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Global Marketing

Warren J. Keegan Mark C. Green

Introduction to Global Marketing

Chapter 2

2-2

Introduction

This chapter includes:

An overview of the world economy

A survey of economic system types

The stages of market development

The balance of payments

2-3

The World Economy— An Overview

In the early 20th century economic integration was at 10%; today it is 50%

EU and NAFTA are very integrated

Global competitors have displaced or absorbed local ones

Sixty-five years ago, the auto industry was very different. European automakers like Renault, Citroen, Peugeot, Morris, Volvo and others produced vehicles radically different from those of American makers like Chevrolet, Ford or Plymouth or Japanese autos made by Toyota or Nissan. Today, manufacturers make autos for home markets but are increasingly global companies with global products. In 2008, ford Fiesta was introduced to world markets.

2-4

The World Economy— An Overview

The new realities:

Capital movements have replaced trade as the driving force of the world economy

Production has become uncoupled from employment

The world economy, not individual countries, is the dominating factor

The first change is the increased volume of capital movements. The dollar value of world trade in goods and services was $25 trillion in 2009. However, the Bank for International Settlements has calculated that foreign exchange transactions worth approximately $4 trillion are booked every day. This works out to more than $1 quadrillion annually, a figure that far surpasses the dollar value of world trade in goods and services.5 An inescapable conclusion resides in these data: Global capital movements far exceed the dollar volume of global trade. In other words, currency trading represents the world’s largest market.

The second change concerns the relationship between productivity and employment. In the US, manufacturing share of GDP declined from 19.2% in 1989 to 13% in 2009. In 2011, manufacturing employed about 9% of the workforce; the figure was 26 percent. During that 40-year period, productivity has increased dramatically. Similar trends can be found in many other major industrial economies as well. In the United Kingdom, for example, manufacturing’s share of jobs is only 8 percent, compared with 24 percent in 1980.8 One recent study of 20 large economies found that between 1995 and 2002 more than 22 million factory jobs were eliminated. Manufacturing is not in decline—it is employment in manufacturing that is in decline.

The third change is the emergence of the world economy as the dominant economic unit. The real secret of economic success of Japan and Germany is that business leaders and policy makers focus on their countries’ competitive positions in world markets. This change has brought two questions to the fore: How does the global economy work, and who is in charge? Unfortunately, the answers to these questions are not clear cut.

Kate Stephenson (KS) - In the notes, second paragraph: "the figure was 26 percent" To what does figure refer? Also, in the next sentence: "40-year period" Given the dates that are mentioned, there is only about a 22 year span. Please review.

2-5

The World Economy— An Overview

The new realities, continued:

75-year struggle between capitalism and socialism has almost ended

E-Commerce diminishes the importance of national barriers and forces companies to re-evaluate business models

The fourth change is the end of the Cold War. The demise of communism as an economic and political system can be explained in a straightforward manner: Communism is not an effective economic system. The overwhelmingly superior performance of the world’s market economies has given leaders in socialist countries little choice but to renounce their ideology and introduce democratic reform.

The fifth change relates to e-commerce. The PC and the internet have, in some ways, diminished the importance of national boundaries. 2/3s of American households have PCs. There are 600 million computers used worldwide.

Finally, the personal computer revolution and the advent of the Internet era have in some ways diminished the importance of national boundaries. Worldwide, an estimated 1 billion people use personal computers. In the so-called Information Age, barriers of time and place have been subverted by a transnational cyberworld that functions “24/7.” Amazon.com, eBay, Facebook, Google, Groupon, iTunes, Priceline, Twitter, and YouTube are just a few of the companies that are pushing the envelope in this brave new world.

2-6

Economic Systems

Resource Allocation

Market Command

Private

Resource

Ownership

State

Market Capitalism

Market Socialism

Centrally Planned Capitalism

Centrally Planned Socialism

2-7

Market Capitalism

Individuals and firms allocate resources

Production resources are privately owned

Driven by consumers

Government’s role is to promote competition among firms and ensure consumer protection

Market capitalism is practiced around the world, most notably in Western Europe and North America. All market-oriented economies do not function in an identical manner. The U.S. is characterized by its competitive “free-for-all” and decentralized initiative. Japan is sometimes called “Japan, Inc.” because it has a tightly run, highly regulated economic system that is also market oriented.

