Home/Essays Examples/Economics/International Marketing and Its Influences

International Marketing and Its Influences

The institution of international trade is dominated by a series of data sets and statistics. These statistics enable analyzers to compare the market performances of countries and regions around the world. The status of international trade keeps changing from time to due to changes in market environments within separate regions and around the world.

Consequently, individual countries take their marketing agendas seriously in order for them to remain relevant among other global competitors. International marketing is influenced by a number of factors including geographical location of a region, inflation, market sizes (population), and Gross Domestic Product (GDP) of a country among others. This paper analyzes the countries that import and export the most products and services and their international marketing influences.

The Global Market

The level of world trade is expected to improve slightly from its previous performance in 2014 (World Trade Organization 1). The global import and export market is often dominated by the most developed economies in the world. It is estimated that the top 20 importing and exporting countries in the world account for 75% of the total global trade.

On the other hand, developing economies take up slightly over 20% of the total trade in services and merchandise. The global value of trade in merchandise is higher than the trade in commercial services with the former accounting for approximately $18,000 billion and the latter cashing in around $4, 500 billion.

The leading export and imports in commercial services include travel, transport, and internet services among others. On the other hand, the most common merchandise in the international market is in the form of fuel, minerals, transportation equipment and machinery (cars, planes, and spare parts among others), agricultural products, and chemicals among others.

Experts point out that the last three years have witnessed a lag in growth when it comes to international trade. For instance, in the course of 2013 and 2014, world trade in both merchandise and commercial services has only grown by an average of 2.2% (World Trade Organization 1).

However, international trade among developing countries has increased more than in developed countries. China, the United States, and Germany are still the most dominant players in the world merchandise market. These same countries feature prominently in the commercial services market, except for China, which is replaced in the top three positions by the United Kingdom.

Analysis

The 2014 top ten exporting countries in world merchandise trade are:

  1. China
  2. United States
  3. Germany
  4. Japan
  5. Netherlands
  6. France
  7. Republic of Korea
  8. Italy
  9. Hong Kong
  10. United Kingdom

The 2014 top ten importing countries in world merchandise trade include:

  1. United States
  2. China
  3. Germany
  4. Japan
  5. United Kingdom
  6. France
  7. Hong Kong
  8. Netherlands
  9. Republic of Korea
  10. Canada

The list of the top importing and exporting countries is made of developed countries. China, Germany, and the United States emerge as the most dominant players in the world of merchandise trade because they take the top three positions in both export and import lists.

China appears in this list due to the fact that it has a largest population in the world. China also features a centralized economy where the central government can easily influence economic and growth agendas (Dorn and Hanson 129).

However, it is apparent that China exports more than it imports, an indication of a high per capita production rate. The United States and Germany are in the top three lists because both counties have the highest GDPs in the world. Germany’s GDP is higher than that of the United States (Ma and McCauley 4).

The Geographical size of the United States also acts an advantage when it comes to the import and exports of merchandise. Therefore, the United States is able to trade in agricultural products, industrial commodities, and fuel from its vast areas of production.

Japan ranks fourth in the dominance of both export and import of merchandise. This trend indicates a health balance in trade in the case of Japan’s international trade catalog. This trend can also be explained by the fact that Japan’s list of imports and exports has remained the same over the years.

For instance, Japan imports raw materials and exports finished products mostly in the form of cars and electronic products. Previously, Japan used to be in the top three biggest importers and exporters, but China has replaced its position. The same trend applies to France, as it is in position six of both import and export rankings. Both Japan and France’s economies have relatively stable economies when it comes to inflation.

The United Kingdom appears at position 5 of top importers and position 10 among exporters. This positioning is as a result of the fact that United Kingdom’s population is scattered all across the world especially in Africa and Asia’s developing economies. Consequently, the farming and mining expatriates from the United Kingdom send a lot of their products and raw materials to the former imperial power. The expatriate population and the European Union based trade are responsible for United Kingdom’s peculiar trade habits.

The top ten exporting countries in the international trade in commercial services are:

  1. United States
  2. United Kingdom
  3. Germany
  4. France
  5. China
  6. Japan
  7. Netherlands
  8. India
  9. Spain
  10. Ireland

The top ten importing countries in the international trade in commercial services are:

  1. United States
  2. China
  3. Germany
  4. France
  5. Japan
  6. United Kingdom
  7. Netherlands
  8. Ireland
  9. Singapore
  10. India

Unlike the list of top world merchandise traders, the commercial services ranking features surprising developments. First, unlike Germany and the United States, China does not export substantial commercial services although it imports the same. The population of China is quite big and this enables most providers to have enough domestic market for commercial services. Consequently, providers in China do not have to deal with the hustles that apply to trading in international markets (Lin 1736).

India is a developing economy that manages to rank as a leading exporter and importer of commercial services. India’s GDP is quite low compared to that of other countries that appear in this list. However, the economy’s reliance in technology and medical services exports enables it to be on the list. The same case applies to Ireland, a small country in terms of population, geographical size, and GDP. Ireland’s reliance in commercial services can only be explained through a finer analysis of the country’s economic trends.

Lessons Learnt

GDP and population sizes are major determinants in international marketing particularly in commodity markets. In addition, geographical size and availability of resources can also have major impacts when it comes to international trade (Manova 712). Nevertheless, when it comes to financial services, marketing plays a major role in a country’s overall ranking (Czinkota and Ronkainen 25). For instance, India, Ireland, and Singapore are not necessarily economic powerhouses but they feature prominently in the global commercial services markets.

Works Cited

Czinkota, Michael, and Ilkka Ronkainen. International Marketing, New York: Cengage Learning, 2012. Print.

Dorn, David, and Gordon Hanson. The China Syndrome: Local Labor Market effects of Import Competition in the United States, Washington, DC: National Bureau of Economic Research, 2012. Print.

Lin, Jintai. “China’s International Trade and Air Pollution in the United States.” Proceedings of the National Academy of Sciences 111.5 (2014): 1736-1741. Print.

Ma, Guonan, and Robert McCauley. “Global and Euro Imbalances: China and Germany.” China & World Economy 22.1 (2014): 1-29. Print.

Manova, Kalina. “Credit Constraints, Heterogeneous Firms, and International Trade.” The Review of Economic Studies 80.2 (2013): 711-744. Print.

World Trade Organization. “World Trade Organization 2015 Press Release.” World Trade Organization, 2015. Web.