Barriers to Trade

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International Industrial Marketing lecture in NTUU KPI by Carl-Axel Engdahl. Course AI213V.

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Barriers to Trade

  1. 1. 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 7.10.09
  2. 2. 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 •7.10.09
  3. 3. The production model Production Raw material Labor Manufactured goods Capital 7.10.09
  4. 4. Different barriers for the factors of production Geography v Duties for import and for 7.10.09
  5. 5. Globalization a continuous process that continuous Stage 1 Raw- material Components Semi processed Machinery material financial services Consumer goods 7.10.09 Other services
  6. 6. Globalization a continuous process that continuous S Stage 2 Components Raw-material Semi processed material Machinery financial services Consumer goods Other services 7.10.09
  7. 7. Globalization a countinous prosess S Sta Stage 3 Components Raw-material Semi processed material Machinery financial services Consumer goods Other services 7.10.09
  8. 8. Company motives for international operations • Economic motives • Non economic motives • Other motives? 7.10.09
  9. 9. 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 7.10.09
  10. 10. Non economic motives 1. Philanthropic, welfare distribution 2. Personal goals, CEO likes to travel, Sales manager wants to outplace difficult sales personnel. 7.10.09
  11. 11. 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 7.10.09

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