1. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Global Environmental Drivers

2. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. International Marketing Defined International marketing: Consists of the activity, institutions, and processes across national borders Creates, communicates, delivers, and exchanges offerings that have value for stakeholders and society

3. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. International Marketing Defined Forms of international marketing:

4. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. International Marketing Defined Marketing serves as a: Key agent of societal change Key instrument for the development of societally responsive business strategy

5. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. International Marketing Defined Making decisions based on international issues and repercussions requires addressing the below questions: Where are my current and potential customers? Does international activity increase risk?

6. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. International Marketing Defined What marketing adjustments are or will be necessary? How do innovation and entrepreneurship change the global marketplace?

7. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Importance of World Trade Within the last decade, world trade represents a growth of ___ percent for trade in both merchandise and services Global growth of trade has outperformed the growth of domestic economies in the past few decades International specialization and cross- sourcing have made production efficient

8. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Importance of World Trade New and emerging economies have liberalized their economic systems Bringing billions of new consumers into the global economic system Offering a vast array of new marketing opportunities Bringing-in production efficiency through international specialization and cross-sourcing Redefining the way business is done through revolutionary technologies

9. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Importance of World Trade Trading blocs

10. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Global Linkages World trade has forged a network of global linkages Binding countries, institutions, and individuals closely Global linkages have become more intense on an individual level Communication has built new international bridges

11. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Global Linkages World trade is bringing about a global reorientation of corporate processes Opening up entirely new horizons

12. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Global Linkages Global technological innovation in marketing directly affects the efficiency and effectiveness of business activities

13. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Global Linkages The level of global investment has: Resulted in the buildup of international debt by governments Provided foreign capital for firms

14. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Global Linkages Increasing foreign investments in some key sectors have resulted in _________ Realignments taking place on both micro and macro levels make past trade orientations partially obsolete

15. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Global Linkages The growth in the overall volume and value of both merchandise and services trade has had a major impact on ________________________________

16. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Domestic Policy Repercussions Policy makers find it difficult to isolate domestic economic activity from international market events Domestic policy measures are cancelled out or counteracted by the activities of global market forces Traditionally – currency flows are determined by _______

17. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Domestic Policy Repercussions In the more recent past: Currency flows have set ___________, which are the values of currencies relative to each other Exchange rates have begun to determine the ______________ Firms and countries are quick to emulate innovation and counteract carefully designed plans Due to ________________________

18. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Domestic Policy Repercussions Governments are powerless to implement effective policy measures Policy makers have imposed regulations by means of:

19. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Domestic Policy Repercussions These measures too have been restrained by international agreements that regulate trade restrictions Particularly through the World Trade Organization (WTO)

20. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Domestic Policy Repercussions Closer economic relations result in many positive effects But, interdependence brings with it risks Key task for the international marketer is to _______________________________

21. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Opportunities and Challenges in International Marketing To handle newly emerging forces and dangers of unforeseen influences from abroad, firms need to:

22. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Opportunities and Challenges in International Marketing The growth of global business activities offers increased opportunities

23. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Opportunities and Challenges in International Marketing International opportunities require careful exploration: