1. What are the 2 categories in Global Trade?

Imports are the goods and services that are purchased from the rest of the world by a country’s
residents, rather than buying domestically produced items. Imports lead to an outflow of funds
from the country since import transactions involve payments to sellers residing in another
country.

Exports are goods and services that are produced domestically, but then sold to customers
residing in other countries. Exports lead to an inflow of funds to the seller’s country since export
transactions involve selling domestic goods and services to foreign buyers.

1.1 What is the largest category of exports from the United States?

As the world’s largest trading nation, with more than $5.6 trillion in exports and imports of
goods and services in 2019, the United States is a cornerstone of the global economy. Currently,
the U.S. has trade relations with more than 200 countries, territories and regional associations
around the globe.

In this article, we’ll share the top U.S. exports based on recent numbers and explain how
exporters can pursue exporting to these markets.

Top 5 U.S. Exports

As the second-largest exporter in the world—outranked only by China—total U.S. exports for
2020 are estimated to be valued at $2,127,250,000,000. According to the most recent data from
CIA Factbook, the following are the United States’ top exports:

1. Refined Petroleum: $84.9 billion

In 2019, the main export destinations of refined petroleum from the U.S. were:

Mexico: $26.7 billion

Canada: $9.62 billion

Brazil: $8.16 billion

Chile: $3.22 billion

Colombia: $3.13 billion

Between 2018 and 2019 (the most current numbers available), the fastest-growing export
markets for U.S. refined petroleum were Brazil, Colombia, and Trinidad and Tobago.
2. Crude Petroleum: $61.9 billion

Between August 2020 and August 2021, crude petroleum exports have increased by $2.12 billion
—50.4%—from $4.2 billion to $6.32 billion. As of 2019, the U.S. was the world’s fifth-largest
exporter of crude petroleum.

The main export destinations of crude petroleum from the U.S. were:

Canada: $9.82 billion

South Korea: $8.81 billion

Netherlands: $5.36 billion

India: $5.36 billion

United Kingdom: $5.14 billion

Between 2018 and 2019, the fastest-growing export markets for U.S. crude petroleum were
South Korea, Netherlands and India.

3. Cars: $56.9 billion

In 2019, the U.S. was the world’s third-largest exporter of cars; cars were also the third most-
exported product in the U.S. that year. The main export destinations of cars from the U.S. were:

Canada: $13.9 billion

China: $7.34 billion

Germany: $6.84 billion

Belgium: $4.29 billion

Mexico: $2.72 billion

Between 2018 and 2019, the fastest-growing export markets for U.S. cars were Belgium,
Germany and China.

4. Integrated Circuits: $41.4 billion

The U.S. was the world’s sixth-largest exporter of integrated circuits in 2019. The main export
destinations of circuits from the U.S. were:
China: $8.47 billion

Mexico: $7.68 billion

Hong Kong: $3.47 billion

Chinese Taipei: $3.23 billion

South Korea: $3.13 billion

Between 2018 and 2019, the fastest-growing export markets for U.S. integrated circuits were
China, Mexico and Vietnam. Growth is expected to continue for integrated circuit exports.

5. Vehicle Parts: $41.2 billion

The U.S. was the world’s second-largest exporter of vehicle parts in 2019. The main export
destinations of vehicle parts from the U.S. were:

Mexico: $16.3 billion

Canada: $14.8 billion

China: $1.54 billion

Germany: $763 million

United Kingdom: $680 million

2. What are the marketing variables in terms of the global market place?

Demographic segmentation can be based on country income and population, age, ethnic heritage,
or other variables. Psychographic segmentation groups people according to attitudes, interests,
opinions, and lifestyles. Behavioral segmentation utilizes user status and usage rate as
segmentation variables. Benefits segmentation is based on the benefit buyers seek.

2.1 What must global marketers do effecting to reach foreign markets?

Evaluating whether to enter a new market is like peeling an onion—there are many layers. For
example, when evaluating whether to enter China, the advantage most people see immediately is
its large market size. Further analysis shows that the majority of people in that market can’t
afford US products, however. But even deeper analysis shows that while many Chinese are poor,
the number of people who can afford consumer products is increasing.

Through global market segmentation, a company can identify and group customers or
countries according to common needs and wants (Demographic segmentation, Psychographic
segmentation, Behavioral segmentation, and Benefits segmentation.) Global teens and global
elites are two examples of global market segments.

