国际市场营销课件英文版chapter2

,Chapter 2 The Global Environment of International Marketing,I. GATT and WTO II.The International Monetary Fund and World Bank Group III.Protests against Global Institutions IV. Global Markets and Multinational Market Groups V. Marketing in a Developing Country,I. GATT 1. GATT (General Agreement on Trade and Tariffs) 1947, Marrakech, Morocco Three basic elements: Trade shall be conducted on a nondiscriminatory basis. Protection shall be afforded to domestic industries through customs tariffs rather than quotas. Consultation shall be the primary method used to solve global trade problems,Most important tool: MFN,Four important exceptions to the key GATT principle of non-discrimination Developed countries can give tariff preference to developing countries. Countries entering into regional free-trade agreements do not need to extend the preferences negotiated in this context on an MFN basis. A country can invoke temporary safeguard protection of one of its industries suffering serious injury due to a surge of imports. Temporary quantitative restrictions can be invoked by a country with serious balance-of-payment problems. (The latter two cases are temporary exceptions and a public investigation has to be undertaken for limited relief from GATT obligations.),Early in its existence, GATT achieved the liberalization of trade in 50,000 product, amounting to two-third of the trade value among its participants.In subsequent years, special GATT negotiations such as the Kennedy Round and Tokyo Round further reduced trade barriers and developed settlement mechanisms, better provisions Dealing with subsidies, and a more explicit definition of rules for import controls.,Average US tariff rate fell from 62% in 1946 to 5.4% in 2001. Most imports either enter US duty free or are subject to low tariffs.The highest tariffs apply mainly to agri-food and tobacco products, as well as clothing,textiles, and footwear. In these industries, tariffs tend to increase with the degree of processing.,Starting with 24 like-minded governments,GATT was designed to operate by consensus. With a membership of 144, this consensus rule often led to a stalemate of many GATT activities.,Many nations developed new tools for distorting trade flow, non-tariff tools that were not covered under GATT rules. Examples are “voluntary agreements” to restrain trade in textiles and apparel, and other non-tariff barriers.,The last GATT round,the Uruguay Round, took seven years, as its agenda had broadened to include trade in services, trade in intellectual property and a revised system of dispute-settlement mechanism.,World Trade Organization (WTO) : Founded in Apr., 1994, Marrakech, Morocco, and operated from Jan.1,1995 An institution to cover current and new areas, which holds WTO ministerial conference at least every two years.,China attained membership on Dec.1,2001,Functions of WTO: It set many rules governing trade between 149 members, provides a panel of experts to hear and rule trade disputes, WTO issues binding decisions. For trade disputes, after the decision of the panel of WTO experts after hearing, the winning side will be authorized to retaliate with trade sanctions if the losing country does not change its practices. WTO ensure that member countries agree to obligations of all the agreements, not just those they like.,Another important principle of the WTO: A significant improvement on the GATT: the single undertaking. WTO members must accept all of the obligations of the GATT, GATS, TRIPS,TRIM and any other corollary agreements. (This ends the free ride of some developing countries under the old GATT, when they could receive the benefits of some trade concessions without having to join in and undertake their full obligations.),One of 28 free trade agreements of the WTO for trade and investment in services. GATS covers 160 service sectors such as road building, water delivery, education, health care, telecommu-nications, tourism, postal delivery, social security, a variety of municipal services, and insurance. The scope of the agreement is very broad potentially covering government regulation of trade in services, and potentially covering government services at all levels.,GATS : The General Agreement on Trade in Services,TRIP : Trade-Related Intellectual Property Rights,TRIP: An agreement of the WTO that covers patents and other forms of intellectual property.,TRIM “Trade-related Investment Measures“, an agreement within the Uruguay round trade negotiations GATT General Agreement on Tariffs & Trade,What WTO Means to Different Industries of USA,Gainers : Banks will be allowed to compete freely in South Korea and other places where they are restricted. Insurance companies will be able to sell policies in India, one of the Worlds most tightly closed markets. Movies will have better protection from Thai film counterfeiters. Pharmaceuticals will have better protection from Argentine imitators. Computer software makers will have better protection from Brazilians who rip off copyrighted programs. Successful negotiations to open markets in telecommunications and in information technology equipment.,Losers of USA after WTO Agreements: Glassware tariffs as high as 30 percent on inexpensive drinking glasses will be reduced, threatening some 40,000 jobs. Textiles will gradually lose quotas and tariffs that protect 1.1 million U.S. workers and add 50 percent to wholesale prices of clothing. Peanuts will lose quotas that limit imports and protect 19,000 American farmers. Dairy imports of foreign cheese, now limited to 19,000 tons a year, will go up, hurting 240,000 U.S. farmers. Sugar import ceilings, now 25 percent of the nine million tons the United States uses each year, will go, threatening 11,000 sugar beet and cane growers.,WTO Benefits on China,Chinas tariff reduction and its effect: China had cut its overall tariffs from 42 percent in 1992to present 9.9 percent. As a developing and new member of the WTO, China has made huge efforts in expanding its opening-up.,New role of China in world market,FDI into China,2005前三季度，外商投资企业进出口5902.1亿美元，增长24.9%，占全国进出口总额的57.6%，同比提高0.5个百分点。