© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 7-7

FIGURE 7-1FIGURE 7-1 Illustrative world trade flows for manufactured goods and commodities (billions of dollars)

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

DYNAMICS OF WORLD TRADE

Slide 7-8

• Competitive Advantage of Nations

Porter’s Diamond of National Competitive Advantage

• Demand Conditions

• Related and Supporting Industries

Economic Espionage Act (1996)

• Factor Conditions

• Company Strategy, Structure, and Rivalry

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 7-9

FIGURE 7-2FIGURE 7-2 Porter’s diamond of national competitive advantage

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

MARKETING IN A BORDERLESS ECONOMIC WORLD

Slide 7-13

• Decline of Economic Protectionism

Protectionism

Tariffs

Quota

World Trade Organization (WTO)

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 7-14

FIGURE 7-3 FIGURE 7-3 How protectionism affects world trade

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

MARKETING IN A BORDERLESS ECONOMIC WORLD

Slide 7-16

• Rise of Economic Integration

European Union

North American Free Trade Agreement (NAFTA)

Asian Free Trade Agreements

• Euro

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 7-17

FIGURE 7-4FIGURE 7-4 The countries of the European Union in 2005

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

MARKETING IN A BORDERLESS ECONOMIC WORLD

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Global Companies

• A New Reality: Global Competition among Global Companies for Global Consumers

• International Firms

• Multinational Firms

• Transnational Firms

• Global Brand

Global Marketing Strategy

Multidomestic Marketing Strategy

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 7-22

FIGURE 7-AFIGURE 7-A Global companies and marketing strategies

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

MARKETING IN A BORDERLESS ECONOMIC WORLD

Slide 7-23

Global Consumers

• A New Reality: Global Competition among Global Companies for Global Consumers

• Emergence of a Networked Global Marketspace

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

MARKETING NEWSNET

The Global Teenager—A Market of500 Million Consumers with

$100 Billion to Spend

Slide 7-24

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 7-25

Nestlé Website for Peru What is a global marketspace?

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

A GLOBAL ENVIRONMENTAL SCAN

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• Cultural Diversity

• Foreign Corrupt Practices Act (1977)

Cultural Symbols

• Semiotics

Cross-Cultural Analysis

Values

Customs

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 7-30

FIGURE 7-B FIGURE 7-B Cultural appreciation

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

FIGURE 7-5FIGURE 7-5 How purchasing power differs around the world

Slide 7-37

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 7-43

FIGURE 7-6FIGURE 7-6 How purchasing power differs around the world

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

MARKETING NEWSNET

Slide 7-44

Creative Cosmetics andCreative Export Marketing in Japan

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 7-48

Frito-Lay in IsraelWhat global market-entry strategy and why?

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 7-52

FIGURE 7-7FIGURE 7-7 Five product and promotion strategies for global marketing

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 7-53

Gillette For Women Venus Why use an identical global message for

Greece, Germany, and the U.S.?

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 7-55

FIGURE 7-8FIGURE 7-8 Channels of distribution in global marketing