1. THE INTERNATIONAL TRADING ENVIRONMENT ch2/ Session 2

2. GLOBAL TRADE FLOWS ch2/

3. PERCENTAGE OF THE TOTAL OF WORLD EXPORTS IN MERCHANDISE (2007) ch2/ Country Germany United States China Japan France Netherlands Britain Italy Canada Belgium Percentage % 9.3 8.7 7.3 3.4 4.4 3.9 3.7 3.5 3.4 3.9 Source: WTO.org

4. % Changes On Previous Year: CONSUMER PRICES AND REAL GDP/GNP 2007 ch2/ Country Argentina Australia Belgium Brazil Canada China Czech Rep France Germany Hong Kong India Italy Japan Malaysia % inflation rate 9.8 2.8 1.8 3.7 2.0 2.1 3.3 1.4 1.4 2.5 6.1 1.9 0.4 3.4 % growth rate 6.3 2.9 2.1 3.3 2.4 10.4 4.8 2.0 1.6 5.0 9.2 1.2 1.9 5.2 Source: The Economist (2007) Country Mexico Netherlands Poland Russia Singapore South Africa South Korea Spain Taiwan Thailand Turkey UK USA Venezuela EU % inflation rate 3.8 1.7 2.5 9.2 1.0 5.6 2.3 2.7 1.5 3.6 8.6 2.2 2.2 17.0 2.0 % growth rate 3.2 2.3 4.7 6.5 5.0 4.2 4.2 3.0 3.9 4.3 4.0 2.4 2.2 5.5 2.0

5. Trade Balance in Merchandise Trade 2007 ch2/ Source: World Bank: World Development Indicators (2007) US $ Billion Argentina Australia Brazil China Germany Hong Kong Japan Mexico Malaysia +12.4 -9.4 +46.1 +177.5 +203.0 -17.9 +79.6 -5.8 +28.6 Netherlands Poland Russia Spain Taiwan Turkey UK USA EU +39.4 -4.1 +140.8 -112.8 +21.3 -53.2 -152.2 -837.2 -15.7

7. Market Entry Barriers ch2/

11. MAIN TYPES OF TRADE ASSOCIATIONS ch2/ Type Economic co-operation Bi-lateral or multi-lateral trade treaty Sectoral free trade agreement Trade preference agreement Free trade area (or agreement) Customs union Common market Economic union Political Common external tariff No No No No No Yes Yes Yes Yes Free movement of capital and people No No No No No Possibly Yes Yes Yes Example Canada - EC framework agreement, APEC The Peru, Chile accord The multi-fibre agreement South African Development Cone (SADC) ASEAN NAFTA Mercosur Economic Community of West African States European Single Market European Monetary Union Would resemble federal states (e.g. US, Canada, Germany)

12. REGIONAL TRADING AREAS OF THE WORLD ch2/

16. SOCIAL AND CULTURAL CONSIDERATIONS ch3/ Session 3

18. COMPONENTS OF CULTURE #1 ch3/ Beliefs : A large number of mental and verbal processes which reflect our knowledge and assessment of products and services

19. COMPONENTS OF CULTURE #2 ch3/ Values: The indicators consumers use to serve as guides for what is appropriate behaviour, they tend to be relatively enduring and stable over time and widely accepted by members of a particular market

20. CULTURAL VALUES AND THEIR RELEVANCE TO CONSUMER BEHAVIOUR ch3/ Value Achievement & success Efficiency & practicality Progress Material comfort Individualism External conformity Youthfulness Features Success flows from hard work Admiration of things that solve problems People can improve themselves The ‘good life’ Being oneself Uniformity of observable behaviour State of mind that stresses being young at heart Relevance to behaviour Justification for acquisition of goods Stimulates purchase of well functioning products Ready acceptance of ‘new’/‘improved’ products Fosters acceptance of convenience/ luxury products Stimulates acceptance of customised or unique products Stimulates interest in products used by others Stimulates acceptance of products that promote youthfulness Source: Schiffman, L.G. & Kanuk, L. L. (2000)

21. COMPONENTS OF CULTURE #3 ch3/ Customs: Overt modes of behaviour that constitute culturally approved or acceptable ways of behaving in specific situations. Customs are evident at major events in ones life eg birth, marriage, death and at key events in the year e.g. Christmas, Easter, Ramadan, etc.

23. A CULTURAL FRAMEWORK ch3/

25. THE MAIN SILENT LANGUAGES IN OVERSEAS BUSINESS #2 ch3/ Silent Language Implications For Marketing & Business - The significance of trusted friends as social insurance in times of stress and emergency - Rules of negotiations based on laws, moral practices or informal customs Friendship Agreements

26. CULTURAL INFLUENCES ON BUYER BEHAVIOUR ch3/ Adapted from Jeannete & Hennessey; 2004

29. THE CONTEXTUAL CONTINUUM OF DIFFERING CULTURES ch3/ Source: Usiner et al (2005) ) Swiss Germans Scandinavians North Americans English Italians/Spanish Latin Americans Arabs Japanese Low Context High Implicit Explicit Messages French

31. POWER DISTANCE/INDIVIDUALISM DIMENSIONS ACROSS CULTURES ch3/ Source: Hofstede (2003)

33. LINEAR MODEL OF THE NEGOTIATION PROCESS ch3/ Non-task discussion Task-related exchange of information Persuasion Concession and agreement