Premium Essay

Understanding and Reaching Global Consumers and Markets

In: Business and Management

Submitted By ma70
Words 250
Pages 1
CHAPTER 7
REACHING GLOBAL MARKETS

Illustrative world trade flows for manufactured goods and commodities (billions of dollars) DYNAMICS OF WORLD TRADE
• Global perspective
 Countertrade
 Trade feedback effect

• United States perspective
 Gross domestic product
 Balance of trade

• Competitive Advantage of Nations






Factor conditions
Demand conditions
Related supporting industries
Company strategy, structure, and rivalry
Economic Espionage

Porter’s “diamond” of national competitive advantage

EMERGENCE OF A BORDERLESS
ECONOMIC WORLD
• Decline of Economic Protectionism
 Tariffs
 Quota
 World Trade Organization

• Rise of Economic Integration
• European Union
• North American Free Trade Agreement
• Asian Free Trade Agreements

How protectionism affects world trade

EMERGENCE OF A BORDERLESS
ECONOMIC WORLD
• A New Reality: Global Competition among
Global Companies for Global Customers
• Global Competition
 Strategic alliances

• Global Companies
 Multidomestic marketing strategy
 Global marketing strategy

• Global Consumers

• Emergence of Networked Global Marketplace

A GLOBAL
ENVIRONMENTAL SCAN
• Cultural Diversity
 Cross-cultural analysis

• Values
• Customs
 Foreign Corrupt Practices Act

• Cultural Symbols
 Semiotics

• Language
 Back translation

• Cultural ethnocentricity
 Consumer ethnocentrism

A GLOBAL
ENVIRONMENTAL SCAN
• Economic Considerations





Stage of Economic Development
Economic Infrastructure
Consumer Income and Purchasing Power
Currency exchange rates

How purchasing power differs around the world

A GLOBAL
ENVIRONMENTAL SCAN
• Political-Regulatory Climate
• Political Stability
• Trade Regulations

GLOBAL MARKET-ENTRY STRATEGIES
Alternative global market-entry strategies

GLOBAL MARKET-ENTRY

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