1735966334_c6f11f22jifji0aacf877cd42.pptx

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1. Subject Name: International Marketing Topic Name(s) : Overview all over partnership in international trade Lecture No: 16 Dr Deep Mathur ISBM 05-Dec-24 Lecture Number, Unit Number 1

2. Learning Objectives: - To acquaint the students to the uniqueness of the international characteristics and its Marketing implications. To discuss measure and analyze several facets in the area of international marketing essential for the success of a international firm. 1. To create an understanding regarding the topic. 2. To gain knowledge about the subject. 3. To understand about the technicalities involved. 4 . To overview of International Marketing. 5 . To develop an ability to analyse different aspects of the course. 05-Dec-24 Lecture Number, Unit Number 2

3. Learning Outcomes : - 1.Students will acquire technical knowledge about Strategic Human Resource Management. 2.Students will be able to conceptualize different points of the topic involved. 3.Students will be able to gather knowledge for the practical life and profession. 4. Students will be able to explore the need of International Market. 05-Dec-24 Lecture Number, Unit Number 3

4. Course outcomes (CO) : - In an international marketing course, course outcomes (COs) define the specific skills, knowledge, and competencies students are expected to gain by the end of the course. Understanding of Global Markets and Consumer Behavior Students learn to analyze and evaluate consumer behavior, needs, and preferences in various global markets. This includes understanding cultural, economic, and political factors that influence consumer choices across countries. Strategic International Marketing Planning Students gain skills to develop marketing strategies for international markets, including segmentation, targeting, and positioning (STP) for diverse regions. They learn to create actionable marketing plans that consider global opportunities and risks. Product and Brand Adaptation in International Contexts Students understand how to adapt products, brands, and services to meet the demands of different international markets. This outcome focuses on balancing global brand consistency with local cultural sensitivities. Knowledge of Entry Modes and Distribution Channels Students explore various market entry strategies, such as exporting, joint ventures, and wholly-owned subsidiaries, and learn to evaluate which mode is appropriate based on a country’s regulatory, economic, and cultural environment. 05-Dec-24 Lecture Number, Unit Number 4

5. Course outcomes (CO) : - Cross-Cultural Communication and Negotiation Skills This outcome emphasizes effective communication and negotiation strategies for cross-cultural interactions, an essential skill in handling relationships with international stakeholders, partners, and customers. International Pricing and Promotion Strategies Students learn how to adapt pricing, promotion, and distribution tactics for international markets, considering factors such as currency fluctuations, local buying power, and regulatory environments. Awareness of Legal, Ethical, and Sustainability Issues Students develop an understanding of ethical practices, legal considerations, and sustainable approaches in international marketing. This includes learning about regulations and standards in different countries, and adapting to them responsibly. Market Research Skills for International Business Students learn to conduct and interpret international market research, analyzing data to make informed decisions about market selection, customer targeting, and competitor analysis on a global scale. 05-Dec-24 Lecture Number, Unit Number 5

6. Overview all over partnership in international trade Partnerships in international trade are collaborative arrangements between two or more entities—such as countries, companies, or organizations—to facilitate the exchange of goods, services, or technology across borders. These partnerships are key drivers of globalization and are crucial for enhancing economic growth, access to markets, and technological innovation. Here's an overview of their major aspects: - 05-Dec-24 Lecture Number, Unit Number 6

7. Types of Partnerships in International Trade Bilateral Agreements : Trade agreements between two countries, such as free trade agreements (FTAs) that reduce tariffs and trade barriers (e.g., USMCA between the U.S., Mexico, and Canada). Multilateral Agreements : Agreements involving multiple countries, often under the auspices of international organizations like the World Trade Organization (WTO). Joint Ventures : Collaborative business arrangements between companies from different countries to operate in a specific market. Strategic Alliances : Non-equity partnerships formed to achieve common goals, like sharing technology or distribution networks. 05-Dec-24 Lecture Number, Unit Number 7