其中出口3131.7亿美元，增长32.4%，高于总体出口增幅1.1个百分点；进口2770.4亿美元，增长17.4%。,Thoughts on FDI in China,Challenges WTO brings to China,Uneven development between regions, esp. between rural and urban areas. Structural reform may increase unemployment in certain sectors and over 100 million jobs will need to be created over the next decade. Pressure to adjust current policy to attract investment to export-oriented capital intensive manufacturing and place greater emphasis on removing impediments to the expansion of the services sector. To raise the quality of the labor force in order to move away from traditional low-skilled, labor-intensive industries into higher value-added production. Bottlenecks in energy supply, and threat from environmental conditions Pressure to restructure the financial sector and capital markets by making them more market oriented.,The Impact of Tariff (Tax) Barriers,Six Types of Non-Tariff Barriers,(1) Specific Limitations on Trade: Quotas Import Licensing requirements Proportion restrictions of foreign to domestic goods (local content requirements) Minimum import price limits Embargoes,(2) Customs and Administrative Entry Procedures: Valuation systems Antidumping practices Tariff classifications Documentation requirements Fees,(3) Standards: Standard disparities Intergovernmental acceptances of testing methods and standards Packaging, labeling, and marking,(4) Government Participation in Trade: Government procurement policies Export subsidies Countervailing duties Domestic assistance programs,(5) Charges on imports: Prior import deposit subsidies Administrative fees Special supplementary duties Import credit discriminations Variable levies Border taxes,(6) Others: Voluntary export restraints Orderly marketing agreements,Monetary Barriers,In addition to the Six Types of Non-Tariff Barriers, monetary barriers are also used by countries,Three types of monetary barriers include: Blocked currency: Blockage is accomplished by refusing to allow importers to exchange its national currency for the sellers currency. Differential exchange rates: It encourages the importation of goods the government deems desirable and discourages importation of goods the government does not want by adjusting the exchange rate. The exchange rate for importation of a desirable product is favorable and vice-versa Government approval: In countries where there is a severe shortage of foreign exchange, an exchange permit to import foreign goods is required from the government,Skirting the spirit of GATT and WTO,Unnecessary technical and quality inspecting Antidumping Bilateral agreements,II. The International Monetary Fund,- methods: member consultation; lending money to members having troubles meeting financial obligations to other members (pay current-account debts); SDR (special drawing rights) - IMF loans come with stipulations that borrowing countries slash spending and impose controls to curb inflation - Achievements (Asian crisis, and S.America crisis) and critics,Founded in 1945, IMF now has 184 country members, working to foster global monetary cooperation (establish freely convertible currencies), secure financial stability (to stable foreign exchange rate and reduce fluctuation), facilitate international trade (to facilitate the expansion and balanced growth of international trade ), promote high employment and sustainable economic growth, and reduce poverty.,World Bank Group (WBG),The goal of WBG is to reduce poverty and the improvement of living standards by promoting sustainable growth and investment in people.,The functions of the WBG include:,lending money to countries to finance development projects in education, health, and infrastructure; providing assistance for projects to the poorest developing countries; lending directly to the private sector in developing countries with long-term loans, equity investments, and other financial assistance;,WBG,provide investors with investment guarantees against “noncommercial risk,” so developing countries will attract FDI; and provide conciliation and arbitration of disputes between governments and foreign investors Procurement tender,Protests Against Global Institutions,In 1999 “anti-capitalist protestors” complained against the WTO, and IMF, over the unintended consequences of globalization that include:,environmental concerns worker exploitation and domestic job losses cultural extinction higher oil prices, and diminished sovereignty of nations,WTO, IMF,and WBG,WTO, unlike the International Labour Organisation (ILO) or the UN, has teeth. If a country violates an ILO convention, all the ILO can do is issue a statement. If a country breaks a WTO agreement, it faces trade sanctions. On the other hand, unlike the IMF and the World Bank, the WTO does not lend money, and so has less immediate financial leverage over developing countries. In practice, the WTO, World Bank and IMF act in concert to push developing countries along the road to liberalization. Often a WB/IMF “structural adjustment program“ will push a country into trade liberalization measures which are then “locked in“ through WTO agreements.,IV. Global Markets and Multinational Market Groups,Background and market opportunities: 1.The restructuring of controlled economy into market driven economy spread from South America to Asia and then to East Europe, the dissolution of USSR, the enhanced global competition, and globalization of economyAll call for view potential market in the context of region of the world. 2. Groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers.,Traits of Successful Economic Unions,Economic Compatibility (similar economic systems) Political Compatibility (similar political systems) Cultural Compatibility Geographic factors Weakness in some must be balanced by strengths in others,Patterns of Multinational Cooperation,There are five fundamental groupings for regional economic integration as follows:,Viewed on a spectrum, each requires greater levels of cooperation among member nations and include:,Regional Cooperation Groups Free Trade Areas Customs Unions Common Markets and Economic Unions Political Unions,Regional Cooperation Groups,A group of countries that have agreed to partici-pate in basic industries beneficial to each or jointly develop joint ventures that benefit both countries, e.g., Colombia and Venezuela built a hydroelectric dam on the Orinico river which both share,Free Trade Areas,A group of countries that have agreed to reduce drastically (but not eliminate) all trade barriers such as customs duties and non-tariff barriers (standards),Member countries can have different trade policies for other external countries,Examples of Free Trade Areas: NAFTA, and European Free Trade Area (EFTA) between Iceland, Liechtenstein, Norway, and Switzerland,Customs Unions,In addition to drastically reducing trade barriers from FTA identified previously, a group of countries that have agreed to eliminate customs duties levied among member countries,Also establishes common external barriers like imposing a common tariff on goods imported from countries out of the association.,Examples of Customs Unions: East African Customs Union between Ethiopia, Kenya, Sudan, Tanzania, Uganda, and Zambia,Common Markets,In addition to drastically reducing trade barriers, and eliminating customs duties levied from FTA and Customs Unions identified previously, a common market is a group of countries that allow: the free flow of capital and labor (engineers, doctors, and lawyers can work without recertification) among members a common currency a common central bank; and common policies on transportation, agriculture, social services, welfare, and taxes,Latin America boasts three common markets: the Central American Common Market (CACM), the Andean Common Market, and the Southern Cone Common Market (MERCOSUR). The three have roughly similar goals and seek eventual full economic integration.,Political Unions,The highest level of cooperation among member countries,A group of countries that have agreed to complete political and economic integration and cooperation among members,Examples of Political Unions: COMECON (Council for Mutual Economic Assistance), and U.S.S.R., but it no longer exists,Others: FTAA (free trade area of the America) - political oriented through incentives to capitalistic development and trade liberalization ASEAN - currently more political than economic APEC(Asia Pacific Economic Coop) - bring partners together from multiple continents (NAFTA, AFTA, and individual countries, such as Australia, China, Japan, and Russia),Economic integration eliminates barriers between members markets and erects new ones vis-a-vis non-members. This will call for adjust-ments in the past strategies to fully exploit the new situations.,European Trade Areas - 2006,European Community (EC) European Free Trade Area (EFTA),Belgium Italy Iceland Norway Denmark Luxembourg Liechtenstein Switzerland France The Netherlands Germany Portugal Greece Spain Ireland United Kingdom EC Countries and EU Countries and Austria Lithuania Norway Iceland Czech Republic Malta Cyprus Poland Estonia Slovakia Finland Slovenia Hungary Sweden Latvia Candidate Countries Bulgaria Romania Former Yugoslav Croatia Turkey Republic of Macedonia,European Union (EU) European Economic Area (EEA),None EU (Candidate) European Countries,The European Economic Area: EU, EFTA,ICELAND,NORWAY,SWEDEN,FINLAND,DENMARK,IRELAND,UNITED KINGDOM,BELGIUM,Netherlands,GERMANY,FRANCE,SPAIN,Portugal,Switz.,ITALY,Austria,TURKEY,GREECE,ATLANTIC OCEAN,MALTA,EU,EFTA,The European Economic Area: EU, EFTA 2006,ICELAND,NORWAY,SWEDEN,FINLAND,DENMARK,IRELAND,UNITED KINGDOM,BELGIUM,Netherlands,GERMANY,FRANCE,SPAIN,Portugal,Switz.,ITALY,Austria,TURKEY,GREECE,ATLANTIC OCEAN,MALTA,EU,EFTA,Poland,Czech,Slova.,Hungary,Slovenia,Lithuania,Latvia,Estonia,A Comparison of the EU and NAFTA,* Includes 15 Countries. *Includes intra-member trade.,EU* 373.5 $ 8,180 1,899,466 1,927,914 NAFTA 387.4 8,061 1,014,211 852,536,Population GNP Imports* Exports* ($ millions)* (per capita)* ($ millions) ($ millions),SOURCES: “Indicators of Market Size for 115 Countries,” Crossborder Monitor, August 27, 1997; and International Marketing Data and Statistics, 1997 (London: Euromonitor, 1997).,Economic Union Single European Act in 1987, passed by EC (European Community) members, with the target date of Dec.31,1992. Integration of economic policies in addition to the free movement of goods, services, and factors of production across borders.Under an economic union, members will harmonize monetary policies, taxations, and government spending.-fixed exchange rate. The formation of an economic union requires members to surrender a large measure of their national sovereignty to supranational authorities in communitywide institution such as the European Parliament. The ratification of the Maastricht Treaty in late 1993 created EU, effective Jan.1,1994. The treaty, jointly with the Treaty of Amsterdam in 1997, set the foundation for economic and monetary union (EMU) with the establishment of the euro as a common currency by Jan 1,1999. In addition, moves would be made toward a political union with common foreign and security policy as well as judicial coop.,EUs effect would be: the reduce of transaction cost; the economies of scale; gains from more intense competition among European companies; introduction of euro, which add to the efficiencies by conso