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Chapter 1 Globalization
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Chapter Overview
1. Why Global Marketing is Imperative 2. Globalization of Markets: Convergence and Divergence 3. Evolution of Global Marketing 4. Appendix: Theories of International Trade and the Multinational Enterprise
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Introduction
Products have been traded across borders throughout recorded civilization, extending back beyond the Silk Road that once connected East with West from Xian (China) to Rome (Italy). Total world merchandise trade volume grew from $7.6 trillion in 2000 to $16.3 trillion in 2008.
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Big Emerging Markets (BEMs): In the next ten to twenty years, BEMs such as the Chinese Economic Area (CEA: including China, Hong Kong Region, and Taiwan), India, South Korea, Mexico, Brazil, Argentina, South Africa, Poland, Turkey, and the Association of Southeast Asian Nations (ASEAN: including Indonesia, Brunei, Malaysia, Thailand, the Philippines, and Vietnam) will provide many opportunities in global business.
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Exhibit 1-1: Change in Worlds 100 Largest Companies and Their Nationalities Please insert Exhibit 1-1 here Change in Worlds 100 Largest Companies and Their Nationalities
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Absolute Advantage Comparative Advantage Commodity Terms of Trade Principles of International Trade Factor Endowment Theory International Product Cycle Theory
(see Exhibit 1-4)
Economies of Scale
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