MBA 523 Chp 2 with Duane Weaver OUTLINE

MBA 523 Chp. 2 with Duane Weaver

OUTLINE • 20 th -21 st Century – Marketer’s Global Perspective • Balance of Payments • Protectionism • Easing Trade Restrictions • International Monetary Fund (IMF) and World Bank Group (WBG) • Protests (global institutions)

20 th -21 st Century – Marketer’s Global Perspective – What impact do marketing Decisions have on the ability to Globalize? • E. G. : Pringles and the U. S. market approach to advertise as a “potato chip” vs. U. K. VAT taxation on potato products? • Can you think of other examples from your country? How has the global economy changed for marketers since 100 years ago?

Balance of Payments The ∆ between receipts and payments An economic impact between countries that impacts our ability to market Globally? • HOW? • WHAT IMPACTS DOES THIS HAVE TO YOU AS MARKETER IN REGARDS TO : THE MARKETING MIX?

Protectionism – WHY? • Infant industry? • Home market? • Keep money at home? • Capital accumulation incentives? • Maintain standards of living? • Conserve Natural Resources? • Industrialization? • Employment Rates Up? • National Defense? • Business Size? • Retaliation and Bargaining? Benefits? Risks? ?

Protectionism Types • Trade Barriers • Tariffs • Quota and Import Licenses • Voluntary Export Restraints • Boycotts and Embargos • Monetary Barriers • Standards • Antidumping Penalties • Domestic Subsidies and Economic Stimuli Advantages and Disadvantages to Marketers?

Easing Trade Restrictions • GATT (agreement US +22) • WTO (institution – broader than GATT) IMPACT? BENEFIT OR NOT FOR MARKETERS? HOW?

International Monetary Fund (IMF) & World Bank Group (WBG) IMF - ”Stabilization of foreign exchange rates and freely convertible currencies” clean float dirty float SDRs (spec. drawing rights) WBG - ”reduce poverty & improve. Std. of Living”

Protests (global institutions) Unintended Consequences of Globalization lead to REVOLT! • • • Environmental Exploitation of Workers Job losses domestically Cultural erosion/extinction Higher Energy Costs Loss of Sovereignty As global Marketers How Could you use this Movement to your Advantage? ? …. does it increase or decrease costs? Hmmmmm…. . ? !!!

THANK YOU! Thanks for your Time! LET’S LOOK AT A CASE