World economic trends * There are three reasons why economic growth has been a driving force in the expansion of the international economy and the growth of global marketing. * First, growth has created market opportunities that provide a major incentive for companies to expand globally. * At the same time, slow growth in a company’s domestic market can signal the need to look abroad for opportunities in nations or regions with high rates of growth. * Secondly, economic growth has reduced resistance that might otherwise have developed in response to the entry of foreign firms into domestic economies. * When a country is growing rapidly, policy makers are likely to look favorably on outsides. * A growing country means growing markets; there is often plenty of opportunity for everyone. * Without economic growth, global enterprises may take business away from domestic ones. * Domestic businesses are more likely to seek governmental intervention to protect their local position if markets are not growing.

Leverage * A global company possesses the unique opportunity to develop leverage. * Leverage is simply some type of advantage that a company enjoys by virtue of the fact that it conducts business in more in more than one country. * Four important types of leverage are experience transfers, scale economies, resource utilization, and global strategy.

Experience Transfers * A global company can leverage its expensive in any market in the world. * It can draw on management practices, strategies, products, advertising appeals, or sales or promotional ideas that have been tested in actual markets and apply them in other comparable markets. Scale Economies * The global company can take advantage of its greater manufacturing volume to obtain traditional scale advantages within a single factory. *