COMMERCE 2MA3 Lecture Notes - Lecture 17: Economic Sanctions, Brand Loyalty, Lybia
18 Dec 2016
School
Department
Course
Professor
Chapter 17 – Global Marketing
Colgate – Brightens smiles
• Oe of the orld’s ost poerful rads: >200 outries
• $17.1B company
• A strategic plan that includes international expansion
• Brand loyalty and market share in emerging markets
• Committed to understanding local tastes and supporting communities
Globalization
• Increased flow of goods, services, commodities, people, technology, capital (currencies) and
information
• Ideas around the world, has economic, political, social, cultural, and environmental impacts
• Used to mean this: Transfer of ppl across border
Assessing Global Markets – PEST
• If business wants to go international, business look at these 4
Analyzing the political and legal environment
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• Gov do have strong influence on this
• Non-government org. also hjave strong influences on thekinds of political environment, and the
laws in diff countries
• E.g. US signed the latest environmental agreement
o Obama administration pushed by non-government org, in the states -> called angios
o Lots of consumers and society is represented
o This Is how they can pressurize the government into certain laws
o Globally, people are hoping that the angio pressure to convince Trump to not to act on
this agreement again
Trade and Sanctions
• Penalties or restrictions
o Will ot iport ad eport goods i suh ategories i suh outries
• Imposed by one country over another
o E.g. Canada restricted Lybia -> because of libian government violation against humans
rights of its own people
o Trade sanctions usually turn out to become mutual or bilateral
• Related to importing/exporting goods, services, and investments
• Embargo: prohibits trading with a certain country or specific good by other countries
o Much stronger version of a trade sanction
o We profit trading across all product categories against all industries
o NO TRADING WITH THIS COUTNRY
o Can be imposed by 1 country, or by a group of countries
• Trade sanctions are often called partial eargos
o Because they are applied to certain industries
o Vs. embargo: applied to all industries
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Tariffs and Quotas
• Tariffs
o Increases in price
• Quotas
o Put up maximum limits that you can import into the country
• Both done to protect domestic industry and production in that country
o Usually done with other countries can produce goods at much cheaper price
• E.g.: country that imposes these tariffs and quotas is the US
o They say free market is good -> think entire economy must move towards a free market
o U.S. government imposed both of these on the Japanese automakers in the 60s
• E.g. agriculture in the states
o U.S. talking to China India and Brazil not to protect their agricultural culture
o Impose quotas on corn and soy
o US is also doing the same thing
o Arguet: the a protet their idustr, ut other outries should’t
Boycott
• Dissatisfied global consumers
o Usually done by consumer groups/associations
o Reasons:
▪ Either consumers dissatisfied with the product
▪ Or policy company has
▪ Or what happens with government in your home country:
• If consumers start boycotting your brand, there is little things you can
do
• E.g. Nike products:
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