SRI VENKATESWARA COLLEGE OF ENGINEERING AND TECHNOLOGY

12CMB42 INTERNATIONAL MARKETING

UNIT - I

Scope of International Marketing

Significance of International Marketing

The Strategic importance of International Marketing,

Differences between International and domestic Marketing.

Need for International trends in foreign trade.

INTRODUCTION

The modern world is organized on the theory that each nation state is sovereign and independent

from other countries. In reality, however, no country can completely isolate its internal affairs from

external forces. Even the most inward-looking regimes have realized the limitations of their own resources

as well as the benefits of opening up their borders. This major change in the orientation of most regimes

has led to an enormous amount of activity in the international marketplace.

Powerful economic, technological, industrial, political and demographic forces are converging to

build the foundation of a new global economic order on which the structure of a world economic and

market system will be built.

Whether or not a company wants to participate directly in international business, it cannot escape the

effect of the ever-increasing number of domestic firms exporting, importing, and/or manufacturing

abroad; the number of foreign-based firms operating in most markets; the growth of regional trade areas;

the rapid growth of world markets; and the increasing number of competitors for global markets.

International marketing is the performance of business activities designed to plan, price, promote,

and direct the flow of a company’s goods and services to consumers or users in more than one nation for a

profit. The only difference between the definitions of domestic marketing and international marketing is

that in the latter case, marketing activities take place in more than one country. This apparently minor

difference, “in more than one country,” accounts for the complexity and diversity found in international

marketing operations. Marketing concepts, processes, and principles are universally applicable, and the

marketer’s task is the same, whether doing business in Dimebox, Texas, or Dares Salaam, Tanzania.

Business’s goal is to make a profit by promoting, pricing, and distributing products for which there is a

market.

THE INTERNATIONALIZATION OF BUSINESS:

Current interest in international marketing can be explained by the changing competitive structures

coupled with shifts in demand characteristics in markets throughout the world.

Going International::

Evolution of a Multinational Company

1964 Phil Knight an accountant at Price Waterhouse and college track coach Bill Bowerman put in $500

each to start Blue Ribbon Sports.

1970 Bowerman, inspired by the waffle iron, dreams up new shoe treads, which becomes the best selling

U.S. training shoe.

1971 Blue Ribbon changes its name to Nike and adopts swoosh as its logo, designed by a college student

for $35. She later gets an undisclosed number of stocks.

1973 Steve Perfontaine, the long distance runner, becomes the first major athlete to wear Nike in

competitions.

1980 Nike goes public with 2.4 million shares at $11. After several splits, stock is worth $78 in September

2004.

1985 Air Jordan, the best selling athletic shoe, ever, is introduced

1987 Nike runs its first advertisement campaign ‘Revolution’ based on a Beatles song.

1992 Magic Johnson, sponsored by Nike, wins a gold medal. The first Nike town opens.

1994 Nike enters the football by signing top players like Ronaldo from Brazil.

1999 Co-founder Bowerman dies and Knight takes total control under allegation of poor working

conditions in Asian factories producing Nike.

2003 More than half of the sales come from outside the U.S. for the first time. It passes Adidas as number

1 football shoe in Europe.

With revenues over $12 billion (2004), the company has come a long way from its early years when

Phil Knight used to sell sneakers out of his car trunk at tracks. As for advertising Nike spent $8 million in

1986 and $48 in 1987. These days it pays $100 million for one endorsement (e.g. Tiger Woods). It has

developed sophisticated computer systems to develop and market its products in more places in the world

more quickly. It has improved its gross margin from 39.9 percent in 1998 to 42.9 percent in 2004. It makes

only 3 percent of shoes without a firm order from a retailer (30 percent in 1998).

Today, like any other Multinational Company Nike is not just one product/ brand company. It started

diversifying already in 1988 when it bought Cole Haan (dresses and casual shoes) for $88 million, in 1995 it

bought Bauer (ice hockey skates) for $409 million, in 2002 it bought Hurley International (skateboard

equipment) for $95 million and Converse (retro-style sneakers) for $305 in 2003.

WHAT IS INTERNATIONAL MARKETING?

International marketing is the application of marketing principles in more than one country, by companies

overseas or across national borders. International marketing is based on an extension of a company’s local

marketing strategy, with special attention paid to marketing identification, targeting, and decisions

internationally.

