GLOBAL MARKETING
Economics and World Economy
UNDERSTANDING THE WORLD ECONOMY:
- ______is OUTPUTper workerHOUR
- ______(GNP) Total dollar value of goods and services produced by a nation, including goods/services PRODUCEDABROADby U.S. citizensandcompanies
- ______(GDP)is the output of goods and services produced by labor and property located WITHIN a country
- DIFFERENCE between GNP and GDP – GNPcounts the country ______for production. In GDP, the country______the productionTAKES PLACE
MEASURING INFLATION:
- ______refers to RISINGprices(low: 1-5%, high 10% or higher, money does not have the same value)
- ______(CPI) measures the change in priceovertime of 400 specific household goods
Examples:
- ______(PPI) measures wholesaleprice levels in the economy (business to business costs)
Examples:
WHY TRADE INTERNATIONALLY?
Countries trade with other countries to get ______that they NEEDand do nothave in their owncountry
Four Benefits of International Trade:
(1)Increasedcompetition
(2)______
(3)______
(4) Exchange of ideas and technological advancements
Interdependence of Nations:
- Most countries do NOTproduce or manufactureALLthe goods and services they ______
- Countries get some of their goods and services from ______nations because each country possesses ______resources and capabilities
INTERNATIONAL TRADE:
______is the SALEof products and services topeople in othercountries
______is the world’s TOPimporter and exporter of goods
International trade ______each year
IMPORTS:
______Products or services that are PURCHASEDfrom anothercountry
The United States imports include ______
Many imports for the United States comes from ______
EXPORTS:
______Products that are PRODUCEDin your country and othercountriespurchase them
These products are ______in another country
The United States EXPORTS ______
BALANCE OF TRADE:
The DIFFERENCEbetween what a country IMPORTSand what they EXPORTis known as the
______
If it is ______, the country is spendingMOREon IMPORTSthan they are making on exports
If it is ______, the country is spendingLESSon imports and they are makingmore on exports
The United States exports ______amount and imports ______amount.
Therefore, we have a ______balance of trade
GOVERNMENT CONTROL OF INTERNATIONAL TRADE:
______everyone benefits from Free Trade
Because there are both winners and losers of free trade, sometimes governments decide to ______trade BARRIERS or RESTRICTIONS of free trade
A ______, also called a ______is a TAXon IMPORTS
A ______either:
- Limits the ______a product that may be imported OR
- Limits the ______of a product that may be imported
An ______is a totalBANon specific goods coming into and out of a country
THREE (3) TYPES OF INTERNATIONAL MARKETING:
- ______: The import of goods b authorized dealers; receive customer support from the legitimate importer
- ______: the import and sale of goods byunauthorized dealers; such activity is unofficial but NOTillegal
- Goods have no factory warranty, and receive no customer support from the legitimate importer
- ______: The import and sale of goods that are STRICTLY controlled or ILLEGAL
- Motives are to trade contraband, avoid taxes and regulations, or skirt price controls or quotas
TRADE AGREEMENTS/ALLIANCES:
THE EUROPEAN UNION (______)
Europe’s trading bloc
Free trade among its ______member ______
Created ______European currency (euro) and centralbank
- Replaced national currencies (French/franc and German/mark)
THE WORLD TRADE ORGANIZATION (______)
Global coalition of nations that makerulesgoverninginternationaltrade
______agreements and ______disputes among ______
______member nations
NORTH AMERICAN FREE TRADE AGREEMENT (______)
Freetrade agreement between ______, ______, ______
Principal benefit is ______trade with ______
NAFTA’s mainGOALwas to ______all tradebarriers and investmentrestrictions among the 3 countries