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Transcript
of
MARKETING
Chapter
20
Global
Marketing
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Objectives
1. Discuss some of the fundamental concepts that underlie
international business.
2. Identify aspects of marketing strategy that are important in the
global marketplace.
3. Outline the environment for international business.
4. Explain how the marketing mix may be affected by competition
in a global environment.
5. Outline various approaches to global marketing that are taken
by companies.
6. Discuss the various modes of entry into international markets.
7. Discuss the different types of trade agreements.
8. Discuss NAFTA.
20-1
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Balance of Trade and Payments
Balance of Trade
• The relationship between a country’s
exports and its imports.
Balance of Payments
• The flow of money into or out of a
country.
20-2
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Exchange Rate
• The rate at which a nation’s currency
can be exchanged for other currencies
or gold.
20-3
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Devaluation
• Situation in which a nation reduces the
value of its currency in relation to gold
or some other currency.
20-4
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Revaluation
• Situation in which a country adjusts the
value of its currency upward.
20-5
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Absolute Advantage
• A nation has an absolute advantage in
the marketing of a product if it is the
sole producer or can produce a product
for less than anyone else.
20-6
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Comparative Advantage
• A nation has a comparative advantage
if it can produce a given product more
efficiently per unit of output than it can
produce other products.
20-7
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Company Approaches to Global
Marketing (1 of 2)
• Ethnocentric Company
– Firm that assumes that its way of doing business in
its home market is the proper way to operate, and
tries to replicate this in foreign markets.
• Polycentric Company
– Firm that assumes that every country is different
and that a specific marketing approach should be
developed for each separate country.
20-8a
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Company Approaches to Global
Marketing(2 of 2)
• Regiocentric Company
– Firm that recognizes that countries with
similar cultures and economic conditions
can be served with a similar marketing mix.
• Geocentric Company
– Firm that develops a marketing mix that
meets the needs of target consumers in all
markets.
20-8b
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Modes of International Activity
•
•
•
•
•
•
Indirect Exporting and Importing
Direct Exporting and Importing
Licensing
Joint Venture
Foreign Production and Marketing
Multinational Enterprise
20-9
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Indirect International Trade
• Exporting and/or importing only
through other domestic companies that
trade internationally.
20-10
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Direct International Trade
• Exporting directly to markets and/or
importing directly from suppliers in
other countries.
20-11
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Licensing
• Granting authority to produce and sell
a product developed in one country in
another.
20-12
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Joint Venture
• A partnership of firms from different
countries, often to set up a local
business in a country that is foreign to
one of the partners.
20-13
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Direct Investment
• The ownership and management of
production and/or marketing facilities in
a foreign country.
20-14
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Multinational Corporation (MNC)
• A corporation that produces and
markets goods and services in several
countries.
20-15
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Culture
• An integrated system of learned
behaviour patterns that are
distinguishing characteristics of the
members of any given society.
20-16
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Local Content Laws
• Laws specifying the portion of a
product that must come from domestic
sources.
20-17
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Cartel
• The monopolistic organization of a
group of firms.
20-18
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Friendship, Commerce and
Navigation (FCN) Treaties
• Treaties that address many aspects of
commercial relations with other
countries; such treaties constitute
international law.
20-19
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
World Trade Organization (WTO)
• The international body that deals with
the rules of trade between nations.
20-20
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Principles of the Trading System
•
•
•
•
•
Without discrimination
Freer
Predictable
More competitive
More beneficial for less developed
countries
20-21
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Integration of World Markets (1 of 2)
• Free Trade Area
– Areas established by agreement among two
or more nations within which participants
agree to free trade of goods and services
among themselves.
• Customs Union
– Agreement among two or more nations that
establishes a free trade area, plus a uniform
tariff with nonmember nations.
20-22a
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Integration of World Markets (2 of 2)
• Common Market
– A customs union that also allows factors of
production such as labour, capital, and
technology to flow freely among members.
• Economic Union
20-22b
– A common market that also requires
members to harmonize monetary policies,
taxation, and government spending. In
addition, a common currency is used by
members.
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
North American Free Trade
Agreement (NAFTA)
• The agreement establishing a free
trade area among Canada, the United
States, and Mexico that followed the
FTA.
20-23
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Free Trade Agreement (FTA)
• The agreement establishing a free
trade area between Canada and the
United States that preceded NAFTA.
20-24
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Trade Restrictions
• Tariff
– A tax levied against products imported
from abroad.
• Import Quota
– A limit set on the amount of products that
may be imported in a certain category.
• Embargo
20-25
– A complete ban on importing a particular
product.
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Tariff
• A tax levied against products imported
from abroad.
20-26
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Import Quota
• A limit set on the amount of products
that may be imported in a certain
category.
20-27
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Embargo
• A complete ban on importing a
particular product.
20-28
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Exchange Control
• Requirement that firms gaining foreign
exchange by exporting must sell their
foreign exchange to the central bank or
agency, and importers must buy
foreign exchange from the same
organization.
20-29
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Dumping
• Practice of selling products at
significantly lower prices in a foreign
market than in a nation’s own
domestic market.
20-30
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Global Marketing
Chapter
20
Import Quota
• A limit set on the amount of products
that may be imported in a certain
category.
20-31
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.