Grade 11 Marketing Chapter 4 Notes

4.1: International Trade

Nature of International Trade

Interdependence of Nations

Absolute Advantage and Comparative Advantage

Benefits of International Trade

Government Involvement in International Trade

Balance of Trade


Trade Deficit and Negative Consequences of a Trade Deficit:

Trade Barriers



Trade Agreements and Alliances


World Trade Organization


North American Free Trade Agreement (NAFTA)




European Union (EU)

4.2: The Global Marketplace

Doing Business Internationally




Contract Manufacturing

Joint Ventures


Foreign Direct Investment


Multinationals and Mini-Nationals


A global environment scans seeks to collect analysis of political and economic factors, sociocultural differences and technological levels.

Political Factors include a government’s stability, it’s trade regulations and agreements, and any other laws that might impact a company’s operation.

0  A governments stability is an important factor when considering international business operations.

0  If there are changes in the government, investors become wary.

0  An example is when a left wing politician won Brazil’s presidential election and stocks immediately plunged.

Global Environmental Scan

Political Factors


Global Marketing Strategies




If you have any questions, leave them in the comments below.