According to the American Marketing Association (AMA) "international marketing is the multinational

process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and

services to create exchanges that satisfy individual and organizational objectives."

DEFINITIONS OF INTERNATIONAL MARKETING

1. According to Kotler, "Global marketing is concerned with integrating and standardizing marketing actions

across a number of geographic markets."

2. According to Cateora, "International marketing is the performance of business activities that direct the flow

of goods and services to consumers and users in more than one nation."

3. According to Cateora and Graham, "International marketing is the performance of business activities

designed to plan, price, promote, and direct the flow of a company’s goods and services to consumers or users

in more than one nation for a profit."

4. According to Terpstra and Sorathy, “international marketing consists of finding and satisfying global

customer needs better than the competition, both domestic and international and of coordinating marketing

activities with in the constraints of the global environment.”

International marketing is different from domestic marketing not only in scope but also in nature.

Following are the nature and scope of international marketing.

Nature of International Marketing

1. Broader market is available – Unlike domestic marketing the market is not restricted to national

population. Population of other countries can also be targeted in international marketing.

2. Involves at least two set of uncontrollable variables – In domestic marketing the marketers have to

interact with only one set of uncontrollable variables. In international marketing at least two set of

uncontrollable variables are involved or more if the marketing organization deals in more countries.

3. Requires broader competence – Special management skills and broader competence is required in

international marketing/business.

4. Competition is intense – An international marketing organization has to compete with both the

domestic competitors and the international competitors. Hence, the competition is intense in international

marketing.

5. Involve high risk and challenges – International marketing is prove to various kinds of risk and

challenge like – political risk, cultural differences, changes in fashion and style of foreign customers,

sudden war, changes in government rules and regulations, communication challenges due to language and

cultural barriers, etc,.

Who employs International Marketing?

Rapid technological advances mean that geographical and cultural communication barriers are

disappearing, and even smaller businesses without a physical presence in other countries can market and

sell their products internationally. This means that almost anyone with the desire can market

internationally, but will do so with varying levels of success, depending on the thought and research that is

put into the international marketing strategy.

Companies selling goods that have customs restrictions, like food and live plants, must contend with a

more rigorous regulatory process before marketing their products internationally. While they may have a

more difficult time setting up their international export business, they also have the opportunity to expose

other countries to native products they couldn’t access otherwise.

Other types of companies that often perform well internationally include those involved in export, joint

ventures, and direct investment.

Exporting is the practice of shipping goods directly to a foreign country. Prominent companies that do an

excellent job of marketing their foreign exports to the United States include Fanta soft drinks, Honda, and

retail giant H&M. In fact, H&M paid $3.5 million for a 30-second commercial during the 2012 Super Bowl,

a marketing bonanza that has long been dominated by American brands.

Joint venture companies refer to the combined efforts of two or more businesses to their mutual benefit.

One of the most famous international joint venture success stories is Sony-Ericsson, a partnership between

a Japanese electronics company and a Swedish telecommunications company. Their international

marketing strategy, comprised of bright colors and modern shapes, has helped make the joint venture

known the world over. (See also Cooperative Marketing)

A direct investment company places a fixed asset in a foreign country with the aim of manufacturing a

product, or part of a product, abroad. Dell computers, for example, is an American company with factories

in many other countries that assemble personal computers from parts made all around the world. Dell then

markets their computers with an exceptional emphasis on customer needs and customization – unlike

other companies that sell pre-manufactured products; Dell computers are custom-assembled after

customers place their orders.

SCOPE OF INTERNATIONAL MARKETING

International Marketing constitutes the following areas of business:-

Exports and Imports: International trade can be a good beginning to venture into international

marketing. By developing international markets for domestically produced goods and services a

company can reduce the risk of operating internationally, gain adequate experience and then go on

to set up manufacturing and marketing facilities abroad.

Contractual Agreements: Patent licensing, turn key operations, co – production, technical and

managerial know – how and licensing agreements are all a part of international marketing.

Licensing includes a number of contractual agreements whereby intangible assets such as patents,

trade secrets, know – how, trade marks and brand names are made available to foreign firms in

return for a fee.

Joint Ventures: A form of collaborative association for a considerable period is known as joint

venture. A joint venture comes into existence when a foreign investor acquires interest in a local

company and vice versa or when overseas and local firms jointly form a new firm. In countries

where fully owned firms are not allowed to operate, joint venture is the alternative.

