Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e

4. Evaluating Opportunities
   in the Changing Marketing
   Environment

Text © The McGraw−Hill

Companies, 2002

Evaluating Opportunities in the Changing Marketing Environment 109

country in which they operate but also with all of the different laws in every coun-

try. This would certainly hinder the advantages that should come from more

European unification.^19

The international competition fostered by the moves to unify Europe provided

impetus for the U.S., Mexico, and Canada to develop more cooperative trade agree-

ments. The North American Free Trade Agreement (NAFTA)lays out a plan to reshape

the rules of trade among the U.S., Canada, and Mexico. NAFTA basically enlarges

the free-trade pact that had already knocked down most barriers to U.S.–Canada

trade, and over a 15-year period it will eliminate most such barriers with Mexico. It

also establishes a forum for resolving future trade disputes.

NAFTA is a long-term proposition, and its overall economic impact is yet to be

seen. However, tariffs that have already dropped are having a significant impact on

specific businesses. For example, Raychem Corp., a small producer of telecommuni-

cations equipment, no longer faces a 25 percent tariff on exports to Mexico. That is

leveling its competitive playing field and creating new opportunities. More generally,

NAFTA is creating a free-trade region that encompasses over 400 million people and

three economies that produce over $9 trillion worth of goods and services annually.

Thus, the changes that result from NAFTA may ultimately be as significant as those

in Europe. Talks are underway to explore the concept of expanding NAFTA to cre-

ate a free-trade zone for 34 countries across North, South, and Central America.

Of course, removal of some economic and political barriers—whether across all

of the Americas or Europe—will not eliminate the need to adjust strategies to reach

submarkets of consumers. Centuries of political and cultural differences will not dis-

appear overnight. Some may never disappear.^20

Some dramatic changes in the political environment—like the fall of commu-

nism in Eastern Europe—happen fast and are hard to predict. Yet many important

political changes—both within and across nations—evolve more gradually. The

development of consumerism is a good example.

Consumerismis a social movement that seeks to increase the rights and powers

of consumers. In the last 40 years, consumerism has emerged as a major political

force. Although the consumer movement has spread to many different countries, it

was born in America.

NAFTA is building trade

cooperation

Adero wants marketers to keep

in mind that a website that can

attract prospects from all over

the world won’t be successful in

turning them into customers if it

ignores nationalism and cultural

differences.

Consumerism is here—

and basic