1InternationalMarketingLecture1InstructorLiZhihongSept.2009BusinessInstitute,JiangHanUniversity2Chapter1TheGlobalMarketingImperative1.TeachingandlearningTargets.Afterstudyingthischapter,youshouldbeableto:(1)Whataretherecenttrendsinworldtrade?Willexpansionofworldtradeinthefuturefollowthesetrends?(2)Doesincreasedworldtrademeanincreasedrisk?(3)Whatimpactdogloballinkageshaveonfirmsandconsumers?(4)Describesomeopportunitiesandchallengesininternationalmarketingcreatedbynewadvancesininformationtechnology?32.WhatInternationalMarketingIs?(1)InternationalMarketing.Theprocessofplanningandconductingtransactionsacrossnationalborderstocreateexchangesthatsatisfytheobjectivesofindividualsandorganizations.Itmuchretainsthebasicmarketingtenetsof“satisfaction”and“exchange”;Also,itfocusesoninternationaltransactions.43.TheImportanceofWorldTrade(1)Globallinkages.Economically,worldtradehasforgedanetworkofgloballinkagesthatbindusall,-countries,institutions,andindividuals-muchmorecloselythaneverbefore.--Thelinkageshavealsobecomemoreintenseonanindividuallevel,suchaslife,behavior,etc.5--Worldtradeisbringingaboutaglobalreorientationofcorporateprocesses,whichopensupentirelynewhorizons.--Advancesintechnologyalsoallowfirmstoseparatetheiractivitiesbycontentandcontext.--Thelevelofglobalinvestmentisatanunprecedentedhigh.--Notonlyistheenvironmentchanging,butthepaceofchangeisacceleratingaswell.6(2)DomesticPolicyRepercussions--Aloweringofinterestratesdomesticallymaymakeconsumershappyormaybepoliticallywise,butitquicklybecomesunsustainableifitresultsinamajoroutflowoffundstocountriesthatofferhigherinterestrates.--Agriculturalandfarmpolicies,whichhistoricallyhavebeenstrictlydomesticissues,aresuddenlythrustintotheinternationalrealm.7--Independentoftrade,currencyflowssetexchangerates,whicharethevaluesofcurrenciesrelativetoeachother.Theseexchangeratesinturnhavenowbeguntodeterminetheleveloftrade.--Policymakershavesoughttorestricttheimpactofglobaltradeandfinancialflowsbyerectingbarriers,chargingtariffs,designingquotas,andimplementingotherimportregulations.8(1)Opportunities--Bytransferringknowledgearoundtheglobe,aninternationalfirmcanbuildandstrengthenitscompetitiveposition.--Productionsitesoncewereinflexible,butnowplantscanbeshiftedfromonecountrytoanotherandsupplierscanbefoundoneverycontinent.--Internationalmarketingenablesconsumersallovertheworldtofindgreatervarietiesofproductsatlowerpricesandtoimprovetheirlifestylesandcomfort.4.OpportunitiesandChallengesinInternationalMarketing9--Moreandmoresmallfirmshavebeenbecomingthemajorplayersintheinternationalbusiness.(2)Challenges--Needdifferenceinthedifferentregionsandcountries.--Moreandmorecomplicatedmarketenvironment.--Moreandmoreintensivecompetitionintheglobalmarketplace.105.GroupDiscussion(1)Whataretherecenttrendsinworldtrade?Willexpansionofworldtradeinthefuturefollowthesetrends?(2)Doesincreasedworldtrademeanincreasedrisk?(3)Whatimpactdogloballinkageshaveonfirmsandconsumers?(4)Describesomeopportunitiesandchallengesininternationalmarketingcreatedbynewadvancesininformationtechnology?116.Assignments(1)UsingWorldTradeOrganizationdata,identifythefollowing:--thetoptenexportingandimportingcountriesinworldmerchandisetrade.--thetoptenexportingandimportingcountriesofcommercialservices.(2)Pleasecomparethetoptenexportingcountriestoeachother.Highlightsimilaritiesanddifferences.