This document discusses barriers to international trade and how globalization occurs in stages. It identifies common barriers such as geography, duties, taxes, licensing, currency regulations, language, quality standards, and culture. It then explains how the factors of production like raw materials, labor, and capital face different barriers. The document outlines three stages of globalization where trade moves from raw materials to components to final consumer goods and services. It also lists common economic and non-economic motives for companies to engage in international operations such as growth, profit opportunities, resource protection, economies of scale, and personal goals.

1. International Marketing
Day 3
Click to edit Master subtitle style to trade
Barriers
Examples of barriers to trade
How to lower the barriers
How to avoid the barriers
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2. Barriers to trade
• 1. Geography
• 2. Duties for import and for export
• 3. Taxes
• 4. Import/Export licensing
• 5. Currency regulations
• 6. Language
• 7. Quality demands and standards
8. Culture
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3. The production model
Production
Raw material
Labor Manufactured goods
Capital
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4. Different barriers for the factors of production
Geography v
Duties for import and for
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5. Globalization a continuous process
that continuous
Stage 1
Raw-
material
Components
Semi processed Machinery
material financial
services
Consumer
goods
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services

6. Globalization a continuous process
that continuous
S
Stage 2
Components
Raw-material
Semi processed
material
Machinery
financial services
Consumer
goods
Other
services
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7. Globalization a countinous prosess
S
Sta
Stage 3
Components
Raw-material
Semi processed material
Machinery financial services
Consumer goods
Other services
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8. Company motives for international
operations
• Economic motives
• Non economic motives
• Other motives?
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9. Economic motives
1. Growth, based on
Excess of personnel, capital raw-material,
know-how etc. or company ethics.
2. Profit opportunities
3. Vertical protection of raw material supply
4.Horisontal protection, market expanssion
5. Economy of scale – large production
6. Adjustment to changing market situations
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10. Non economic motives
1. Philanthropic, welfare distribution
2. Personal goals, CEO likes to travel, Sales
manager wants to outplace difficult sales
personnel.
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11. Other motives?
1. The internal growing forces in the
organization, Parkinson's law.
2. Trail and error.
3. Aim for power among individuals and or
groups of personnel within the organization
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