Types of International Business Countertrade Countertrade is a system of exchange in which goods and services are used as payment rather than money. LEARNING OBJECTIVES Explain the various methods of countertrading KEY TAKEAWAYS Key Points Countertrade is the exchange of goods or services for other goods or services. This system can be typified as simple bartering, switch trading, counter purchase, buyback, or offset. Switch trading: Party A and B are… Read More »Types of International Business

The World Trade Organization (WTO) The WTO was formed in 1995 and has 157 member countries working together to supervise and liberalize international trade. LEARNING OBJECTIVES Review the purpose and status of the World Trade Organization (WTO) KEY TAKEAWAYS Key Points The WTO provides a framework for negotiating and formalizing trade agreements, and a dispute resolution process aimed at enforcing participants’ adherence to WTO agreements signed by representatives of member… Read More »The World Trade Organization

Important International Bodies and Agreements The North American Free Trade Agreement (NAFTA) NAFTA is a 1994 agreement to removes taxes on products traded between North American countries (US, Canada and Mexico). LEARNING OBJECTIVES Discuss the goals of ways that the North American Free Trade Agreement (NAFTA) serves its members KEY TAKEAWAYS Key Points NAFTA protects copyright, patents and trademarks between the three countries. It was updated with the North American… Read More »Important International Bodies and Agreements

Demographics of New Markets Evaluating the demographic profile of a country can help assess whether or not there is demand for the product or service being marketed. LEARNING OBJECTIVES Relate the uses of demographic evaluation to global marketing KEY TAKEAWAYS Key Points A demographic profile typically involves age bands, social class bands, and gender delineations. It can also include religious affiliations, income brackets, and a variety of other characteristics used… Read More »Demographics of New Markets

Political and Regulatory Environment Political stability, trade blocs, tariffs, and expropriation are risks that should be evaluated prior to marketing in foreign countries. LEARNING OBJECTIVES Show how international political and trade regulations impact global marketing KEY TAKEAWAYS Key Points Business activity tends to grow and thrive when a nation is politically stable. When a nation is politically unstable, multinational firms can still conduct business profitably. US companies make one-third of… Read More »Political and Regulatory Environment

Measuring the Economic Environment A nation’s economic output represents its capacity to produce goods and services, and can help determine market opportunities. LEARNING OBJECTIVES Analyze how an economic environment is measured from a global marketing perspective KEY TAKEAWAYS Key Points Economic growth is the increase in the amount of the goods and services produced by an economy over time. It is conventionally measured as a percentage change in the Gross… Read More »Measuring the Economic Environment

The Global Marketing Environment The Importance of Sociocultural Differences While cultural differences between the U.S. and foreign nations may seem small, those who ignore them risk failure in marketing programs. LEARNING OBJECTIVES Formulate an understanding of social and cultural differences from a global marketing perspective KEY TAKEAWAYS Key Points Cultural environments consist of the influence of religious, family, educational, and social systems within the marketing system. Various features of a… Read More »Global Marketing Environment

Are Global Corporations Beneficial? International expansion can drive significant shareholder value, but the net impact of globalization is hotly contested. LEARNING OBJECTIVES Discuss the benefits and challenges of global corporations from a marketing perspective KEY TAKEAWAYS Key Points Despite the general opportunities a global market provides, there are significant challenges MNCs face in penetrating these markets. These challenges can loosely be defined through four factors: Public Relations, Ethics, Org. Structure,… Read More »Are Global Corporations Beneficial?

Trade and Globalization Countries engage in international trade to focus on producing goods most efficiently and to achieve economies of scale in production. LEARNING OBJECTIVES Review the relationship between trade and globalization from a marketing perspective KEY TAKEAWAYS Key Points Factors influencing international trade include trade sanctions, trade barriers, and the free trade movement. The World Trade Organization (WTO) deals with trade regulations, provides a framework for negotiating trade agreements,… Read More »Trade and Globalization

Service Quality Customer Feedback Successful businesses work proactively to obtain information from their customers to ensure they are meeting their needs. LEARNING OBJECTIVES Summarize the different methods organizations use to collect consumer feedback KEY TAKEAWAYS Key Points In-person focus groups and one-on-one interviews are helpful tools that provide explanation of a product or consumer -related issues because you are going to the main source directly. Technology has made it increasingly… Read More »Service Quality