internationalmarketing02. (1) nn

Upload: varun-mehrotra

Post on 03-Jun-2018

218 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/12/2019 InternationalMarketing02. (1) Nn

    1/40

    www.vasantkothari.com 1 2010

  • 8/12/2019 InternationalMarketing02. (1) Nn

    2/40

  • 8/12/2019 InternationalMarketing02. (1) Nn

    3/40

    2010 39www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    4/40

    Protection stands for restrictions imposed on the

    import of foreign goods.

    All these governmentally imposed barriers are

    imposed through the political pressures of business for

    protection of their markets.

    2010 40

    Mechanics of Protectionism

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    5/40

    The theoretical and logical arguments for free trade

    have equal validity in all countries, yet the international

    trader must face the reality

    that we lives in a world of

    tariffs, quotas and non-tariff

    barriers.

    2010 41

    Mechanics of Protectionism

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    6/40

    Protection of Infant Domestic Industry

    Conservation of Natural Resources

    Protection of Home market

    Need to keep Money at Home

    Reduction of Unemployment

    National Defence

    Retaliation and Bargaining

    2010 42

    Mechanics of Protectionism

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    7/40

    An economy with strong cost advantage in

    manufactured goods or having capacity to manufacture

    more goods, enjoying high standard of living will prefer

    free trade.

    Similarly a country with a monopoly will also preferfree trade.

    2010 43

    Mechanics of Protectionism

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    8/40

    But restrictions on trade may be necessary for

    developing countries to encourage its industrial

    production and also to increase employment and

    economic activity.

    In an economy depending primarily on agriculture,protection also helps in diversification of its production

    activities

    2010 44

    Mechanics of Protectionism

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    9/40

    Trade barriers may be

    Tariff Barriers and

    Non Tariff Barriers

    or protective barriers

    2010 45

    Trade Barriers

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    10/40

    To Protect Home Industries from Foreign

    Competition

    To Promote New Industries and Research and

    Development

    To Conserve Foreign Exchange Reserves

    To Maintain Favourable Balance Of Payments

    2010 46

    Objectives

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    11/40

    To Protect National Economy from Dumping

    To Curb Conspicuous Consumption

    To Make Economy Self-reliant

    To Mobilise Public Revenue

    To Counteract Trade Barriers Imposed By Other

    Countries

    2010 47

    Objectives

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    12/40

    Tariff barriers have been

    one of the classical

    methods of regulating

    international trade.

    Tariffs may be referred to

    as taxes on the imports.

    2010 48

    Tariff Barriers

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    13/40

    It aims at restricting the inward flow of goods from

    other countries to protect the countrys own industries

    by making the goods costlier in that country.

    Sometimes the duty on a product becomes so steep

    that it is not worthwhile importing it.

    In addition, the duty so imposed also provides a

    substantial source of revenue to the importing country.

    2010 49

    Tariff Barriers

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    14/40

    Tariffs may be classified according to

    the purpose

    Revenue Tariff- Increases Govt. revenue

    Protective Tariff- protects domestic industry

    2010 50

    Tariff Barriers

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    15/40

    how they are levied.

    Counter active Tariff-Similar to anti-dumping

    Specific Tariff - based on per units/ Vol./

    Length/number of goods

    Ad valorem Tariff - based on certain

    percentage of FOB/CIF value

    2010 51

    Tariff Barriers

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    16/40

    To protect the domestic

    industries against unfair

    competition and to give them a

    fair chance of survival various

    countries are adopting non-tariff

    measures.

    2010 52

    Non Tariff Barriers

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    17/40

    Some of these are :

    Quantity Restrictions, Quotas and Licensing

    Procedures

    Foreign Exchange Restrictions

    Technical Regulations

    Consular Formalities

    2010 53

    Non Tariff Barriers

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    18/40

    2010 54

    Comparison

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    19/40

    2010 55

    Regional Trade

    Alliances, Markets,

    and Agreements

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    20/40

    2010 56

    International Institutions by

    purpose

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    21/40

    2010 57

    United Nations

    www.vasantkothari.com

    http://images.google.com/imgres?imgurl=http://www.st-minutiae.com/academy/anthropology114A/un.gif&imgrefurl=http://www.st-minutiae.com/academy/anthropology114A/&usg=__Ez6bgbCXVFpH_D4-tJu6_RRANuA=&h=800&w=800&sz=63&hl=en&start=2&tbnid=Jxnqr72Ok-ni0M:&tbnh=143&tbnw=143&prev=/images?q=United+Nations&gbv=2&hl=en
  • 8/12/2019 InternationalMarketing02. (1) Nn

    22/40

    2010 58

    The North American Free Trade Agreement (NAFTA)

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    23/40

  • 8/12/2019 InternationalMarketing02. (1) Nn

    24/40

    2010 60

    Pacific Rim Nations

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    25/40

    2010 61

    North Atlantic TreatyOrganization (NATO)

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    26/40

  • 8/12/2019 InternationalMarketing02. (1) Nn

    27/40

    2010 63

    Collective Security Treaty Organization (CSTO)

    www.vasantkothari.com

    http://www.worldstatesmen.org/int-csto.gif
  • 8/12/2019 InternationalMarketing02. (1) Nn

    28/40

    2010 64

    Association of Southeast Asian Nations (ASEAN)

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    29/40

    2010 65

    European Free Trade Agreement (EFTA)

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    30/40

    2010 66

    African Trade Agreements (ATA)

    www.vasantkothari.com

    http://upload.wikimedia.org/wikipedia/commons/8/83/CAFTA_members.svg
  • 8/12/2019 InternationalMarketing02. (1) Nn

    31/40

    2010 67

    Central American Free

    Trade Agreement (CAFTA)

    www.vasantkothari.com

    http://upload.wikimedia.org/wikipedia/commons/8/83/CAFTA_members.svg
  • 8/12/2019 InternationalMarketing02. (1) Nn

    32/40

    2010 68

    Andean Community (CAN)

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    33/40

    2010 69

    ASIA-Pacific Economic Cooperation

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    34/40

    2010 70

    Organisation For Economic

    Cooperation and Development

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    35/40

    2010 71

    Central American Common Market - CACM

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    36/40

    2010 72

    Caribbean Common Market - CARICOM

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    37/40

  • 8/12/2019 InternationalMarketing02. (1) Nn

    38/40

    2010 74

    Gulf Cooperation Council (GCC)

    www.vasantkothari.com

  • 8/12/2019 InternationalMarketing02. (1) Nn

    39/40

  • 8/12/2019 InternationalMarketing02. (1) Nn

    40/40

    Rule Of Internationalization

    BE COMPETITIVE!

    BE PROACTIVE!