1. Chapter 4 Developing a Global Vision

2. Global Vision Recognize and react to international marketing opportunities Be aware of threats from foreign competitors Use international distribution networks

3. Importance of Global Marketing U.S. exports a fifth of industrial production and one-third of its farm products One of every sixteen jobs in U.S. is supported by exports

4. The Negatives of Global Trade Millions of Americans have lost jobs Millions fear losing jobs Workers face pay-cut demands Service and white-collar jobs are vulnerable to operations move

5. The Advantages of Global Trade Rise from poverty for foreign nations Per capita income increases Productivity and living standard increase Inflation not as threatening Open economy spurs innovation Export jobs may pay more

6. Multinational Advantage Overcome trade problems Sidestep regulatory problems Shift production from one plant to another Tap new technology from around the world Save in labor costs

7. Global Marketing Standardization World markets are becoming more alike Standardized products can be sold the same way worldwide Successful companies may vary products for global markets

8. The External Environment Natural Resources Demographic Makeup Economic and Technological Development Culture Environmental Factors Political Structure

9. Culture  Language  Religion  Superstitions  Etiquette  Customs  Traditions  Notion of time

10. Economic and Technological Development Type of Society SocietyDescriptionDescription Traditional Pre-Industrial Takeoff Industrializing Agricultural, Little Upward Mobility Social and Economic Change New Industries Spread of Technology Fully Industrial Fully Industrial Exporter, Technology as Driver of New Innovation Exporter, Technology as Driver of New Innovation

11. Legal Considerations Tariff Quota Boycott Exchange Control Market Grouping Trade Agreement A tax levied on goods entering a country Limit on the amount of a product that can enter a country Exclusion of products from a country Foreign exchange must be sold to a control agency Common trade alliance An agreement to stimulate international trade

12. Political and Legal Considerations Mercosur NAFTA European Union Examples

13. Risk Levels for Global Entry Lowrisk/lowreturn Highrisk/highreturn Risk Return Export Licensing Contract Manu- facturing Joint Venture Direct Invest- ment

14. Entering the Global Marketplace Licensing Legal process allowing use of manufacturing/patents/knowledge. Contract Manufacturing Private-label manufacturing by a foreign country Joint Venture Domestic firm buys/joins a foreign company to create new entity. Export Sell domestically produced products to buyers in other countries. Direct Investment Active ownership of a foreign company/manufacturing facility.

15. Company Strategy, Structure and Rivalry Intensity of Competition Factor Conditions Demand Conditions Natural Resources Size of Market Education Consumer Sophistication Related and Supporting industries Suppler Clusters Porter’s ‘Diamond’ of National Competitive Advantage