© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 7-7 FIGURE 7-1 FIGURE 7-1 Illustrative world trade flows for manufactured goods and commodities (billions of dollars)

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin DYNAMICS OF WORLD TRADE Slide 7-8 Competitive Advantage of Nations  Porter’s Diamond of National Competitive Advantage Demand Conditions Related and Supporting Industries  Economic Espionage Act (1996) Economic Espionage Act (1996) Factor Conditions Company Strategy, Structure, and Rivalry

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 7-9 FIGURE 7-2 FIGURE 7-2 Porter’s diamond of national competitive advantage

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin MARKETING IN A BORDERLESS ECONOMIC WORLD Slide 7-13 Decline of Economic Protectionism  Protectionism Protectionism  Tariffs Tariffs  Quota Quota  World Trade Organization (WTO) World Trade Organization (WTO)

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 7-14 FIGURE 7-3 FIGURE 7-3 How protectionism affects world trade

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin MARKETING IN A BORDERLESS ECONOMIC WORLD Slide 7-16 Rise of Economic Integration  European Union  North American Free Trade Agreement (NAFTA)  Asian Free Trade Agreements Euro

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 7-17 FIGURE 7-4 FIGURE 7-4 The countries of the European Union in 2005

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin MARKETING IN A BORDERLESS ECONOMIC WORLD Slide 7-21  Global Companies A New Reality: Global Competition among Global Companies for Global Consumers International Firms Multinational Firms Transnational Firms Global Brand Global Brand  Global Marketing Strategy Global Marketing Strategy  Multidomestic Marketing Strategy Multidomestic Marketing Strategy

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 7-22 FIGURE 7-A FIGURE 7-A Global companies and marketing strategies

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin MARKETING IN A BORDERLESS ECONOMIC WORLD Slide 7-23  Global Consumers Global Consumers A New Reality: Global Competition among Global Companies for Global Consumers Emergence of a Networked Global Marketspace

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin MARKETING NEWSNET The Global Teenager—A Market of 500 Million Consumers with $100 Billion to Spend Slide 7-24

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 7-25 Nestlé Website for Peru What is a global marketspace?

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin A GLOBAL ENVIRONMENTAL SCAN Slide 7-29 Cultural Diversity Foreign Corrupt Practices Act (1977) Foreign Corrupt Practices Act (1977)  Cultural Symbols Cultural Symbols Semiotics Semiotics  Cross-Cultural Analysis Cross-Cultural Analysis  Values Values  Customs Customs

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 7-30 FIGURE 7-B FIGURE 7-B Cultural appreciation

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin FIGURE 7-5 FIGURE 7-5 How purchasing power differs around the world Slide 7-37

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 7-43 FIGURE 7-6 FIGURE 7-6 How purchasing power differs around the world

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin MARKETING NEWSNET Slide 7-44 Creative Cosmetics and Creative Export Marketing in Japan

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 7-48 Frito-Lay in Israel What global market-entry strategy and why?

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 7-52 FIGURE 7-7 FIGURE 7-7 Five product and promotion strategies for global marketing

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 7-53 Gillette For Women Venus Why use an identical global message for Greece, Germany, and the U.S.?

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 7-55 FIGURE 7-8 FIGURE 7-8 Channels of distribution in global marketing