LO1  Describe the nature and scope of world trade from a global perspective and its implications for the United States.

A global perspective on world trade views exports and imports as complementary economic flows: A country's imports affect its exports and exports affect its imports. World trade flows to and from the United States reflect demand and supply interdependencies for goods among nations and industries. The four largest importers of U.S. goods and services are Canada, China, Mexico, and Japan. The four largest exporters to the United States are Canada, China, Mexico, and Japan. The United States imports more goods than it exports.

LO2  Identify the major trends that have influenced the landscape of global marketing in the past decade.

Four major trends have influenced the landscape of global marketing in the past decade. First, there has been a gradual decline of economic protectionism by individual countries, leading to a reduction in tariffs and quotas. Second, there is growing economic integration and free trade among nations, reflected in the creation of the European Union and the North American Free Trade Agreement. Third, there exists global competition among global companies for global consumers, resulting in firms adopting global marketing strategies and promoting global brands. And finally, a networked global marketspace has emerged using Internet technology as a tool for exchanging goods, services, and information on a global scale.

LO3  Identify the environmental factors that shape global marketing efforts.

Three major environmental factors shape global marketing efforts. First, there are cultural factors, including values, customs, cultural symbols, and language. Economic factors also shape global marketing efforts. These include a country's stage of economic development and economic infrastructure, consumer income and purchasing power, and currency exchange rates. Finally, political-regulatory factors in a country or region of the world create a favorable or unfavorable climate for global marketing efforts.

LO4 Name and describe the alternative approaches companies use to enter global markets.

Companies have four alternative approaches for entering global markets. These are exporting, licensing, joint venture, and direct investment. Exporting involves producing goods in one country and selling them in another country. Under licensing, a company offers the right to a trademark, patent, trade secret, or similarly valued items of intellectual property in return for a royalty or fee. In a joint venture, a foreign company and a local firm invest together to create a local business. Direct investment entails a domestic firm actually investing in and owning a foreign subsidiary or division.

LO5  Explain the distinction between standardization and customization when companies craft worldwide marketing programs.

Companies distinguish between standardization and customization when crafting worldwide marketing programs. Standardization means that all elements of the marketing program are the same across countries and cultures. Customization means that one or more elements of the marketing program are adapted to meet the needs or preferences of consumers in a particular country or culture. Global marketers apply a simple rule when crafting worldwide marketing programs: Standardize marketing programs whenever possible and customize them wherever necessary.