Global trade can be divided into two categories exporting and importing. Canadian and foreign
companies are crossing national boundaries in unprecedented numbers in search of new markets and
profits. Global trade is vital to a nation and its marketers for several reasons. It expands markets, makes
production and distribution economies of scale possible, allows companies to explore growth
opportunities in other nations and makes them less dependent on economic conditions in their home
Exporting is marketing domestically produced goods and services in foreign countries.
Importing is purchasing foreign goods, services and raw materials.
Canada measures imports and exports of services under three major categories; travel, transportation
and commercial services.
Services account for more than 75 percent for all employment in Canada.
Global marketers are well positioned to compete effectively with foreign competitors. A major key to
achieving success in foreign markets is a firm’s ability to adapt its products to the local preferences and
Exchange rate is the price of one nation’s currency in terms of another countries currency.
Political risk assessments are units within a firm that evaluate the political risks of the marketplaces in
which they operate as well as proposed new marketplaces.
Europe has pushed for ISO.
International organization for standardization certification is internationally recognized standards that
ensure a company’s goods and services meet established quality levels and ensure that its operations
minimize harm to the environment.
Trade barriers fall into two major categories
2. Non-tariff barriers
Tariffs are a tax levied against imported goods. Non-tariff or administrative barriers are more subtle than tariffs and take a variety of forms such as
customs barriers, quotas, restrictive standards on imports and export subsidies.
Revenue tariffs are taxes designed to raise funds for the importing government.
Protective tariffs are taxes designed to raise the retail price of an imported product to match or exceed
that of a similar domestic tariff.
Import quotas are trade restrictions that limit the number of units of goods that can enter a country for
Embargo is a complete ban on the import of a product.
Subsidy is a government financial support of a private industry.
Exchange control is a method used to regulate the privi