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  • 1 Lesson Intro To Intl Trade and Agreement

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    Deanne Guinto
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    International trade involves economic transactions between countries, commonly including consumer goods, capital goods, raw materials, and services. It allows nations to obtain commodities they lack by trading surplus goods. While facilitating specialization and improved living standards, international trade also faces challenges like currency conversion, quality standards, and self-reference criteria that can impede assessing foreign markets. Approaches like cross-cultural analysis aim to overcome obstacles and define problems without cultural biases.

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    1 Lesson Intro to Intl Trade and Agreement (1)

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    International trade involves economic transactions between countries, commonly including consumer goods, capital goods, raw materials, and services. It allows nations to obtain commodities they lack by trading surplus goods. While facilitating specialization and improved living standards, international trade also faces challenges like currency conversion, quality standards, and self-reference criteria that can impede assessing foreign markets. Approaches like cross-cultural analysis aim to overcome obstacles and define problems without cultural biases.

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    88 views19 pages

    1 Lesson Intro To Intl Trade and Agreement

    Uploaded by

    Deanne Guinto
    International trade involves economic transactions between countries, commonly including consumer goods, capital goods, raw materials, and services. It allows nations to obtain commodities they lack by trading surplus goods. While facilitating specialization and improved living standards, international trade also faces challenges like currency conversion, quality standards, and self-reference criteria that can impede assessing foreign markets. Approaches like cross-cultural analysis aim to overcome obstacles and define problems without cultural biases.

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    of 19

    Lesson 1

    International
    Business and
    Trade
    What is International Trade?
    International trade, economic transactions
    that are made between countries. Among the items
    commonly traded are consumer goods, such as
    television sets and clothing; capital goods, such as
    machinery; and raw materials and food. Other
    transactions involve services, such as travel
    services and payments for foreign patents.
    International trade transactions are facilitated by
    international financial payments, in which the
    private banking system and the central banks of
    the trading nations play important roles.
    What is International Trade?
    International trade and the accompanying financial
    transactions are generally conducted for the purpose of
    providing a nation with commodities it lacks in exchange for
    those that it produces in abundance; such transactions,
    functioning with other economic policies, tend to improve a
    nation’s standard of living. Much of the modern history of
    international relations concerns efforts to promote freer
    trade between nations. This article provides a historical
    overview of the structure of international trade and of the
    leading institutions that were developed to promote such
    trade.
    Advantage in International Trade
    • It gives rise to improve production and
    specialization through geographical division of
    labor
    • International trade helps to assemble the
    things each nation needs
    • It helps raise over standard of living
    • To the economic benefits, we derive from
    international track, cultural advantages may be
    added, like mutual understanding in ways of
    life, culture, habit.
    Reasons Why Afraid of Joining
    International Arena
    • They fear the complexity of international
    trade
    • They are unaware the potential of foreign
    market
    • They believe they are “fine selling at
    home”
    The Business Environment

    Product
    Price
    Promotion
    Distribution
    Research
    Political/legal forces, Competitive force
    Economic climate

    Economic Forces, Competitive Forces, Level of Technology


    Structure of Distribution
    Geography and Infrastructure
    Cultural Forces
    Political/Legal Forces
    Phases of International
    Trade
    • 1. Domestic Marketing
    • 2. International Marketing
    • 3. Multinational Marketing
    • 4. Global Marketing
    Domestic Marketing
    What is Domestic Marketing?
    The performance of business activities
    designed to plan, price, promote and direct
    the flow of a company’s goods and services
    to consumers or users within a country for a
    profit .
    Also referred to as internal marketing or
    domestic trading when the supply and
    demand of goods, services and securities is
    within a single country.
    International Marketing
    What is International Marketing?
    The performance of business activities
    designed to plan, price, promote and direct
    the flow of a company’s goods and services
    to consumers or users in more than one
    nation for a profit .
    Differences of
    Domestic and International Marketing
    Domestic Marketing International Marketing

    • Take place in home territory • take places in more than one


    country
    • uniform currency system • there is conversion to
    international currency
    • Domestic tax is the earn • International tax imposition
    revenue tariff is used as instrument of
    commercial policy for security
    of local product.
    • Domestic migration is never a • Labor restriction (need to
    problem (mobility is free) secure clearances/permits)
    Differences of
    Domestic and International Marketing
    Domestic Marketing International Marketing

    • Quality standards is quite low • Quality standards is very high

    • Capital investment is less • Capital investment is high

    • Business research can be • Business research is difficult to


    conducted easily. conduct research
    Multinational Marketing
    • a complex form of international marketing
    in which an organization engages in
    marketing operations in many foreign
    countries .
    – International companies are importers and
    exporters, they have no investment outside of
    their home country. While multinational
    companies have investment in other
    countries, but do not have coordinated
    product offerings in each country.
    Global Marketing
    • the development marketing strategies as
    if the entire world (or regions thereof)
    were one large market.
    • Develop a standardized marketing mix
    for the product.
    Global and Multinational
    • Consider for example a soda company. The
    company is global, because the soda does not
    change. The recipe, product and process for
    delivering the product to the market is the
    same in each country. If that same company
    allowed each country arm to alter the recipe
    and production process to be adaptive within
    the specific market and culture, they would
    transform to a multinational model.
    SRC – Self –reference Criterion
    • a primary obstacle in international
    marketing in terms of decision making that
    impede to assess its foreign market
    • SRC is associated or connected with
    ethnocentrism, that is the notion that one’s
    own culture or company knows best how
    to do things.
    Cross Cultural Analysis
    • An approach that requires an
    understanding of the culture of the foreign
    market as well as one’s own culture
    Approaches of Cross Cultural Analysis
    • Define the business problem or goal in home
    country cultural traits, habits or norms.
    • Define the business problems or goals in
    foreign country cultural traits, habits or norms
    through consultation with natives of the target
    country. Make no value judgment
    • Isolate the SRC influence in the problem and
    examine it carefully to see how it complicates
    the problem
    • Define the problem without the SRC influence
    and solve for the optimum business goal
    situation.
    Currency Accepted in the
    Philippine Banking System
    • 1. US Dollar
    • 2. Japanese Yen
    • 3. Pound Sterling
    • 4. Hong Kong Dollar
    • 5. Swiss Franc
    • 6. Canadian Dollar
    • 7. Singapore Dollar
    • 8. Australian Dollar
    • 9. Bahrain Dinar
    Currency Accepted in the
    Philippine Banking System
    • 10. Kuwait Dinar
    • 11. Saudi Riyal
    • 12. Brunei Dollar
    • 13. Indonesian Rupiah
    • 14. Thai baht
    • 15. United Arab Emirates Dirham
    • 16. Euro
    • 17. Korean Won
    • 18. Chinese renminbi or yuan

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