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Chapter 7 Globalization- refers to the processes by which goods, services, capital, people, information, and ideas flow across national borders. Result from several fundamental changes: à Reductions or eliminations of trade barriers by country governments à The decreasing concerns of distance and time with regard to moving products and ideas across countries à Standardization of laws across borders à Globally integrated production processes The World Bank ranks countries according to their degrees of globalization. Countries that score well on the scale represent the best markets for globalized products and services; those lowest on the scale represent the most troublesome markets. The globalization of production (offshoring) refers to manufacturers’ procurement of goods and services from around the globe to take advantage of national difference in the cost and quality of various factors of production (labour, energy, land, capital) - allows for companies to lower production costs, and improve overall competitive position (lower costs abroad)- better value to the consumer. - However, many can lose their jobs to offshoring. In 1994- GATT replaced by WTO- it is the only international organization that deals with the global rules of trade among nations. Main functionà ensure that trade flows as smoothly, predictably, and freely as possible. Assessing Global Markets (182)- four criteria necessary to assess a country market. Information about these offers marketers a more complete picture of a country’s potential as a market for products and services. 1. Economic Analysis a. Evaluating the General Economic Environment i. Generally healthy economies provide best opportunities for global marketing expansions. To determine the market potential for its particular product or service a firm should use as many measures as it can obtain. 1. trade deficit- country imports more goods than it exports (US) a. for marketers this can signal more competition at home 2. trade surplusa....