1. International Marketing: Chapter 10 Key Concepts u Multinational market regions u Criteria for successful economic unions u Types of multinational market regions u Key multinational market regions –Europe –Eastern Europe and Baltic States –Commonwealth of Independent States –Africa –Middle East u Strategic implications of multinational market regions

2. Multinational Market Regions u Groups of countries that seek mutual economic benefit by reducing interregional trade and tariff barriers u Examples: –NAFTA –European Union

3. Criteria for Successful Economic Union u Economic Factors u Political Factors u Cultural Factors u Geographic Factors

4. Patterns of Multinational Cooperation Regional Cooperation Groups Free Trade Area Customs Union Common Market Political Union

5. Global Markets & Multinational Market Groups u Globalization of markets u Enhanced global competition u Market potential needs to be viewed in the context of regions of the world rather than country by country

6. Regions of the World: Multinational Market Groups u Europe u Eastern Europe & the Baltic States u Commonwealth of Independent States u Africa u Middle East

7. Economic and Monetary Union (EMU) u Set up common currency for the EU, the “Euro” u Set up timetable for “Euro” implementation u Set up central bank in 2002 u Completed circulation of Euro bank notes & coins u Cancelled bank notes and coins of member nations u Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxemburg, the Netherlands, Portugal, and Spain began using Euro (January 1, 2001)

8. u Twelve (12) members –Ukraine, Russia, Belarus, Armenia, Moldova, Azerbaijan, Uzbekistan, Turkmenistan, Tajikistan, Kazakhstan, Kyrgyzstan, Georgia u A loose economic and political alliance with open borders but no central government u Common history of central planning Commonwealth of Independent States (CIS)

9. Africa u Attempts at economic integration –Hampered by governmental inexperience, undeveloped resources, labor problems, and chronic product shortage u Little actual economic integration –Political instability in recent decades –Unstable economic base u All the countries on the continent (except Morocco) have joined a loosely defined African Union

10. Middle East u Less aggressive in the formation of multinational market groups u Long history of border disputes and persisting ideological differences u Greater Arab Free Trade Area (GAFTA) u Economic Cooperation Organization (ECO) u Creation of the Organization of the Islamic Conference (OIC) –60 countries and over 650 million Muslims worldwide –Vast natural resources, substantial capital, and cheap labor

11. Strategic Implications of Market Integration u Opportunities –Creates large mass markets –Economic growth programs –Improved regional infrastructure –Reduced marketing costs –Integrated distribution systems u Market Barriers –Protectionist measures against foreign exporters –Increased regulations