MBA 523

Chp. 2

with Duane Weaver

• 20th -21st Century – Marketer’s Global Perspective

• Balance of Payments

• Protectionism

• Easing Trade Restrictions

• International Monetary Fund (IMF) and World Bank Group (WBG)

• Protests (global institutions)

OUTLINE

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?

20th -21st Century– Marketer’s Global Perspective –

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?

Balance of Payments

• 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?

Protectionism – WHY?

Benefits?Risks?

• Trade Barriers

• Tariffs

• Quota and Import Licenses

• Voluntary Export Restraints

• Boycotts and Embargos

• Monetary Barriers

• Standards

• Antidumping Penalties

• Domestic Subsidies and Economic Stimuli

Protectionism Types

Advantages and Disadvantagesto Marketers?

• GATT (agreement US +22)

• WTO (institution – broader than GATT)

IMPACT? BENEFIT OR NOT FOR MARKETERS? HOW?

Easing Trade Restrictions

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”

International Monetary Fund (IMF)& World Bank Group (WBG)

Unintended Consequences of Globalization lead to REVOLT!

• Environmental• Exploitation of Workers• Job losses domestically• Cultural erosion/extinction• Higher Energy Costs• Loss of Sovereignty

Protests (global institutions)

As global Marketers How Could you use this Movement to your Advantage??….does it increase or decrease costs?

Hmmmmm…..?!!!

Thanks for your Time!

LET’S LOOK AT A CASE

THANK YOU!