INTERNATIONAL MARKETING

ENVIRONMENT

ROADMAP• Introduction• Components• Trade barriers• Objectives Of

Trade barriers• Tariff barriers• Non-tariff barriers• General

Agreement on GATT

• TRIPs• WTO• Impacts of

WTO• TRIMs• GATS• UNCTAD

INTRODUCTION TO INTERNATIONAL

MARKETING• International Environment is a

very important determinant of the business strategy. The factors, which constitute international business environment, can be classified as:

Endogenous FactorsExogenous Factors

COMPONENTS OF INTERNATIONAL

MARKETING ENVIRONMENT• Social and Cultural Environment• Technological Environment• Economic Environment• Political Environment• International Environment• Legal Environment• Ecological Environment

TRADE BARRIERS

• Trade barriers are the artificial restrictions imposed by the governments on free flow of goods and services between countries.

CONTINUE…

• Tariffs, quotas, taxes, duties, foreign exchange restrictions, trade agreements and trading blocs are the techniques used for restricting free movement of goods from one country to the other

• Trade barriers are broadly classified into following two categories:

Tariff barriers or Fiscal controlsNon-tariff barriers or quantitative

restrictions.

OBJECTIVES OF TRADE BARRIERS

• To Protect Home Industries from Foreign Competition

• To Promote New Industries and Research and Development

• To Conserve Foreign Exchange Reserves

• To Maintain Favorable Balance of Payments

• To Protect Economy for Dumping• To Curb Conspicuous Consumption

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• To Make Economy Self-reliant• To Mobilize Public

Revenue• To Counteract Trade Barriers

Imposed by Other Countries

TARIFF BARRIERS• Meaning• Types• Objectives• Nature• Effectivity• Revenue• Popularity

NON-TARIFF BARRIERS

• Meaning• Types• Objectives• Nature• Effectivity• Revenue• Popularity

GENERAL AGREEMENT ON TARIFF AND TRADE[GATT]

• GATT was formed in 1948

• The Primary objective of GATT is to expand international trade by liberalizing trade so as to bring about all-round economic prosperity.

The preamble of the GATT mentions the following as its important objectives:

Raising the standard of livingEnsuring full employment and a large

and steadily growing volume of real income and effective demand.

Better utilisation of the resources of the world.

Expansion of production of goods and services and international trade.

TRADE RELATED ASPECTS OF ONTELLECTUAL PROPERTY

RIGHTS [TRIPs]• TRIPs agreement sets out the minimum

standards of protection to be adopted by the seven areas of intellectual property rights, viz, copy rights, trade marks, geographical indications, industrial designs,patents,layout designs of integrated circuits and trade secrets.

• A transition period five years has been given to all developing countries to give effect to the provisions of the TRIPs Agreement.

WORLD TRADE ORGANISATION

• The World Trade Organization (WTO) is an international organization designed by its founders to supervise and liberalize international trade.

• The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade  (GATT), which commenced in 1947.

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• The World Trade Organization deals with regulation of trade between participating countries; it provides a framework for negotiating and formalizing trade agreements, and a dispute resolution process aimed at enforcing participants' adherence to WTO agreements which are signed by representatives of member governments and ratified by their parliament.

IMPACTS OF WTO• POSITIVE IMPACTGrowth in

Merchandise TradeGrowth in Export of

ServicesGrowth of Foreign

Direct Investment [FDI]

Textiles and ClothingAgricultural SectorMultilateral Rules and

Disciplines

• NEGATIVE IMPACTAdverse Impact of TRIPs on the

Indian EconomyAdverse Impact on Indian

agriculturalHike in the Prices of DrugsResearch in Bio-diversity and

Micro OrganismsService Industry

TRADE RELATED INVESTMENT MEASURES [TRIMs]

• In the late 1980s• Agreed upon by all members of

the World Trade Organization • Are rules that restrict preference

of domestic firms and thereby enable international firms to operate more easily within foreign markets.

GENERAL AGREEMENT ON TRADE IN SERVICES [GATS]

• a treaty of the World Trade Organization (WTO) that entered into force in January 1995

• It was created to extend the multilateral trading system to service sector

• the overall goal of the GATS is to remove barriers to trade.

UNITED NATIONS CONFERENCE ON TRADE AND

DEVELOPMENT [UNCTAD]

• It was established in 1964 as a permanent intergovernmental body having 193 members

• Its the principal organ of United Nations General Assembly deals with trade, investment, and development issues.

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• It has provide a forum where the developing countries could discuss the problems relating to their economic development

• The primary objective of the UNCTAD is to formulate policies relating to all aspects of development including trade, aid, transport, finance and technology

CREDITS•Sabiha Moiyadi- 32•Sneha Parwal- 37•Siddhesh Raut- 42•Anshul Singh- 50•Farheen Valiulla- 57