Strategic Implications for Business and Marketing The complexity in the marketplace will change For MNC’s enlarged markets Reduced or abolished country-by-country tariffs and restrictions Rules and regulations can be more sophisticated Production, financing, labor, and marketing decisions are affected. Competition will intensify Will still have to deal with national markets due to differences in language, customs, instability etc.

Opportunities Large mass markets (initial advantage to large MNC’s) Mass production and distribution (economies of scale) Lower prices will be beneficial to be competitive Major savings resulting from not having to develop different versions of the same product to satisfy national standards The initial disadvantage to smaller companies will disappear with mergers, joint ventures acquisitions etc. Coordinated programs to develop economic growth Protects businesses that operates within the borders

Threats or Market Barriers It could be difficult for smaller companies to meet new and more sophisticated product standards Exporters will find it very difficult to compete

Marketing Mix Implications Reduced number of brands Much less price differential (more standardized pricing) among member countries Integrated and competitive distribution system Competition among small and medium size retailers Internet marketing will grow