Wholly owned manufacturing: A company with long term interest in a foreign market may

establish fully owned manufacturing facilities. Factors like trade barriers, cost differences,

government policies etc. encourage the setting up of production facilities in foreign markets.

Manufacturing abroad provides the firm with total control over quality and production.

Contract manufacturing: When a firm enters into a contract with other firm in foreign country to

manufacture assembles the products and retains product marketing with itself, it is known as

contract manufacturing. Contract manufacturing has important advantages such as low risk, low

cost and easy exit.

Management contracting: Under a management contract the supplier brings a package of skills that

will provide an integrated service to the client without incurring the risk and benefit of ownership.

Third country location: When there is no commercial transactions between two countries due to

various reasons, firm which wants to enter into the market of another nation, will have to operate

from a third country base. For instance, Taiwan’s entry into china through bases in Hong Kong.

Mergers and Acquisitions: Mergers and Acquisitions provide access to markets, distribution

network, new technology and patent rights. It also reduces the level of competition for firms which

either merge or acquires.

Strategic alliances: A firm is able to improve the long term competitive advantage by forming a

strategic alliance with its competitors. The objective of a strategic alliance is to leverage critical

capabilities, increase the flow of innovation and increase flexibility in responding to market and

technological changes. Strategic alliance differs according to purpose and structure.

SIGNIFICANCE OF INTERNATIONAL MARKETING

International Marketing is the multinational process of planning and executing the conception, pricing,

promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and

organizational objectives. Now follows the importance of international marketing:

A) Importance from the consumer's point of view:

Consumption of unpronounced goods

Consumption of goods at a low price

Enjoying benefits of competition

Consumption of new products

Increase in consumption

B) Importance from the producer's point of view:

Export of surplus production

Expansion of market in foreign countries

Production of goods at a low cost

Increase in production

More profitable

Reduce business risk

Reduce cost

C) Importance from economic point of view:

Increases total production

Increases export earnings

Challenging natural calamities

knowledge and cultural progress

Increases international peace and assistantship

Extension of industry

Export of unusual goods

Optimum utilization of natural resources

Progress in technological knowledge

Image development.

"Why is international marketing important for organisations?" We live in a global market place and as the world continues to shrink, marketing opportunities

expand. Mc Donald's fast food, Kathmandu Clothing and Motorola Cellular phones are available

for sale around the world. You can now find on quite a lot of products and brands multi-language

labelling or that certain products such as coffee beans have been labelled as "Free Trade Certified".

After World War II there was an incomparable growth into global or international markets by

companies that used to only serve patrons living in their native land. Drastic advances in

communication and transportation continue to bring markets closer. Business people have started

to make use of global marketing as they become aware to their companies' full business potential.

This is the reason you may find multi-language labels on many products from clothing to electric

appliances. However there is another main reason why companies must take international

marketing seriously and that is for survival. Any company these days that does not have, or does

not become global in their business outlook risks losing its domestic business to competitors from

outside its borders such as Taiwan for example that bring lower costs, more experience and better

products. The skill lies in identifying the areas of greatest potential profit, and developing global or

international strategies that still function effectively in meeting local needs. Understanding the

complexities involved in developing powerful international marketing campaigns is a key element

in building successful sales advantages.

NEED AND IMPORTANCE:

In relation to the need or importance of international marketing, views of Philip Kotler are worth noted.

According to him, two forces essentiality the international marketing are pull forces and push forces. Push

forces lead to force the nation to sell its goods and services in other nations.

The push forces include lower national income, low per capita income, low domestic demand,

unfavourable approach of government, high rates of tax and duties, government force to export to earn

foreign exchange, tough local market, etc. These forces force the marketer to opt for international market.

Another set of forces is pull forces. The pull forces pull (attract) businessmen to sell their products in the

foreign market to exploits attractive opportunities in the foreign countries. To take benefits of more

profitable opportunities, they are pulled to business in other nations. The variable lead to international

market may fall either in pull forces or push forces or both.

