched
her shawls across her little lean figure; with the other she held on
fiercely to a battered tin box.
"Oh, Aunt Rosamond," cried Aspasia, ecstatically, as they got
into the vehicle awaiting them, "it's a fly, it's a fly! Aren't you glad?
Do you smell the musty straw? Oh! doesn't it bring back good old
times? Don't you wish you may never sit in a state carriage again?"
It was a long drive, through winding lanes. Sometimes they
strained uphill, sometimes they skirted the flat down; sometimes the
branches of the overhanging trees beat against the roof of the
carriage or in at the open window. At first the whole land was
wonderfully still. They could hear the moisture drip from the leaves
when the horses were at the walk. And, by-and-by, there grew out
of the distance the faint yet mighty rumour of the sea. Within such
short measure, then, this small, great England was meeting her salt
limits! Across the upland down, presently, even on this silent
evening, there rose a wind to sing of the surf. The trees by the
roadside, in the copses amid fields, on the crest, etched against the
glimmer of the sky, had all that regular inland bent that tells of salt
winds.
At last the rickety fly began to jingle and jolt along a road that
was hardly more than a track. The way dipped down an abrupt slope
and then branched off unexpectedly into a side lane. Rosamond
leaned out of the window; she felt they were drawing near her
unknown home.
 "Are we there?" cried Aspasia, entering into a violent state of
excitement as they came to a halt before a swing gate.
Rosamond did not answer. She was looking with all her eyes,
with all her heart. Sudden memories awoke within her—words,
never even noted to be forgotten, began to whisper in her ears:
"You never saw such a place, love. It isn't a place, it's a queer old
house dumped down in a hollow of the downs. And the avenue—
there isn't an avenue, it's a road through the orchard, and the
orchard comes right up to the house—and you never saw such a
bunch of chimney-stacks in your life. But such as it is, I love it. And
some day we'll go and live there, you and I...." Here, then, were the
orchard trees, twisted shapes, stretching out unpruned branches to
them as they passed!
"I almost plucked an apple," cried Aspasia, from her side, with a
childish scream.
The sky was rift just about the horizon—the afterglow primrose
against the sullen gloom of the cloud banks. Cut into sharp
silhouette against this pallid translucence, rose the black outline of
the house and right across it the fantastic old-time chimney-stack, at
sight of which Rosamond laughed low to herself as one who
recognises the face of a friend. "You never saw such a bunch of
chimney-stacks in your life!..."
A faint column of smoke ascended pale against the gloom
where the chimneys lost themselves in the skies. As Rosamond
noted it, her heart stirred; all was not dead then—the old house, his
house, was alive and waiting for her!
They drew up close to the stone porch, open to the night, flush
with the level of the out-jutting gables, and the driver, plunging into
the black recess, sent the jangle of a bell ringing through inner
spaces. In the waiting pause all was very silent, save the stealthy
patter from the overgrown ivy clumps that hung across the entrance.
There was a rustle, the hop of an awakened bird, quite close to
Rosamond's ear, as she leaned out with the eagerness that had been
growing upon her ever since her landing.
Then came steps within: the door was opened first but a little
space, with the habitual precaution of the lowly caretaker, then
suddenly drawn wide. A square of light that seemed golden was cut
out of the darkness, and:
"You're welcome, ma'am," cried old Mary, tremulously
smoothing her apron.
Lady Gerardine passed with fixed eyes and straight steps into
the hall, but she turned quickly as the words struck her ear. Aspasia,
following, saw her face illumined by a smile that was almost joy. And
the girl became secretly a little alarmed; her aunt's ways had been
all inexplicable to her of late.
Rosamond's heart was crying out within her, and it was with
actual joy. "Welcome, ma'am," had said his servant—to old Mary the
mistress of Saltwoods was Captain English's widow—even to herself
might she not now cease to be Lady Gerardine for a brief respite?
Oh, then would the manor-house be home indeed!
A great sense of peace, accompanied by a sudden lassitude, fell
upon her; she sank into an armchair, flinging her arms wide with a
gesture of relief. Opposite to her was a sturdy oaken table, upon
which the housekeeper had just placed a hand-lamp. The light fell
full upon a rack displaying a hunting-crop, a couple of rough
walking-sticks; above, there was the sketch of a boy's face. Her gaze
wandered, without at first taking in the meaning of what it saw.
Noise resounded from the porch; it was Jani, struggling with the
coachman for the possession of the old regimental case.
Rosamond looked quickly up again at the bright living
presentment on the wall; then she rose to her feet and staggered
blindly through the nearest door. There, in sheltering darkness,
Aspasia promptly overtook her, and was terrified, as she clasped her
warm young arms round her aunt's figure, to find it torn by sobs.
"Let me be, let me be!" exclaimed Lady Gerardine, pushing the
girl from her, "it is good to give way at last."
And Aspasia, pressing her face in wordless attempt at
consolation against her aunt's cheek, found it streaming with a very
torrent of tears.

