International marketing 2 : International Trade


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International marketing 2 : International Trade

  1. 1. Chapter 2: The Dynamic Environment of International Trade Sakinah Shukri @MSUmalaysia
  2. 2. Trade : Transfer of ownership of goods from one person to another by getting something in exchange from buyer  International Trade: beyond national boarders  Why we need International Trade -Globalize our product -Demand from other country -Competition 
  3. 3. ents/webcontent/tg_ian_003364.pdf
  4. 4.     The system of accounts that records a nations international financial transactions. Maintained on a double entry bookkeeping Transaction is annually and need to be balanced International Economic Position (central bank, gov agency, treasuries )
  5. 5. 1.Current Account (Value.of Company) exports, imports, service to transfer fund activity 2.Capital Account Direct investment, portfolio investment, short term capital movement 3.Reserves Account Export and imports of gold Foreign exchange & liabilities
  6. 6. A Economic policy of retraining trade to protect the infant market It will help to protect fair competition between goods and services  8 Policies
  7. 7.         Protect of infant industry Protect home market Need to keep money at home market Encouragement of capital accumulation Maintenance of the standard of living and real wages Conservation of natural resources National Defense Bargaining
  8. 8. Government establish the barrier, control activity  Tariffs  Quotas  Voluntary Exports Restraints (VER)  Boycotts and embargoes  Monetary Barriers  Standards  Anti dumping penalties
  9. 9. 1. 2. 3. 4. 5. 6. Tariffs- tax imposed by a government on goods entering at its borders Quotas- specific unit or dollar limit applied to a particular of goods Voluntary Export Restraints- Similar to quotas but follow market agreement (Textile) Boycott and Embargoes- gov restriction against a particular product Monetary Barrier- through blocked currency and exchange rate Standards- protect and check quality and health
  10. 10.    New anti dumping penalties had emerged to form a new tariff and non tariff. Keeping foreign market out of a market “Predatory market”- a foreign producer intentionally sells its product in the United States for less than the cost of production.
  11. 11. General Agreement on Tariffs and Trade 1. Trade shall be conducted on a non discriminatory basis 2. Protection shall be afforded to domestic industries through customs tariffs 3. Consultation shall be the primary method used to solve global trade problems -legal basis for further negotiations and aimed eliminating barriers
  12. 12.  - - World Trade Organization Sets many rules governing trade Provide a panel exports to hear and systemize rules Issues binding decision Equal representative Bond their market and open more activity
  13. 13. Global Institutional  Help to maintain stability in the financial markets and by assisting countries that are seeking economic development and structure  Stabilize foreign exchange rate  Promote growth international trade 
  14. 14.  1. 2. 3. 4. 5. Reduce poverty and improve standard of living Lending money to gov Assistance to gov development project Lending money to private sector Provide investor “non commercial risk” Promote growth of international investment
  15. 15.    WTO _e/tif_e/org6_e.htm Sak.Onkvisit., & John J.Shaw.,(2009) International Marketing: Strategy and theory.5th edn.Milton Park.Routledge df (Trading between Develop and Developing Countries)