MBA 523 Chp. 2 with Duane Weaver

20 th -21 st Century – Marketer’s Global Perspective Balance of Payments Protectionism Easing Trade Restrictions International Monetary Fund (IMF) and World Bank Group (WBG) Protests (global institutions) OUTLINE

What impact do marketing Decisions have on the ability to Globalize? E.G.: Pringles and the U.S. market approach to advertise as a “potato chip” vs. U.K. VAT taxation on potato products? Can you think of other examples from your country? How has the global economy changed for marketers since 100 years ago? 20th -21st Century – Marketer’s Global Perspective –

The ∆ between receipts and payments An economic impact between countries that impacts our ability to market Globally? HOW? WHAT IMPACTS DOES THIS HAVE TO YOU AS MARKETER IN REGARDS TO : THE MARKETING MIX? Balance of Payments

Infant industry? Home market? Keep money at home? Capital accumulation incentives? Maintain standards of living? Conserve Natural Resources? Industrialization? Employment Rates Up? National Defense? Business Size? Retaliation and Bargaining? Protectionism – WHY? Benefits? Risks?

Trade Barriers Tariffs Quota and Import Licenses Voluntary Export Restraints Boycotts and Embargos Monetary Barriers Standards Antidumping Penalties Domestic Subsidies and Economic Stimuli Protectionism Types Advantages and Disadvantages to Marketers?

GATT (agreement US +22) WTO (institution – broader than GATT) IMPACT? BENEFIT OR NOT FOR MARKETERS? HOW? Easing Trade Restrictions

IMF - ”Stabilization of foreign exchange rates and freely convertible currencies” clean float dirty float SDRs (spec. drawing rights) WBG - ”reduce poverty & improve. Std. of Living” International Monetary Fund (IMF) & World Bank Group (WBG)

Unintended Consequences of Globalization lead to REVOLT! Environmental Exploitation of Workers Job losses domestically Cultural erosion/extinction Higher Energy Costs Loss of Sovereignty Protests (global institutions) As global Marketers How Could you use this Movement to your Advantage?? ….does it increase or decrease costs? Hmmmmm…..?!!!

Thanks for your Time! LET’S LOOK AT A CASE THANK YOU!