8. Benefits of Partnerships in International Trade Market Access : Allows businesses to enter new markets and reach a broader customer base. Cost Efficiency : Facilitates outsourcing and access to cheaper resources or labor. Technology Transfer : Encourages innovation by sharing advanced technology and practices. Economic Growth : Boosts GDP by fostering exports, imports, and investments. Cultural Exchange : Promotes understanding and collaboration between diverse cultures. 05-Dec-24 Lecture Number, Unit Number 8

9. Challenges in Partnerships Cultural and Language Barriers : Misunderstandings due to differences in business etiquette or communication styles. Regulatory Compliance : Navigating complex legal and tax regulations in foreign markets. Trade Barriers : Tariffs, quotas, and non-tariff barriers can complicate partnerships. Political Instability : Uncertainty due to changes in government policies or international relations. Economic Disparities : Unequal economic power can lead to imbalances in partnerships. 05-Dec-24 Lecture Number, Unit Number 9

10. Major International Trade Organizations Facilitating Partnerships World Trade Organization (WTO) : Oversees trade agreements and settles disputes between member nations. International Monetary Fund (IMF) : Supports economic stability and growth by providing financial assistance. World Bank : Funds development projects to encourage economic progress in developing nations. Regional Trade Alliances : Examples include the European Union (EU), ASEAN, and Mercosur, which promote trade within specific regions. 05-Dec-24 Lecture Number, Unit Number 10

11. Current Trends in International Trade Partnerships Digital Trade : Growth of e-commerce and digital services crossing borders. Sustainability Focus : Incorporating environmental and social governance (ESG) principles in trade agreements. Reshoring and Nearshoring : Adjustments in supply chains to reduce reliance on distant countries. Decoupling and Friend-shoring : Shifting trade to politically aligned or friendly nations due to geopolitical tensions. 05-Dec-24 Lecture Number, Unit Number 11

12. Examples of Successful Partnerships China and ASEAN : Extensive trade cooperation under the Regional Comprehensive Economic Partnership (RCEP). U.S. and European Union : Robust transatlantic trade partnerships. BRICS Nations : Collaboration among Brazil, Russia, India, China, and South Africa for economic development. 05-Dec-24 Lecture Number, Unit Number 12

13. Comprehensive Overview of Partnerships in International Trade International trade partnerships are formal and informal collaborations between countries, organizations, or businesses to facilitate cross-border exchange of goods, services, capital, and technology. These partnerships play a vital role in fostering economic growth, enhancing competitiveness, and addressing global challenges. Here's a deeper dive into the concept, types, dynamics, and implications of partnerships in international trade. 05-Dec-24 Lecture Number, Unit Number 13

14. . Nature and Scope of International Trade Partnerships Partnerships in international trade extend across several dimensions, including economic, political, and cultural. They range from formal trade agreements to strategic alliances between businesses. These partnerships enable stakeholders to leverage complementary resources, access new markets, and share risks. Key dimensions include: Trade Agreements : Binding arrangements between nations to regulate tariffs, quotas, and other trade barriers. Business Collaborations : Joint ventures and strategic alliances to enter foreign markets or enhance capabilities. Development Partnerships : Programs aimed at fostering trade capacity in developing countries, often supported by international organizations. 05-Dec-24 Lecture Number, Unit Number 14

15. . Types of International Trade Partnerships a. Government-Led Trade Partnerships Bilateral Agreements : Agreements between two countries aimed at reducing tariffs and improving trade flows. Example: US-Mexico-Canada Agreement (USMCA) . Multilateral Agreements : Broad agreements involving multiple countries to harmonize trade policies and reduce barriers. Example: World Trade Organization (WTO) agreements. Regional Trade Agreements (RTAs) : Agreements within a specific geographical region. Examples: European Union (EU), ASEAN Free Trade Area (AFTA), African Continental Free Trade Area ( AfCFTA ). 05-Dec-24 Lecture Number, Unit Number 15