2-8

Western Market Systems

Type of System Key Characteristics Countries

Anglo-Saxon Private ownership US, Canada, free enterprise Great Britain

Minimal social safety net

Social Market Private ownership France, Germany,

Economy Model Inflexible employment Italy

policies, “social partners”

Nordic Model Mix of state and private Sweden, Norway

ownership, large safety net

High taxes

2-9

Centrally Planned Socialism

Opposite of market capitalism

State holds broad powers to serve the public interest; decides what goods and services are produced and in what quantities

Consumers can spend only what is available

Government owns entire industries and controls distribution

Demand typically exceeds supply

Little reliance on product differentiation, advertising, pricing strategy

China, India, and the former USSR now moving towards some market allocation and private ownership

“Marxism is utterly vanquished, if not yet entirely extinct, as an alternative economic system. Capitalism is triumphant. The ideological conflict first joined in the mid-nineteenth century in response to the rise of industrial capitalism, the deep argument that has preoccupied political imagination for 150 years, is ended.”

Willian Greidner, One World, Ready or Not: the Manic Logic of Global Capitalism

2-10

Centrally Planned Capitalism

Economic system in which command resource allocation is used extensively in an environment of private resource ownership

Example:

Swedish government controls 2/3s of all spending; a hybrid of CPS and capitalism

Swedish government plans move towards privatization

In Sweden, where 2/3s of all expenditures are controlled by the government, resource allocation is more “command” oriented than “market” oriented. Sweden’s “welfare state” has a hybrid system that has elements of both centrally planned socialism and capitalism. Swedish gov’t ownership: TeliaSonera, telecom, 45%; SAS airline, 21%; Vin & Spirit alcohol was 100% government owned until it was sold to France’s Pernod Ricard in 2008.

China’s Guangdong Province operates within a market system. China’s private sector accounts for 75% of total national output.

Cuba and North Korea are the last countries to use command allocation approach.

2-11

Economic Freedom

Rankings of economic freedom among countries

“free” “mostly free” “mostly unfree” “repressed”

Variables considered include such things as:

Trade policy

Taxation policy

Capital flows and foreign investment

Banking policy

Wage and price controls

Property rights

Black market

The Washington D.C. Heritage Foundation, a conservative think tank, ranks countries by the degree of economic freedom they support. There is a high correlation between the degree of economic freedom and the extent to which a nation’s mixed economy is heavily market oriented. A number of key economic variables are considered: trade policy, taxation policy, government consumption of economic output, monetary policy, capital flows and foreign investment, banking policy, wage and price controls, property rights, regulations, and the black market. Hong Kong and Singapore are ranked first and second in terms of economic freedom; Cuba, Zimbabwe, and North Korea are ranked lowest (see Exhibit 2-4).

The authoritarian state capitalism of Singapore deprives the nation’s citizens of free speech, a free press, and free assembly. In 1992, the government banned the import, manufacture, and sale of chewing gum because discarded gum made a mess on public property. Even though gum is now for sale in pharmacies, consumers must register their names and addresses before making a purchase. Singapore’s citizens are comfortably provided for by a government that administers paranoid control over press and politics and they are well housed and fed, but they are not free. This example shows that some aspects of “free economies” bear little more than a passing resemblance to command-style economic systems.

2-12

Economic Freedom— 2011 Rankings

Free

Hong Kong

Singapore

Australia

New Zealand

Switzerland

Canada

Ireland

Denmark

United States

Bahrain

Repressed

Turkmenistan

Timor-Leste

Iran

Dem. Rep. Congo

Libya

Burma

Venezuela

Eritrea

Cuba

Zimbabwe

North Korea

Not ranked: Afghanistan, Iraq, Liechtenstein, Sudan

The website for The Heritage Foundation is http://www.heritage.org/.

2-13

Stages of Market Development

The World Bank has defined four categories of development using Gross National Income (GNI) as a base

BEMs, identified 10 years ago, were countries in Central Europe, Latin America, and Asia that were to have rapid economic growth

Today, the focus is on BRIC: Brazil, Russia, India, and China

Although the income definition for each of the stages is arbitrary, countries within a given category generally have a number of characteristics in common. Thus, the stages provide a useful basis for global market segmentation and target marketing.

