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Unformatted text preview: Chapter 1 : Growth of International Business and Advertising The Multinational Corporation Growth of its presence and dominance Question for most organizations now is not should we go global, but when, how and where Led to growth of international advertising U.S. Agencies looking for international clients Foreign agencies expanding too Some merger between the two History Three waves of globalization 1870-1914 : improvements in transport technology; product needs became more homogenized; communication became easier; increasing exports 1945-1980 : peaceful time in world politics; creation of International Monetary Fund and GATT; growth of international trade and investment 1980-Present : further progress in transport and communications technologies; lowered barriers to foreign investment; smaller companies beginning to dominate; realize that new markets improve profits Domestic Market Market Saturation Starbucks example; cannibalization Increased foreign competition CBS Records & Firestone acquired by Japanese firms; Pillsbury by British firm The selling of America; See p. 5 in text Foreign Markets Foreign revenues increasing for U.S. companies; higher profit margins Happening for both U.S. and foreign firms The Trade Deficit Exports contribute significantly to the economic growth and well-being of a country The Trade Deficit is the shortfall between what a country sells abroad and what it imports In the U.S. in 2008, U.S. exports totaled $1.84 trillion, but U.S. imports totaled $2.52 trillion Serious long-term economic effects since moist of that import activity creates debt for the U.S. The European Union In 1992, barriers fell allowing for significantly increased trade with the 12-nation European Union; in 1999, 3 more countries joined; in 2004, 10 more nations joined. In total, 25 nations and 450 million consumers...
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This note was uploaded on 10/05/2011 for the course ADV 4313 taught by Professor Annrodriguez during the Spring '11 term at Texas Tech.
- Spring '11