global marketing 3

7/29/2019 Global Marketing 3

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The Global Trade

Global Marketing

Chapter 3

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Chapter topics: Global trade

organizations

Four types ofagreements

Individual countries

and theirpre eren a ra eagreements

2011 Pearson Education, Inc.

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General Agreement on Tariffs and

rade reat amon nations to romote trade

among members established in 1947

Lacked enforcement power

Rep ace y Wor Tra e Organization in1995


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Forum for trade-

negotiations

members Based in Geneva

Serves as disputemediator through

Has enforcement


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impose sanctions


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Preferential TradeAgreements

Many countries seek to lower barriers totrade within their regions

and may discriminate against others

ver s ave een not e to

the WTO


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CET=CommonExternalTariffs

Two or more countries agree to

to trade amongst themselves

trade policies with countries

Rules of origin requirements

restr ct transs pment o goo sfrom the country with the lowest


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tar to anot erNAFTA Protest in Ottawa


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Canada, United States, Mexico

All three nations pledge topromote economic growththrough tariff reductions and

investment

Restrictions on labor and


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US-Mexico Border Crossing


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vo u on o ree ra e rea

Includes the elimination of internal barriers to

trade (as in FTA) AND establishes common external barriers to

trade

Community, Mercosur, CARICOM, Central


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Includes the elimination of internal

arr ers o ra e as n ree ra e area AND establishes common external

barriers to trade (as in customs union)

a ows or e ree movemen ofactors of production, such as labor,

capital, and information


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Includes the elimination of internal barriers to

AND establishes common external barriers to

AND allows for the free movement of factors, , ,

information (as in common market)

and social policy within the union


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European Union Flag

Full evolution of economic union

creation of unified central bank

use of single currency

agriculture, social policy, transport,

, ,

requires extensive political unity


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wou ea to a centra government n t me

U.S. Goods Exports in 2009$1.27 Trillion


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U.S. Goods Imports in 2009$2.1 Trillion


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Latin America: SICA, AndeanCommunity, Mercosur, CARICOM

Includes the Caribbean, Central, andou mer ca

History of no growth, inflation, debt,and protectionism has given way to freemarkets o en economies andderegulation

the rise of left-leaning politicians


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Central AmericanIntegration System (SICA)

El Salvador, Honduras,, ,Costa Rica, and Panama

common market

Common External Tariffof 0 to 15%

Retains tariffs on oodsalso produced inimporting country


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Bolivia, Colombia,

, ,Venezuela

Abolished foreign

and fiscal incentives,and export subsidies

Established commonexternal tariffs


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Common Market of theSouth (MERCOSUR)

Argentina, Brazil, Paraguay, Uruguay,Venezuela

Customs union, seeks to become commonmarket Internal tariffs eliminated

Established common external tariffs up to 20%

n t me, actors o pro uct on w move ree ythrough member countries

, , , ,Associate members


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Caribbean Community andCommon Market (CARICOM)


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Asia-Pacific: The Associationof SE Asian Nations (ASEAN)

Brunei, Cambodia, Indonesia, Laos,

a ays a, yanmar, pp nes,Singapore, Thailand, Vietnam

rading partners U.S., EU, China

ASEAN plus six (Japan, China, Korea,

, ,towards an economic community


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Worlds 2nd largest

container port 2nd highest standard

of living in thereg on e n apan

4.2 million people

93% iteracy rate

Over 3,000compan es

Crime is nearly


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Initially began with the 1958 Treaty of Rome

Objective is to harmonize national laws andregulations so that goods, services, people,and money could flow freely across nationalboundaries

1991 Maastricht Treaty set stage fortransition to an economic union with a central

bank and single currency (the Euro)


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27 countries

$15 trillion GNI

uro currency,

Harmonization ofaws an regu at ons

Price transparency

No customs atnational borders


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Afghanistan, Bahrain, Cyprus, Egypt, Iran, Iraq,

Israel, Jordan, Kuwait, Lebanon, Oman, Qatar,Saudi Arabia, Syria, the United Arab Emirates,Yemen

Primarily Arab, some Persian and Jews

95% Muslim, 5% Christian and Jewish

Oil prices drive commerce

25% of worlds oil in Saudi ArabiaArab Spring 2011


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Established in 1981 by 6 countries with 45% of worlds oil


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hese countries are attempting to diversify industries

54 nations over three distinct areas

North Africa

Black Africa or sub-Saharan Africa

Mena: Middle East and North Africa

Regional agreements

East African Cooperation

South African Development Community


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Marketing & EconomicDevelopment

Does marketing play an important role in theeconomic develo ment of a countr and or

region?

s mar et ng on y re evant to con t ons t atapply in affluent, industrialized countries and/or

The marketing process of focusing anorganizations resources on environmental


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