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International Markets
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Global Marketing in the 21st Century
The world is shrinking rapidly with the advent
of faster communication, transportation, and
financial flows. International trade is booming and accounts
for 25% of U.S. GDP.
Global competition is intensifying. Higher risks with globalization.
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Deciding Whether to Go Global
Reasons to consider going global:
Foreign attacks on domestic markets
Foreign markets with higher profit opportunities Stagnant or shrinking domestic markets
Need larger customer base to achieve economies
of scale Reduce dependency on single market
Follow customers who are expanding
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Deciding Which Markets to Enter
Before going abroad, the company should try to define its
international marketing objectives and policies.
What Volume of Foreign Sales is Desired?
How Many Countries to Market In?
What Types of Countries to Enter?
Choose Possible Countries and Rank Based on Market
Size, Market Growth, Cost of Doing Business,
Competitive Advantage, and Risk Level
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Foreign Market Analysis:
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The World's Champion Marketers
The Japanese
The economy of Japan is the 2nd largest in the world, after the
United States
Keynotes:
high-quality,
high-technology manufacturing,
reasonable costs,
high level of reliability,focusing on exports.
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FOREIGN TRADE
The high position of Japanese exports and studying the global markets are involved in the
production process
Imports came mainly from: China (21%), United States (12.7%), Saudi Arabia (5.5%), UAE
(4.9%), Australia (4.7% ), South Korea (4.7%) and Indonesia (4%).
Export - the main customers include:
the United States (22.9%), China (13.4%),
South Korea (7.8%), Taiwan (7.3%)
and Hong Kong (6.1%).
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IMPORTS & EXPORTSExports
$765.2 billionCommodities
transport equipment, motor vehicles, semiconductors, electrical machinery,
chemicals
Partners
China, South Korea, Taiwan, Hong Kong.
Imports
$636.8 billion
Commodities
machinery and equipment, fuels, foodstuffs, chemicals, textiles, raw materials
Partners
China, US, Australia, Saudi Arabia, UAE , South Korea , Indonesia
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GOODS AND SERVICES
Japan is known worldwide for its skyscrapers, its hyper companys, its
strength of innovation in high technology, the international success of itsbrands and trans generational.
Japan is famous for its automobile brands, brands of watches, cosmetics
brands, brands of high technology and telecommunications.
Automobile: Toyota, Nissan, Honda, Mitsubishi, Kawasaki, Suzuki, Yamaha,Mazda
High Tech: Hitachi, Sony, Toshiba, Nintendo, Sega, Panasonic, KDDI
Photo: Canon and Olympus.
Wholesale, retail trade, advertising, data processing, publishing, tourism,
leisure industries, entertainment, hotels are dominant.
http://www.e-marketing.fr/Marketing-Magazine/Article/Le-Japon-Eldorado-du-marketing--36361-1.htm?Image=1&IDPar=172121http://www.e-marketing.fr/Marketing-Magazine/Article/Le-Japon-Eldorado-du-marketing--36361-1.htm?Image=1&IDEncadre=53224http://www.e-marketing.fr/Marketing-Magazine/Article/Le-Japon-Eldorado-du-marketing--36361-1.htm?Image=1&IDEncadre=532217/31/2019 International Market Final
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REG
IO
NS
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Introduction
After World War I, millions of people lost faith in
democratic government. In response, they turned to
an extreme system of government called fascism.
Fascists promised to revive the economy, punishthose responsible for hard times, and restore order
and national pride. Their message attracted many
people who felt frustrated and angered by the peace
treaties that followed World War I and by the GreatDepression.
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27
11
30
733
million
Member States
Combinedpopulation of
EU MemberStates
Percent of worldspopulation
Percent ofglobal GDP
55Percent of combinedworldwide OfficialDevelopment Assistance
Shared values: liberty, democracy, respect for
human rights and fundamental freedoms, and
the rule of law.
Largest economic body in the world.
Worlds most successful model for advancingpeace and democracy.
A unique institution Member States voluntarily
cede national sovereignty in many areas to carry
out common policies and governance.
Not a super-state to replace existing states, nor
just an organization for international
cooperation.
Worlds most open market for goods and
commodities from developing countries.
What is the European Union?
BRIEF DETAIL EUROPEAN UNION
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The triad: the European Union (EU)
The EU (or EU27) is composed of the countries in theEU15 (Austria, Belgium, Denmark, Finland, Germany,
Greece, France, Ireland, Italy, Luxembourg, the
Netherlands, Portugal, Spain, Sweden, and the UK) and
twelve new, mainly Central European, countries thatjoined in 2004 and 2007.
The collective GDP of the EU is greater than that of the
US and Japan.
The EU27 is the worlds largest importer and exporter.
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World Population by Continents
Asia 3,737,000,000
Africa 823,000,000
Europe 733,000,000
North America 486,000,000
South America 351,000,000
Oceania (incl.Australia) 31,000,000
Antarcticano permanent
population
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2011 EU budget: 141.9 billion= 1.13% of gross national income
Citizens, freedom,
security and justice
1%
Other, administration
6%
Sustainable growth:
jobs, competitiveness, regional development
46%
The EU as a global player:
including development aid
6%
Natural resources:
agriculture,
environment41%
How does the EU spend its money
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European Central Bank
The European Central Bank (ECB) is the central bank
for Europe's single currency, the euro.
