Transcript 2.03 Government Agencies - robertbove

2.03 Understand government
support for international
marketing & the roles of
international trade
organizations such as GATT &
WTO
http://www.youtube.com/watch?v=M
8CLoPkhnlo
US Federal & State Export Support
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Why? Governments are interested
in promoting exports to improve
balance of trade.
Federal & state agencies provide
support for international marketers.
U.S. Department of Commerce
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US Commercial Service
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Provides access to global listing of trade events
& international market research
Provides tools to help with export process.
www.trade.gov/cs
Export.gov
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Web site provides links to export-related
programs & services.
Contains market research information from 19
federal agencies.
Has specialists in Charlotte, Greensboro &
Raleigh
http://export.gov/northcarolina/
U.S. Department of Commerce (con’t)
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Manufacturing and Services
www.trade.gov/mas
 Service that helps small businesses increase
export potential.
 Sponsored by International Trade
Administration (ITA).
 www.trade.gov/cs
Commercial News USA
 Federal source for global business news
 http://www.thinkglobal.net/
U.S. Department of Commerce (con’t)
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Platinum Key Service of US
Commercial Service
 Service that offers customized US
Commercial Service assistance.
 Fee based - can last up to a year
depending upon company’s
requirements.
 http://export.gov/salesandmarketin
g/eg_main_018196.asp
U.S. Department of Commerce (con’t)
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Export Assistance Centers run by US
Commercial Service offers help:
http://export.gov/eac
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Finding sales prospects
Developing export strategies
Promoting products
Organize trade shows in other countries
Counsel clients & train individuals on export
details
Provide international market research
Help firms win overseas contracts
North Carolina Department of
Commerce & other organizations
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NC International Trade Division
http://www.nccommerce.com/trade
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Has satellite offices near Asheville,
Charlotte & Kinston which partner with
US Commercial Service.
Has business development managers to
help NC companies new to exporting &
assists those who want to expand.
North Carolina Department of Commerce
& other organizations (con’t)
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NC International Trade Division (con’t)
 Has reps. in Brazil, Canada, China,
Germany, Hong Kong, Japan & Mexico to
support export activity & facilitate foreign
direct investment in NC.
 NC exported about $25 billion worth of
goods/services in 2010.
 Top export partners - Canada, Mexico,
China, Japan & France.
 http://www.census.gov/foreigntrade/statistics/state/data/nc.html
North Carolina Department of Commerce
& other organizations (con’t)
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NC World Trade Association
http://www.ncwta.org/index.html
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Promotes growth of trade between NC
businesses & global markets.
Provides education & networking
opportunities for exporters & importers.
Charlotte World Trade Association largest chapter of NCWTA.
http://www.cwta.org/index.htm
Other countries provide similar services
for their companies
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For example:
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Foreign Affairs and International Trade - Canada
http://www.international.gc.ca/international/index.
aspx
Export Services - Mexico
http://www.exportservices.be/index.html
http://www.exportservices.be/index.htm
Trade and Investment - United Kingdom
http://www.ukti.gov.uk/export/howwehelp.html
South Africa Government Services
http://www.services.gov.za/services/content/Home
/OrganisationServices/exportpermit/exportmarketi
ng/en_ZA
Jamaica Promotions Corporation
http://www.jamaicatradeandinvest.org/
International Trade Organizations
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Development of world trade
organizations accelerated after WWII
In 1948, charter for International Trade
Organization (ITO) called for creation of:
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General Agreement on Tariffs and Trade to
reduce tariffs (GATT)
World Bank (WB)
International Monetary Fund (IMF)
International Trade Organizations (con’t)
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World Trade Organization (WTO)
http://www.wto.org/
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GATT developed set of rules allowing countries
to grant Most Favored Nations (MFN) status.
Lowered tariffs between member countries.
In 1995, GATT became WTO. See link…
http://www.youtube.com/watch?v=27J3CByXKow
Governs international trade agreements
covering services, agriculture, intellectual
property, & other trade issues.
Does not impose sanctions, instead countries
authorized to impose own sanctions.
International Trade Organizations (con’t)
World financial organizations help countries
develop economically & provide economic
stability to markets.
 International Monetary Fund (IMF) organization of 184 countries www.imf.org
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Supports global monetary cooperation & secures
financial stability.
Helps regulate international currency rates
Works to promote high employment & sustain
economic growth.
Observes economic activity within & between
countries.
Purpose - spot problems before they lead to financial
instability
Can grant loans on condition country adopts sound
set of economic policies.
International Trade Organizations (con’t)
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IMF (con’t)
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http://www.youtube.com/watch?v=GVytOtfPZe8
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YouTube clip on 1944 Bretton Woods
International Monetary Conference, which
later became IMF.
http://www.youtube.com/watch?v=iRzr1QU6K1o
YouTube clip on Nixon ending Bretton
Woods and imposing 10% import tax
International Trade Organizations (con’t)
World financial organizations (con’t)
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World Bank - mission is fight poverty &
improve living standards in developing
countries. www.worldbank.org
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Provides loans to low & middle income
countries.
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Provides policy advice, technical help, &
knowledge sharing services.
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Promotes economic growth to create jobs &
allow poorest countries to take advantage of
economic opportunities.
International Trade Organizations (con’t)
Reasons for protests against world
organizations by countries, groups &
individuals
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In 1999, 50,000 protested at WTO meeting in
Seattle demanding more democratic, socially just
& environmentally sustainable global economy.
Belief WTO agreements threaten human rights.
Belief WTO promotes trade liberalization in less
developed countries.
Belief WTO puts workers in less developed
countries at disadvantage.
International Trade Organizations (con’t)
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Reasons for protests (con’t)
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Countries may resist because do not want to give
up control over their trade & laws
Accusation that world organizations impose
standards, such as controlling wages or working
environments.
World Bank has been accused of sponsoring
projects with little economic value.
Rulers in many developing countries have been
accused of stealing money from World Bank funds
that were intended for good of their country.
International Trade Organizations (con’t)
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Reasons for protests (con’t)
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http://www.youtube.com/watch?v=_xgxCf05Kmw
YouTube clip illustrating the controversy
re: IMF and WB
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http://www.youtube.com/watch?v=D4-TnIBmfig
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World Bank Issues
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http://www.youtube.com/watch?v=iAlUFFe2Tdk
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IMF_UN wants one currency
Views of global free trade
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Economists agree global free trade leading
to economic development around world.
Many economic problems may actually stem
from changes caused by a shifting global
economy.
Production often shifts to countries with
comparative advantages.
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Ex) Many US production jobs have shifted to
Mexico & China.
Ex) These countries can produce more efficiently
due to abundant supply of low-wage human
resources.
Countries may believe they can lower risks
of free trade by setting up trade barriers.
Views of global free trade (con’t)
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Without global competition, companies may
not strive to produce highest quality
products & could become outdated.
Consumers could suffer from limited
supplies, low-quality products, & high
prices.
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Ex) After fall of communism in 1989, communist
governments discovered their industries were out
of date & forced to close them.
Ex) As result, large percentage of population
became unemployed.
Global free markets require countries
develop high-quality factors of production to
complete in global market.