international market final

7/31/2019 International Market Final

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International Markets


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Global Marketing in the 21st Century

The world is shrinking rapidly with the advent

of faster communication, transportation, and

financial flows. International trade is booming and accounts

for 25% of U.S. GDP.

Global competition is intensifying. Higher risks with globalization.


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Deciding Whether to Go Global

Reasons to consider going global:

Foreign attacks on domestic markets

Foreign markets with higher profit opportunities Stagnant or shrinking domestic markets

Need larger customer base to achieve economies

of scale Reduce dependency on single market

Follow customers who are expanding


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Deciding Which Markets to Enter

Before going abroad, the company should try to define its

international marketing objectives and policies.

What Volume of Foreign Sales is Desired?

How Many Countries to Market In?

What Types of Countries to Enter?

Choose Possible Countries and Rank Based on Market

Size, Market Growth, Cost of Doing Business,

Competitive Advantage, and Risk Level


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Foreign Market Analysis:


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The World's Champion Marketers

The Japanese

The economy of Japan is the 2nd largest in the world, after the

United States

Keynotes:

high-quality,

high-technology manufacturing,

reasonable costs,

high level of reliability,focusing on exports.


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FOREIGN TRADE

The high position of Japanese exports and studying the global markets are involved in the

production process

Imports came mainly from: China (21%), United States (12.7%), Saudi Arabia (5.5%), UAE

(4.9%), Australia (4.7% ), South Korea (4.7%) and Indonesia (4%).

Export - the main customers include:

the United States (22.9%), China (13.4%),

South Korea (7.8%), Taiwan (7.3%)

and Hong Kong (6.1%).


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IMPORTS & EXPORTSExports

$765.2 billionCommodities

transport equipment, motor vehicles, semiconductors, electrical machinery,

chemicals

Partners

China, South Korea, Taiwan, Hong Kong.

Imports

$636.8 billion

Commodities

machinery and equipment, fuels, foodstuffs, chemicals, textiles, raw materials

Partners

China, US, Australia, Saudi Arabia, UAE , South Korea , Indonesia

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GOODS AND SERVICES

Japan is known worldwide for its skyscrapers, its hyper companys, its

strength of innovation in high technology, the international success of itsbrands and trans generational.

Japan is famous for its automobile brands, brands of watches, cosmetics

brands, brands of high technology and telecommunications.

Automobile: Toyota, Nissan, Honda, Mitsubishi, Kawasaki, Suzuki, Yamaha,Mazda

High Tech: Hitachi, Sony, Toshiba, Nintendo, Sega, Panasonic, KDDI

Photo: Canon and Olympus.

Wholesale, retail trade, advertising, data processing, publishing, tourism,

leisure industries, entertainment, hotels are dominant.
http://www.e-marketing.fr/Marketing-Magazine/Article/Le-Japon-Eldorado-du-marketing--36361-1.htm?Image=1&IDPar=172121http://www.e-marketing.fr/Marketing-Magazine/Article/Le-Japon-Eldorado-du-marketing--36361-1.htm?Image=1&IDEncadre=53224http://www.e-marketing.fr/Marketing-Magazine/Article/Le-Japon-Eldorado-du-marketing--36361-1.htm?Image=1&IDEncadre=53221


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REG

IO

NS


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Introduction

After World War I, millions of people lost faith in

democratic government. In response, they turned to

an extreme system of government called fascism.

Fascists promised to revive the economy, punishthose responsible for hard times, and restore order

and national pride. Their message attracted many

people who felt frustrated and angered by the peace

treaties that followed World War I and by the GreatDepression.


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27

11

30

733

million

Member States

Combinedpopulation of

EU MemberStates

Percent of worldspopulation

Percent ofglobal GDP

55Percent of combinedworldwide OfficialDevelopment Assistance

Shared values: liberty, democracy, respect for

human rights and fundamental freedoms, and

the rule of law.

Largest economic body in the world.

Worlds most successful model for advancingpeace and democracy.

A unique institution Member States voluntarily

cede national sovereignty in many areas to carry

out common policies and governance.

Not a super-state to replace existing states, nor

just an organization for international

cooperation.

Worlds most open market for goods and

commodities from developing countries.

What is the European Union?

BRIEF DETAIL EUROPEAN UNION


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The triad: the European Union (EU)

The EU (or EU27) is composed of the countries in theEU15 (Austria, Belgium, Denmark, Finland, Germany,

Greece, France, Ireland, Italy, Luxembourg, the

Netherlands, Portugal, Spain, Sweden, and the UK) and

twelve new, mainly Central European, countries thatjoined in 2004 and 2007.

The collective GDP of the EU is greater than that of the

US and Japan.

The EU27 is the worlds largest importer and exporter.


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World Population by Continents

Asia 3,737,000,000

Africa 823,000,000

Europe 733,000,000

North America 486,000,000

South America 351,000,000

Oceania (incl.Australia) 31,000,000

Antarcticano permanent

population


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2011 EU budget: 141.9 billion= 1.13% of gross national income

Citizens, freedom,

security and justice

1%

Other, administration

6%

Sustainable growth:

jobs, competitiveness, regional development

46%

The EU as a global player:

including development aid

6%

Natural resources:

agriculture,

environment41%

How does the EU spend its money


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European Central Bank

The European Central Bank (ECB) is the central bank

for Europe's single currency, the euro.

