International Marketing

OUTLINE

• 20th -21st Century – Marketer’s Global Perspective

• Balance of Payments
• Protectionism
• Easing Trade Restrictions
• International Monetary Fund (IMF) and World
Bank Group (WBG)
• Protests (global institutions)
Marketer’s Global Perspective
(20th -21st Century)
What impact marketing decisions have on the ability to
Globalize?
•E.G.: Pringles and the U.S. market approach to advertise as a “potato chip” vs.
U.K. VAT taxation on potato products?
•Can you think of other examples from your country?

How has the global economy changed for marketers since

100 years ago?
Balance of Payments
The balance between receipts and payments
An economic impact between countries that
impacts our ability to market Globally?
• HOW?
• WHAT IMPACTS DOES THIS HAVE TO YOU AS MARKETER IN
REGARDS TO :
THE MARKETING MIX?
Protectionism – WHY?
• Infant industry?
• Home market?
• Keep money at home?
• Capital accumulation incentives?
• Maintain standards of living? Benefits?
• Conserve Natural Resources?
• Industrialization?
Risks?
• Employment Rates Up?
• National Defense?
• Business Size?
• Retaliation and Bargaining?
Protectionism Types
• Trade Barriers
• Tariffs
• Quota and Import Licenses Advantages and
• Voluntary Export Restraints Disadvantages
• Boycotts and Embargos to Marketers?
• Monetary Barriers
• Standards
• Antidumping Penalties
• Domestic Subsidies and Economic Stimuli
Easing Trade Restrictions
• GATT
• WTO (institution – broader than GATT)

IMPACT?
BENEFIT OR NOT FOR MARKETERS?
HOW?
International Monetary Fund (IMF)
& World Bank Group (WBG)

IMF - ”Stabilization of foreign exchange rates and freely convertible currencies”

clean float
dirty float
SDRs (spec. drawing rights)

WBG - ”reduce poverty & improve standart of Living”

Protests (global institutions)
Unintended Consequences of Globalization lead to REVOLT!

• Environmental
As global Marketers How Could
• Exploitation of Workers
you use this Movement to your
• Job losses domestically
Advantage??
• Cultural erosion/extinction
….does it increase or decrease
• Higher Energy Costs
costs?
• Loss of Sovereignty