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Published byRosamond Watkins Modified over 6 years ago
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THE GLOBAL MARKET ENVIORNMENT – Marketing Opportunity 2
Advanced Diploma in Marketing
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Understand the modes of entry to an international market:
Identify international markets operating under free trade or protectionist arrangements & how this may affect entering or trading with certain countries Understand how trade policies and agreements impact international trading opportunities
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International marketing opportunities or “ modes of entry “
When considering international marketing, or selling into a foreign country, there are various different marketing opportunities or modes of entry that a business. Exporting Agents Direct investment Intermediaries Licensing Joint ventures Strategic alliances On line business opportunities
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Level of Involvement abroad
Domestic Marketing Export Marketing International Marketing Global Marketing Least international commitment Domestic focus Limited international commitment Involves direct or indirect export Ethnocentric Substantial international commitment Focus on individual countries or regions Polycentric or Regiocentric Extensive international commitment Focus on segments, rather than countries or regions Geocentric
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Drivers of International Expansion
TRANSPORTATION and TELECOMMUNICATIONS Lower cost and higher quality communication due to satellite technology, teleconferencing, and Efficient transportation due to containerization and just-in-time technology
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Global Marketing Sell products and services all over the world to multiple countries. Global marketers include companies like Coca-Cola, Cadbury , Apple etc., Dell , IBM, HP, Cannon, KFC, McDonalds,
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International Trade Policies and Agreement
Its important to be aware of varying trade agreements between countries, and any changing negotiations, as they will directly impact upon business conducted. Australia is involved in a broad range of trade agreements that can impact on business operating in international markets.
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FTA JAPAN AND AUSTRAILA
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Cont.. FTAs also cover areas such as government procurement, intellectual property rights, and competition policy. Lowering trade barriers helps industries access new markets, boosting their reach and the number of people they can sell their products to. FTAs are also ultimately designed to benefit consumers. In theory, increased competition means more products on the shelves and lower prices. Japanese exporters will see Australian tariffs lowered on electronics, whitegoods and cars, and Australian consumers will see prices lowered as a result. Australian car buyers will be paying about $1,500 less for Japanese vehicles. Prime Minister Tony Abbott said in January that Australia's year-long G20 presidency, which culminates with the November summit in Brisbane, would make "freer trade" one of its priorities.
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Australia's FTAs: Who do we trade with and what's in the works?
Australia has a total of seven FTAs in place, with New Zealand, the US, Chile, Thailand, Malaysia, Singapore, and the Association of South East Asian Nations (ASEAN). An FTA with South Korea was agreed to in December, but it is yet to come into force, while the FTA with Japan was just agreed to. Australia is currently negotiating seven FTAs, three that are bilateral - with China, India, and Indonesia - and four that are plurilateral. The proposed Trans-Pacific Partnership, currently being negotiated between 12 countries - including Australia - would become the largest FTA in the world if it were signed, opening up an estimated $US28 trillion in trade. DFAT says that FTAs currently account for 28 per cent of Australia's trade. Currently, the North American Free Trade Agreement (NAFTA) between the US, Canada and Mexico is the world's largest free-trade area, producing $US17 trillion worth of goods and services.
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