2    Why Global Marketing is Imperative
   "Change in the World's 100 Largest Companies"- what happened to U.S.
               leadership? Is this good or bad or expected?
   global vs international vs multinational
   What is meant by a Global firm? What mindset do you think that U.S. firms
               adopt?  What mindset do we adopt in our classes?

3    Globalization of Markets and Competition
   " US Balance of Goods, Services and Income" - do we understand it?
   What's all the fuss about?
   Isn't this natural as other nations grow and develop their own industries?
   Isn't this natural as products from other countries are desirable around the
              world?

4    Balance of Payments
   The difference between receipts from foreign countries on one side and
              payments to them on the other
   Plus:  export sales, money spent for foreign tourists, payments to US for
               serves, payments of dividends and interest on investments abroad, new
               foreign investments in US., etc..
   Minus:  costs of goods imported, spending by US tourists overseas, new
               overseas investments, costs of foreign military and economic aid

5     Accounts
   Current account - all international merchandise trade and service accounts
   Capital account - investments
   official reserves account - gold, foreign exchange
               if 10% of US exports were missed in 1996, trade deficit would drop from $114
               billion to only $31 billion!
   Balance of Trade - relationship between imports and exports

6    What Should Be Counted?
   If a product is made in US and sold overseas
   If a US firm makes a product in Japan and sells it in a third country
   If Honda makes a car in Marysville but sells it in Europe
   If a US-owned firm licenses its technology and brands to be manufactured and
              sold in another country
   Is the trade balance really understood?

7     Protectionism
   Is protectionism always negative?
   Are there any justifiable reasons for protecting a market?
   Infant industries
   National Security
   Bargaining for Fair Trade Practices
   Industrialization of undeveloped countries

8    Tariff and Nontariff Barriers
   Tariffs are taxes, based on classifications
   Types:  ad valorem, weight, etc.
   Nontariff barriers are of many types - add expenses to your product
   Types:  packaging restrictions, labeling, quotas, size limitations, content
               requirements, etc.

9    There are Pros and Cons
   Raises costs to consumers
   Blocks trade
   Helps markets to grow
   Protection against inferior products Etc.

10   Foreign Corrupt Practices Act
   US law, makes it illegal for companies to pay bribes
   Amended by Omnibus Trade and Competitiveness Act of 1988: reduced liability
              of corporate offices from having reason to know about bribes, and also
              permits lubrication payment if customary in the culture
   National Security:  controlled products

Organizations you should examine:

• GATT/WTO
• International Trade Commission
• United Nations
• International Monetary Fund - IMF

11   Global Cooperation - GATT
   GATT = General Agreement on Tariffs and Trade
   is a system of bilateral agreements
   formed after World War II
   Presently has about 117 countries
   works toward tariff reduction and nondiscriminatory practices

12   Role of GATT and WTO
   GATT
               - Most favored nation concept (MFN)
               - Uruguay round
   WTO - www.wto.org
               - Exhibit 2-4 "Summary of the Final Act of the Uruguay Round of GATT"
   Financial Services in the WTO/GATT

13   Cooperation - WTO
   World Trade Organization - 144 members, Jan 2002, new members China and Chinese Taipei
   formed by GATT at the Uruguay Round in 1994
   takes in GATT and other issues
   sets rules, relies on a panel of experts to settle disputes
   full participation of all members
   Suppose you were put in charge of protecting your company's logo on the
              Internet - where would you start?

14   Information Technology and The Changing Nature of Competition
   Trade Related Intellectual Property (TRIP's)
   Information related products
   Impact of the Internet - it is a global market, but laws and protection are
               country-specific
  www.uspto.gov
  http://www.uspto.gov/web/forms/index.html#PCT

15   Some Key Concepts
   Countervailing Duty: an additional duty imposed by the Secretary of the
   Treasury to offset export grants, bounties, or subsidies paid to foreign
   suppliers in certain countries by the govt. of that country for the purpose
   of promoting export
   Dumping:  attempting to import merchandise in the a country a t a price
    which is less than the fair market price

16   Cooperation - IMF
   International Monetary Fund
   works for stabilization of foreign exchange rates
   facilitates trade when currencies are weak
   establishes freely convertible currencies
   SDR = Special Drawing Rights - trading in a medium based on avg base
SEE NEW SDR BASKET SINCE THE EURO

17   Keiretsu
   A form of business organization that links companies in industrial groups
   Japan is a good example
   mutual shareholding
   meetings of executives
   preferential treatment between member buyers and sellers
 

 

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