Question

Assume that you are working for a manufacturing company in the United States that hopes to sell its products throughout the world You will likely encounter unique situations in different parts of the world that will be impacted by major trade agreements and organizations. By understanding which trade agreements and organizations impact your marketing environment in different countries, you will increase your chances for marketing success. International trade agreements, monetary unions, and organizations can impact substantially the environment in which a firm operates They can affect how easy it is for firms to enter a foreign market, what the currency exchange rate is between countries, and even what competition firms will encounter in the domestic market. Trade agreements and monetary unions facilitate the exchange of money and products across borders

Match the appropriate trade agreement or organization to the marketing situation that would be impacted byt.
a. European Union
b. World Trade Organization
c. International Monetary Fund
d. DR-CAFTA
e. NAFTA
1. Increasing the number of products your company exports from the United States to Canada without tariffs that could hurt profits
2. Resolving an issue that involves rules of trade that are impacting your business as you try to increase distribution to several markets in Africa
3. Selling your products to an expanding middle class of consumers in Guatemala
4. Problems selling to Japanese consumers due to the instability of the exchange rate between American and Japanese currencies
5. Allowing your manufacturing plant in Spain to quickly reduce barriers in its efforts to market and sell products in France

Answer 1

The correct matches are the following.

1. Increasing the number of products your company exports from the United States to Canada without tariffs that could hurt profits. = e) NAFTA.

2. Resolving an issue that involves rules of trade that are impacting your business as you try to increase distribution to several markets in Africa. = b) World Trade Organization.

3. Selling your products to an expanding middle class of consumers in Guatemala. = d) DR-CAFTA

4. Problems selling to Japanese consumers due to the instability of the exchange rate between American and Japanese currencies. c) International Monetary Fund.

5. Allowing your manufacturing plant in Spain to quickly reduce barriers in its efforts to market and sell products in France. = a) European Union.

Knowing these organizations and their main functions will help you to understand foreign trade, its characteristics in a b¿globalizaed world, and the peculiarities according to each region. Every trade agreement has its details and you want to become an expert in the region you choose to maximize your sales and profits.

That is why many countries associate in trade agreements, as is the case of NAFTA, the North America Free Trade Agreement signed by Mäxico, the United States, and Canada, now turned into USMCA, the United States, México, and Canada Agreement.