Let’s have brief explanation of several benefits available due to international marketing:

1. It ensures survival for a company and a country.

2. Nations can get benefits of division of work and specialization.

3. It also helps in balancing unequal distribution of natural resources.

4. Extending product life cycle by selling products in other nations.

5. It is important for controlling inflation and achieving price moderation.

6. Balancing demand and supply.

7. Promotion of invention and innovation globally.

8. Companies can take benefits of taxes and duties.

9. Technological Transmission among countries of the world is easily possible.

10. International marketing can improve standard of living of people.

11. Growth of international marketing results into social and cultural development.

12. Worldwide peace is possible due to interdependency among countries of the world

13. Global employment opportunities can help ease unemployment problems.

14. Growth of overseas market leads to global prosperity.

STRATEGIC IMPORTANCE OF INTERNATIONAL MARKETING

Last year’s international trade in merchandise exceeded US$10.5 trillion and world trade in

services is estimated at around US$2.4 trillion. Whilst most of us cannot visualize such huge

amounts, it does serve to give some indication of the scale of international trade today.

This global marketplace consists of a population of 6.6 billion people which is expected to reach 10

billion by 2050 according to the latest projections prepared by the United Nations.

Global wealth is increasing and this is reflected in higher demand. Increasing affluence and

commercial dynamism has seen nations across Asia, Central and Eastern Europe emerge as high

growth economies. Increasing affluence and demand simply means that consumers will actively

seek choice, with the result that globally competition is intensifying as companies compete to win

the battle for disposable income.

Population growth and increased affluence together have helped create a ‘global youth

culture’ – teenagers now account for 30 per cent of the population globally. In many countries,

more than half the population is pre-adult, creating one of the world’s biggest single markets, the

youth market. Everywhere adolescents project worldwide cultural icons, Nike, Coke, Gap and Sony

Walkman, as well as Sega, Nintendo and the Sony Play station. When ‘virtual reality’ is

commonplace, the one-world youth culture market will exceed all others as a premier global

market segment. Parochial, local and ethnic growth products may face difficult times.

Older consumers are also increasingly non-national in their identity, if not in their personal

identity then from the perspective of the consumable fabric of their lives. They drive international

cars, take foreign holidays, watch international programmes on television, use international

hardware and software. On the supply side, multinational and global corporations are increasing in

size and embracing more global power. The top 500 companies in the world now account for 70 per

cent of world trade and 80 per cent of international investment. Total sales of multinationals are

now in excess of world trade, which gives them a combined gross product of more than some

national economies.

To strategically position themselves for global competitiveness, companies are consolidating

through mergers, acquisitions and alliances to reach the scale considered necessary to compete in

the global arena. At the same time, there is a trend towards global standardization, as companies

strive for world standards for efficiency and productivity. In Europe last year mergers and

acquisitions were worth US$ 1.59 trillion, in the USA $1.54 trillion. The Indian company Tata took

over Corus making them the world’s largest steel producer, overtaking Mittal (Dutch) who in the

same year took over Aecelor of Luxembourg. In Germany e.ON bid for Endesa of Spain. GSK have

a number of global alliances in the pharmaceutical market, creating the world’s largest research-

based pharmaceutical company. Such trends can also be seen in the service sector. In the US,

Morgan Stanley and Dean Witter merged to offer global investment as well as global private

banking and credit card services. There has also been an increase in the number of joint ventures

and international strategic alliances to compete in mature markets. Xerox entered into a joint

venture with Fuji to consolidate their global position and the Siemens and Fujitsu joint venture is

now the only computer hardware company in Europe following the global consolidation of that

sector.

The global marketplace is no longer the summation of a large number of independent

country markets but much more multilateral and interdependent, economically, culturally and

technically. Information moves anywhere in the world at the speed of light, the ease of transmission

being facilitated by the convergence of long distance telecoms, cuts in the cost of electronic

processing and the exponential growth in Internet access.

The combination of all these forces has meant that all companies need to develop a marketing

orientation which is international in nature and that companies need managers who have the skills

to analyze, plan and implement strategies across the globe. It is for these reasons that international

marketing has become such a critical area of study for managers and an important component of

the marketing syllabus of business faculties in universities.

Every day, the marketing is gaining greater importance, both to how micro macro level. In this context of

globalization, companies are subject to a lot of competition from other companies even coming from

foreign markets. In this sense, there are many companies that do not to lose market share, are forced to go

outside.

A first approximation to what is the International Marketing would be the strategy that allows you to take

better advantage of the opportunities offered by foreign markets and cope with international competition.

‘Global Strategy’ is a shortened term that covers three areas: global, multinational and international

strategies. Essentially, these three areas refer to those strategies designed to enable an organisation to

achieve its objective of international expansion.