* * * * *

"Ah," said old Mary, shaking her head, as Miss Cuningham presently
besought her for the feminine panacea of tea, "poor lady, it's no
wonder: he was a grand young gentleman!"
It was, indeed, evident that here Lady Gerardine could never be
anything but Captain English's widow.

CHAPTER II

The manor-house was very old and very solid. It held nothing of any
high value, perhaps, but it held nothing cheap or weak. It was
complete before the days of machine-made furniture and of so-
called æsthetic art, and those that had ruled over it since had been
withheld by innate taste or a happy lack of means from adding to it
either within or without. Thus it had remained at a standstill through
an extraordinary lapse of years, and all was now beautifully, frankly
old; it stood in its simplicity, perfect in antique shabbiness. Only
without, the creepers flung ever new shoots about the sturdy
strength of the stones. Only within, it was haunted by a memory, by
a presence; and this presence was young even to boyhood. And the
young ghost harmonised with the aged house, seemed to belong to
it as surely as—year by year—the spirit of spring to the ancient
garden.
Rosamond, whose life purpose had so long been to avoid the
haunting of the past, awoke in the dawn of her first day at
Saltwoods to find herself in a very habitation of memories; nay,
more, to feel, in some inexplicable manner, that the dead were more
alive in this house than the quick, and yet—strange mystery of the
heart—that she was glad of it. She watched the dawn wax as on one
memorable morning in her far-off Indian palace; not here on
beetle's-wing green and eastern glow of carmine and purple, but
upon brown of wainscot oak and dim rosebud of faded chintz. And,
as the lights spread between the gaps of the shutters, there grew
upon her from the panelled wall a strong young face with bold wide-
open eyes—eyes very young, set under brows already thoughtful. A
very English face, despite the olive of the cheek, the darkness of the
hair, close-cut, that still had a crisp wave under the cock of the
Sandhurst cap.
 "I felt I was not alone," said Rosamond, half in dream,
supporting herself on her elbow to look more nearly, "and so it was
you!"
But the eyes were gazing past her, out on life, full of eagerness.
And the close lips were set with a noble determination. What great
things this boy soldier was going to make of his future!
Rosamond let herself fall back upon her pillows, something like
a sob in her throat. Then, opposite to her, between the windows,
she met full the glance of the same eyes that had but now avoided
hers. They were child's eyes this time, gazing, full of soft wonder,
out of a serious child's face, framed by an aureole of copper curls—
the wonderful tint that is destined to turn to densest black.
Rosamond stretched at ease, resting her eyes on those of the
lovely child's—childless woman, who had never desired children,
began to picture to herself how proud a mother would be of such a
little son as this. And then her mind wandered to the mother, who,
lying where she now lay, had feasted her waking heart and gratified
her maternal pride, so many mornings with this vision.
Then something began to stir in her that had not yet stirred
before; an inchoate desire, an ache, a jealousy; yes, a jealousy of
the dead woman who had borne such a child! She turned restlessly
from the sight of the two pictures, flung herself to the far side of the
bed, and sent her glance and thought determinedly wandering into
the recess of an alcove where night still kept the growing light at
bay.
A drowsiness fell over her mind again; with vague interest she
found herself speculating what might the different objects be that
the darkness still enwrapt partly from her sight.
 Here was a high chair of unusual shape—a Prie-Dieu? Here was
a gothic bracket, jutting from the wall above; thereon something
glimmered palely forth; a statuette perchance, or alabaster vase of
special slender art? Nay, not so, for now she could distinguish the
wide-stretched arms, the pendant form; it was the carven ivory of a
crucifix. The late Mrs. English's shrine, her altar? Rosamond's
interest quickened—she had heard of this unknown relative's
goodness from the son's lips, but had never heard this goodness
specified as regarded religion. His mother, then, had been High
Church ... Roman Catholic perhaps? Rosamond was almost amused,
with the detached amusement of one to whom religion means little
personal.
Under this impulse of curiosity she rose from her bed, pulled the
window shutters aside to let in the day, and then went back to
examine the alcove.
It held a shrine indeed, an altar to inevitable sacrifice, to the
most sacred relics. Beneath the pallid symbol, figure of the Great
Renunciation, was placed a closed frame. And all around and about,
in ordered array, the records of a boy's life: medals for prowess in
different sports; a cup or two; a framed certificate of merit; in front
of the frame, a case bulging with letters. Upon each side of the altar
hung shelves filled with books, some in the handsome livery of
school prizes, some in the battered covers of the much-perused
playroom favourite.
Rosamond stood and looked. A moment or two she hesitated,
then she began to tremble. There was within her the old desire of
flight, the old sick longing to hide away, to bury, to ignore. But
something stronger than herself held her. The day was past when
she could deny herself to sorrow. The cup was at her lips and she
knew that she must drink.
She would open that letter-case, she would gaze at the face in
the closed frame; her coward heart was to be spared no longer.
She took up a volume. As it fell apart she saw the full-page
book-plate engraved with the arms of Winchester School and the
fine copperplate inscription:
Anno Sæculari 1884
Præmium in re Mathematica
Meritus et consecutus est Henricus English.
(Hæc olim meminisse juvabit).
The life of Christopher Columbus.... It was bound in crimson
calf, and the gilt edges of its unopened pages clung crisply together.
She replaced it on the shelf and, with the same dreary
mechanical determination, drew forth another. The "Boy's own
Book"; a veteran, this; from too much loving usage, dogs'-eared,
scored with small grimy finger-prints; its quaint woodcuts highly
coloured here and there by a very juvenile artist.
"To Henry English, on his ninth birthday, from his affectionate
mother," ran the dedication, in a flowing Italian hand. A gift that had
made a little lad very happy, some twenty-five years ago.
And now Rosamond's fingers hovered over the case of letters.
Well did her heart forebode whose missives lay treasured there.
Nevertheless, the sight of the handwriting struck her like a stab. Not
yet could she summon strength to read those close-marked pages.
Nay—were they even hers to read?
"Darling old Mammy—" this was not for her.
 Yet she turned the sheets over and over, lingering upon them.
Here was an envelope, endorsed in the same fair running hand as
the book: "My beloved son's last letter." And here, on a card, was
gummed a piece of white heather—memorial of God knows what
pretty coquetry between the stalwart soldier and his "darling old
Mammy."
What things must people live through—people who dare to love!
Rosamond had never loved. Had she not done well? When love
offered itself to her she had been too young to know its face. And
now.... She dropped the case from her hands as if it burnt her, and
stood, poised for flight; then, as if driven by an invincible force,
seized upon the closed frame, almost with anger. Fate held her, she
could not escape.
Harry English, looking at her! Not the child, not the adolescent,
but Harry the man as she, his wife, had known him. Even through
the incomplete medium of a photograph, the strong black and white
of his colouring, the bold line of his features, the concentrated
purposeful expression, was reproduced with an effect of
extraordinary vitality.
It seemed almost impossible to think of him as dead who could
look at her so livingly from this little portrait.

* * * * *

Old Mary came in hurriedly.

