Presentation of marketing topic for Foundations of Marketing

1. Global Marketing
By: Jacqueline Stockman

2. About Global Marketing
• Global Trade accounts for 25% of U.S.
GDP
• Helps businesses expand and survive
in competitive marketplaces
• Builds employment

3. NAFTA
• World’s largest free trade area
• Connects 450 million people
•Member economies generate $20.8
trillion in GDP

4. NAFTA PROS AND CONS
Advantages
 Quadrupled trade between
Canada, Mexico, and the US
 Increased economic output
 Created jobs
 Foreign direct investment
tripled
 Lowered prices
 Helped with government
spending
Disadvantages
• Loss of 500,000-750,000 U.S. jobs
• Suppressed wages
• Put Mexican farmers out of
business
• Substandard working conditions
• Degraded Mexican environment
• Allowed Mexican trucks access to
the U.S

5. Protectionism
•Safeguards key industries from
foreign industries
• Typically done through tariffs or
quotas
Tariff- tax for certain goods and
services
Quota- limits on the quantity of
imported products

6. Global Entry Marketing Strategies
• Companies must decide how to enter
the market
• Four basic ways
Exporting
Licensing
Joint Venture
Direct Investment

7. Exporting
• Firm produces goods in one country
for sale in another country
• Least risky approach
• Lower financial commmitment
• Lowest profit potential

8. Licensing
• Organization allows another to use
their trademark/patent/trade
secret/etc for a fee or royalty
• Riskier than exporting
• Useful if purchaser of license has a
large market share in desired entry
market

9. Joint Venture
• two companies join together to share
ownership and control
• Risk and profits are shared equally

10. Direct Investment
• Investing or owning a foreign division
• Highest profit potential
•Riskiest option
• Highest financial commitment

11. Works Cited
• Amadeo, K. (n.d.). 6 Pros and Cons of NAFTA.
<https://www.thebalance.com/nafta-pros-and-cons-3970481>
• Boone, & Kurtz. (2015). Contemporary Marketing (17th ed.). Cengage
Learning.
• Market Entry Strategies. (n.d.). < http://www.tradestart.ca/market-entry-
strategies >