In developing ‘global strategy’, it is useful to distinguish between three forms of international

expansion that arise from a company’s resources, capabilities and current international position. If the

company is still mainly focused on its home markets, then its strategies outside its home markets can be

seen as international. For example, a dairy company might sell some of its excess milk and cheese supplies

outside its home country. But its main strategic focus is still directed to the home market.

In South Korea, international and global soft drinks

strategy will involve mixing both the global brands like

Coke and Sprite with the local brands like Pocara Sweat

(and, no, I don’t know what the brand tastes like!)

However, the Apple iPod was essentially following the

same strategy everywhere in the world: in this case, the

advertising billboard was in North America but it could have

been anywhere.

One of the basic decisions in global strategy begins by

considering just how much local variation, if any, there might

be for a brand.

Another more basic decision might be whether to undertake

any branding at all. Branding is expensive. It might be better to manufacture products for other companies

that then undertake the expensive branding. Apple iPods are made in China with the Chinese company

manufacturing to the Apple specification. The Chinese company then avoids the expense of building a

brand. But faces the strategic problem that Apple could fail to renew its contract with the Chinese

company, which might then be in serious financial difficulty.

As international activities have expanded at a company, it may have entered a number of different

markets, each of which needs a strategy adapted to each market. Together, these strategies form a

multinational strategy. For example, a car company might have one strategy for the USA – specialist cars,

higher prices – with another for European markets – smaller cars, fuel efficient – and yet another for

developing countries – simple, low priced cars.

For some companies, their international activities have developed to such an extent that they essentially

treat the world as one market with very limited variations for each country or world region. This is called a

global strategy. For example, the luxury goods company Gucchi sells essentially the same products in

every country.

Implications of the three definitions within global strategy:

International strategy: the organisation’s objectives relate primarily to the home market. However,

we have some objectives with regard to overseas activity and therefore need an international

strategy. Importantly, the competitive advantage – important in strategy development – is

developed mainly for the home market.

Multinational strategy: the organisation is involved in a number of markets beyond its home

country. But it needs distinctive strategies for each of these markets because customer demand and,

perhaps competition, are different in each country. Importantly, competitive advantage is

determined separately for each country.

Global strategy: the organisation treats the world as largely one market and one source of supply

with little local variation. Importantly, competitive advantage is developed largely on a global

basis.

On the basis of all this, International marketing is a strategy that is developed with the purpose of achieving

targets in foreign markets having as a base the capabilities of the company (strengths and weaknesses), the

situation of the environment and international competition (threats and opportunities).

DIFFERENCES BETWEEN DOMESTIC MARKETING AND

INTERNATIONAL MARKETING

There are many differences between domestic marketing and international marketing as cultural, political,

religious, customary, ideological differences and more. Because of language barriers, it is more difficult to

obtain and interpret information from research in international marketing. Advertising messages has to

care for many cultural differences between the countries. That includes differences in languages, habits,

expressions, gestures, ideological and more. For example, in the United States the round "or" made by the

thumb and index finger sign means "okay" while the same Mediterranean countries sign represents "zero"

or "worst". In Tunisia it is understood it to "I will kill you" as soon as a Japanese consumer gesture means

'money'.

When drawing up the National Marketing we must take into account various aspects. But when we talk

about international markets, some of these aspects acquire more complexity, there are certain aspects of the

International Marketing and are not addressed in the National Marketing.

Environment

The international environment is quite more complex than the domestic environment. Obviously in

international markets we will find different laws and legal regulations, languages and different

tastes, as well as various infrastructures... Therefore, the study of the environment is quite more

complex.

Competition

Will also be much more complex because in international markets there will be a greater number of

competitors and the offer of products and services will be much more extensive and in many cases

unknown to the company.

Selection of markets

It is exclusive to the International Marketing.

Selection of the input form

It is also exclusive. To penetrate the markets, there are several ways: alone or with support

from a partner, and each one of them implies a level of different investment, greater or lesser

commitment to the market, more or less risk and greater or lesser approach to the final customer.

Coordination of the Marketing-Mix

Working in international markets, will have to coordinate the policies of marketing-mix of

all markets (this does not mean that they are the same).

