1. International TradeandThe Global Marketplace

2. International Trade • Exchange of Good and Services between nations

3. IMPORTS… • Goods & Services PURCHASED from other countries EXPORTS… • Goods & Services SOLD to other countries

4. Licensing • Letting another company use a trademark, patent, special formula, or company name for a fee. • Disney Toys at Walmart • Spiderman Happy Meal Toys

5. Multinationals • Large Corporations that operate in several countries • GE • Microsoft • Intel • McDonalds • More and more are adding subsidiaries

6. Tariff – TAX that is imposed on imports. • Quota – QUANTITY limits on imported goods

7. EMBARGO • Total BAN of specific goods coming into and leaving a country • Health: Poisoned fruit, pesticide problems • Political: End war through economic means • Cuba (over 50 year US embargo) • Vietnam (lifted in the ’80’s) • Persian Gulf / Iraq

8. Protectionism • Government restricts import to protect domestic industries • The opposite of free trade American raised Blank Angus Beef Hand massaged Kobe Beef from Japan

9. World Trade Organization • Global coalition of 135 governments that make rules about trade. • GATT (General Agreement on Tariffs & Trade • Before WTO……..No real enforcement of agreements, so WTO was formed to settle disagreements

10. Comparative Advantage • The value a nation gains by selling goods that it produces most efficiently. • Countries specializing • USA – High Tech (computers, machinery), Steel • Japan/Korea/China – Toys, Clothing, Shoes (cheaper labor)

11. Infrastructure • The basic physical and organizational structures and facilities (e.g., buildings, roads, and power supplies) needed for the operation of business and industry.

12. Absolute Advantage • When a country has special natural resources or talents that allow them to produce an item at the LOWEST possible cost (No one else can compare). • CHINA……..Silk • MALAYSIA……..Rubber • BRAZIL………Coffee

13. Global Marketing Strategies • Customization • Creating entirely new products and promotions for a specific country or region • Globalization • Same package and promotions used all around the world

14. Global Marketing Strategies • Product Adaptation • Keeps company name but changes products to meet local tastes • Promotion Adaptation • Changing some or part of message and images used in other countries