Textbook Notes (369,142)
Canada (162,413)
Commerce (1,701)
Chapter 6

Chapter 6 Textbook Notes.docx

3 Pages
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Department
Commerce
Course Code
COMMERCE 2MA3
Professor
Stephen Charko

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Chapter 6: Serving Global Markets The Importance of Global Marketing… •Exporting: marketing domestically produced goods and services in foreign countries •Importing: purchasing foreign goods, services, and raw materials o Canada measures imports and exports of services under three major categories 1. Travel 2. Transportation 3. Commercial Services •Benefits of going global: o Additional revenue o New insights about consumer behaviour o Alternative distribution strategies o Advance notice of new products The International Marketing Environment… • International Economic Environment o Exchange Rate: price of one nation's currency in terms of another country's currency •International Social-Cultural Environment • International Technological Environment •International Political-Legal Environment o Political Risk Assessment (PRA): units within a firm that evaluate the political risks of the marketplaces in which they operate as well as proposed new marketplaces o The legal environment for firms operating abroad results from three forces: 1. International Law  ISO (International Organization for Standardization) Certification: internationally recognized standards that ensure a company's goods and services meet established quality levels and that ensure its operations minimize harm to the environment • ISO 9000 series of standard sets requirements for quality in goods and services • ISO 14000 series sets standards for operations that minimize harm to the environment 1. Canadian Law 1. Legal Requirements of Host Nations •Trade Barriers o Tariff: tax levied against imported goods • Revenue Tariffs: taxes designed to raise funds for the importing government • Protective Tariffs: taxes designed to raise the retail price of an imported product to match or exceed that of a similar domestic tariff o Import Quotas: trade restrictions that limit the number of units of certain goods that can enter a country for resale o Embargo: a complete ban on the import of a product o Subsidy: government financial support of a private industry o Exchange Control: method used to regulate the privilege of international trade among importing organizations by controlling access to foreign currencies • Dumping: practice of selling a product in a foreign market at a price lower than what it receives in the producer's domestic market Multinational Economic Integration… • Free Trade Area: region in which participating nations agree to the free trade of goods among themselves, abolishing tariffs and trade restrictions o Customs Union: establishment of a free trade area plus a uniform tariff for trade with non-member uni
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