Explain international trade considerations for sport/event industries. WF SEM II Objective 1.05 Explain international trade considerations for sport/event industries.

Explain the impact of exchange rates on sport marketing Research has shown that the success of sports teams around the world is directly related to their purchasing power in the international talent market. The higher the value of the teams’ home currency = the more purchasing power the team has meaning that based on prior research, the team will be more successful.

Describe trade regulations affecting international sport marketing Trade restrictions are regulations, policies and actions that limit trade among nations. Example: Trade restrictions are barriers that a nation imposes, which hinders a sporting-goods manufacturer's ability to do business in other nations. Types of trade restrictions include tariffs, quotas, and embargoes. Tariffs: taxes placed on imported goods Quotas: limit the quantity of goods that move into or out of the country. Licenses: permits that a nation grants to businesses that want to import or export goods. Some nations limit the number of licenses they grant. Embargoes: A policy that suspends all import-export trade with another country.

Explain the use of foreign distributors in international sport marketing Distributor: An agent who sells directly for a supplier and maintains an inventory of the supplier’s products. A foreign distributor buys the manufacturer’s product for resale to middlemen or final buyers. He has more functions than an agent (maintaining inventories providing after-sales services) and assumes the ownership risk. He obtains a profit margin on resale of the product

Your company wants to sell its products in foreign markets. Explain the use of foreign distributors in international sport marketing Your company wants to sell its products in foreign markets. Increased sales mean increased revenues, which should translate into increased profits. In order to accomplish this goal, you must first establish distribution channels in foreign markets.

Explain how cultural/value differences impact international sport marketing. Methods of communication vary among cultures Personal style concerns the way a negotiator talks to others, uses titles, dresses, speaks, and interacts with other persons. It has been observed, for example, that Germans have a more formal style than Americans