chapter 02 the dynamic environment of international trade
TRANSCRIPT
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Chapter 2
The Dynamic Environment ofInternational Trade
International Marketing15thedition
Philip R. Cateora Mary C. !illy and "ohn #. !raham
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2Top Ten 2$$% &.'. Trading Partner()* +illion( merchandi(e trade,
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hibit 2.1
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2Beyond the First Decadeof the 21stCentury (1 of 2)
!ro-th of the &.'. economy (lo-ed dramatically inthe la(t fe- year( e(pecially in 2$$%
Economie( of the developed -orld epected onaverage to gro- ann/ally at 0 for the net 25 year(
)ECD, Economie( of the developing -orld epected on
average to gro- ann/ally at 3 for the net 25 year()ECD,
4( a re(/lt economic po-er and infl/ence -ill movea-ay from ind/(trialied nation( to developingnation( )#atin 4merica 4(ia Ea(tern E/rope and4frica,
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2Beyond the First Decadeof the 21stCentury (2 of 2)
Companie( are looking for -ay( to +ecome moreefficient improve prod/ctivity and epand theirglo+al reach -hile maintaining an a+ility tore(pond 6/ickly and deliver prod/ct( that the
market( demand. 7e(tle 'am(/ng 8hirlpool
'maller companie( al(o /(ing novel approache(
to target glo+al market( 7ochar Inc. )fire retardant,
9/tronic( Inc. )promotional lapel +/tton(,
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2ProtectionLogic and Illogic 4rg/ment( for protectioni(m:
Protection of infant ind/(try
Protection of the home market
7eed to keep money at home
Enco/ragement of capital acc/m/lation
Maintenance of the (tandard of living and real -age(
Con(ervation of nat/ral re(o/rce(
Ind/(trialiation of a lo-;-age nation
Maintenance of employment and red/ction of /nemployment
7ational defen(e Increa(e of +/(ine(( (ie
Retaliation and +argaining
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2Does Protectionism elp!
4 recent (t/dy on 21 protected ind/(trie( (ho-ed that-hile
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2"rade Barriers
Tariff( ?/ota( and Import #icen(e(
@ol/ntary Eport Re(traint( )@ER,
9oycott( and em+argoe(
Monetary +arrier( 9locked c/rrency
!overnment approval
'tandard(
4ntid/mping penaltie(
Dome(tic (/+(idie( and economic (tim/li
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2"rade Barriers
Tariff( are tae( impo(ed +y a government on good(entering it( +order(.
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IncreaseIncrease
#ea$en#ea$en
Restrict
Inflationary pre((/re( (pecial intere(t(A privilege(
government control and political con(ideration( ineconomic matter( and the n/m+er of tariff(
9alance;of;payment po(ition( (/pply and demandpattern( and international relation( +y (tarting trade
-ar(
Man/fact/rerA( (/pply (o/rce( choice( availa+le tocon(/mer( and competition
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2"rade Barriers
?/ota( and Import #icen(e( ?/ota i( a (pecific /nit or dollar limit applied to a
partic/lar type of good )increa(e( price of good,
Import licen(e( limit( 6/antitie( on a ca(e;+y;ca(e +a(i(
"apan and foreign riceB 9anana -ar( +et-een the &nited'tate( and the E&
@ol/ntary Eport Re(traint( )@ER, ften /(ed in the 1%$( i( an agreement +et-een the
importing co/ntry and the eporting co/ntry for are(triction on the vol/me of eport(.
"apanA( @ER on &.'. a/tomo+ile(
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2"he %eneral &greement on"ariffs and "rade (%&"") 'hortly after 8orld 8ar II the &.'. and 22 other co/ntrie(
(igned !4TT )1%=, -hich paved the -ay for the fir(t effective-orld-ide tariff agreement
9a(ic element( of the !4TT
Trade (hall +e cond/cted on a nondi(criminatory +a(i(
Protection (hall +e afforded dome(tic ind/(trie( thro/ghc/(tom( tariff( not thro/gh (/ch commercial mea(/re( a(import 6/ota(
Con(/ltation (hall +e the primary method /(ed to (olve glo+altrade pro+lem(
Eliminating international trade +arrier( &r/g/ay Ro/nd The !eneral 4greement on Trade in 'ervice( )!4T',
Trade;Related Inve(tment Mea(/re( )TRIM(,
Trade;Related a(pect( of Intellect/al Property Right( )TRIP(,
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2"he #orld"rade 'rganiation (#"')
8T -hich i( an in(tit/tion not an agreement -a( fo/ndedin 1%%. 'et( many r/le( governing trade +et-een it( 1 mem+er(
Provide( a panel eport( to hear and r/le on trade di(p/te(+et-een mem+er(
I((/e( +inding deci(ion( 4ll mem+er co/ntrie( -ill have e6/al repre(entation
Mem+er co/ntrie( have open their market( and to +e +o/nd +ythe r/le( of the m/ltilateral trading (y(tem
&.'. ratification concern(
Po((i+le lo(( of (overeignty over it( trade la-( to 8T #ack of veto po-er
Role &.'. -o/ld a((/me -hen a conflict ari(e( over an individ/al(tateA( la-( that might +e challenged +y a 8T mem+er
China +ecame mem+er of the 8T )2$$1,B @ietnam )2$$=,
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2$irting the spirit of%&"" and #"'
#oophole( China red/ced tariff( -hile at the (ame time
increa(ed n/m+er and (cope of technical
(tandard( and in(pection re6/irement( Impo(ing antid/mping d/tie(
7egotiating +ilateral trade agreement(
May lead to m/ltinational conce((ion( 7ot nece((arily con(i(tent -ith 8T goal(
and a(piration(
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2International *onetary Fund(I*F)
9eca/(e of inade6/ate money re(erve(and /n(ta+le c/rrencie( the IMF -a(created to a((i(t nation( in +ecoming and
remaining economically via+le +
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2#orld Ban$ %roup
9y promoting (/(taina+le gro-th and inve(tment in peoplethe 8orld 9ank !ro/p i( an in(tit/tion created in 1% tored/ce poverty and improve (tandard of living
The 8orld 9ank ha( five in(tit/tion( -hich perform thefollo-ing (ervice(:
#ending money to the government( of developing co/ntrie(
Providing a((i(tance to government( for developmental pro
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2&nti+glo,aliation Protests
The /nintended con(e6/ence( of glo+aliing Environmental concern(
8orker eploitation and dome(tic