Chapter 6 - Serving Global Markets

3 Pages
Unlock Document

York University
Administrative Studies
ADMS 2200
Richard Patterson

Chapter Six Overview 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 countries. Exporting is marketing domestically produced goods and services in foreign countries. Importing is purchasing foreign goods, services and raw materials. Global marketing 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 culture. 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 1. Tariffs 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 resale. 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
More Less

Related notes for ADMS 2200

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.