CHAPTER 4
International Trade NO NATION WAS EVER RUINED — BENJAMIN FRANKLIN
BY TRADE.
of human existence, the development of the nation-state is relatively new, and international trade probably commenced as soon as national borders were determined. As cultures (ethnic and political) bound themselves together, it was just a short additional step to start protecting their possessions and another quick leap to covet those of their neighbors. Flash ahead a few centuries and you find import tariffs and currency valuation. This chapter will look at the underlying motivations for international trade and some of the very human issues that govern those motivations. Marketeers must understand these larger scale incentives before approaching a target market.
ON THE TIME SCALE
Growth of International Markets: The Grass is Always Greener Even the most prosperous countries seek to exchange goods and services with their neighbors. In fact, the greater the level of prosperity, the greater link to high performance in the global markets. It could be said that if a nation isn’t competitive on the international stage, that nation is chasing mediocrity. Long gone are the days when self-sufficiency was measured by the amount of shelter, food, and water a nation could garner within its own borders. Minerals, fuels, services, technology, manufacturing processes, and education have been added to the “essentials,” with no single nation having enough of what it now perceives itself to need. It’s an accepted fact that transportation and communication have had a great deal to do with the increase in cross-border trading. Travel abroad is no longer an experience limited to a few economic and political elites. Once a general awareness of another nation’s products is in place, demand can be readily sparked. International marketeers have been this spark and have led the drive toward the globalization of business. Though feared by many and resented by some, globalization is an irresistible tide that shows no sign of ebbing. The explosive growth in international trade that has occurred in recent years has raised millions of people out of poverty, though millions more wait their chance.
Pride, Prosperity and National Industries International trade is not without its detractors and many of the nay-sayers have reasons that aren’t completely based in the rationale of economics. Viewing globalization as a threat to homegrown prosperity is a universal pre-occupation of demagogic politicians and competition-fearing businesses. Foreign companies
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