Untitled Notes

5-1 Importance of Global Marketing
Discuss the importance of global marketing.
5-2 Impact of Multinational Firms
Discuss the impact of multinational firms on the world economy.
5-3 External Environment for Global Marketers
Describe the external environment facing global marketers.
5-4 Ways of Entering the Global Marketplace
Identify the various ways of entering the global marketplace.
5-5 Developing a Global Marketing Mix
List the basic elements involved in developing a global marketing mix.
5-6 Impact of the Internet
Discover how the Internet is affecting global marketing.

Global marketing: Marketing that targets markets throughout the world.
- Definition emphasizes a broad and inclusive approach to marketing in international contexts.
Global vision: Recognizing and reacting to international marketing opportunities, utilizing effective global marketing strategies, and being aware of threats from foreign competitors in all markets.

Gross Domestic Product (GDP):
- Definition: The total market value of all final goods and services produced in a country for a specified period.
- Final goods: Refers specifically to products sold to end users.
- GDP only counts final goods and services in its valuation of a country’s production.

Outsourcing: Refers to sending U.S. jobs abroad.
- It leads to corporate growth, efficiency, productivity, and revenue growth.
Inshoring: Returning production jobs to the United States.
- This trend has been driven by rapid consumer product innovation.
- Keeping product designers, marketing researchers, and logistics experts close to production has become significant.
- Shortened development and manufacturing timelines are contributing to the inshoring trend.

Expands economic freedom and spurs competition.
Raises a nation’s productivity and living standards when access to the global market is provided.
Additional Benefits:
- Access to foreign capital, global export markets, and advanced technology.
- Promotes higher labor and environmental standards.
- Acts as a check on governmental power.

Countries may impose restrictions on trade to boost exports and limit imports.
Globalization can lead to layoffs, as workers in some sectors may not find jobs in others.
Trade Adjustment Assistance: Payments made to workers who have lost their jobs due to foreign competition.

Multinational corporation: A company heavily engaged in international trade that conducts operations across national boundaries without regard to its headquarters location.
Stages of multinational global business development:
- Operate in one country and sell to others.
- Set up foreign subsidiaries to handle sales in specific countries.
- Operate an entire line of business in another country.
- Engage in virtual operations.

Global marketing standardization: Refers to the production of uniform products that can be marketed the same way across the globe.
Multidomestic strategy: Multinational firms allow independent subsidiaries to compete in domestic markets (e.g., McDonald's in different countries adapts its offerings).

Culture: A common set of values shared by the citizens of a society, influencing what is considered socially acceptable.

Complex and sophisticated industries are typically found in developed countries, while basic industries are more prevalent in less developed nations.
Balance of Trade: The difference between a country’s exports and imports over a specified period.
Balance of Payments: The difference between a country’s total payments to other countries and its total receipts from other countries.

North American Free Trade Agreement (NAFTA): Created a significant free trade zone between the USA, Canada, and Mexico, resulting in shifts in jobs especially towards Mexico.
United States-Mexico-Canada Agreement (USMCA): Replaced NAFTA with key emphases on intellectual property protections, increased De Minimis shipment value, expanded financial services, and improved labor standards.
European Union (EU): A significant free trade zone guaranteeing the freedom of movement for people, goods, services, and capital, while maintaining a common trade policy with external nations.

World Bank: An international bank providing low-interest loans to developing nations.
International Monetary Fund (IMF): Provides financial assistance to troubled nations while promoting international trade.
Group of Twenty (G-20): A forum for discussing global economic stability among industrial and emerging-market countries.

Detailing key determinants influencing consumer markets, primarily focusing on wealth and population demographics affecting consumption growth.
The groups expected to contribute largely to worldwide consumption growth include:
- The retiring population in developed countries.
- The working-age population in China.
- The working-age population in North America.

Exporting: Selling domestically produced products to foreign buyers.
- Buyer for Export: Intermediary who assumes ownership risks and sells globally.
- Export Broker: Brings together buyers and sellers, typically for agricultural and raw materials.
- Export Agent: Acts as a manufacturer's agent in the foreign market.
Licensing: A legal process permitting another firm to use proprietary rights.
- Franchising: A form of licensing where the franchisee pays for the right to sell the franchisor's goods/services.
Contract Manufacturing: Private-label manufacturing by a foreign entity.
Joint Venture: Domestic firm performs business with a foreign entity to create a new entity (e.g., Walmart and JD.com).
Direct Investment: Investment in business interests in another country.

Dumping: Selling an exported product at a price lower than that charged in the home market.
- Reasons for dumping can include:
- Increasing market share overseas.
- Mitigating slack demand at home.
- Lowering production costs via economies of scale.
- Stabilizing prices amid exchange rate fluctuations.