BRIC nations are expected to be key players in global trade even as their track records on human rights, environmental protection, and other issues are scrutinized by their trading partners. The BRIC government leaders will also come under pressure at home as their developing market economies create greater income disparity.

Microsoft’s experience illustrates the nature of the market opportunity in these countries: In fiscal 2008, the software giant’s collective revenues from BRIC grew 54 percent, compared with overall global revenue growth of 18 percent.

2-14

Low-Income Countries

GNP per capita of $996 or less

Characteristics

Limited industrialization

High percentage of population in farming

High birth rates

Low literacy rates

Heavy reliance on foreign aid

Political instability and unrest

Concentrated in Sub-Saharan Africa

Uzbekistan and Turmenistan

Includes 13% of the world’s population

The newly independent countries of the former Soviet Union present an interesting situation: Income is declining, and there is considerable economic hardship. The potential for disruption is certainly high. Are they problem cases, or are they attractive opportunities with good potential for moving out of the low-income category? These countries present an interesting risk–reward trade-off; some companies have taken the plunge, but many others are still assessing whether to take the risk.

Other low-income countries represent genuine market opportunities. Bangladesh is a case in point: GNI per capita is approximately $590, and the garment industry is enjoying burgeoning exports. Finished clothing exports doubled between 2004 and 2009; buyers include Gap, H&M, Tesco, Wal-Mart, Zara, and other retailers. Garments represent fully 80 percent of the country’s exports; the president of the Bangladesh Garments Manufacturers and Exporters Association expects that exports will total $25 billion by 2013. Workers in Bangladesh currently have the lowest wages in the global garment industry. In fall 2010, the government-mandated minimum wage was raised from $24 per month to $44. An estimated 3 million Bangladeshis—mostly women—work in the industry. Bangladesh’s garment sector has benefited from labor unrest, rising wages, and a stronger currency in China.

Table 2-3 ranks two low-income former Soviet republics—Uzbekistan and Turkmenistan— quite low in terms of economic freedom. This is one indication of a risky business environment. Even so, there are market opportunities here. In fact, GM’s sales in Uzbekistan for 2010 were up 41 percent over 2009, making this Central Asian country GM’s 10th largest market! Russia itself, whose economy is in the upper-middle income category, has slipped to number 143 in the 2011 ranking. The pace of Russia’s economic recovery has lagged that in other emerging markets, and the Kremlin’s search for new sources of revenue to fund its budget outlays has created tension between government ministries and business.

2-15

Lower-Middle-Income Countries

GNI per capita: $996 to $3,945

Characteristics

Rapidly expanding consumer markets

Cheap labor

Mature, standardized, labor-intensive industries like footwear, textiles and toys

BRIC nations are India, China

China: No democratic reforms. Trading partners concerned about human rights, intellectual property protection. State leaders must deal with a large bureaucratic system while reforming state enterprises. GM, Ford, Honda, VW, Motorola, P&G, Avon, Siemens AG, and McDonald’s are investing there.

With a 2009 GNI per capita of $1,180, India has transitioned out of the low-income category and now is classified as a lower-middle-income country. In 2007, India commemorated the 60th anniversary of its independence from Great Britain. For many decades, economic growth was weak. As the 1990s began, India was in the throes of an economic crisis: Inflation was high, and foreign exchange reserves were low. Country leaders opened India’s economy to trade and

investment and dramatically improved market opportunities.

Manmohan Singh, former governor of the Indian central bank and finance minister, KSA Technopak, India, believed that India had been taking the wrong road. Accordingly, he set about dismantling the planned economy by eliminating import licensing requirements for many products, reducing tariffs, making DFI easier, and liberalizing the rupee.

Firms doing business include Benetton, Cadbury, Coca-Cola, DuPont, Ericsson, Fujitsu, IBM, L’Oréal, MTV, Staples, Unilever, and Wal-Mart. India’s huge population base also presents attractive opportunities for automakers. Suzuki, Hyundai, General Motors, and Ford are among the global car manufacturers doing business in India.

2-16

Upper-Middle-Income Countries

Also called newly industrializing economies (NIEs)

Examples: Brazil, Russia, Malaysia, Chile, Venezuela, Hungary, Mexico

GNP per capita: $3,946 to $12,195

Characteristics:

Rapidly industrializing, less agricultural employment

Increasing urbanization

Rising wages

High literacy rates and advanced education

Lower wage costs than advanced countries

Chilean copper mine

In Hungary and other NIEs, many manufacturing companies have received ISO-9000 certification for documenting compliance with quality standards.

