Professional Documents
Culture Documents
International Marketing: The Dynamic Environment of International Trade
International Marketing: The Dynamic Environment of International Trade
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The emergence of the International Monetary Fund and the World Bank Group
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Trade Barriers An International Marketers Minefield Countries take advantage of U.S. open markets while putting barriers in the way of U.S. exports Tariff and nontariff barriers to trade are major issues confronting international marketers
Global Perspective
To realize the benefits of the social, political, and economic changes, free trade must prevail throughout the global marketplace
WTO (World Trade Organization)
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Marshall Plan
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Rapid growth of war-torn economies and previously underdeveloped countries Large-scale economic cooperation and assistance Rising standards of living
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1960s U.S. multinational corporations (MNCs) faced major challenges on two fronts
Resistance to direct investment Increasing competition in export markets
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U.S. dilemma of how to encourage trading partners to reciprocate with open access to their markets without provoking increased protectionism
WTO (World Trade Organization) NAFTA AFTA (American Free Trade Area) APEC (Asia-Pacific Economic Cooperation Conference)
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Balance of Payments
Balance of payments the system of accounts that records a nations international finance transactions Transactions recorded annually
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Balance of Payments
A balance of payments statement includes three accounts
Current account Capital account Reserves account
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Protectionism
Tariffs, quotas, and nontariff barriers are designed to protect markets from intrusions by foreign countries Nations utilize barriers to restrain entry of unwanted goods
Legal Exchange Psychological Private market
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Trade Barriers
Tariffs
Quotas
Voluntary Export Restraints (VER) Boycotts and embargoes Monetary barriers
Blocked currency Differential exchange Government approval
Standards
Antidumping penalties
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The World Bank has five institutions which perform the following services:
Lending money to the governments of developing countries Providing assistance to governments for developmental projects to the poorest developing countries Lending directly to the private sector Providing investors with guarantees against noncommercial risk Promoting increased flows of international investment
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Summary
The benefits from absolute or comparative advantage clearly can accrue to any nation Increased pressure for protectionism from every region of the globe
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Summary
Freer trade will always be partially threatened by various governmental and market barriers that exist or are created for the protection of local businesses The future of open global markets lies with the controlled and equitable reduction of trade barriers
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