International Trade Theories and Globalization Market Effects

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Tema 1 — Trade Theories

Classical Theories

Classical theories: Adam Smith, David Ricardo.

Partial Theories

Partial theories: cost theory, marketing theory, human resources theory, technology theory.

Porter's Theory of International Trade

- 3 questions

• Demand: consumers demanding and knowledgeable; innovative consumers.
• Supply (Offer): there are many competitors; aggressive competitors; it is a mature market.
• Resources: natural, intangible.
• Relationship between companies: advanced suppliers; cooperation or partnership between companies.
• The government and business management: a question — level of executives and motivating.

International Trade Developments

Growth, improved transportation and telecommunications, political and economic stability, homogenization of tastes, legislation, changes in technology, economic integration (reduction of barriers), policies promoting international trade, financial facilities and emerging developing countries.

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Tema 2 — Effects of Globalization

Marketing Advantages

Marketing advantage: wider market, stability of sales, customer proximity, image enhancement, removal of barriers, lower transport costs, improved reaction to competition.

Financial Benefits

Benefits to finance: risk diversification, benchmarking, international finance, tax planning.

Production Advantages

Production advantages: economies of scale, optimal production, optimal capacity, efficient use of productive resources.

Human Resources Advantages

Advantages in human resources: learning experiences transferable; reduced environmental costs.

Analysis

Analysis of the Competitive Environment

Analysis of competitive environment: identification of competitors, competitive strategy, forces and weaknesses, predictable reactions.

Economic Environment

Economic environment: economic indicators, demographics, consumption, infrastructures.

Legal Environment

Legal environment: licenses, tariffs, quotas, taxes, administrative controls, technical barriers, exchange controls.

Cultural Environment

Cultural environment: language, social aspects, aesthetics, beliefs and values.

Commercial Research

Commercial research: adapting to market research, primary sources, secondary data, qualitative and quantitative data, timely research, steps of research, market information system.

Types of Research

Types of research: observation, experimentation, surveys, data obtained for commercial consumption.

Consumer Information

Consumer information: in-depth interviews, focus groups, surveys, measurement systems using information technology.

Sources

Sources: internet, ICEX, Customs Code, international exhibitions, business information, yearbooks and publications, chambers of commerce.