Russia and Brazil, with GNI per capita of $9,370 and $8,040, respectively, are the two BRIC nations that currently fall into the upper-middle-income category. Russia’s economic situation improves and declines as the price of oil fluctuates. Strong local companies have appeared on the scene, including Wimm-Bill-Dann Foods, Russia’s largest dairy company. However, corruption is pervasive, and the bureaucracy often means a mountain of red tape for companies such as Diageo, Mars, McDonald’s, Nestlé, and SAB Miller. Still, the market opportunity is enticing: Wages have increased dramatically in recent years, and consumers are showing a tendency to spend rather than save.

Brazil is the largest country in Latin America in terms of the size of its economy, population, and geographic territory. Brazil also boasts the richest reserves of natural resources in the hemi-sphere; China, Brazil’s top trading partner, has an insatiable appetite for iron ore and other commodities. Government policies aimed at stabilizing Brazil’s macroeconomy have yielded impressive results: Brazil’s GNI has grown at an average annual rate of 4 percent over the past 8 years. During the same time period, nearly 50 million Brazilians have joined the middle class as incomes and living standards have risen. Needless to say, this trend has been a boon to global companies doing business in Brazil which include Electrolux, Fiat, Ford, General Motors, Nestlé, Nokia, Raytheon, Toyota, Unilever, and Whirlpool (see Exhibit 2-7).

Typical of countries at this stage of development, Brazil is a study in contrasts. Grocery distribution companies use logistics software to route their trucks; meanwhile, horse-drawn carts are still a common sight on many roads. To keep pace with the volatile financial environment of the early 1990s, many local retailers invested in sophisticated computer and communications systems. They use sophisticated inventory management software to maintain financial control. Thanks to Brazil’s strength in computers, the country’s outsourcing sector is growing rapidly. Former French president Jacque Chirac underscored Brazil’s importance on the world trade scene when he noted, “Geographically, Brazil is part of America. But it’s European because of its culture and global because of its interests.”

2-17

Marketing Opportunities in LDCs

Characterized by a shortage of goods and services

Long-term opportunities must be nurtured in these countries

Look beyond per capita GNP

Consider the LDCs collectively rather than individually

Consider first mover advantage

Set realistic deadlines

2-18

Mistaken Assumptions about LDCs

The poor have no money.

The poor will not “waste” money on non-essential goods.

Entering developing markets is fruitless because goods there are too cheap to make a profit.

People in BOP (bottom of the pyramid) countries cannot use technology.

Global companies doing business in BOP countries will be seen as exploiting the poor.

In the aggregate, the buying power of poor communities can be substantial. In rural Bangladesh, villagers spend considerable sums to use village phones operated by local entrepreneurs.

Poor consumers buy TVs and gas stoves to improve their lives.

Poor people often pay higher prices. There is an opportunity for efficient competitors to realize attractive margins by offering quality and low prices.

Rural residents can and do learn to use cell phones, PCs, and other devices.

Informal economies in many poor countries are highly exploitive. A global company can improve a country’s standard of living while earning a reasonable ROI.

Ask students to think of low income areas in the U.S.—urban or rural—and apply these assumptions. Yes, the poor do buy cell phones and Air Jordans and 50” high def televisions.

2-19

High-Income Countries

GNI per capita: $12,196 or more

Also known as advanced, developed, industrialized, or postindustrial countries

Characteristics:

Sustained economic growth through disciplined innovation

Service sector is more than 50% of GNI

Households have high ownership levels of basic products

Tokyo

The phrase postindustrial countries was first used by Daniel Bell of Harvard to describe the United States, Sweden, Japan, and other advanced, high-income societies. In his 1973 book The Coming of the Post-Industrial Society, Bell drew a distinction between the industrial and the postindustrial stages of country development that went beyond mere measures of income. Bell’s thesis was that the sources of innovation in postindustrial societies are derived increasingly from the codification of theoretical knowledge rather than from “random” inventions. The service sector accounts for more than half of national output, the processing and exchange of information becomes increasingly important, and knowledge trumps capital as the key strategic resource.

