The dollar value of world trade has more than doubled in the past decade and will exceed $11.5 trillion in 2006. Manufactured goods and commodities account for 75 percent of world trade, while services account for 25 percent.
Four recent trends have significantly affected world trade: (a) a gradual decline of economic protectionism, (b) an increase in formal economic integration and free trade among nations, (c) global competition among global companies for global consumers, and (d) the emergence of a networked global marketspace.
Although global and domestic marketing are based on the same marketing principles, many underlying assumptions mustbe reevaluated when a firm pursues global opportunities. A global environmental scan typically considers three kinds of uncontrollable environmental variables. These include cultural diversity, economic conditions, and political-regulatory climate.
Four global market-entry strategies are exporting, licensing, joint venture, and direct investment. The relative difficulty of global marketing, as well as the amount of financial commitment, risk, marketing control, and profit potential, increase in moving from exporting to direct investment.
Crafting a worldwide marketing effort involves designing, implementing, and controlling a marketing program that standardizes marketing mix elements when there are cultural similarities and adapting them when cultures differ.
