1. International Trade and The Global Marketplace

2. International Trade
Exchange of Good and Services between nations

3. IMPORTS…
Goods & Services PURCHASED from other countries
EXPORTS…
Goods & Services SOLD to other countries

4. Licensing
Letting another company use a trademark, patent, special formula, or company name for a fee.
Disney Toys at Walmart
Spiderman Happy Meal Toys

5. Multinationals Large Corporations that operate in several countries GE
Microsoft
Intel
McDonalds
More and more are adding subsidiaries

6. Tariff – TAX that is imposed on imports.
Quota – QUANTITY limits on imported goods

7. EMBARGO Total BAN of specific goods coming into and leaving a country
Health: Poisoned fruit, pesticide problems
Political: End war through economic means
Cuba (over 50 year US embargo)
Vietnam (lifted in the ’80’s)
Persian Gulf / Iraq

8. American raised Blank Angus Beef Hand massaged Kobe Beef from Japan
Protectionism
Government restricts import to protect domestic industries
The opposite of free trade
American raised Blank Angus Beef
Hand massaged Kobe Beef from Japan

9. World Trade Organization
Global coalition of 135 governments that make rules about trade.
GATT (General Agreement on Tariffs & Trade
Before WTO……..No real enforcement of agreements, so WTO was formed to settle disagreements

10. Comparative Advantage
The value a nation gains by selling goods that it produces most efficiently.
Countries specializing
USA – High Tech (computers, machinery), Steel
Japan/Korea/China – Toys, Clothing, Shoes (cheaper labor)

11. Infrastructure
The basic physical and organizational structures and facilities (e.g., buildings, roads, and power supplies) needed for the operation of business and industry.

12. Absolute Advantage
When a country has special natural resources or talents that allow them to produce an item at the LOWEST possible cost (No one else can compare).
CHINA……..Silk
MALAYSIA……..Rubber
BRAZIL………Coffee

13. Global Marketing Strategies
Customization
Creating entirely new products and promotions for a specific country or region
Globalization
Same package and promotions used all around the world

14. Global Marketing Strategies
Product Adaptation
Keeps company name but changes products to meet local tastes
Promotion Adaptation
Changing some or part of message and images used in other countries