Professional Documents
Culture Documents
The Global Market Place
The Global Market Place
The Global Market Place
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The world is shrinking rapidly with the advent of faster communication, transportation, and financial flows. International trade is booming and now accounts for a quarter of the United States GDP. Between 1996 and 2006, U.S. exports are expected to increase 51%. Global competition is intensifying and few U.S. industries are now safe from foreign competition.
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McDonalds in Beijing
Many U.S. companies have long been successful, including McDonalds, at international marketing. http://www.mcdonalds. com/
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Treaty designed to promote world trade by reducing tariffs and other international trade barriers
Group of nations organized to work toward common goals in the regulation of international trade
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When exporting goods to a foreign country, a marketer may be faced with trade restrictions. Discuss the effects that a tariff might have on an exporters marketing mix.
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Economic Environment
Subsistence Economies
Industrial Economies
Industrializing Economies
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Political-Legal Environment
At Least Four Political-Legal Factors Should be Considered in Deciding Whether to do Business in a Given Country:
Attitudes Toward International Buying Government Bureaucracy Monetary Regulations
Political Stability
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Cultural Environment
Sellers Must Examine the Following Before Planning a Marketing Program Within a Given Country.
How Customers Think About and Use Products Cultural Traditions, Preferences, and Behaviors
Most companies do not act until some situation or event thrusts them into the global arena.
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Pair with the student on your left to discuss the following situation. Once a company has decided to sell in a foreign country, it must determine the best mode of entry. Assume that you were the marketing manager for Mountain Dew and devise a plan and pick a mode of entry for marketing your product in China.
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International Pricing
Companies face many problems in setting their international prices. Possibilities in setting prices include:
Charge a uniform price all around the world. Charge what consumers in each country could pay. Use a standard markup of its costs everywhere.
International prices tend to be higher than domestic prices because of price escalation. Companies may become guilty of dumping when a foreign subsidiary charges less than its costs or less than it charges in its home market. 15-18
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