TAILIEUCHUNG - Lecture Global marketing: Contemporary theory, practice, and cases: Chapter 5 - Ilan Alon, Eugene Jaffe

Chapter 5, integrating global, regional, and national markets. In this chapter, the following content will be discussed: Regionalism or globalism? Regional economic blocs, free trade areas , customs unions, common markets, political union, major trade arrangements, fair trade, emerging markets. | Chapter 5 – Integrating Global, Regional, and National Markets “ global multinationals have viewed developing Asia [countries] as an offshore-production platform. The offshore-efficiency solution is still an attractive option. But what really could be powerful [is] a growing opportunity to tap the region’s billion consumers.” Stephen Roach, Chairman, Morgan Stanley Asia McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Outline Regionalism or Globalism? Regional Trade World’s Largest Importers/Exporters Asia’s Growth Most Attractive Global Business Locations Regional over Global Regional Economic Blocs Free Trade Areas Customs Unions Common Markets Political Union Major Trade Arrangements Fair Trade Emerging Markets BRIC Summary Regionalism or Globalism? Global trade Agreement would allow many countries to enjoy trade with each other free from most restrictions The difficulties experienced in attempting to achieve multilateral or global trade agreements have led many countries focus on regional trade arrangements Regional trade and free trade blocs Free trade blocs lower trade barriers among members without having to lower barriers for non-members Regional Trade: Merchandise Trade in the Triad ($Billion, 2009) Figure 5-2 World’s Largest Exporters & Importers Share of World GDP (2005) Figure 5-3 Most Attractive Global Business Locations Regional Over Global Ample evidence that a regional rather than a global strategy prevails among countries and businesses Triad and regional trade are dominant, . 67 percent of EU member’s exports are to other EU countries Most multinational corporations pursue regional, not global strategies, . approximately 90 percent of all cars manufactured in Europe are sold in Europe Regional Economic Blocs Integrated economies such as the European Union, NAFTA and Mercosur “Single markets," united by harmonized regulatory standards common levels of social protection Firms act under both the .

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