16. Business Partnerships Joint Ventures (JVs) : Companies from different countries form a joint entity to operate in a specific market. Example: Sony Ericsson joint venture . Strategic Alliances : Non-equity partnerships to share resources such as technology, supply chains, or distribution channels. Franchising and Licensing : Allows foreign entities to use a company’s brand or intellectual property . Developmental and Aid Partnerships Programs like Aid for Trade ( AfT ) by the WTO help developing countries build trade-related infrastructure and capabilities. 05-Dec-24 Lecture Number, Unit Number 16

17. Importance and Benefits of International Trade Partnerships a. Economic Growth Partnerships drive GDP growth by fostering exports, imports, and foreign direct investments (FDI). Example: China’s Belt and Road Initiative (BRI) stimulates trade and infrastructure development across Asia, Africa, and Europe. b. Market Access Businesses gain access to new customers and markets, reducing reliance on domestic markets. Example: Amazon’s partnerships with local distributors to expand globally. 05-Dec-24 Lecture Number, Unit Number 17

18. Cost Efficiency Companies benefit from economies of scale and lower production costs by outsourcing or utilizing resources in partner countries. d. Technological Advancements Partnerships facilitate the transfer of technology, leading to innovation and improved productivity. Example: Technology-sharing agreements in the automotive sector between Japanese and European manufacturers. e. Addressing Global Issues Partnerships help tackle challenges like climate change, health pandemics, and food security through collaborative solutions. Example: Global trade partnerships in renewable energy technologies. 05-Dec-24 Lecture Number, Unit Number 18

19. Challenges in Partnerships a. Cultural and Language Differences Misunderstandings or inefficiencies may arise due to differences in communication styles and business norms. Example: Negotiating contracts between Western and Asian companies often requires careful cultural considerations. b. Regulatory Complexities Differences in legal and regulatory systems can create hurdles in executing trade agreements or business operations. Example: Compliance with differing intellectual property laws in trade partnerships. 05-Dec-24 Lecture Number, Unit Number 19

20. Trade Barriers Tariffs, quotas, and non-tariff barriers (e.g., standards and certifications) can limit the effectiveness of partnerships. d. Geopolitical Risks Political instability, trade wars, or sanctions can disrupt trade relationships. Example: US-China trade tensions and their impact on global trade. e. Unequal Benefits Partnerships often favor economically powerful nations, creating trade imbalances. Example: Criticisms of NAFTA for benefiting corporations more than small businesses. 05-Dec-24 Lecture Number, Unit Number 20

21. Conclusion Partnerships in international trade are vital for economic integration and development. They foster economic interdependence, innovation, and prosperity while requiring careful management of challenges. Strengthening these partnerships with transparency, equity, and sustainability will be crucial for future global trade. . 05-Dec-24 Lecture Number, Unit Number 21

22. 05-Dec-24 22 Q1. Define the concept of partnerships in international trade and explain their importance Q2. What are the key features of a trade partnership in international trade ? Q3. How do partnerships in international trade differ from domestic trade collaborations ? Q4. Describe the different types of international trade agreements (bilateral, multilateral, and regional). Provide examples . Q5 . What are the key differences between joint ventures and strategic alliances in international trade ? Q6 . Explain the role of franchising and licensing as forms of business partnerships in global trade . Q7 . What factors influence the formation of a successful international trade partnership ? Q8 . Discuss the typical structure of a bilateral trade agreement. Provide an example Q9 . What are the steps involved in negotiating a multilateral trade agreement ? Q10 . How do partnerships in international trade contribute to global economic growth ? Q11. Explain how trade partnerships facilitate technology transfer and innovation . Q12 . What role do trade partnerships play in addressing global challenges such as climate change and food security ? Q13 . What are the major challenges faced in forming and maintaining partnerships in international trade ? Q14 . Discuss the impact of cultural and language barriers on international trade partnerships . Q15 . How do regional organizations like the European Union (EU) promote trade partnerships within their regions?

