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Global Marketing
By: Jacqueline Stockman
About Global Marketing
• Global Trade accounts for 25% of U.S.
GDP
• Helps businesses expand and survive
in competitive marketplaces
• Builds employment
NAFTA
• World’s largest free trade area
• Connects 450 million people
•Member economies generate $20.8
trillion in GDP
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
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
Global Entry Marketing Strategies
• Companies must decide how to enter
the market
• Four basic ways
Exporting
Licensing
Joint Venture
Direct Investment
Exporting
• Firm produces goods in one country
for sale in another country
• Least risky approach
• Lower financial commmitment
• Lowest profit potential
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
Joint Venture
• two companies join together to share
ownership and control
• Risk and profits are shared equally
Direct Investment
• Investing or owning a foreign division
• Highest profit potential
•Riskiest option
• Highest financial commitment
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 >

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Global Marketing

  • 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 >