International trade

Game
Sophie: a trader from Europe stay→3886

Countries Goods Amount Offer Final price

Cocoa 100 kg 97 50 51

Africa Cotton 500 kg 377

Gold 1 troy ounce 193 100

Rice 1 metric ton 122 75
Asia Rubber 1 metric ton 610 500
Steel 2 metric tons 335 250
Aluminium 1 metric ton 1.482 1.000
Australia Coal 10 metric tons 310 248
Wool 100 kg 438 338 350
Beef cattle 500 pounds 535 400
North America Lumber 1000 board feet 260 190
Wheat 10 metric tons 685 450
Bananas The governments of our countries are in trade dispute

South America Coffee 200 kg 254 200

Crude oil 100 barrels 1.719 1.000
Listening 1

→ What are the problems with economic models?

Based on simplify model

→ What is the standard argument for free trade?

Everybody gets better of

→ What is the example Kitson gives?

2 economists for 2 goods

→ Who loses in this example, and why?

Undeveloped country (cloth)

→ What is Kitson’s alternative to ‘unfettered free trade”?

No trade to free trade

Listening 2

→ Why would the developing country not want to specialize only in cloth?
They prefer goods with high added value

→ What would help or enable the country to move into new sectors?
With the protection of older sectors for insurance

→ What reasons does Kitson give for considering an industry or sector as strategic in an advanced country?
Sectors that are benefit for others sectors
→ What example does he give of a strategic industry, and what are its advantages?
Aerospace develops in many sectors

Women in business
st
1 picture
In 2018 the EU exported 407 billion euro worth of goods to the US while in 2018 the EU imported 268 billion euro
worth of goods from the US

2nd picture
This picture is taken from the Eurostat, it shows the trade balance between the EU and China. The green container is
about the EU exports to China, and the yellow container is about the EU imports from China

In 2018 the EU exported 210 billion euro worth of goods to China. In the other hand, the EU imported 395 billion euro
worth of goods from China
The EU exceeds its imports and the trade deficit is 185 billion euro. I think this is because China is the main producer in
the world.

This is a diagram which is entitled “Earnings gap between women and men”
We can see a man and a woman from each side of cliff, the diagram is between the two side
In 1965 the gap was 59.9%, in 2010 he was 77.4%.

The earnings gap between women and men is only decreasing from 1965 until 2010. It can be concluded that women’s
working conditions are improving.

Exercises:
1.The new law consist in appointing women to 40% of non-executive administrative positions, so the dismissal of some
men

2. According to him women in this sector do not have enough experience

3. He says that these two women do not have enough experience and that it will take 10 years for him to be happy to
have them on the board of administration

4. The dismissal of some men will happen who have been there for a long time

Marketing
Exercise p66:

This article is about the evolution of the marketing over the year

1. According to McKenna, what did sales-driven companies try to do?

They tried to change customers’ minds and make them like the products they produced.

2. Why did some companies become customer driven?

Because there was more competition and because technology developed and allowed companies to change products to
match what customers asked for.

3. What does he say market-driven companies do?

Market-driven companies work with customers to understand their strategies and adapt their products to fit them and in
this way try to create a new market.

4. What does McKenna mean when he describes the old approach as “unresponsive”?
The old approach is all about testing and marketing a company’s idea rather than...

5. Why has the main focus of companies moved first from finance to engineering, and then from engineering to
marketing?
Because the main demand on companies first changed from controlling costs to competing with other companies with
similar products and then to serving customers.

6. What two negative descriptions of marketing does he reject?

Fooling with customers and falsifying the company’s image.

7. What does he say about customers and market-driven companies?

Market-driven companies integrate the customers into the design of the product.

8. What is wrong with focusing on R&D (research and development) and creating new products?
If you focus on your R&D you forget about the customer, the market and competition.

9. What is wrong with focusing on increasing market share?

Trying to increase the market share is like fighting over crumbs rather than trying to own the whole pie.

10. Explain in your own words what he describes as the real job or goal of marketing.
The real goal of marketing is to produce what the customers needs so well that you control the entire market for your
products

Endorsement→ Celebrity

Neuromarketing

scientific approach to marketing

"questions about the video

1- what does the book buyology is about?

"

the psychology behind what drives us to consume-reveals subconscious forces that motivate us to choose one brand
over another

2- what happened between 2003 and 2006?

people smoked 13 %

3- explain the study Martin Lindstrom did on smokers. What were the results?

placed smokers from around the world in scanners to wtach their brain reactions when exposed to cigarette health
warnings, wanted to see reaction of nucleus acumbens (craving spot or pleasure zone) Health warnings have no effect,
in fact they encouraged smoking

4- What is branding? What is the Coca Cola example?

much more than a logo, 1915 brief was to develop a bottle so recognizable that if smashed into pieces it could still be
identified as a Coke bottle

5-What does smash your brand refer to ?

→ to own colour/shape/sound

6- Are there similarities between the way our brains react to religion and branding?

yes, same area of brain lights up

7-what are the ten pillars of religions brands? Give three examples of companies and how theybrelate to these ten pillars

→ sense of belonging, clear vision, power from enemies, sensory appeal, storytelling, grandeur, mystery, evangelism,
symbols, rituals

Eastpack, Harley Davidson (sense of belonging), Apple (clear vision), Disney (storytelling)
8- How much of our consumer buying habits are unconscious? How does this affect consumers and companies?

- 85 % by understanding our subconscious mind consumers understand what to buy and companies understand what
produce