1. Global Marketing #1

2. Global Markets World Trade:: Globalization of Markets:
Trade between countries has increased 2-fold, but it’s not equal between all countries
Globalization of Markets:
The merging of historically distinct and separate national markets into one huge global marketplace
The movement towards Global markets is known as Globalization. Instead of having just one designated market in one country, the whole world has become a potential market for companies to sell their goods and services in. As well, markets are not distinct anymore, they are starting to merge together as the people within those markets are starting to develop a similar culture and taste for products. This is called the Globalization of Markets.

3. The World is Shrinking Because of:
Internet – use for research, shopping online
Mobile phones and networks
Planes – different methods of transportation
TV ads
YouTube and Netflix
What are some examples of technology in particular that has changed the way we do business and market products?
s of promotions and sales
Online purchasing/shipping
Websites like ebay where can sell goods anywhere in the world
Can communicate quickly and easily with people around the world, including sales people, market research, etc.
Can get goods from one place to another easily with transportation we have now

4. Global Marketing Environment
Don’t write
North American Free Trade Agreement (NAFTA):
Made between Canada, USA, and Mexico in 1994
Lifted many trade barriers between Canada, the United States and Mexico.
Now almost all tariffs are gone.
Don’t need to write

5. Global Marketing Environment
Don’t write
European Union (EU)
27 member countries in Europe
Free flow of G&S between
these member countries
12 of these countries have single currency (Euro)
Asia-Pacific Economic Corporation (APEC)
21 member countries worldwide (including Canada and the US)
To promote economic growth in the Pacific Rim (ie. China, Japan)
Don’t need to write
Not in EU: Switzerland, Norway, Iceland, etc.

6. Global Marketing Environment
European Union (EU)
Norway
Iceland
Switzerland

7. Global Marketing Environment

8. Global Marketing Environment
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The World Trade Organization (WTO):
An international agency (1995)
Encourages trade between member nations, administers global trade agreements and resolves disputes when they arise.
Helps trade and reduces tariffs and other international trade barriers
There are 159 participating member states and 25 observer governments
Don’t need to write

9. Global Marketing Environment
Protectionism:
Practice of shielding 1 or more sectors in the country’s economy from foreign competition
To allow ‘fair competition’ between imported and domestic goods
They include tariffs, quotas or
embargos.
Need to write
There is a lot of controversy between these and a lot of pros and cons. Just need to know that one taxes goods when they are coming into a country, and the other allows goods to cross borders freely.
Free Trade:
Products are able to cross borders with no tariffs, embargos, or quotas

10. Global Marketing Environment
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Tariff:
A tax on imports going in and out of a country (though more frequently goods coming in)
Because it’s an added cost, the price of the product/service to the consumer increases
Revenue is collected by the federal government
Are decreasing as countries move more towards free trade zones
Don’t need to write

11. Global Marketing Environment
Don’t write
Quota:
A limit on the quantity of goods that can be produced abroad and domestically
Sets a physical limit on the quantity of the good that can be imported into the country in a given period of time
Aims to increase domestic production
Don’t need to write

12. Global Marketing Environment
Don’t write
Embargo:
The partial or complete prohibition of trade with a country
This is done to make a statement, punish, try to force policy change, or to protect the country enforcing the embargo
The US has an embargo with Cuba; the EU and US have an embargo on China (for arms); Japan has been embargoed worldwide for animal products due to radiation from the 2011 earthquake
Don’t need to write
This is economic. Blockade is an act of war.
STOP – do tariff activity

13. Complete the tariff activity for tomorrow.
To be done on your own!!!!
STOP – do tariff activity