Product and market opportunities in a postindustrial society are more heavily dependent upon new products and innovations than in industrial societies. Ownership levels of basic products are extremely high in most households. When it is difficult to expand market share, companies must bring new products to market or create new markets for products.

South Korea occupies a unique position among the high-income countries in that it is the only one classified as an emerging market by influential stock market indexes. South Korea is home to Samsung Electronics, LG Group, Kia Motors Corporation, Daewoo Corporation, Hyundai Corporation, and other well-known global enterprises. In place of substantial barriers to free trade, South Korea has initiated major reforms in its political and economic system in response to the “Asian flu.” Even so, investors note the political risk posed by North Korea. Another concern is inconsistent treatment of foreign investors by the government. For example, authorities recently raided the local offices of French retailer Carrefour. If the indexes do eventually reclassify South Korea as a “developed” market, the change would trigger a wave of investment inflows.

2-20

High-Income Countries

Characteristics, continued:

Importance of information processing and exchange

Ascendancy of knowledge over capital, intellectual over machine technology, scientists and professionals over engineers and semiskilled workers

Future oriented

Importance of interpersonal relationships

2-21

G-8, the Group of Eight

Goal of global economic stability and prosperity

U.S.

Japan

Germany

France

Britain

Canada

Italy

Russia (1998)

2011 G-8 Leaders in Deauville, France

As of 2007, the U.S. State Department website with G-8 information is http://usinfo.state.gov/ei/economic_issues/group_of_8.html

G-7 began in 1975 and Russia joined in 1998. The EU is also represented at all meetings.

The leader of the host country is the president of the G-8. The group meets every summer. The Presidency of the G8, and responsibility of hosting all G8 meetings, rotates each year, with the order of G8 Presidencies as follows:

2004 United States 2005 United Kingdom 2006 Russia 2007 Germany 2008 Japan 2009 Italy 2010 Canada 2011 France 2012 United States

2-22

OECD, the Organization for Economic Cooperation and Development

30 nations

Post-WW II European origin

Canada, U.S. (1961), Japan (1964)

Promotes economic growth and social well-being

Focuses on world trade, global issues, labor market deregulation

Anti-bribery conventions

www.oecd.org

2-23

The Triad

U.S., Western Europe, and Japan

Represents 75% of world income

Expanded Triad includes all of North America and the Pacific Rim and most of Eastern Europe

Global companies should be equally strong in each part

The ascendancy of the global economy has been noted by many observers in recent years. One of the most astute is Kenichi Ohmae, former chairman of McKinsey & Company Japan. His 1985 book Triad Power represented one of the first attempts to develop a coherent conceptualization of the new emerging order. Ohmae argued that successful global companies had to be equally strong in Japan, Western Europe, and the United States. These three regions, which Ohmae collectively called the Triad, represented the dominant economic centers of the world. Today, roughly 75 percent of world income as measured by GNP is located in the Triad.

Coca-Cola is a example of a company with a balanced revenue stream. Revenue: 7% Eurasia and Middle East, 13% Europe, 11% Latin America, 14% Pacific region, 31% North America.

2-24

Product Saturation Levels

The % of potential buyers or households who own a product

India: 20% of people have telephones

Autos: 1 per 43,000 Chinese; 21 per 100 Poles; 8 per 1,000 Indians

Computers: 1 PC per 6,000 Chinese; 11 PCs per 100 Poles; 34 PCs per 100 EU citizen

The stages of economic development can serve as a guide to marketers in evaluating product saturation levels. In low per-capita income countries, levels are likely to be low.

The stages of economic development described previously can serve as a guide to marketers in evaluating product saturation levels, or the percentage of potential buyers or households who own a particular product. George David is CEO of United Technologies; its business units include Otis Elevators. The CEO explains the significance of product saturation to his business as follows:

We measure elevator populations in countries as units installed per thousand people. And in China, the number today is about one half an elevator per thousand people. In most countries of the world outside of the U.S., people live in elevator and storied apartment houses. It’s true all over Europe, all over Asia, South America, certainly true in China. And in a mature market like Europe, the installed population is about six elevators per thousand people. And so we’re on our way to some portion of six.