23. 05-Dec-24 23 MCQ,S – 1. What is a key benefit of forming partnerships in international trade? a) Increased production costs b ) Access to new markets c) Restricted collaboration d ) Decrease in innovation Answer – B 2. Which of the following best describes an international trade partnership? a) A domestic agreement between two businesses b ) A collaboration between governments only c) A mutually beneficial arrangement between two or more parties across borders d) An informal relationship without legal binding Answer – C 3. Which type of partnership involves two companies working together to share resources and risks in a specific project? a) Franchise b ) Licensing c ) Joint Venture d ) Merger Answer – C 4. A partnership where one company allows another to use its trademark in exchange for royalties is known as: a) Licensing b ) Joint venture c ) Strategic alliance d ) Export partnership Answer – A 5. Which of the following is a common risk associated with international trade partnerships? a) Reduced market size b ) Cultural and communication barriers c) Increased taxation on domestic trade d ) Lack of innovation Answer – B

24. 05-Dec-24 24 6 . How can businesses mitigate risks in international partnerships? a) Ignoring legal requirements b ) Focusing solely on profits c) Conducting thorough due diligence d ) Avoiding trade agreements Answer – C 7. Which global organization provides a platform for resolving trade disputes between international partners? a) IMF b ) WTO c ) OECD d ) World Bank Answer-B 8. The agreement that regulates trade partnerships between member countries in North America is called: a) EU Free Trade Agreement b ) NAFTA/USMCA c) ASEAN Trade Deal d ) BRICS Agreement Answer-B 9. What is a key strategy for ensuring successful international partnerships? a) Avoiding negotiations b ) Ignoring market research c) Building trust and aligning goals d ) Relying solely on digital communication Answer-C 10 . A long-term partnership between businesses from different countries, aiming for mutual growth without forming a separate entity, is called: a) Joint venture b ) Strategic alliance c) Export agreement d ) Licensing deal Answer-B

25. 05-Dec-24 25 11. What is the primary objective of partnerships in international trade? a) To increase import taxes b ) To enhance global collaboration and market access c) To limit domestic production d ) To prevent international relations Answer-B 12. What term best describes a business arrangement where two entities collaborate across borders for mutual benefit? a) Sole proprietorship b ) International partnership c ) Local merger d ) Domestic collaboration Answer-B 13. What is a joint venture in international trade? a) A short-term partnership for profit-sharing only b ) A legal entity created by two or more parties for a specific purpose c) An acquisition of one company by another d ) A partnership with no legal framework Answer-B 14. Licensing agreements in international partnerships allow: a) Free use of intellectual property without royalties b) One company to use another's trademark or technology in exchange for payment c) Total control over a partner company’s operations d ) Permanent ownership transfer of intellectual property Answer-B 15. Which of the following is a significant advantage of international trade partnerships? a) Restricted market penetration b ) Enhanced access to global markets c) Increased competition within domestic markets d ) Limited sharing of resources Answer-B

26. 05-Dec-24 26 Assignment:- Q1. Discuss the contribution of the International Monetary Fund (IMF) to enhancing global trade relations . Q2. Analyze the impact of the US-Mexico-Canada Agreement (USMCA) on North American trade . You tube Link: https:// www.youtube.com/watch?v=NM8TdRfgDX8 https:// www.youtube.com/watch?v=sPzcxA9XBeI https:// www.youtube.com/watch?v=6fmnYNltbLk https:// www.youtube.com/watch?v=13tL-VysgrE

27. 05-Dec-24 Lecture Number, Unit Number 27 Books References- 1. Ravi Sarathy . International Marketing 2. International Marketing by Philip R. Cateora , John 3. Hill W.L Charles. International Business competition in global Market Place. 4. Subhash c. Jain. International Marketing Management 5. International Marketing Management" by V. S. Ramaswamy and S. Namakumari