International Marketing Issues. Проблемы международного маркетинга, страница 9

The value of the law of comparative advantage is in predicting what products in what amounts will be entered into international trade.

In spite of the problems in using trade theory to predict actual trade patterns, the theory continues to be an important basis for regulating international trade. Most countries try to maximize disruptive or negative consequences for their domestic economy. To do so, they must understand the "natural" structure of trade patterns. International marketers would also do well to select products in which their firms have a comparative advantage in production, marketing, finance, or management, for entry in foreign markets.

Product Life Cycle of International Trade. An alternative explanation of international trade patterns and motivations is the product life cycle model. A major advantage of the product life-cycle model over traditional trade theory is that it accounts for foreign production decisions as well as exporting and importing. Furthermore, it acknowledges the importance of advantages in technology and marketing know-how as sources of comparative advantage.

The argument of the product life-cycle model is that foreign investment and marketing decisions are a function of the evolution of a product. The introductory period for a major new product is a critical period for its sponsor. Such a firm seeks large, accessible markets and easy, quick communication with suppliers. In most cases, cost considerations are not as important as early market acceptance. Raymond Vernon, one of the proponents of the life-cycle model, suggests that large markets like the United States fit these criteria. Therefore, products tend to be introduced in developed economies with large potential markets. Foreign demand is serviced by exporting, but is not a focus of the innovator's attention during this stage in product evolution.

The product life-cycle model of trade does not seem to be as applicable to European or Japanese firms' international marketing strategies. Volkswagen, for example, was able to produce its Beetles in Germany and still compete effectively in the U.S. automobile market. Its decision to produce in the U.S. was prompted more by U.S. tariff changes and the increased value of the German mark, than by a desire to protect its competitive position. Perhaps the greatest weakness of the product life-cycle model of trade is that it does not explain the behavior of firms with truly global product development strategies. Certainly, there are many firms today of various nationalities that plan product and market strategies simultaneously in multiple national markets.

Production decisions are initially based on market access criteria, later on the defense of differential advantages, and finally on cost considerations. Market decisions during the life cycle are first oriented to the largest group of most likely buyers, next to foreign buyers with similar abilities to buy, and last, to markets with lower per-capita potential.

Historical world trading patterns continue to affect international business today. International trade has always been used by countries to meet economic as well as political, social, or other goals. The age of economic imperialism left many countries with fears of foreign economic exploitation. Industrial development positioned the lesser-developed countries as resource suppliers to the developed countries, who in turn provided manufactured goods to the rest of the world. These fears or residuals of old trade patterns are the foundations for public policies that regulate international businesses today.

In recent times, international trade has changed in several important ways. Developed countries trade most with each other and account for the largest share of world trade. Developing countries are becoming major producers of manufactured goods, which they supply to both developed and developing countries. A growing portion of international trade includes intracompany movements of goods and services and does not always involve actual product sales. The United States is still the largest single world trader, but its position has been diminishing in recent years. We can recapture some share of world trade by increasing the diversity and destinations of U.S. exports.