International Marketing
Discuss the bases of world trade. Give examples illustrating the different bases.
History and geography has a great impact on the marketing progress. We must make sure that we understand how the history of different cultures impacts and guides how they focus their marketing efforts today. There were many areas that have a strong influence on world trade that were discussed in this chapter. Similar to modern day attitudes, China did not start out having a healthy business and trading opinion of the United States. In the 1800’s, British tea was creating a huge trade deficit with China. Not long after, there was an imbalance in India: Opium. Japan also had a trade history with the United States. Japan emphasizes loyalty in their businesses and this loyalty drives families to work together.
The mid-1900’s brought more expansion by the United States into Latin America. The Roosevelt Corollary was put into place, which stated that the United States prohibited non-American intervention in Latin America affairs and that they would also police the area and make sure that Latin America met their international obligations. The United States used the Roosevelt Corollary to do whatever seemed good for the United States. This is how the Panama Canal Zone was gained by the United States. To us, it seemed like we were simply carrying out or foreign policy and to Latin America it seemed like we were intruding in their country.
Climate and topography also play a huge role in the trade of a region. Products that perform well in certain cooler climate zones may need additional cooling or a special feature to operate effectively in a tropical zone. Many manufacturers have had to cope with requirements such as this to make sure that their products work well in other climates. This can lead to barriers in trading. If your products will not effectively operate in other countries you will not want to carry out a trading relationship with those countries until you make modifications. As well as the weather, geographic features can separate major trade bases. For example, mountain ranges in South American keep major cities separated and communication is interrupted in the same way in China, Russia, India, and Canada. Other developments that help with trade between countries include trains between Britain and Europe, as well as through the Swiss Alps.
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