INTERNATIONAL
MARKETING
ENVIRONMENT
ROADMAP
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•
•
•
Introduction
Components
Trade barriers
Objectives Of Trade
barriers
• Tariff barriers
• Non-tariff barriers
• General Agreement
on GATT
• TRIPs
• WTO
• Impacts of WTO
• TRIMs
• GATS
• UNCTAD
INTRODUCTION TO
INTERNATIONAL
MARKETING
• International Environment is a very
important determinant of the business
strategy. The factors, which constitute
international business environment,
can be classified as:
Endogenous Factors
Exogenous Factors
COMPONENTS OF
INTERNATIONAL
MARKETING ENVIRONMENT
• Social and Cultural Environment
• Technological Environment
• Economic Environment
• Political Environment
• International Environment
• Legal Environment
• Ecological Environment
TRADE BARRIERS
• Trade barriers are the
artificial restrictions
imposed by the
governments on free
flow of goods and
services between
countries.
CONTINUE…
• Tariffs, quotas, taxes, duties, foreign
exchange restrictions, trade agreements
and trading blocs are the techniques used
for restricting free movement of goods from
one country to the other
• Trade barriers are broadly classified into
following two categories:
 Tariff barriers or Fiscal controls
 Non-tariff barriers or quantitative restrictions.
OBJECTIVES OF TRADE
BARRIERS
• To Protect Home Industries from Foreign
Competition
• To Promote New Industries and Research and
Development
• To Conserve Foreign Exchange Reserves
• To Maintain Favorable Balance of Payments
• To Protect Economy for Dumping
• To Curb Conspicuous Consumption
CONTINUE…
• To Make Economy
Self-reliant
• To Mobilize Public
Revenue
• To Counteract
Trade Barriers
Imposed by Other
Countries
TARIFF BARRIERS
• Meaning
• Types
• Objectives
• Nature
• Effectivity
• Revenue
• Popularity
NON-TARIFF
BARRIERS
• Meaning
• Types
• Objectives
• Nature
• Effectivity
• Revenue
• Popularity
GENERAL AGREEMENT
ON TARIFF AND
TRADE[GATT]
• GATT was formed in
1948
• The Primary objective
of GATT is to expand
international trade by
liberalizing trade so
as to bring about allround economic
prosperity.
The preamble of the GATT mentions the
following as its important objectives:
Raising the standard of living
Ensuring full employment and a large
and steadily growing volume of real
income and effective demand.
Better utilisation of the resources of the
world.
Expansion of production of goods and
services and international trade.
TRADE RELATED ASPECTS OF
ONTELLECTUAL PROPERTY
RIGHTS [TRIPs]
• TRIPs agreement sets out the minimum
standards of protection to be adopted by
the seven areas of intellectual property
rights, viz, copy rights, trade marks,
geographical indications, industrial
designs,patents,layout designs of integrated
circuits and trade secrets.
• A transition period five years has been given
to all developing countries to give effect to
the provisions of the TRIPs Agreement.
WORLD TRADE
ORGANISATION
• The World Trade Organization (WTO) is
an international organization designed by its
founders to supervise and liberalize international
trade.
• The organization officially commenced on January
1, 1995 under the Marrakech Agreement, replacing
the General Agreement on Tariffs and Trade (GATT),
which commenced in 1947.
CONTINUE…
• The World Trade Organization deals with
regulation of trade between participating
countries; it provides a framework for
negotiating and formalizing trade
agreements, and a dispute resolution
process aimed at enforcing participants'
adherence to WTO agreements which are
signed by representatives of member
governments and ratified by
their parliament.
IMPACTS OF WTO
• POSITIVE IMPACT
 Growth in Merchandise
Trade
 Growth in Export of
Services
 Growth of Foreign Direct
Investment [FDI]
 Textiles and Clothing
 Agricultural Sector
 Multilateral Rules and
Disciplines
• NEGATIVE IMPACT
Adverse Impact of TRIPs on the Indian
Economy
Adverse Impact on Indian agricultural
Hike in the Prices of Drugs
Research in Bio-diversity and Micro
Organisms
Service Industry
TRADE RELATED INVESTMENT
MEASURES [TRIMs]
• In the late 1980s
• Agreed upon by all members of the
World Trade Organization
• Are rules that restrict preference of
domestic firms and thereby enable
international firms to operate more
easily within foreign markets.
GENERAL AGREEMENT ON
TRADE IN SERVICES [GATS]
• a treaty of the World Trade Organization
(WTO) that entered into force in January
1995
• It was created to extend the multilateral
trading system to service sector
• the overall goal of the GATS is to
remove barriers to trade.
UNITED NATIONS
CONFERENCE ON TRADE AND
DEVELOPMENT [UNCTAD]
• It was established in 1964 as a
permanent intergovernmental body
having 193 members
• Its the principal organ of United
Nations General Assembly deals with
trade, investment, and development
issues.
CONTINUE…
• It has provide a forum where the
developing countries could discuss
the problems relating to their
economic development
• The primary objective of the UNCTAD
is to formulate policies relating to all
aspects of development including
trade, aid, transport, finance and
technology
CREDITS
• Sabiha Moiyadi- 32
• Sneha Parwal- 37
• Siddhesh Raut- 42
• Anshul Singh50
• Farheen Valiulla- 57