IB - Introduction to Global Marketing [LESSON]

Introduction to Global Marketing

International Marketing is the exchange of goods and services between nations. No country has all the resources it needs, national rely on each other to provide goods and services that they do not have. Economic interdependence happens when countries must rely on each other’s help. Comparative advantage is the concept that a certain good can be produced more efficiently than others due to a number of factors including productive skills, climate, natural resource availability. Opportunity Cost is the cost of an opportunity forgone and the loss of the benefits that could be received from that opportunity, the most valuable forgone alternative. Absolute advantage is the capability to produce more of a given product using less of a given resource than a competing country. Balance of trade is the difference between the monetary value of exports and imports of output in an economy over a certain period of time. It is the relationship between a nation’s imports and exports.

Benefits of International Trade

  • Consumers benefit because competition encourages the production of high-quality goods with lower prices.
  • Producers gain higher profit by expanding their operations into international markets.
  • Workers benefit because international trade leads to higher employment rates.
  • Nations benefit because foreign investment in a country often improves the standard of living for that country's people.

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