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Chapter 1Global Environmental Drivers

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International Marketing Defined

• International marketing: Consists of the activity, institutions, and processes across national borders • Creates, communicates, delivers, and

exchanges offerings that have value for stakeholders and society

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International Marketing Defined

• Forms of international marketing:• • • • • •

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International Marketing Defined

• Marketing serves as a: • Key agent of societal change• Key instrument for the development of

societally responsive business strategy

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International Marketing Defined

• Making decisions based on international issues and repercussions requires addressing the below questions:• Where are my current and potential

customers?• • Does international activity increase risk?

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International Marketing Defined• What marketing adjustments are or will be

necessary?• • How do innovation and entrepreneurship

change the global marketplace?•

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The Importance of World Trade

• Within the last decade, world trade represents a growth of ___ percent for trade in both merchandise and services

• Global growth of trade has outperformed the growth of domestic economies in the past few decades

• International specialization and cross-sourcing have made production efficient

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The Importance of World Trade

• New and emerging economies have liberalized their economic systems• Bringing billions of new consumers into the

global economic system• Offering a vast array of new marketing

opportunities• Bringing-in production efficiency through

international specialization and cross-sourcing• Redefining the way business is done through

revolutionary technologies

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The Importance of World Trade

• Trading blocs• • •

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Global Linkages

• World trade has forged a network of global linkages• Binding countries, institutions, and individuals

closely• Global linkages have become more

intense on an individual level• Communication has built new international

bridges

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Global Linkages

• World trade is bringing about a global reorientation of corporate processes• Opening up entirely new horizons

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Global Linkages

• Global technological innovation in marketing directly affects the efficiency and effectiveness of business activities• • • • •

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Global Linkages

• The level of global investment has:• Resulted in the buildup of international debt

by governments• • Provided foreign capital for firms•

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Global Linkages

• Increasing foreign investments in some key sectors have resulted in _________

• Realignments taking place on both micro and macro levels make past trade orientations partially obsolete

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Global Linkages

• The growth in the overall volume and value of both merchandise and services trade has had a major impact on ________________________________

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Domestic Policy Repercussions

• Policy makers find it difficult to isolate domestic economic activity from international market events• Domestic policy measures are cancelled out

or counteracted by the activities of global market forces

• Traditionally – currency flows are determined by _______

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Domestic Policy Repercussions

• In the more recent past:• Currency flows have set ___________, which

are the values of currencies relative to each other

• Exchange rates have begun to determine the ______________

• Firms and countries are quick to emulate innovation and counteract carefully designed plans• Due to ________________________

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Domestic Policy Repercussions• Governments are powerless to implement

effective policy measures• Policy makers have imposed regulations

by means of:•

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Domestic Policy Repercussions

• These measures too have been restrained by international agreements that regulate trade restrictions• Particularly through the World Trade

Organization (WTO)•

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Domestic Policy Repercussions

• Closer economic relations result in many positive effects • But, interdependence brings with it risks

• •

• Key task for the international marketer is to _______________________________

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Opportunities and Challengesin International Marketing

• To handle newly emerging forces and dangers of unforeseen influences from abroad, firms need to:• • • •

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Opportunities and Challengesin International Marketing

• The growth of global business activities offers increased opportunities

•

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Opportunities and Challengesin International Marketing

• International opportunities require careful exploration:• • •