Wall street journal Essay Example | Topics and Well Written Essays - 1250 words

Wall street journal - Essay Example health, a description of how UNCTAD, the WTO as well as other international trade organizations tend to influence trade, details on the five established levels of economic integration and their overall implications for the international marketing manager. In discussing the global economic environment, the author emphasizes on the importance of international trade theories. There are three key international trade theories; these are absolute advantage, comparative advantage and product life cycle. These theories generally emphasize that firms seeking to expand internationally need to ensure that they appreciate how their various international activities tend to match with a given country’s goals for international trade. The balance of payment is widely considered to be a lead indicator of the international economic health of a given country and as such, it may tend to have a direct influence on a firm’s expansion decisions. This is it essentially indicates how money is currently going into and out of a given country and whether this movement of currency has resulted into deficits or surpluses for the country. BOP data can aid firms in identifying their competitors as well as possible consumer locations and evaluate the possibility of trade restrictions. Government policy and trade is also another crucial aspect to be considered as firms are directly impacted by government in a wide range of areas such as tariffs and non-tariffs barriers. According to the authors, some of the government policies and trade that might impact a firm include specific duty, tariff engineering, ad valorem duty, exchange controls, quotas and non-tariff barriers (NTB’s). Institutions such as the WTO and UNCTAD had a great influence on trade policies. In this respect, the authors are keen on stressing that they can heavily influence a given firm’s global strategy. Whereas the WTO essentially serves to provide a crucial forum that can be used by countries for mediation,