3-1

3-2 Global Markets and Marketing Chapter 3 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

3-3 Chapter Goals McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. The significance of marketing to firms and countries The attractiveness of foreign markets The challenges of designing international marketing strategies The alternative organizational structures The international marketing mix issues and concepts

3-4 Reasons for International Trade Access to products Comparative Advantage

3-5 Role of Export Trade in Selected Countries INSERT TABLE 3.1

3-6 International Trade Balance of Payments all transactions between countries Trade Balance difference between imports and exports

3-7 Factors Affecting International Trade Technology Consumer Preferences Trade Barriers Subsidized Industries Tax Structure Marketing Capability

3-8 Why International Marketing Potential Demand Market Saturation Customer Expectations

3-9 Strategic Planning for International Marketing Regional Strategy Local Strategy Global Strategy

3-10 Market Demand Number of people Buying behavior Ability to buy

3-11 Social and Cultural Environment Family Customs and Behavior Education Language Differences

3-12 Economic Environment Infrastructure Competition Level of Economic Development

3-13 Political and Legal Forces Trade Barriers Tariff Import quota Local-content law Local operating laws Standards and certification Boycott

3-14 Political and Legal Forces Trade Agreements World Trade Organization European Union North American Free Trade Agreement Asia-Pacific Economic Cooperation forum Association of Southeast Asian Nations Common Market of the South WTO EU NAFTA APEC ASEAN MERCOSUR

3-15 Structures for Operating in Foreign Markets

3-16 Designing the Marketing Mix Advertising Pricing Distribution Systems Product Planning Market Research

3-17 Key Terms and Concepts McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Balance of Payments Trade balance International marketing Global Strategy Regional strategy Local strategy Infrastructure Trade barriers Tariff Import quota Local-content law Local operating laws Standards and certification Boycott World Trade Organizations European Union North American Free Trade Agreement

3-18 Key Terms and Concepts McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Asia-Pacific Economic Cooperation forum Association of Southeast Asian Nations Common Market of the South Exporting Export merchant Export agent Company sales branch Contracting Licensing Contract manufacturing Franchising Direct foreign investment Joint venture Strategic alliance wholly owned subsidiary Multinational corporation

3-19 Key Terms and Concepts McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Trademark infringement Dumping Price differential Foreign exchange Countertrade or barter Cartel Gray marketing Bribes