Global Marketing #1

Global Markets World Trade:: Globalization of Markets: Trade between countries has increased 2-fold, but it’s not equal between all countries Globalization of Markets: The merging of historically distinct and separate national markets into one huge global marketplace The movement towards Global markets is known as Globalization. Instead of having just one designated market in one country, the whole world has become a potential market for companies to sell their goods and services in. As well, markets are not distinct anymore, they are starting to merge together as the people within those markets are starting to develop a similar culture and taste for products. This is called the Globalization of Markets.

The World is Shrinking Because of: Internet – use for research, shopping online Mobile phones and networks Planes – different methods of transportation Email TV ads YouTube and Netflix What are some examples of technology in particular that has changed the way we do business and market products? Emails of promotions and sales Online purchasing/shipping Websites like ebay where can sell goods anywhere in the world Can communicate quickly and easily with people around the world, including sales people, market research, etc. Can get goods from one place to another easily with transportation we have now

Global Marketing Environment Don’t write North American Free Trade Agreement (NAFTA): Made between Canada, USA, and Mexico in 1994 Lifted many trade barriers between Canada, the United States and Mexico. Now almost all tariffs are gone. Don’t need to write

Global Marketing Environment Don’t write European Union (EU) 27 member countries in Europe Free flow of G&S between these member countries 12 of these countries have single currency (Euro) Asia-Pacific Economic Corporation (APEC) 21 member countries worldwide (including Canada and the US) To promote economic growth in the Pacific Rim (ie. China, Japan) Don’t need to write Not in EU: Switzerland, Norway, Iceland, etc.

Global Marketing Environment European Union (EU) Norway Iceland Switzerland

Global Marketing Environment

Global Marketing Environment Don’t write The World Trade Organization (WTO): An international agency (1995) Encourages trade between member nations, administers global trade agreements and resolves disputes when they arise. Helps trade and reduces tariffs and other international trade barriers There are 159 participating member states and 25 observer governments Don’t need to write

Global Marketing Environment Protectionism: Practice of shielding 1 or more sectors in the country’s economy from foreign competition To allow ‘fair competition’ between imported and domestic goods They include tariffs, quotas or embargos. Need to write There is a lot of controversy between these and a lot of pros and cons. Just need to know that one taxes goods when they are coming into a country, and the other allows goods to cross borders freely. Free Trade: Products are able to cross borders with no tariffs, embargos, or quotas

Global Marketing Environment Don’t write Tariff: A tax on imports going in and out of a country (though more frequently goods coming in) Because it’s an added cost, the price of the product/service to the consumer increases Revenue is collected by the federal government Are decreasing as countries move more towards free trade zones Don’t need to write

Global Marketing Environment Don’t write Quota: A limit on the quantity of goods that can be produced abroad and domestically Sets a physical limit on the quantity of the good that can be imported into the country in a given period of time Aims to increase domestic production Don’t need to write

Global Marketing Environment Don’t write Embargo: The partial or complete prohibition of trade with a country This is done to make a statement, punish, try to force policy change, or to protect the country enforcing the embargo The US has an embargo with Cuba; the EU and US have an embargo on China (for arms); Japan has been embargoed worldwide for animal products due to radiation from the 2011 earthquake Don’t need to write This is economic. Blockade is an act of war. STOP – do tariff activity

Complete the tariff activity for tomorrow. To be done on your own!!!! STOP – do tariff activity