1 Culture: often diverse and multicultural markets

2 Markets: widespread and sometimes fragmented

3 Data: difficult to obtain and often expensive

4 Politics: regimes vary in stability – political risk becomes an important variable

5 Governments: can be a strong influence in regulating importers and foreign business ventures

6 Economies: varying levels of development and varying and sometimes unstable currencies

7 Finance: many differing finance systems and regulatory bodies

8 Stakeholders: commercial, home country and host country

9 Business: diverse rules, culturally influenced

10 Control: difficult to control and coordinate across markets.

NEED FOR INTERNATIONAL TRENDS IN FOREIGN TRADE

Current trends are towards the increasing foreign trade and interdependence of firms, markets and

countries. Intense competition among countries, industries, and firms on a global level is a recent

development owed to the confluence of several major trends. Among these trends are:

1) Forced Dynamism:

International trade is forced to succumb to trends that shape the global political, cultural,

and economic environment. International trade is a complex topic, because the environment it

operates in is constantly changing. First, businesses are constantly pushing the frontiers of

economic growth, technology, culture, and politics which also change the surrounding global

society and global economic context. Secondly, factors external to international trade (e.g.,

developments in science and information technology) are constantly forcing international trade to

change how they operate.

2) Cooperation among Countries:

Countries cooperate with each other in thousands of ways through international

organisations, treaties, and consultations. Such cooperation generally encourages the globalization

of business by eliminating restrictions on it and by outlining frameworks that reduce uncertainties

about what companies will and will not be allowed to do. Countries cooperate:

i) To gain reciprocal advantages,

ii) To attack problems they cannot solve alone, and

iii) To deal with concerns that lie outside anyone’s territory.

Agreements on a variety of commercially related activities, such as transportation and trade,

allow nations to gain reciprocal advantages. For example, groups of countries have agreed to allow

foreign airlines to land in and fly over their territories, such as Canada’s and Russia’s agreements

commencing in 2001 to allow polar over flights that will save five hours between New York and

Hong Kong.

Groups of countries have also agreed to protect the property of foreign-owned companies

and to permit foreign-made goods and services to enter their territories with fewer restrictions. In

addition, countries cooperate on problems they cannot solve alone, such as by coordinating

national economic programs (including interest rates) so that global economic conditions are

minimally disrupted, and by restricting imports of certain products to protect endangered species.

Finally, countries set agreements on how to commercially exploit areas outside any of their

territories. These include outer space (such as on the transmission of television programs), non-

coastal areas of oceans and seas (such as on exploitation of minerals), and Antarctica (for example,

limits on fishing within its coastal waters).

3) Liberalization of Cross-border Movements:

Every country restricts the movement across its borders of goods and services as well as of

the resources, such as workers and capital, to produce them. Such restrictions make international

trade cumbersome; further, because the restrictions may change at any time, the ability to sustain

international trade is always uncertain. However, governments today impose fewer restrictions on

cross-border movements than they did a decade or two ago, allowing companies to better take

advantage of international opportunities. Governments have decreased restrictions because they

believe that:

i) So-called open economies (having very few international restrictions) will give consumers

better access to a greater variety of goods and services at lower prices,

ii) Producers will become more efficient by competing against foreign companies, and

iii) If they reduce their own restrictions, other countries will do the same.

4) Transfer of Technology:

Technology transfer is the process by which commercial technology is disseminated. This

will take the form of a technology transfer transaction, which may or may not be a legally binding

contract, but which will involve the communication, by the transferor, of the relevant knowledge to

the recipient. It also includes non-commercial technology transfers, such as those found in

international cooperation agreements between developed and developing states. Such agreements

may relate to infrastructure or agricultural development, or to international; cooperation in the

fields of research, education, employment or transport.

5) Growth in Emerging Markets:

The growth of emerging markets (e.g., India, China, Brazil, and other parts of Asia and

South America especially) has impacted international trade in every way. The emerging markets

have simultaneously increased the potential size and worth of current major international trade

while also facilitating the emergence of a whole new generation of innovative companies.

According to “A special report on innovation in emerging markets” by The Economist magazine,

“The emerging world, long a source of cheap la, now rivals the rich countries for business

innovation”.

6) Trends in Customer Preferences

7) Demographic Shifts

8) Innovations

9) Communication

10) Exchange Rates, Ratios

11) Overall Trends in International Trade

A) Value and growth rate of world trade in goods and services

B) Value of trade in goods and services by region

C) Trade growth in goods and services by region