The Global Economy “Its All Relative” Copyright © Texas Education Agency, 2015. All rights...

The Global Economy“Its All Relative”

Copyright © Texas Education Agency, 2015. All rights reserved.

OBJECTIVES:• Understand the impact of global trade on the U.S.

economy• Explain the role of balance of trade in relation to

imports and exports• Compare & contrast emerging economies with

existing economies• Evaluate the growth of multinational companies• Discuss preindustrial and postindustrial economic

systems• Explain the importance of finding the right mix for

foreign markets• Explore what it means to a graphic artist or designer


TERMINOLOGY:• NAFTA: North American Free Trade Agreement• WTO: World Trade Organization• EU: European Union• International Trade: The sale of products/services to people in

other countries• Imports: Products/services purchased from another country• Exports: Products/services sold to another country• Indirect Exporting: Marketers with exporting experience

represent the exporting company; arranges for the sale of products in other countries

• Direct Exporting: Company handles all responsibilities to market products in other countries


• Balance of Trade: The difference between a country’s imports and exports.

• Foreign Production: A company owns and operates production facilities in another country

• Joint Venture: Two or more companies in different countries with common interests develop a relationship to join in common business activities.

• Multinational Companies: Businesses that have operations all over the world and conduct planning for worldwide markets

• Preindustrial economy: Based on agriculture & raw material development; low standard of living.

• Postindustrial economy: Based on mix of business and consumer products/services produced & marketed in the global marketplace

• Gross Domestic Product: The total $ value of all good/services produced within a country in one year

• Gross National Product: The total $ value of all goods/services produced


• Quota: Limits on the number of certain types of products foreign companies can sell in a country

• Tariffs: Taxes placed on imported products to increase the selling price

• Subsidy: Money provided to a business to help in the development and sale of products

• Standard of Living: A measure of the quality of life for the citizens of a country

• Productivity: The average output by workers for a specified period of time

• Purchasing Power: The amount of goods/services that can be bought with a specific $ amount of money

• Consumer Price Index: The variance in the cost of a specified set of goods over time

• Business Cycle: Consists of four stages: Prosperity, Recession, Depression and Inflation


I. U.S. and International Trade• World Interdependence

– Approximately 1/3 of worldwide production is sold outside of the “home” country

– The bulk of products Americans use daily are imported

– U.S. exports music, movies, cars, airplanes, and food items

• International Trade is Changing– Raw materials once were an abundant

commodity; today makes up less than 1/3 of world’s exports

– Manufactured goods/services are most popular


• Services (communications, travel, education & financial) are most popular exchanges between countries

• Data is transferred via phone, fiber optics, or satellite on daily basis

II. Businesses are Going Global• Markets are changing

– Foreign markets are enticing to domestic businesses who experience dropping sales & profit

– Another way to expand competition– Increasing worldwide demand for products

• Benefits of international marketing– Government support is available


Importance of International Trade• U.S. economy: over 250,000 businesses export products• Accounts for over 11% of GNP• 95% of U.S. exporting businesses are small to medium sized• Manufacturers export over $500 billion of products• Wholesalers export over $100 billion• U.S. is second largest exporter • Germany is #1 exporter of products• U.S. is #1 importer of products• Germany is #2 importer of products• U.S. had 1st trade deficit of 20th Century in 1971 (imports

exceeded exports by over $1 billion that year)


III. How does this concern Graphic Design?

Graphic Artists are involved in many facets of trade, export and import. The communication pieces (marketing/advertising) between different countries is vital. It is not just about translating information into another language.

Designers must also know about the demographics of targeted audience. Just imagine the difference between a target audience in Florida vs. Alaska. Or designing a t-shirt for a three-year old vs. a 35-year old. Or even a male vs. a female. Or if they are in a wealthy area or impoverished? All these things make a difference in how a designer approaches them.


Demographics

For effective communication, graphic designers must look at the demographics of the targeted country/audience.

This includes WHERE they live.Types of professions, skills, jobs. Their level of education.Their average income.Their living conditions.The geographic environment with regards to weather, temperature, landscape, coastal, inland, etc. Percent in urban vs. rural.Average age of population.Percent married.Average family size, number of children.Typical health and welfare of citizens.


Bottom Line…• Knowing your target audience’s demographics will help

with effective communication in a foreign country.

• It will ensure better success of your advertising campaign.

• It will be appropriate and show respect for the people of that country.


The Global Economy “Its All Relative” Copyright © Texas Education Agency, 2015. All rights...

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