The ECBs main task is to maintain the euro's
purchasing power and thus price stability in the euroarea.
The euro area comprises the 15 European Union
countries that have introduced the euro since 1999.
The ECB operates independently from Member Stategovernments.
The euro was introduced in 1999
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EU InstitutionsEuropean Commission
27 Commissioners, representing the European perspective, each
responsible for a specific policy area.
EUs executive branch proposes legislation, manages Unions day-
to-day business and budget, and enforces rules.
Negotiates trade agreements and manages Europes multilateral
development cooperation.
Council of the European Union
EUs main decision-making body, comprised of ministers of 27
Member States, representing Member States point of view.
Decides on foreign policy issues.
Council presidency rotates among Member States every six
months.
European Commission President
Mario Draghi
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European companies are the leadingforeign investors in the U.S.
The UK, Germany, France, and the
Netherlands top four sources of
jobs created by foreign investment in
the United States.
American companies invest far more
in EU countries than in Asia.
U.S. businesses make 5 times the
profit in the Netherlands - alone - as
they make in China.
In 2005, EU investments in Texas
alone surpassed all U.S. investments
in China and Japan, combined.
BMWs assembly plant is South Carolinas
largest private sector employer.
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INCREASING EUROPEANCOMPETITIVENESS
Competitivenessthrough:
Enabling interdisciplinary
research
Creating synergies
Harmonizing and
standardizing of the
European research
landscape Attracting and retaining
world-leading scientists
Collaboration between
academia and industry
Strentheningknowledge
for innovativeresearch
Accessto
cutting-edge
techno-logies
Trainfuture
scientists
Development ofnew
technologiesand methods
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1. Employment
75% of the 20-64 year-olds to be employed
2. R&D / innovation
3% of the EU's GDP (public and private combined) to be invested
in R&D/innovation
3. Climate change / energygreenhouse gas emissions 20% (or even 30%, if the conditions
are right) lower than 1990; 20% of energy from renewables;
20% increase in energy efficiency
4. Education
Reducing school drop-out rates below 10%at least 40% of 30-34year-olds completing third level education
5. Poverty / social exclusion
at least 20 million fewer people in or at risk of poverty and social
exclusion
EU Agenda for 2020: 5 targetsAn EU strategy for smart, sustainable and inclusive growth
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http://www.syncforce.com/http://www.syncforce.com/7/31/2019 International Market Final
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China Trade and Economic
Developments
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Economic Update
Chinas economy grew 8.1% in 2011
Chinas GDP $7.298 trillionworlds 4th largest
Foreign direct investment (FDI) US$115 billion .
Foreign trade volume US$ 1,422.1 billion
Foreign currency reserve US$ 3,305 billion
Total household savings in banks US$ 1,838.1 billion
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5%
5%
62%
3%
Serve as regional
headquarters
Produce goods or
services for other
(non-China, non-US)market
Export to China
Produce goods or
services in China
for the US market
Produce goods or
services in China for
the China market
Source: 2005 AmCham-China and AmCham-Shanghai Member Questionnaire
11%
14%
Q: No.1 goal of the US investment in China?
A: China domestic market opportunities.
(62%+ 11% = 73%)
100% = 345 companies
Others
American Chamber of Commerce Survey:
Number One Goal for China Business
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Emerging Market Opportunities
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Manufacturing in China
Take advantage of low cost,skillful labor force and college-graduated engineers, lowermanufacturing cost
For some products, Chinesegovernment only allows thosemanufactured in China to enterinto China domestic market
Good OEM/ODM capability,covering almost all industrialsectors of consumer andcapital products.
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US CompaniesChina Manufacturing Facilities
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China Procurement
Direct purchase from manufacturers Access to a larger manufacturer and supplier base
Lower purchasing cost
Better quality control
Better supply chain management
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Industrial Zones
Industrial zones provide various incentives and
opportunities for US companies with different business
models
Special Economic Zone (SEZ)
Economic and Technological Development Zone (ETDZ)
Free Trade Zone (FTZ)
High-Tech Park
Export Processing Zone (EPZ)
Bonded Logistics Zone (BLZ) Bonded Port
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Shanghai Bonded Logistics Park
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Looking at the Global Marketing
Environment
The International Trade System:
Restrictionstariffs, quotas, embargos, exchange controls,
and non-tariff trade barriers.
The World Trade Organization and GATT:
Helps Tradereduces tariffs and other international trade
barriers.
Regional Free Trade Zones:
Groups of nations organized to work toward common goals in
the regulation of international trade.
GA
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GATT
The organization is attempting to complete negotiations on the DohaDevelopment Round, which was launched in 2001
substantial reduction of tariffs and other trade barriers and the elimination
of preferences, on a reciprocal and mutually advantageous basis
155 Members as of 2012
Replaced by the World Trade Organization in 1995
GATT Founded in 1948
GATS is same as GATT but is For Services and came into being in 1995
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THANK YOU