MARK 201 Chapter Notes - Chapter 16: Foreign Exchange Controls, Global Marketing, Income Distribution
14 Dec 2016
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MARK 201
Chapter 16
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The Global Marketplace
Global marketing today
Global firm: a firm that, by operating in more than one country, gains R&D, production,
marketing, and financial advantages in its costs and reputation that are not available to purely
domestic competitors
Looking at the global marketing environment
The international trade system
•Government may charge tariffs or duties: taxes on certain imported products
•Countries may set quotas: limits on the amount of foreign imports
•Firms may encounter exchange controls: limit the amount of foreign exchanges
•Companies may face nontariff trade barriers
-The World Trade Organization
•Replaced GATT
•Promotes world trade
•Reassess trade barriers
•Imposes trade sanctions
•Mediates trade disputes
-Regional free trade zones
•Certain countries have formed free trade zones or economic communities: a group of
nations organized to work toward common goals in the reputation of international trade
•Examples: European Union, NAFTA, Trans-Pacific Partnership
Economic environment
Two economic factors reflect the country’s attractiveness as a market
-Industrial structure
•Subsistence economies: the vast majority of people engage in simple agriculture and they
consume most of their output (few market opportunities)
•Raw material exporting economies: much of their revenue comes from exporting one or
more natural resources (good markets for large equipment)
•Emerging economies: industrialization creates a new rich class and a growing middle
class
•Industrial economies: major exporters of manufactured goods for raw materials
-Income distribution
•Industrialized nations may a wide range of income
•Subsistence economies — mostly households with very low family incomes
•Emerging economies may be attractive markets for all kinds of goods
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Global rm: a rm that, by operating in more than one country, gains r&d, production, marketing, and nancial advantages in its costs and reputation that are not available to purely domestic competitors. The world trade organization: replaced gatt, promotes world trade, reassess trade barriers, imposes trade sanctions, mediates trade disputes. Regional free trade zones: certain countries have formed free trade zones or economic communities: a group of nations organized to work toward common goals in the reputation of international trade, examples: european union, nafta, trans-paci c partnership. Two economic factors re ect the country"s attractiveness as a market. Income distribution: industrialized nations may a wide range of income, subsistence economies mostly households with very low family incomes, emerging economies may be attractive markets for all kinds of goods. Each country has its own folkways, noms and taboos. Must understand how culture affects consumer reactions. Must understand how their strategies affect local cultures.