"Here I am, ma'am, here I am! I heard you call."
Rosamond lifted dazed eyes. It took a perceptible space of time
for the meaning of the words to filter to her brain. Then she said
with vague impatience:
 "I did not call."
"But you wanted me, surely," said the woman. Her glance
wandered from the portrait in her new mistress's hand to the
disorder on her old mistress's altar. "Surely you wanted me, ma'am."
She took a warm wrapper from the bed and folded it round
Lady Gerardine. She supported her to an armchair and placed a
cushion to her feet. The ministering hands were warm and strong;
and Rosamond felt suddenly that in truth she was cold and weak,
and that these attentions were grateful to her. She looked up again
at the withered face, ethereally aged, at the blue eyes that seemed
illumined from some source not of this world.
"Perhaps I did want you," she said.
A thin, self-absorbed, silent woman was old Mary. She regarded
the world as with the gaze of the seer and moved within the small
circlet of her duty wrapped in a mystic dignity of her own. Some held
her in contempt, as madwoman; others in awe, as having "seen
things."
If the manor-house had the reputation of being haunted, it was
doubtless due to Mary's ways. No one from the neighbourhood
would have consented to inhabit the ancient place with her. But
fortunately Mary had a stout niece of her own, who averred that
ghosts were indigestion, and who slept the sleep of the scrubber and
the just, no matter what else might walk.
The housekeeper's strange eyes softened as she looked down
into the fair pale face of her young master's widow.
"My dear lady that's gone," she said, "must be glad to know
that there is another heart keeping watch here."
 Her voice was soft and had a muffled sound as of one used to
long silence. The tone seemed to harmonise with the singularity of
the words. A small cold shiver ran over Rosamond; she stared
without replying.
"The day the news came," proceeded the housekeeper,
dreamily, "she set up that altar to him. And there she found peace."
As old Mary spoke, the habit of the trained servant was still
strong upon her. She stooped to tuck in the fold of Rosamond's
dressing-gown closer round her feet.
"There she prayed," she went on, as she straightened herself
again, "and then, he came back to her in peace."
Rosamond closed the frame in her hands with a snap. She felt
every impulse within her strike out against the mystic atmosphere
that seemed to be closing round her.
"What are you saying?" she cried sharply. "In Heaven's name
what do you mean? Who came back—the dead?"
Old Mary smiled again. She bent over the chair.
"Why, ma'am," she said, as if speaking to a frightened child,
"you don't need to be told, a good lady like you: to those that have
faith, there is no death."
"No death!" echoed Rosamond. "All life is death. Everything is
full of death."
There was a strangling bitterness in her throat that broke forth
in a harsh laugh. The placid room seemed to swim round with her;
when she came to herself the servant was holding her hands once
more. Her voice was falling into her ears with a measured soothing
cadence:
 "Not here. There is no death in this house. Don't you feel it,
ma'am? It's not death that is here. Why, her that is gone, she
passed from me there, in that bed, as the night passes into day.
That is not death. Not an hour before the summons came for her
she was wandering—as the doctor called it. I knew better. She saw
him and was speaking to him. 'Ah, Harry,' she says, joyful, 'I knew
you were not dead.' And then she turns to me. 'He is not dead,
Mary,' she says, 'it was all a mistake.'"
Rosamond listened, her pale lips apart, her gaze dark and
wondering.
"Why, ma'am," went on old Mary. "Haven't you felt it yourself,
this night; didn't you feel his sweet company the minute you set foot
in the house? I think it was my lady's great love that brought him
back here. And now that she is gone, he's still here. And it's strange,
he's here more than she is. She does not come as he does."
Her eyes became fixed on far-off things. Still clasping
