International Marketing Environment

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Explain the role of government in international trade, the various levels of economic integration, and the impact on international marketing.

International trade is the exchange of goods and services between countries which gives rise to a world economy, in which prices, or supply and demand, affect and are affected by global events and its beginnings date as far back as the Roman Empire. After World War II there was a divide between the Eastern and Western countries that had major implications on international trade (Czinkita & Ronkainen, 2010, pp.32). Driven by the idea that international trade was the key to world-wide prosperity, the United Stated spearheaded a movement to create, along with other nations, a charter for an International Trade Organization (ITO). The ITO, a series of agreements between 53 countries was created to cover international issues such as commercial policies; domestic business practices commodity agreements, economic development and international business. An agreement on tariffs and trade was initiated, and a constitution was created in order for the United Nations to administer this new charter and the International Monetary Funds (IMF) and World Bank were created. Unfortunately, the ITO did not survive, as many countries were afraid of its bureaucratic power and size. However, in 1995 the World Trade Organization was created and is still in existence today. The WTO had its beginning in general agreements on tariffs and trades (GATT) that took place during the inception of the ITO, and is the successor organization. The WTO is the only global organization which deals with rules of international trade between nations and their goal is to help producers of goods and services, exporters, and importers conduct their business ("World trade organization," 2012). The impact of government on international marketing efforts is far-reaching. Things like trading tariffs, regulations, embargos and sanctions can have a...
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