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1、1,International Marketing Lecture 2,Instructor Li Zhihong Sept.2009,Business Institute, Jiang Han University,2,Chapter 2 Trade Institutions and Trade Policy,1. Teaching and learning Targets. After studying this chapter, you should be able to: (1) Why is international trade important to a nation? (2)
2、 Discuss the role of “voluntary”import restraints in international marketing. (3) How have consumer demands changed international trade? (4) Discuss the impact of import restrictionsw on consumers. (5) Does foreign direct investment have an effect on trade?,3,2. The Historical Dimension,(1) Roman Em
3、pire. Even while expanding their territories through armed conflicts, the Romans placed primary emphasis on encouraging international business activities. The principal approaches were the Pax Romana and the common coinage. (2) Feudalism. Although the feudal system encouraged the development of a cl
4、osed-state economy that was inwardly focused and ultimately conceived for self-sufficiency and security, medieval commerce still thrived and developed through export trade.,4,(3) Modern cases . The effect of turning away from international trade during the 1930s saw the importance of the internation
5、al trade. Besides, international marketing and international trade have also long been seen as valuable tools for foreign policy purposes. (4) Global division. After 1945, the world was sharply split ideologically into West and East, a division that had major implications for trade relations.,5,(1)
6、WTO. The World Trade Organization has its origins in the General Agreement on Tariffs and Trade(GATT). Over time, the GATT evolved into an institution that sponsored successive rounds of international trade negotiations with a key focus on a reduction of prevailing high tariffs. After many years of
7、often contentious negotiation, the Uruguay Round accord was finally ratified in January of 1995.Its aim as follows:p,3. Transnational Institutions Affecting World Trade,6,- Oversee the implementation of all the multilateral agreements negotiated in the Uruguay Round and those that will be negotiated
8、 in the future. - Be responsible for the General Agreement on Trade in Services, agreements on trade-related aspects of intellectual property rights, and trade-related investment measures and administers a broad variety of international trade and investment accords.,7,(2) IMF. The International Mone
9、tary Fund, conceived in 1944 at Bretton Woods in New Hampshire, was designed to provide stability for the international monetary framework. It was the original goal of the IMF to provide for fixed exchange rates between countries. (3) World Bank. Its official name is the International Bank for Recon
10、struction and Development. It was initially formed in 1944 to aid countries suffering from the destruction of war. Now, it has taken on the task of aiding world development.,8,(4) Regional Institutions - Regional integration. Common marketplace in coal, steel and iron among six European countries to
11、 aim at a Customs Union and common external tariffs; European Union represents a formidable market to realize a completely free movement of capital, services, and people across various nations in the bloc. - Other market agreements. The North American Free Trade Agreement, the Mercosur in Latin Amer
12、ica and the Gulf Cooperation Council,etc.,9,(1) Restrictions of Import. Such as special import authorization, preferential licensing applications, duties, licensing fees, etc. (2) Export promotion efforts, such as export subsidies, mixed aid credits, and export consortia. (3) Nontarrif barriers as h
13、ealth and sanitary prohibitions, certification, testing, and labeling,etc (see Exhibit 2.4 at p44).,4. Policy Responses to Trade Problems,10,5. Group Discussion,(1) Why is international trade important to a nation? (2) Discuss the role of “voluntary”import restraints in international marketing. (3)
14、How have consumer demands changed international trade? (4) Discuss the impact of import restrictionsw on consumers. (5) Does foreign direct investment have an effect on trade?,11,6. Assignments,(1) What is major role played by the World Bank today? Check http:/www.worldbank.org to report on key projects. (2) Determine the latest exports per capita for a country of China, the USA, Japan, EU and South Korea(use data from http:/www.imf.org and http:/www.un.org).,