Rosamond's hand she seemed to transmit a glow, a warmth that
reached to the heart. Rosamond's sick and cowering soul felt at rest
as upon a strength greater than her own.
His company! Was that not what she had felt? Was it not that to
which she had awakened? Ay, the old woman was right: it was
sweet!
"There is no death," asserted old Mary, once again, "no death
unless we make it. It's our fault if our dead do not live for us; it's our
earthly bodies that won't acknowledge the spirit. It's we who make
our dead dead, who bury them, who make corpses of them and
coffins for them, to hide them away in the cold earth."
 Rosamond wrenched her hands from the wrinkled grasp. She
sprang to her feet, seized by a sudden anguish that was actual
physical pain.
"Go, go!" she cried wildly. She was caught up as in a whirlwind
of unimaginable terror. What had she done? Had she laid Harry
English in the grave? Was he dead to her through her own deed, he
that had lived on for his mother? Had she in her cowardice
hammered him into his coffin, and would he always be a corpse to
her because she had made him dead?
Through the inarticulate voices of her torment, she heard the
door close and felt she was alone. And then she found herself upon
her knees before the shrine, the photograph case still clenched
between her fingers, praying blindly, madly, inarticulately—to what?
she knew not. To the white Christ on the cross, who had risen from
the dead? Or to the strong soldier whose image she held, and for
whom there could be no rising again?
When the storm passed at length she was broken, chilled, and
unconsoled. Old Mary's words came back to her: "She prayed there
and she got peace." Well, the mother may have found peace in
prayer. But for the wife, there was none! "He came back in peace";
he had not come back to her—to Rosamond, his wife!
A wave of revolt broke over her; against the God who had
invented death for his creatures, or against stupid blind fate
disposing of those human lives that have no God.
She rose slowly to her feet; her glance swept the homely room
—the bed where the mother had died—to end once again upon the
altar. What right had she, the old woman, to lay claim to Rosamond
English's husband? The babe, the boy, may have been hers, let her
have him! But the man—the man belonged to the wife. "And ye shall
leave father and mother and cleave to one." "There is authority for it
in your very scriptures," cried Rosamond, aloud. And, with fingers
trembling with passionate eagerness she set to work to rob the
frame of its treasure, the shrine of its chief relic.
Soon it lay in her hand, the clipped photograph. She carried it
away, from the altar to the window, and stood a long, long while,
devouring it with her gaze. So had he looked. No man had ever
bolder, truer eyes. Ah, and no woman but Rosamond had seen them
flame into passion—passion that yet then had had no meaning for
her who saw! And those lips, folded into sternness, had any one
known them to break into lines of tenderness as they were used for
her? None at least, not even his mother, had heard them whisper
what they had whispered to the wife—to the wife whose ears had
been deaf, then, as a child's, because of her uncomprehending
heart!
What was it old Mary had said? "It is we who make our dead
dead." And had he lived on in this house because of the love of a
withered heart, and should he not live again for her, his wife who
was young and strong—and still virgin to love?
What she had buried she would dig out of the earth again, were
it with bleeding fingers. That voice should speak once more, were
each accent to stab her with its poignancy of loss. He should live,
were it to be her death.
With dilated nostrils, panting for breath, her hair floating behind
her, beautiful in her thrall of passion like some Valkyrie rising over
blood and death, she rushed to the door and summoned Jani with
ringing call. There is an exaltation of spirit to which pain is highest
joy, and Rosamond ran now to her sorrow as the mystic to his cross.
"Jani!" she called. "Bring me Captain English's box."

