© 2009 South-Western, Cengage LearningMARKETING 1 Chapter 18 MARKETING IN A GLOBAL ECONOMY 18-1The Expanding World Economy 18-2How Businesses Get Involved 18-3Understanding International Markets CHAPTER 18

© 2009 South-Western, Cengage LearningMARKETING Chapter 18 2 Focus Questions: Based on the ad, what types of products and services does XL Capital offer and who are its customers? How would a business involved in international trade benefit by working with XL? ©XL

© 2009 South-Western, Cengage LearningMARKETING Chapter 18 3 THE EXPANDING WORLD ECONOMY GOALS Describe the important role that international trade plays in the global economy. Explain why businesses expand into international markets and how governments assist them in doing so. 18-1

© 2009 South-Western, Cengage LearningMARKETING Chapter 18 4 The United States and International Trade International trade imports exports The changing nature of international trade

© 2009 South-Western, Cengage LearningMARKETING Chapter 18 5 Why Businesses Are Going Global Changing markets and competition Assistance with international marketing

© 2009 South-Western, Cengage LearningMARKETING Chapter 18 6 HOW BUSINESSES GET INVOLVED GOALS Define indirect and direct exporting and balance of trade. Explain how foreign production, foreign investment, and foreign joint ventures operate. Describe the way in which multinational companies compete by thinking globally. 18-2

© 2009 South-Western, Cengage LearningMARKETING Chapter 18 7 The Importance of Marketing in International Trade Indirect exporting Direct exporting Balance of trade

© 2009 South-Western, Cengage LearningMARKETING Chapter 18 8 Foreign Production, Investment, and Joint Ventures Foreign production Foreign investment Joint ventures

© 2009 South-Western, Cengage LearningMARKETING Chapter 18 9 Multinational Companies Businesses that have operations throughout the world and that conduct planning for worldwide markets are multinational companies.

© 2009 South-Western, Cengage LearningMARKETING Chapter The Worlds Largest Employers CompanyHome CountryNo. of Employees Wal-Mart StoresUnited States1,900,000 China National PetroleumChina1,086,966 U.S. Postal ServiceUnited States796,199 SinopecChina681,900 SiemensGermany475,000 McDonaldsUnited States465,000 Deutsche PostGermany463,350 CarrefourFrance456,295 Agricultural Bank of ChinaChina452,464

© 2009 South-Western, Cengage LearningMARKETING Chapter UNDERSTANDING INTERNATIONAL MARKETS GOALS Explain how economic conditions affect the ability to market within a country. Describe the factors that determine the best marketing mix for particular countries. Examine how conditions in international markets affect the completion of marketing functions. 18-3

© 2009 South-Western, Cengage LearningMARKETING Chapter The International Economic Environment Preindustrial economies Industrial economies Postindustrial economies

© 2009 South-Western, Cengage LearningMARKETING Chapter Information Needed for International Markets Market Information Needs Economic Environment Culture and Customs Consumer Characteristics Political and Legal Structure Technology

© 2009 South-Western, Cengage LearningMARKETING Chapter Condition of the Economy Gross domestic product (GDP) Gross national product (GNP) Standard of living Productivity Purchasing power Consumer Price Index Inflation Recession Business cycles

© 2009 South-Western, Cengage LearningMARKETING Chapter Finding the Right Mix for Foreign Markets Consumer characteristics Culture and customs Technology Political and legal structure

© 2009 South-Western, Cengage LearningMARKETING Chapter International Marketing Activities Gathering market information Adjusting the marketing mix and marketing functions Product/service management Distribution Selling Financing Pricing Promotion