After marketers have identified segments, the next step is targeting: The identified groups are
evaluated and compared, and one or more segments with the greatest potential is selected from
them. The groups are evaluated on the basis of several factors, including segment size and
growth potential, competition, and compatibility and feasibility. Target market assessment also
entails a thorough understanding of the product-marketing question and determining marketing
model drivers and enabling conditions in the countries under study. The timing of market entry
should take into account whether a first-mover advantage is likely to be gained. After evaluating
the identified segments, marketers must decide on an appropriate targeting strategy. The three
basic categories of global target marketing strategies are standardized global marketing, niche
marketing, and differentiated multi-segment marketing.

Positioning a product or brand to differentiate it in the minds of target customers can be

accomplished in various ways: positioning by attribute or benefit, positioning by quality/price,
positioning by use or user, and positioning by competition. In global marketing global consumer
culture positioning (GCCP), foreign consumer culture positioning (FCCP), and local consumer
culture positioning (LCCP) are additional strategic options.

3. Identify and briefly explain the major components of business environment.

There is only two main components in a business environment. They are:

1. Internal Environment

Under Internal Environment, there are 4 sub-components. They are Employees, Shareholder,
and Board of Directors, Organizational culture, Labor Union, Organizational Structure.

2. External Environment

External Environment has two categories general and task environment. The general
environment has 4 sub-components. They are political, economic, socio-cultural, and
technological environments.

Task/ Operation Environment has 7 sub-components of the business environment. They are
customers, suppliers, government, competitors, financial institutions, media, and social
interest groups.

4. What are the benefits of Going Global?

Many marketers have found the international marketplace to be extremely hostile. A study by
Baker and Kynak, for example, found that less than 20 per cent of firms in Texas with export
potential actually carried out business in international markets. But although many firms view in
markets with trepidation, others still make the decision to go international. Why?
In one study, the following motivating factors were given for initiating overseas marketing
involvement (in order of importance):

 large market size

 stability through diversification
 profit potential
 unsolicited orders
 proximity of market
 excess capacity
 offer by foreign distributor
 increasing growth rate
 smoothing out business cycles

Other empirical studies over a number of years have pointed to a wide variety of reasons why
companies initiate international involvement. These include the saturation of the domestic
market, which leads firms either to seek other less competitive markets or to take on the
competitor in its home markets; the emergence of new markets, particularly in the developing
world; government incentives to export; tax incentives offered by foreign governments to
establish manufacturing plants in their countries in order to create jobs; the availability of
cheaper or more skilled labor; and an attempt to minimize the risks of a recession in the home
country and spread risk.

4.1 What are the 3 criteria that determine a nation's prospects as a host for
international business expansion?

 Product: Are we confident there is enough product-market fit, or will we need to adapt
our product to serve the market?

 Talent: Can we find and hire the right people? Do we have the right leadership to own
this?

 Resources: Do we have resources to handle costs (tax, labor, etc.) and the time that will
be required from existing functional team members?

5. What are the 2 major categories of trade barriers that affect in global marketing?

1. Tariffs

A tariff is a tax or duty on a particular class of imports or exports between two countries or
sovereign states. Governments impose tariffs on imports for two essential reasons: to protect
locally produced products and earn additional revenues from trade participation. Other
governments impose high tariffs on imports coming from particular countries as a means of
demonstrating its influence.

It is important to note that there are more specific arguments in favor of taxing import and export
activities. Take note of the following purposes of tariffs: protect emerging local markets and
emerging local industries and sectors from larger foreign businesses, protect against unfair
competition due to dumping practices, promote economic growth, and sustain trading activities
in the international market by creating a win-win situation.

2. Non-Tariffs

Non-tariff trade barriers are restrictions on imports or exports imposed by a government through
mechanisms and policies other than the simple imposition of trade taxes. Some of these trade
barriers are systematic or institutional because they indirectly result in preventing or impeding
trade.
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https://corporatefinanceinstitute.com/resources/knowledge/economics/imports-and-
exports/
Mariadoss, B. J. (2019). Core Principles of International Marketing. MARIADOSS. Retrieved
from https://opentext.wsu.edu/cpim/
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Yeung, N. (2018, October 30). Types and Examples of Trade Barriers. Retrieved from Profolus:
https://www.profolus.com/topics/types-and-examples-of-trade-barriers/