CHAPTER III

The days dropped into the cup of time; measures of light and shade,
of waxing and waning, ushered in with pale winter dawns, huddled
away in rapid gloomy twilights, according to the precise yearly
formula.
But to Rosamond these hours in the forgotten old manor-house
on the moorlands, where the winds were the only visitors, brought
so great a change that it was as if a gate had been shut upon her
former road.
A common prate is that Time works the changes in us. And
when we look from the child to the man, it would seem absurd even
to raise the question. Yet it is not time that works the mightiest
changes. Nay, in the world of the soul time but emphasises. The
great upheavals that obliterate in our lives all familiar landmarks—
that do alter everything down to our most intimate capacity of
feeling, are sometimes but the work of one instant. It is not time
that ravages, it is not time that draws the wrinkle seared into the
heart; not to time do we owe the spread of the grey, instead of the
gold that used to colour the web of existence. A man may carry the
singing soul of his April to the death-bed of his old body. Yet again
the heart may wither in a span so short as scarce to be measured.
 And sometimes a change, so complete that even within our own
soul we find ourselves suddenly on foreign ground, will come
without any striking external event, without any apparent outside
reason. In the life of the soul a crisis has occurred—and lo! the very
world of God is different. Nay, God himself is another to us.
During these short wind-swept November days in the green and
brown manor-house, there, amid the solitary downs, did such a
change come to Rosamond. Had she tried, she could scarce have
found her old self again. But she did not try; for this new self was at
peace, was wrapped in dreams of great sweetness, and yet awake to
a life hitherto not even guessed at.