As CEO David’s comment suggests, product saturation levels for many products are low in emerging markets. For example, India’s teledensity—a measure of ownership of private telephones—is only about 20 percent of the population. In China, saturation levels of private motor vehicles and personal computers (PCs) are quite low; there is only 1 car or light truck for every 43,000 Chinese, and only 1 PC for every 6,000 people. In Poland in 2001, there were 21 cars per 100 compared with 49 in the EU; in 2002 Poland had 11 PCs per 100 people. In the EU, the ratio was 34 PCs per 100 people. In India, just 8 out of every 1,000 adults own a car. In Russia, 188 people out of 1,000 own cars; in Germany, the figure is 565 out of 1,000.

2-25

Balance of Payments

Record of all economic transactions between the residents of a country and the rest of the world

Current account–record of all recurring trade in merchandise and services, and humanitarian aid

trade deficit—negative current account

trade surplus—positive current account

Capital account–record of all long-term direct investment, portfolio investment, and capital flows

2-26

Balance of Payments

The U.S. regularly posts deficits in both the current account and the trade balance in goods. The U.S. growing trade deficit reflects a number of factors including increased imports from China, high consumer demand for imported goods, and the cost of military operations in the Middle East.

2-27

Top Exporters and Importers in 2009

This table combines parts of Tables 2-7 and 2-8.

2-28

Overview of International Finance

Foreign exchange makes it possible to do business across the boundary of a national currency

Currency of various countries are traded for both immediate (spot) and future (forward) delivery

Currency risk adds turbulence to global commerce

Foreign exchange makes it possible for a company in one country to conduct business in other countries with different currencies. However, foreign exchange is an aspect of global marketing that involves certain financial risks, decisions, and activities that are completely different from those facing a domestic marketer. Moreover, those risks can be even higher in developing markets such as Thailand, Malaysia, and South Korea. When a company conducts business within a single country or region with customers and suppliers paying in the same currency, there is no exchange risk. All prices, payments, receipts, assets, and liabilities are in the given currency. However, when conducting business across boundaries in countries with different currencies, a company is thrust into the turbulent world of exchange risk.

2-29

Foreign Exchange Market Dynamics

Supply and Demand interaction

Country sells more goods/services than it buys

There is a greater demand for the currency

The currency will appreciate in value

Exchange Risks and Gains in Foreign Transactions

Devaluation can result from government action that decrees a reduction of the local currency against other currencies. In 1994, the Chinese devalued the yuan to ensure the low-cost position of Chinese exporters. Thailand, Malaysia, and Indonesia followed suit. In 2005, the Chinese folded to pressure to revalue the yuan. A stronger yuan would reduce the trade surplus with the U.S. Many experts believe that the yuan is still undervalued.

Devaluation can result from government action or an economic crisis; whatever the cause, devaluation is reduction in the value of a nation’s currency against other currencies. For example, in August 1998 the Russian economy imploded. The ruble plunged in value, and the government defaulted on its foreign debt obligations. Many Russians faced wage cuts and layoffs; savings were wiped out as banks collapsed. In the decade that followed, however, Russia’s economy made a rapid recovery. Real GDP doubled, in part because import price increases caused by the ruble’s devaluation stimulated local production. As one economist noted, “The crash of ’98 really cleaned out the macroeconomy.”

2-30

Managing Economic Exposure

Economic exposure refers to the impact of currency fluctuations on the present value of the company’s future cash flows

Two categories of economic exposure:

Transaction exposure is from sales/purchases

Real operating exposure arises when currency fluctuations, together with price changes, alter a company’s future revenues and costs

The degree to which exchange rates affect a company’s market value as measured by its stock price is known as economic exposure.

Transaction exposure example: Guinness agrees to accept payment for Scotch whiskey at one rate but settles at another rate.

Real operating exposure occurs for firms with overseas sourcing or manufacturing operations.

2-31

Managing Economic Exposure

Numerous techniques and strategies have been developed to reduce exchange rate risk

Hedging involves balancing the risk of loss in one currency with a corresponding gain in another currency

Forward Contracts set the price of the exchange rate at some point in the future to eliminate some risk

Hedging is common among global companies. Porsche relies on currency hedging rather than price increase to boost pretax profits on sales. All of its autos are produced in Europe but 45% of sales are in the U.S. Porsche is fully hedged to protect all its earnings from foreign-exchange movements.

30-, 60-, and 180-day forward prices of many currencies are quoted daily in publications like the Wall Street Journal, Financial Times or www.ozforex.com.

2-32

Looking Ahead to Chapter 3

The Global Trade Environment