Copyright 2007 by South-Western, a division of Thomson Learning. All rights reserved.

The Global Marketing

Imperative
Chapter 1
Copyright 2007 by South-Western, a division of Thomson Learning. All rights reserved.
What is International Marketing?
The process of planning and conducting transactions
across national borders to create exchanges that
satisfy the objectives of individuals and organizations.
Copyright 2007 by South-Western, a division of Thomson Learning. All rights reserved.
International Marketing
Questions
Should I obtain my supplies domestically or from abroad?
What marketing adjustments are or will be necessary?
What threats from global competition should I expect?
How can I work with these threats to turn them into
opportunities?
What are my strategic global alternatives?
Copyright 2007 by South-Western, a division of Thomson Learning. All rights reserved.
World Trade Importance
World trade has grown tremendously in the past
three decades.
The Iron Curtain is gone and capitalism has replaced
the old economic doctrines.
Firms invest on a global scale.
New technologies have changed the way we do
business.
New trading blocs are emerging.
Copyright 2007 by South-Western, a division of Thomson Learning. All rights reserved.
Growth in World Trade
World trade in merchandise has grown from $6.2
trillion in 2000 to over $9 trillion in 2005.
World trade in services has expanded from $1.5
trillion in 2000 to $2.1 trillion in 2005.
Copyright 2007 by South-Western, a division of Thomson Learning. All rights reserved.
Examples of Trading Blocs
European Union in Europe
NAFTA in North America
Mercosur in Latin America
ASEAN in Asia
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Global Linkages
Global linkages bind countries, institutions, and
individuals more closely than ever.
World trade opens up entirely new business horizons.
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Trade and Domestic Growth
Rates
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Domestic Policy Repercussions
Considerations
Lowering of interest rates, happy U.S. customers but
what about impact of countries offering higher
interest rate?
Agricultural and farm polices.
Currency flows.
Exchange rates.
Copyright 2007 by South-Western, a division of Thomson Learning. All rights reserved.
Export Growth Rates
Copyright 2007 by South-Western, a division of Thomson Learning. All rights reserved.
Meeting International
Challenges
Be prepared and develop active
responses.
Develop new strategies.
New plans are needed.
Adaptation to the new environment
and markets.