© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 The Global Marketing Imperative

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. What is International Marketing? International marketing consists of the activity, institutions, and processes across national borders that create, communicate, deliver, and exchange offerings that have value for stakeholders and society. Forms of international marketing include e xport– Marketing serves as a key agent of societal change and as a key instrument for the development of societally responsive business strategy.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Questions to consider to deal with international issues and repercussions and make appropriate decisions: – – – What is International Marketing?

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Questions to consider to deal with international issues and repercussions and make appropriate decisions: – – – What is International Marketing?

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Importance of World Trade World trade in merchandise has expanded from $6.2 trillion in 2000 to over $15.1 trillion in Global growth of trade has outperformed the growth of domestic economies in the past few decades.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Importance of World Trade Trading blocs encourage trade relations between their members through rules and standards, and also affect the trade and investment flows of nonmember countries.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Global Linkages Global linkages bind countries, institutions, and individuals closely. These linkages have also become more intense on an individual level. – – –

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Global Linkages World trade is also bringing about a global reorientation of corporate processes, which opens up entirely new horizons. The level of global investment has – – – –

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Global Linkages Realignments taking place on both _____ and _____ levels make past trade orientations partially obsolete. The growth in the overall ______ and _____ of both merchandise and services trade has had a major impact on firms, countries, and individuals.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Domestic Policy Repercussions Currency flows set exchange rates, which are the values of currencies relative to each other.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Domestic Policy Repercussions The global market imposes increasingly tight limits on national economic regulation and sovereignty. These measures too have been restrained by international agreements that regulate trade restrictions, particularly through the World Trade Organization (WTO).

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Domestic Policy Repercussions Though closer economic relations result in many positive effects, interdependence decreases a nation’s capability to do things its own way.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Opportunities and Challenges in International Marketing To handle newly emerging forces and dangers of unforeseen influences from abroad, firms need to: – – – –

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Opportunities and Challenges in International Marketing The growth of global business activities offers increased opportunities. International opportunities require an awareness of global developments, an understanding of their meaning, and a development of capabilities to adjust to change.