The Free

Trade Area of
the Americas
and CAFTADR

Free Trade Area of the

Americas
Largest free-trade zone on
earth and would offer low or
nonexistent tariffs,
streamlined customs, and no
quotas, subsidies or other
barriers to trade.

Central American
Free Trade Agreement- DR
Begun when the United
States entered into an
agreement with the
Dominican Republic and
Central American.

The
European
Union

European
Union
Best-known
example of a
multinational economic
community

To remove all barriers to free

trade among its members.

Treaty of Lisbon
Designed to further
streamline operations
Will enable the UE to enter
into international agreements
as a political entity

Community
Trademark
Simplifies doing business and
eliminates having to register
with each member country

GOING
GLOBAL

Globalization
Affects almost every industry
and individual throughout the
world at least in some way

Common reasons for

going global:

Globalization of customers
New customers in emerging markets
Globalization of competitors
Reduced trade barriers
Advances in technology
Enhanced customer responsiveness

STRATEGIES
FOR ENTERING
FOREIGN
MARKETS

Importing and Exporting

Importer firm that brings good
produced abroad to sell domestically
or to be used as components in its
products
Exporting involves a continuous
effort in marketing a firms
merchandise to customers in other
countries

Export-trading
company
Buys products from domestic
producers and resellers them
abroad

Export-management
company
Provides the first-time exporter
with expertise in locating foreign
buyers, handling necessary
paperwork, and ensuring that its
goods meet local labeling and
testing laws

Contractual
Agreements
Foreign licensing grants foreign
marketers to distribute a firms
merchandise or to use its trademark,
patent, or process in a specified
geographic area

 Franchise contractual arrangement

in which wholesaler or retailer agrees to
meet the operating requirements of a
manufacturer or other franchiser
Subcontracting the production of
goods or services is assigned to local
companies

International Direct
Investment
It is another strategy for entering
global markets in foreign firms,
production, and marketing facilities

FROM
MULTINATIONAL
CORPORATION
TO GLOBAL
MARKETER

Multinational
Corporation
A firm with significant
operations and marketing
activities outside its home
country