Chapter 4 International MKG Strategie (Part 1)
Chapter 4 International MKG Strategie (Part 1)
Chapter 4 International MKG Strategie (Part 1)
marketing strategies
(Part 1)
• Outsourcing
Some nations have a monopoly on the production of a
particular resource or product. Such a monopoly, or absolute
advantage, exists when a country is the only source of an
item, the only producer of an item, or the most efficient
producer of an item.
Balance of Trade
> difference in value between its exports and imports
1990 2000 2010 2011 2012 2013 2014 2015 2016 2017
Export 535. 1,075.3 1,853.6 2,127.0 2,219.0 2,279.9 2,343.2 2,230.3 2,212.1 2,427
s 2
Import 616. 1,447.8 2,348.3 2,675.6 2,755.8 2,758.3 2,851.5 2,712.6 2,712.6 2,900
s 1
Trade
surplus
/ deficit
Source: U.S. Bureau of the Census, Foreign Trade Division, “U.S. Trade in Goods and Services—Balance of
Payments (BOP) Basis,” March 7, 2018 www.census.gov/foreigntrade/statistics/historical/gands.pdf (accessed April 1,
2018).
FIGURE 1 U.S. EXPORTS TO CHINA
(MILLIONS OF U.S. DOLLARS)
Source: U.S. Census Bureau, “Trade in Goods with China,” https://www.census.gov/foreign-trade/balance/c5700.html (accessed
April 7, 2018).
• Infrastructure
• Physical facilities that support activities such as:
• Railroads, highways, ports, airfields, utilities, power plants, schools,
hospitals, communication systems, and commercial distribution
systems
INTERNATIONAL TRADE BARRIERS 2
Economic Barriers
The ratio at which one nation’s currency can be exchanged
for another nation’s currency is the exchange rate.
Exchange rates vary daily and can be found in newspapers
and through many sites on the Internet.
• U.S. dollar is most frequently used in international
trade, with 81% of all trade financed in U.S. dollars
• Governments may intentionally alter the value of
their currencies through fiscal policy
INTERNATIONAL TRADE BARRIERS 3
Ethical, Legal, and Political Barriers
• Laws and regulations
• Differ in other countries
• Restrictions on currency
• Some countries fail to honor U.S. laws may be less strict than
the U.S.
INTERNATIONAL TRADE BARRIERS 4
Ethical, Legal, and Political Barriers continued
• An import tariff is a tax levied by a nation on goods
imported into the country.
• A fixed tariff is a specific amount of money levied on
each unit of a product brought into the country, while
an
• ad valorem tariff is based on the value of the item.
• Exchange controls restrict the amount of currency that can be
bought or sold. Some countries control their foreign trade by
forcing businesspeople to buy and sell foreign products
through a central bank.
A quota limits the number of units of a particular product that
can be imported into a country. A quota may be established by
voluntary agreement or by government decree.
Political instability in many nations has led to an influx of refugees. The potential
for political turmoil is a substantial risk businesses face when expanding
overseas.
Source: Adapted from Judie Haynes, “Communicating with Gestures,” EverythingESL (n.d.),
www.everythingesl.net/inservices/body_language.php (accessed April 7, 2017).
INTERNATIONAL TRADE BARRIERS 7
Technological Barriers
A. Embargo
B. Tariff
C. Quota
D. Exchange Limit
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QUESTION 2
©McGraw-Hill Education.
EverythingBaby is a producer of baby formula and has formed an
advisory committee to determine the benefits of exporting to the
Nigerian market. In your opinion, what is the most important
factor they should take into consideration before taking action?
QUESTION 3
A. Cost
B. Place
C. Location
D. Culture
E. Government regulation
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