MBA 523
Chp. 2
with Duane Weaver
OUTLINE
• 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)
20th -21st Century
– Marketer’s Global Perspective –
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?
Balance of Payments
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?
Protectionism – WHY?
• 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?
Benefits?
Risks?
Protectionism Types
• Trade Barriers
• Tariffs
• Quota and Import Licenses
• Voluntary Export Restraints
• Boycotts and Embargos
• Monetary Barriers
• Standards
• Antidumping Penalties
• Domestic Subsidies and Economic Stimuli
Advantages and
Disadvantages
to Marketers?
Easing Trade Restrictions
• GATT (agreement US +22)
• WTO (institution – broader than GATT)
IMPACT? BENEFIT OR NOT FOR MARKETERS?
HOW?
International Monetary Fund (IMF)
& World Bank Group (WBG)
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”
Protests (global institutions)
Unintended Consequences of Globalization lead to REVOLT!
•
•
•
•
•
•
Environmental
Exploitation of Workers
Job losses domestically
Cultural erosion/extinction
Higher Energy Costs
Loss of Sovereignty
As global Marketers How Could
you use this Movement to your
Advantage??
….does it increase or decrease
costs?
Hmmmmm…..?!!!
THANK YOU!
Thanks for your Time!
LET’S LOOK AT A CASE