* * * * *

In the attic room that had been Harry's own, she sat alone. A furious
shower was pattering on the tiles close over her head, a drenched
ivy spray was beating against the gable window like a frantic thing
that wanted shelter, a pair of sparrows were answering each other
with defiant chirrup. Far below in the house, Aspasia was lustily
calling upon a recreant kitten. In the moorland silence these few
trivial sounds became insistent, and yet seemed but to assert the
silence itself.
She was seated at the wide battered old writing-table which
schoolboy Harry English had scored with penknife and chisel, burned
and inkstained. Before her a small writing-desk was spread open,
and two or three letters lay loosely under her clasped hands. Her
eyes were musingly fixed upon the rain-beaten pane with the
knocking ivy branch; her lips were parted by a vaguely recurrent
smile. And, as the smile came and went, a transient red glowed
faintly upon her cheeks.... The world for her now was not upon the
edge of winter: it was spring. She was not Rosamond Gerardine, out
of touch with life, she was not Rosamond English, widow—she was
Rosamond Tempest, maid once more, on the threshold of her life, at
the April of the year. And Harry English was her lover. And yet she
was a Rosamond Tempest such as he had never known—such a
Rosamond Tempest as had never yet existed.
She took the letter that lay uppermost to her hand. It was dated
Saltwoods. Written here—at this very desk, no doubt. Perhaps with
this very ivory penholder, fluted, yellow, stained, while he sat in this
same Windsor chair.... Unconsciously she caressed the worn wooden
arms whereon his arms must have rested. Then again she set
herself to read:—
"Saltwoods, 19th April."
On that April 19, all those years ago, he was thinking of her,
writing to her! And she—so many miles away, shut in by the
dreariest prison walls fate had ever built round a young impatient
soul—had then not the faintest hint of her deliverer's approach.

DEAR MISS TEMPEST,—I dare say you have quite

forgotten me. I was the youngest griffin, just before
the old Colonel's death. I hope you will not think it a
great impertinence in me to write like this to you; but
my leave is up in a week or so, and I don't like to leave
England without having seen your father's daughter
again. I can never forget how kind he was to me—and
your mother too. It made all the difference to me;
 such a young fool as I was, and so new to India and
everything. I find I know some of the fellows at Fort
Monkton, and I'm going to stop there a few days. May
I call—and if so, when? Yours sincerely, HARRY
ENGLISH. P.S.—I've only just found out where you are.

To Rosamond—most unwilling inmate in a household where, if she

was not actually a burden, the smallness of her pittance rendered
her certainly no material gain—this letter had brought a sort of
vision of the past, a gleam of bygone light which made the present
even more intolerable by contrast. It had been something to her to
think that she should meet some one at last belonging to her old
life, some one who had known her in those glamorous years of her
happiness, some one straight from the magic shores that had held
her in her happy years.
From eight to sixteen had Rosamond Tempest spent her life
between the little hill station, the refuge of their hot season, and the
historic old northern town where her father's duty lay—a sort of little
Princess Royal, with a hundred devoted slaves and a score of gallant
young courtiers, the imperious favourite of the whole station, native
and white alike.... Oh the rides in the dawn! oh the picnics by
moonlight! the many-coloured, vivid days that went with such swing,
where every man almost was a hero, where the very air seemed full
of the romance of frontier fights, of raids, and big game hunts, of
"Tiger, tiger, burning bright" in jungle haunts! ... It had been surely
the cruellest stroke of fate that had thrust the little spoilt girl, the
beloved only child, from this pinnacle of bliss and importance!
Between one day and another Rosamond had become the
penniless orphan, whom nobody wanted ... whom it was so kind of
Major and Mrs. Carter to escort back to England, whom it was
almost superhumanly good of Uncle and Aunt Baynes to admit into
their family.
"A self-centered child," said Mrs. "General Baynes." "A cold-
blooded little wretch," opined her cousins. Well, it was a fact that,
during the four years that elapsed between her departure from India
and the receipt of Captain English's letter, Rosamond had not given a
human being one word, one look in confidence....
Late April on the Hampshire coast, with the gorse breaking into
gorgeous yellow flame, honey-sweet in the sunshine; with the white
clouds scurrying across a blue sky, chased by the merriest madcap
wind that ever scampered; with the waves breaking from afar off,
dashing up a thousand diamonds falling over and over each other in
their race for the beach, roaring on the shingle in clamorous good-
fellowship, the foam creaming in ever wider circles. And, across the
leaping belt of waters, green and amber and white, the island,
flashing too: the windows and roofs of the happy-looking town
throwing back the sun glances, set in smooth slopes, mildly radiating
green, like chrysoprase and peridot....

