Marketing Chapter 7 Notes

Marketing Chapter 7 Notes - Chapter 7 Globalization refers...

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Chapter 7 Globalization refers to the process by which goods, services, capital, people, information, and ideas flow across national borders o Global markets are the result of several fundamental changes, such as reductions or eliminations of trade barriers by country governments, the decreasing concerns of distance and time with regard to moving products and ideas across countries, the standardization of laws across borders, and globally integrated production processes. Growth of the global economy: Globalization of marketing and production o The globalization of production , also known as offshoring , refers to manufacturer’s procurement of goods and services from around the globe to take advantage of national differences in the cost and quality of various factors o production (eg. , labor, energy, land, capital). Financial services are by far the largest private-sector market for offshoring o The growth o global markets also has been facilitated by organizations that are designed to oversee their functioning The General Agreement on Tariffs and Trade (GATT) was designed to lower trade barriers, such as high tariffs on imported goods and restrictions on the number and types of imported products that inhibited the free flow of goods across the border Included the founding of the International Monetary Fund (IMF) , but in 1994, the GATT was replaced by the World Trade Organization (WTO). o The WTO differs from the GATT in that the WTO is an established institution based in Geneva, Switzerland, instead of simply an agreement. Furthermore, the WTO represents the only international organization that deals with the global rules of trade among nations Its main function is to ensure that trade flows as smoothly, predictably, and freely as possible o The primary purpose of the IMF is to promote international monetary cooperation and facilitate the expansion and growth of international trade Along with the IMF the World Bank Group is dedicated to fighting poverty and improving the living standards of people in the developing world The key difference between the IMF and World Bank is that the IMF focuses primarily on maintaining the international
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Marketing Chapter 7 Notes - Chapter 7 Globalization refers...

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