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Lesson 02: International Trade

Introduction

Why International Trade?

As we discussed in lesson one, international marketing is a way to extend a company’s market share and profit potential.  In this lesson, we will focus on international trade.

Most students believe that China is our number one trading partner.  However, in fact, Canada is our number one trading partner, with China coming in second place, as you can see in Exhibit 2.1(Cateora, Gilly, & Graham, p. 28).  Notice that all of the countries listed in this exhibit import more than they export.  All countries are self-interested, meaning they put the needs of their citizens above the needs of other countries' citizens.  Thus, there is a potential that this can lead to protectionism in international trade or trade imbalances. In this lesson, you will learn about issues surrounding barriers to trade that corporations use to promote or hinder international trade.

Learning Objectives

After completing this Lesson, you should be able to:

  • Understand some of the factors that have impacted the history of international trade in the twentieth to the twenty-first century
  • Identify and explain the barriers to trade
  • Understand the role that trade agreements and organizations play in global marketing

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