* * * * *

Rosamond had dropped the letter from her hand; again she was
dreaming. Not the plaint of the November wind round the gable roof
of Saltwoods in her ears, but the chant of this April chorus on
Alverstoke beach. Not the monotonous ting of Aspasia's finger
exercise from the room below, but the irregular boom and thud of
gun practice far out at sea, brought in by the gust. And the voice
that fell into silence so far away between the wild Indian hills was
speaking to her again. And she heard, heard for the first time....
Rosamond Gerardine, virgin of heart through her two marriages,
was being wooed! And the virgin in her was trembling and troubled,
as womanhood awoke.... He held her hands and looked into her
eyes. His cheeks were pale under their bronze, his lips trembled
—"Could you trust me? Do you think me mad? I've only known you
four days, but I've dreamt of you, all my life.... Rosamond!"
The sea wind was eddying round them, the grasses at
Rosamond's feet were nodding like mad things in the gusts. Her hair
was whipped against her face. So, on this English shore, with the
taste of the salt in their mouths, with the wild salt moist winds all
about them—this Englishman wooed this English girl, to come away
and be his love in the burning East. Yes, she could trust him. Who
could look into his true eyes and not trust him? But then it was the
thought of the East, the East of her lost childhood's joy, that won
her. Now, back in England's heart, from an East abhorred, to the
loathing as of blood and cruelty, it was the lover, it was the love!
Again she felt the touch of his first kiss. He had sought her lips,
but she had turned her cheek. Now—the blood rushed up into her
face; her heart beat faster, almost a faintness crept over her. She
dropped her head upon her outstretched arms, her burning cheek
upon his letter ... again his strong arms held her.

* * * * *
Once more they parted at the gate of the house that was her prison.
He was going back to India in ten days, and she would go with him,
confidently, gladly!
She walked up the path between the straggling wallflowers, the
pungent marigolds, into the mean narrow hall. Then her only
thought had been of sailing away from that sordid genteel abode,
back to fair India, the land of her dreams. Now—now, as across
these years she re-lived that great day of her youth, her heart was
swooning over the memory of his kiss; her brain was filled with a
vision of his tender trembling lips; of the light in his eyes as he
looked back at her, of the swing of his broad shoulders as he
rounded the crescent towards the fort.

* * * * *

Miss Aspasia Cuningham was in a decidedly bad temper. To be home

again, in England, to have unlimited opportunity of working out the
Leschetizky method on a superfine Steinway piano, the most
complete immunity from interfering uncles, from social duties,
philistine secretaries and attaches, appeared a most delightful
existence—in theory. But, in practice it was dull. Yes, dull was the
word.
With four fingers pressing four consecutive notes while the
remaining digit hammered away, vindictively, at the fifth; with
pouting lip out-thrust, she had reached the point of telling herself
that even India was better than this.
"Horrid place," ran Baby's angry cogitation, while the finger
conscientiously drummed, "nothing but those stupid trees and that
deadly moor, and the birds' chirp, chirp, and not a neighbour within
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