1. Chapter 2 – The World Trading Environment
Doole, Lowe and Kenyon
International Marketing Strategy

2. Learning Objectives
Discuss the effects and implications of the factors impacting on world trade
Explain the key trends in the major regional trading blocs around the globe
Understand the role of the major world institutions that foster the development of multilateral free trade across the world

3. World trading patterns

4. World trading patterns (cont.)

5. World trading patterns (cont.)
HK Census

6. The reasons countries trade Improve Balance of trade

7. Barriers to world trade (cont.)
COUNTRY COMPARISON : PUBLIC DEBT

8. Barriers to world trade (cont.)
The WTO promotes trade by:
Working to reduce tariffs
Prohibiting import/export bans and quotas
Eliminating trade discrimination
Eliminating non-tariff barriers

9. The development of world trading groups

10. MAJOR CHANGES IN THE SINGLE EUROPEAN MARKET
Removal of tariff barriers
Removal of technical barriers
Public procurement
Free movement of labour and workers’ rights
Opening up of professions
Financial services
Transport, haulage and coastal carriage
Company law
Fiscal barriers
The environment

11. TRADE AREAS NAFTA: free trade area Mercosur: customs union
US, Canada, Mexico and is the world’s richest single market
Mercosur: customs union
Brazil, Paraguay, Uruguay, Venezuela and Argentina
APEC: PEC members account for approximately 40.5 per cent of the world’s population, approximately 54.2 per cent of world GDP and about 43.7 per cent of world trade
ASEAN: free trade area (AFTA) to complete Asian Economic Region by 2020). ASEAN trade is now US$1 trillion and they have a combined GDP of US$1.5 trillion
ASEAN-China Free Trade Area (ACFTA): a combined GDP of up to US$6 trillion and total trade volume of US$4.5 trillion