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The Global Marketing
Imperative
Chapter 1
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What is International Marketing?
• The process of planning and conducting transactions
across national borders to create exchanges that
satisfy the objectives of individuals and organizations.
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International Marketing
Questions
Should I obtain my supplies domestically or from abroad?
What marketing adjustments are or will be necessary?
What threats from global competition should I expect?
How can I work with these threats to turn them into
opportunities?
What are my strategic global alternatives?
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World Trade Importance
• World trade has grown tremendously in the past
three decades.
• The Iron Curtain is gone and capitalism has replaced
the old economic doctrines.
• Firms invest on a global scale.
• New technologies have changed the way we do
business.
• New trading blocs are emerging.
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Growth in World Trade
• World trade in merchandise has grown from $6.2
trillion in 2000 to over $9 trillion in 2005.
• World trade in services has expanded from $1.5
trillion in 2000 to $2.1 trillion in 2005.
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Examples of Trading Blocs
• European Union in Europe
• NAFTA in North America
• Mercosur in Latin America
• ASEAN in Asia
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Global Linkages
• Global linkages bind countries, institutions, and
individuals more closely than ever.
• World trade opens up entirely new business horizons.
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Trade and Domestic Growth
Rates
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Domestic Policy Repercussions
Considerations
• Lowering of interest rates, happy U.S. customers but
what about impact of countries offering higher
interest rate?
• Agricultural and farm polices.
• Currency flows.
• Exchange rates.
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Export Growth Rates
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Meeting International
Challenges
• Be prepared and develop active
responses.
• Develop new strategies.
• New plans are needed.
• Adaptation to the new environment
and markets.