International Marketing
Day 3
Click to edit Master subtitle style to trade
Barriers
Examples of barriers to trade
How to lower the barriers
How to avoid the barriers
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Barriers to trade
• 1. Geography
• 2. Duties for import and for export
• 3. Taxes
• 4. Import/Export licensing
• 5. Currency regulations
• 6. Language
• 7. Quality demands and standards
8. Culture
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The production model
Production
Raw material
Labor Manufactured goods
Capital
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Different barriers for the factors of production
Geography v
Duties for import and for
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Globalization a continuous process
that continuous
Stage 1
Raw-
material
Components
Semi processed Machinery
material financial
services
Consumer
goods
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services

Globalization a continuous process
that continuous
S
Stage 2
Components
Raw-material
Semi processed
material
Machinery
financial services
Consumer
goods
Other
services
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Globalization a countinous prosess
S
Sta
Stage 3
Components
Raw-material
Semi processed material
Machinery financial services
Consumer goods
Other services
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Company motives for international
operations
• Economic motives
• Non economic motives
• Other motives?
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Economic motives
1. Growth, based on
Excess of personnel, capital raw-material,
know-how etc. or company ethics.
2. Profit opportunities
3. Vertical protection of raw material supply
4.Horisontal protection, market expanssion
5. Economy of scale – large production
6. Adjustment to changing market situations
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Non economic motives
1. Philanthropic, welfare distribution
2. Personal goals, CEO likes to travel, Sales
manager wants to outplace difficult sales
personnel.
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Other motives?
1. The internal growing forces in the
organization, Parkinson's law.
2. Trail and error.
3. Aim for power among individuals and or
groups of personnel within the organization
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