1 / 83

Understanding the Global Marketplace: Analyzing Government Actions, Sociocultural Factors, and Infrastructure

Explore the complexities of the global marketplace, including government actions, sociocultural factors, and infrastructure, to gain insights into international business strategies. Learn how to navigate tariffs, quotas, trade agreements, cultural differences, and more.

jocelyne
Download Presentation

Understanding the Global Marketplace: Analyzing Government Actions, Sociocultural Factors, and Infrastructure

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Launch your PollEV session: Text: UWMBUSINESS to 37607 *Text LEAVE at the end of class* Alternate #: (747) 444-3548

  2. B2B Buying Process The CONSUMER Buying decision process

  3. Understanding the Marketplace – Global Marketing Ref: Text, chapter 8

  4. Global marketing • “Globalization” – the processes by which goods, services, capital, people, information, and ideas flow across national borders

  5. Complex supply chains

  6. (US Per Capita = $58,000) Per capita income: $1751 $10 838 taka (Bangladesh)

  7. Single-use shampoo

  8. Assessing Global Markets

  9. II. Analyzing Infrastructure and Technological Capabilities • Infrastructure – the basic facilities, services, and installations needed for a community or society to function • Transportation • Communications systems • Distribution channels • Commercial infrastructure

  10. Assessing Global Markets

  11. III. Analyzing Government Actions • government actions can significantly influence firms’ ability to sell products; • they can result in laws or regulations that promote growth of the global market or inhibit growth by closing off the country

  12. III. Analyzing Government Actions • Tariffs (“duty”) • A tax levied on a product imported into a country • Intended to make imported goods more expensive and thus less competitive with domestic products

  13. Tariffs make imported goods costly

  14. Tariffs & Reciprocal tariffs

  15. Tariffs & reciprocal tariffs

  16. III. Analyzing Government Actions • Quotas • A quota designates the maximum quantity of a product that may be brought into a country in a given time period

  17. III. Analyzing Government Actions • Quotas • A quota designates the maximum quantity of a product that may be brought into a country in a given time period

  18. Tariffs Quotas • Both benefit domestically made products because they reduce foreign competition • Tax • Artificially raises prices • Lowers demand • Maximum limit • Reduces availability of imported goods

  19. III. Analyzing Government Actions • Exchange Control • This refers to the regulation of a country’s currency exchange rate (the measure of how much one currency is worth in relation to another)

  20. A strong US$ = Happy Tourists, Sad Exporters

  21. III. Analyzing Government Actions • Trade Agreements • Intergovernmental agreements designed to manage and promote trade activities for a given region. Trading bloc • the European Union (EU), North American Free Trade Association (NAFTA),USMCA,Central American Free Trade Agreement (CAFTA), Mercosur (the Southern Common Market), Association of South-East Asian Nations (ASEAN)

  22. Trade Agreements “USMCA”

  23. Trade agreements = Cheap tomatoes for consumers

  24. Assessing Global Markets

  25. IV. Analyzing Sociocultural Factors • Understanding and adapting to another country’s culture is crucial to the success of any global marketing

  26. Soy sauce, chilli sauce • in Indonesia • Banana-flavored • ketchup in the Philippines

  27. IV. Analyzing Sociocultural Factors • The visible artifacts of a culture (e.g., dress, food, behavior, physical settings) are fairly easy to identify • but the intangible underlying valuesare very difficult to understand

  28. IV. Analyzing Sociocultural Factors • Hofstede’s cultural dimensions concept, according to which, cultures differ on 6 dimensions: • Power distance • Uncertainty avoidance • Individualism • Masculinity • Time orientation • Indulgence

  29. Hofstede’s Cultural Dimensions

  30. Analyzing cultural differences using Hofstede’s concept

  31. Individualism Community

  32. Analyzing cultural differences using Hofstede’s concept

More Related