The ECBs main task is to maintain the euro's

purchasing power and thus price stability in the euroarea.

The euro area comprises the 15 European Union

countries that have introduced the euro since 1999.

The ECB operates independently from Member Stategovernments.

The euro was introduced in 1999


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EU InstitutionsEuropean Commission

27 Commissioners, representing the European perspective, each

responsible for a specific policy area.

EUs executive branch proposes legislation, manages Unions day-

to-day business and budget, and enforces rules.

Negotiates trade agreements and manages Europes multilateral

development cooperation.

Council of the European Union

EUs main decision-making body, comprised of ministers of 27

Member States, representing Member States point of view.

Decides on foreign policy issues.

Council presidency rotates among Member States every six

months.

European Commission President

Mario Draghi


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European companies are the leadingforeign investors in the U.S.

The UK, Germany, France, and the

Netherlands top four sources of

jobs created by foreign investment in

the United States.

American companies invest far more

in EU countries than in Asia.

U.S. businesses make 5 times the

profit in the Netherlands - alone - as

they make in China.

In 2005, EU investments in Texas

alone surpassed all U.S. investments

in China and Japan, combined.

BMWs assembly plant is South Carolinas

largest private sector employer.


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INCREASING EUROPEANCOMPETITIVENESS

Competitivenessthrough:

Enabling interdisciplinary

research

Creating synergies

Harmonizing and

standardizing of the

European research

landscape Attracting and retaining

world-leading scientists

Collaboration between

academia and industry

Strentheningknowledge

for innovativeresearch

Accessto

cutting-edge

techno-logies

Trainfuture

scientists

Development ofnew

technologiesand methods


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1. Employment

75% of the 20-64 year-olds to be employed

2. R&D / innovation

3% of the EU's GDP (public and private combined) to be invested

in R&D/innovation

3. Climate change / energygreenhouse gas emissions 20% (or even 30%, if the conditions

are right) lower than 1990; 20% of energy from renewables;

20% increase in energy efficiency

4. Education

Reducing school drop-out rates below 10%at least 40% of 30-34year-olds completing third level education

5. Poverty / social exclusion

at least 20 million fewer people in or at risk of poverty and social

exclusion

EU Agenda for 2020: 5 targetsAn EU strategy for smart, sustainable and inclusive growth


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http://www.syncforce.com/http://www.syncforce.com/


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China Trade and Economic

Developments


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Economic Update

Chinas economy grew 8.1% in 2011

Chinas GDP $7.298 trillionworlds 4th largest

Foreign direct investment (FDI) US$115 billion .

Foreign trade volume US$ 1,422.1 billion

Foreign currency reserve US$ 3,305 billion

Total household savings in banks US$ 1,838.1 billion


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5%

5%

62%

3%

Serve as regional

headquarters

Produce goods or

services for other

(non-China, non-US)market

Export to China

Produce goods or

services in China

for the US market

Produce goods or

services in China for

the China market

Source: 2005 AmCham-China and AmCham-Shanghai Member Questionnaire

11%

14%

Q: No.1 goal of the US investment in China?

A: China domestic market opportunities.

(62%+ 11% = 73%)

100% = 345 companies

Others

American Chamber of Commerce Survey:

Number One Goal for China Business


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Emerging Market Opportunities


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Manufacturing in China

Take advantage of low cost,skillful labor force and college-graduated engineers, lowermanufacturing cost

For some products, Chinesegovernment only allows thosemanufactured in China to enterinto China domestic market

Good OEM/ODM capability,covering almost all industrialsectors of consumer andcapital products.


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US CompaniesChina Manufacturing Facilities


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China Procurement

Direct purchase from manufacturers Access to a larger manufacturer and supplier base

Lower purchasing cost

Better quality control

Better supply chain management


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Industrial Zones

Industrial zones provide various incentives and

opportunities for US companies with different business

models

Special Economic Zone (SEZ)

Economic and Technological Development Zone (ETDZ)

Free Trade Zone (FTZ)

High-Tech Park

Export Processing Zone (EPZ)

Bonded Logistics Zone (BLZ) Bonded Port


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Shanghai Bonded Logistics Park


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Looking at the Global Marketing

Environment

The International Trade System:

Restrictionstariffs, quotas, embargos, exchange controls,

and non-tariff trade barriers.

The World Trade Organization and GATT:

Helps Tradereduces tariffs and other international trade

barriers.

Regional Free Trade Zones:

Groups of nations organized to work toward common goals in

the regulation of international trade.

GA


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GATT

The organization is attempting to complete negotiations on the DohaDevelopment Round, which was launched in 2001

substantial reduction of tariffs and other trade barriers and the elimination

of preferences, on a reciprocal and mutually advantageous basis

155 Members as of 2012

Replaced by the World Trade Organization in 1995

GATT Founded in 1948

GATS is same as GATT but is For Services and came into being in 1995


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THANK YOU

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