trade

1. MBA 523
Chp. 2
with Duane Weaver

2. • 20th -21st Century – Marketer’s Global Perspective
• Balance of Payments
• Protectionism
• EasingTrade Restrictions
• International Monetary Fund (IMF) and World Bank Group
(WBG)
• Protests (global institutions)
OUTLINE

3. What impact do marketing Decisions have on the ability
to Globalize?
• E.G.: Pringles and the U.S. market approach to advertise as a “potato
chip” vs. U.K.VAT taxation on potato products?
• Can you think of other examples from your country?
How has the global economy changed for marketers since
100 years ago?
20th -21st Century
– Marketer’s Global Perspective –

4. The ∆ between receipts and payments
An economic impact between countries that
impacts our ability to market Globally?
• HOW?
• WHAT IMPACTS DOESTHIS HAVE TOYOUAS MARKETER IN
REGARDSTO :
THE MARKETING MIX?
Balance of Payments

5. • Infant industry?
• Home market?
• Keep money at home?
• Capital accumulation incentives?
• Maintain standards of living?
• Conserve Natural Resources?
• Industrialization?
• Employment Rates Up?
• National Defense?
• Business Size?
• Retaliation and Bargaining?
Protectionism –WHY?
Benefits?
Risks?

6. • Trade Barriers
• Tariffs
• Quota and Import Licenses
• Voluntary Export Restraints
• Boycotts and Embargos
• Monetary Barriers
• Standards
• Antidumping Penalties
• Domestic Subsidies and Economic Stimuli
ProtectionismTypes
Advantages and
Disadvantages
to Marketers?

7. • GATT (agreement US +22)
• WTO (institution – broader than GATT)
IMPACT? BENEFIT OR NOT FOR MARKETERS?
HOW?
Easing Trade Restrictions

8. IMF - ”Stabilization of foreign exchange rates and freely convertible currencies”
clean float
dirty float
SDRs (spec. drawing rights)
WBG - ”reduce poverty & improve. Std. of Living”
International Monetary Fund (IMF)
& World Bank Group (WBG)

9. Unintended Consequences of Globalization lead to REVOLT!
• Environmental
• Exploitation ofWorkers
• Job losses domestically
• Cultural erosion/extinction
• Higher Energy Costs
• Loss of Sovereignty
Protests (global institutions)
As global Marketers How Could
you use this Movement to your
Advantage??
….does it increase or decrease
costs?
Hmmmmm…..?!!!

10. Thanks for your Time!
LET’S LOOK AT A CASE
THANKYOU!