1. Global Business Environment
Class 3

2. The International Marketing Task7
Foreign environment
(uncontrollable) 1
Political/legal
forces
Economic
forces
Domestic environment
(uncontrollable) 2 7
Competitive
structure
Political/
legal
forces
(controllable)
Competitive
Forces
Cultural
forces
Price
Product
Environmental
uncontrollables
country market A 3
Channels of
distribution
Promotion
Environmental
uncontrollables
country
market B 6
Level of
Technology
Geography
and
Infrastructure
Economic climate
Environmental
uncontrollables
country
market C 4 5
Structure of
distribution

3. U.S. Multinational in Europe - 1960’s
}Fifteen years from now the world’s third greatest industrial power, just after the United States and Russia, may not be Europe, but American industry in Europe.~
J.S. Servan Schreiber:
Le Defi American, 1967

4. The Nationality of the World’s 100 Largest Industrial Corporations (by country of origin)
SOURCES: Adapted from “The World’s 500 Largest Industrial Corporations,” Fortune, Aug. 4, 1997

5. History of International Trade
The Roman Empire - Build on International Trade
What the Romans had:
Pax Romana
Common coinage
Systematic law
Central Market Locations
Communication System

6. History of International Trade
Others wanted a part of:
Taxes
Protection from pirates
Lower cost of goods Ý lower prices Ý higher demand
International Cooperation and Trade

7. History of International Trade
The Fall of the Roman Empire
Loss of cooperation
European Feudalism & Protectionism
Medieval International Trade
Turning away from International Trade
China & The Empress’s Palace (1896)
Smoot-Hawley Act (1930s) & Consequences
Trade embargoes as foreign policy tools

8. International Trade and Recent History
Post World War II - A world divided
Eastern Bloc
Council for Mutual Economic Assistance
Western world
Pax Americana

9. International Trade and Recent History
Charter for International Trade Organization (1948) - 53 countries

10. International Trade and Recent History
Charter for International Trade Organization (1948) - 53 countries
á General Agreement on Tariffs and Trade (GATT) - reduce tariffs
á International Monetary Fund (IMF)
á World Bank

11. International Trade and Recent History
World Trade Organization (1994)

12. Trends in Global Business
Internationalization of U.S. Markets
Internationalization of U.S. Business
Growth of Regional Trade Areas
EU, NAFTA, AFTA, APEC
Move toward free market system by countries in
Latin America, Asia, Eastern Europe
Large Emerging Markets such as
Argentina, China, South Korea, Poland, India
Evolving global middle income households
GATT and World Trade Organization
The TRIAD