youtube/watch?v=M8CLoPkhnlo

1. 2.03 Understand government support for international marketing & the roles of international trade organizations such as GATT & WTO http://www.youtube.com/watch?v=M8CLoPkhnlo

2. US Federal & State Export Support • Why? Governments are interested in promoting exports to improve balance of trade. • Federal & state agencies provide support for international marketers.

3. U.S. Department of Commerce • US Commercial Service • Provides access to global listing of trade events & international market research • Provides tools to help with export process. • www.trade.gov/cs • Export.gov • Web site provides links to export-related programs & services. • Contains market research information from 19 federal agencies. • Has specialists in Charlotte, Greensboro & Raleigh • http://export.gov/northcarolina/

4. U.S. Department of Commerce (con’t) • Manufacturing and Services www.trade.gov/mas • Service that helps small businesses increase export potential. • Sponsored by International Trade Administration (ITA). • www.trade.gov/cs • Commercial News USA • Federal source for global business news • http://www.thinkglobal.net/

5. U.S. Department of Commerce (con’t) • Platinum Key Service of US Commercial Service • Service that offers customized US Commercial Service assistance. • Fee based - can last up to a year depending upon company’s requirements. • http://export.gov/salesandmarketing/eg_main_018196.asp

6. U.S. Department of Commerce (con’t) • Export Assistance Centers run by US Commercial Service offers help: • http://export.gov/eac • Finding sales prospects • Developing export strategies • Promoting products • Organize trade shows in other countries • Counsel clients & train individuals on export details • Provide international market research • Help firms win overseas contracts

7. North Carolina Department of Commerce & other organizations • NC International Trade Division http://www.nccommerce.com/trade • Has satellite offices near Asheville, Charlotte & Kinston which partner with US Commercial Service. • Has business development managers to help NC companies new to exporting & assists those who want to expand.

8. North Carolina Department of Commerce & other organizations (con’t) • NC International Trade Division (con’t) • Has reps. in Brazil, Canada, China, Germany, Hong Kong, Japan & Mexico to support export activity & facilitate foreign direct investment in NC. • NC exported about $25 billion worth of goods/services in 2010. • Top export partners - Canada, Mexico, China, Japan & France. • http://www.census.gov/foreign-trade/statistics/state/data/nc.html

9. North Carolina Department of Commerce & other organizations (con’t) • NC World Trade Association http://www.ncwta.org/index.html • Promotes growth of trade between NC businesses & global markets. • Provides education & networking opportunities for exporters & importers. • Charlotte World Trade Association - largest chapter of NCWTA. • http://www.cwta.org/index.htm

10. Other countries provide similar services for their companies • For example: • Foreign Affairs and International Trade - Canadahttp://www.international.gc.ca/international/index.aspx • Export Services - Mexicohttp://www.exportservices.be/index.html • http://www.exportservices.be/index.htm • Trade and Investment - United Kingdomhttp://www.ukti.gov.uk/export/howwehelp.html • South Africa Government Services • http://www.services.gov.za/services/content/Home/OrganisationServices/exportpermit/exportmarketing/en_ZA • Jamaica Promotions Corporation • http://www.jamaicatradeandinvest.org/

11. International Trade Organizations • Development of world trade organizations accelerated after WWII • In 1948, charter for International Trade Organization (ITO) called for creation of: • General Agreement on Tariffs and Trade to reduce tariffs (GATT) • World Bank (WB) • International Monetary Fund (IMF)

12. International Trade Organizations (con’t) • World Trade Organization (WTO) http://www.wto.org/ • GATT developed set of rules allowing countries to grant Most Favored Nations (MFN) status. • Lowered tariffs between member countries. • In 1995, GATT became WTO. See link… • http://www.youtube.com/watch?v=27J3CByXKow • Governs international trade agreements covering services, agriculture, intellectual property, & other trade issues. • Does not impose sanctions, instead countries authorized to impose own sanctions.

13. International Trade Organizations (con’t) World financial organizations help countries develop economically & provide economic stability to markets. • International Monetary Fund (IMF) - organization of 184 countries www.imf.org • Supports global monetary cooperation & secures financial stability. • Helps regulate international currency rates • Works to promote high employment & sustain economic growth. • Observes economic activity within & between countries. • Purpose - spot problems before they lead to financial instability • Can grant loans on condition country adopts sound set of economic policies.

14. International Trade Organizations (con’t) • IMF (con’t) • http://www.youtube.com/watch?v=GVytOtfPZe8 • YouTube clip on 1944 Bretton Woods International Monetary Conference, which later became IMF. • http://www.youtube.com/watch?v=iRzr1QU6K1o • YouTube clip on Nixon ending Bretton Woods and imposing 10% import tax

15. International Trade Organizations (con’t) World financial organizations (con’t) • World Bank - mission is fight poverty & improve living standards in developing countries. www.worldbank.org • Provides loans to low & middle income countries. • Provides policy advice, technical help, & knowledge sharing services. • Promotes economic growth to create jobs & allow poorest countries to take advantage of economic opportunities.

16. International Trade Organizations (con’t) Reasons for protests against world organizations by countries, groups & individuals • In 1999, 50,000 protested at WTO meeting in Seattle demanding more democratic, socially just & environmentally sustainable global economy. • Belief WTO agreements threaten human rights. • Belief WTO promotes trade liberalization in less developed countries. • Belief WTO puts workers in less developed countries at disadvantage.

17. International Trade Organizations (con’t) • Reasons for protests (con’t) • Countries may resist because do not want to give up control over their trade & laws • Accusation that world organizations impose standards, such as controlling wages or working environments. • World Bank has been accused of sponsoring projects with little economic value. • Rulers in many developing countries have been accused of stealing money from World Bank funds that were intended for good of their country.

18. International Trade Organizations (con’t) • Reasons for protests (con’t) • http://www.youtube.com/watch?v=_xgxCf05Kmw • YouTube clip illustrating the controversy re: IMF and WB • http://www.youtube.com/watch?v=D4-TnIBmfig • World Bank Issues • http://www.youtube.com/watch?v=iAlUFFe2Tdk • IMF_UN wants one currency

19. Views of global free trade • Economists agree global free trade leading to economic development around world. • Many economic problems may actually stem from changes caused by a shifting global economy. • Production often shifts to countries with comparative advantages. • Ex) Many US production jobs have shifted to Mexico & China. • Ex) These countries can produce more efficiently due to abundant supply of low-wage human resources. • Countries may believe they can lower risks of free trade by setting up trade barriers.

20. Views of global free trade (con’t) • Without global competition, companies may not strive to produce highest quality products & could become outdated. • Consumers could suffer from limited supplies, low-quality products, & high prices. • Ex) After fall of communism in 1989, communist governments discovered their industries were out of date & forced to close them. • Ex) As result, large percentage of population became unemployed. • Global free markets require countries develop high-quality factors of production to complete in global market.