Global Marketing & Trade Environments
Global Marketing &Trade Environments
In my paper, I will describe how the WTO (World Trade Organization), as well as the various financial systems each, relate to global marketing in terms of how they inspire one another’s operations. It gives detailed information on how the WTO puts in place practices that affect the actions taking place in the global markets, both negative and positive. A selected article on WTO shows how Russia creatively joined the group hence indicating the causes why the nation struggled to begin by showing how this organization affects global marketing. Furthermore, there is a connection among global markets and various systems. My paper explains the importance of the market, like the aforementioned practice on activities within the global market. It will address how price-fixing causes the quality of products in the worldwide market to go down and inflation, as well as the cost of borrowing money increases, the cost of doing business, and the cost of living. The authors of the discussed article (Barney& Ragan), give details on these significant influences.
Market Systems Article Summary
The Market Systems article states, “why we need a special issue on new theoretical perspective on the market-based economic system,” the article explains through a collection of editor comments (Barney & Rangan, 2019). They also describe the types of hypothetical questions that the article attempts to address in the papers submitted regarding this issue. The authors’ assertion that it is having a precise perception of the parties that develop the marketplace and ways they help the understanding of the limitations and strength of the global market (Barney & Rangan, 2019). Finally, the authors suggest that the multitude of questions related to these issues charges conventional boundaries in the scholarship of management.
WTO Relationship with Global Marketing
In 1994 the WTO came up with regulations that have impacts on a pervasive manner firms’ activity on global markers is carried out. Many countries in the world anticipated aligning with the group, such as Russia, which creatively attempted to enter it. However, the body of rules may be overwhelming, as presented in the literature from trade policy or legal point of view. The conclusions show that the governing agencies’ regulations are confusing to some; they have an insurmountable influence on the global developments of businesses most marketers argue (Denis, 2003). The existing WTO rules are put into three agreements: Trade-Related Aspects of Intellectual Property Rights (TRIPS), General Agreement on Trade in Services (GATS), and General Agreement on Tariffs and Trade (GATT).
The GATT is the institution where WTO was developed, and It has grown throughout the years. Recent Uruguay Round resulted in the formation of WTO itself and led to the expansion of some regulations that affect the international exchange. The TRIPS covers some aspects of the global market, including trademarks, indications related to locations, related issues, and copyrights, designs, and industrial patents, and integrated circuits designs. These include enforcement, standards, settlement of disputes provision that builds on the earlier accord, trademarks, and industrial patents.
There are also WTO measures that were established for the sole purpose of regulating the global marketing aspect so-called marketing mix decisions. These decisions include the ones about international trade distribution, entry, service, and product, pricing, as well as communication across international channels.
Global Marketing & Monopolistic Market System
Monopolies have more impact that is negative on the global marketing aspects than the positive effects. The monopolistic firms control the entire stock from the production process to retail by acquiring their competitors until there are none left in the market. Some of these entities enjoy regulations by the government by awarding them an exchange, for instance, to guarantee the production and distribution of electricity since the government is incapable of tolerating the disruptions that free-market forces may bring along. Monopolies, therefore, restrict free trade and prevent markets from price gouging or fixed prices that have adverse impacts on international marketing.
The significant result of monopolistic market systems is inflation. This is most prevalent in the pharmaceutical industry. Often when a company develops a new drug, they charge exorbitant amounts until the drug has a generic equivalent because, during that time, they have a monopoly on the life-saving drug. This also happens when the demand is greater than the supply. When this type of price gouging happens, there is clear inflation that is seen as a ripple. Because the cost of the drug goes up, the cost of the insurance that covers it goes up, and the cost of that person’s medical expenses goes up. The reason the economy is concerned with price increases is that it affects everyone, whether directly or indirectly because it is due to the domino effect—the cost of doing business, borrowing money, mortgages (internationally), and the cost of living.
Therefore, the monopolistic market system & the WTO have a symbiotic relationship with global marketing aspects because they both have factors that affect the global markets. The monopolistic market affects both inflation and pricing within the international marketplace since they are among the significant aspects. On the other hand, the WTO establishes regulation. WTO is the only global organization the creates rules of engagement that all nations are governed by and must adhere to. This allows all states to have significance in the global marketplace.
Barney, J., & Rangan, S. (2019). Editors’ Comments: Why Do We Need a Special Issue on New Theoretical Perspectives on Market-Based Economic Systems?. Academy of Management Review, 44(1), 1-5.
Burke, M. E., IV. (1999). China’s stock markets and the World Trade Organization. Law and Policy in International Business, 2.
Denis, J. E. (2003). Making international marketing decisions under WTO rules. Thunderbird International Business Review, 45(2), 185-210.
Jesse C. Johnson, Mark Souva, & Dale L. Smith. (2013). Market-Protecting Institutions and the World Trade Organization’s Ability to Promote Trade. International Studies Quarterly, 57(2), 410. https://doi-org.proxy-library.ashford.edu/10.1111/isqu.12077
Warner, D. (2014). Moving Borders: Russia’s Creative Entry into the World Trade Organization (WTO). Alternatives, 39(2), 90-107.