Class #3: Country Branding

What is country branding from a business point of view (not tourism)?

The reputation, image, or perception of a country among people who matter economically — citizens, investors, firms, talents, and visitors.

What two elements form a country brand?

Identity + Reputation.

Why is country branding relevant for international business?

Because it directly affects investment attraction, exports, talent inflow, trust, and competitiveness.

How did competition between countries start historically?

Through hard power — military domination and conquest.
Example: Napoleon using war to dominate Europe.

What replaced hard power in modern country competition?

Soft power — influence through attractiveness rather than force.

What are the main tools of soft power?

Investment attraction, export promotion, culture, tourism, education, and diplomacy.

Give examples of successful soft power strategies.

• South Korea (K-culture, K-pop, cinema)

• Japan (“Cool Japan” strategy)

Why is traditional advertising ineffective for country branding?

Because declaring “we are cool” triggers disbelief.

Who strongly criticized country branding through advertising?

Simon Anholt.

What is Simon Anholt’s core idea?

If a country claims it is attractive through ads, people often believe the opposite — credibility comes from actions, not slogans.

What is anchoring bias in country branding?

A single negative memory about a country can shape perceptions for decades.

Why is country image extremely hard to change?

Because negative perceptions are deeply anchored and reinforced over time.

How long does it take to fix a damaged country image?

Years — sometimes generations.

How is a country similar to a product brand?

A country makes a promise, delivers an experience, and leaves a memory.

What major event illustrates countries branding themselves as products?

World Expos (e.g. Expo 2020 Dubai).

What role do export brands play in country image?

They act as ambassadors of quality and values.
Examples:

• 🇳🇴 Norwegian salmon

• 🇸🇪 IKEA

How does sports performance affect country branding?

It creates strong symbolic associations.
Examples:

• 🇯🇲 Jamaica → sprinting

• 🇰🇪 Kenya → marathon

• 🇳🇿 New Zealand → rugby

How can politics influence country image?

Political instability or crises damage credibility and trust.
Example: Argentina.

Why are national stereotypes important in branding?

They simplify perceptions and are hard to reverse, even if inaccurate.

What role does word of mouth play?

It is often more powerful than official communication.

How does personal experience influence country image?

First-hand experience strongly reinforces or contradicts stereotypes.

Why does citizen behavior matter?

Citizens act as informal brand ambassadors abroad.
Example: French behavior in Australia harming France’s image.

What is the “Made in” effect?

The perception of product quality based on country of origin.

Which countries are associated with high quality?

France, Germany, Switzerland.

Which countries are associated with low price?

China, Vietnam, Bangladesh.

What is cultural diplomacy?

Using culture, education, and language to influence foreign perceptions.

Give examples of cultural diplomacy institutions.

• British Council

• Institut du Monde Arabe (Paris)

How do global brands contribute to country branding?

They transfer national associations to products.
Examples:

• Adidas 🇩🇪

• Nike 🇺🇸

• Reebok 🇬🇧

Why is Jaguar an interesting branding case?

It keeps a British identity despite being owned by Tata (India).

What is the difference between identity and image?

• Identity = how a country sees itself

• Image = how others see it

Give an example of strong identity but bad image.

Turkey — negative external image, but strong internal and diaspora identity.

How can diaspora help country branding?

By acting as cultural and economic bridges.
Examples: Turkey 🇹🇷 and Mali 🇲🇱 in France.

What is the identity–image gap?

The difference between a country’s real identity and how it is perceived.

Why is this gap often negative?

Because clichés and stereotypes dominate external perceptions.

What is the main goal of country branding?

Reduce the identity–image gap.

What does “People” mean in country branding?

Reputation for competence, education, openness, and friendliness.
First contact matters (custom officers, taxi drivers).

What does “Governance” measure?

Commitment to democracy, justice, environment, and social progress.

Commitment to democracy, justice, environment, and social progress.

How consumers perceive products and services from a country.

What does “Tourism” measure in a business sense?

A country’s attractiveness, not volume.
Example: Luxembourg → more business than tourism.

What does “Culture & Heritage” include?

Heritage + contemporary culture (film, music, sport).
Example: South Korea via Squid Game.

What does “Investment & Immigration” reflect?

A country’s ability to attract talent, capital, students, and workers.
Example: Lebanon — more citizens abroad than inside the country.

What cannot be changed in nation brand identity?

History, language, geography, political past, major sports culture.

What connects identity to image?

Communicators of nation-brand identity (brands, people, media, diplomacy).

Who forms the nation brand image?

Domestic and foreign consumers, companies, investors.

Give an example of a firm shaping country image.

Vinted improving Lithuania’s modern tech image.

What is commoditisation risk in country branding?

When destinations or countries become interchangeable.
Example: “Any island” → Dubai logic.

Why is distinctive positioning essential?

Without it, countries lose value and bargaining power.

Which strategy offers stronger positioning?

High-end cultural or selective tourism.
Example: Bhutan.

What does personifying a country mean?

Embodying the country brand through personalities, symbols, or narratives.

What is a “super-brand country”?

A country that uses organized soft power to highlight positives and hide darker aspects — similar to corporate branding.

What does “selling a country and a product” mean?

Promoting national image and exports simultaneously.

What is the Nation Brand Index?

A ranking measuring country reputation across 6 dimensions.

What are the 6 dimensions of the Nation Brand Index?

• Exports

• Tourism

• People

• Culture

• Governance

• Immigration & Investment

What is the key exam message on country branding?

Country branding is long-term, strategic, credibility-based, and driven by actions, people, and products — not advertising.