|Discuss different policies of currency valuation and strategies for mitigating exchange risk.|
Your paper should be at about 2 pages double-spaced, 12 PT. Times New Roman or Arial font, APA format with properly cited sources. You should cite the text and at least 2 other reputable sources.
1. How does the American Marketing Association define marketing? How can marketers deliver to their customers over the long term?
The American Marketing Association defines marketing as “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large” (Kelly, McGowen, Williams, 2014, pg. 169). Being able to please a customer long-term is the key to maintaining profitability. A company that successfully markets their product meets and exceeds their customers’ needs. Chick-fil-A is an example of excellent customer service (Sauter, Frohlich, Stebbins, 2015). 47% of people view Chick-fil-A’s service as excellent, which translates into almost $6 billion of sales for the fast-food chain. From my experience, Chick-fil-A has always gone above and beyond in their service. Yes, there are times when they don’t get my order quite right or something like that, but still, Chick-fil-A always treats me like I matter – that’s why I eat there.
2. Do you agree or disagree with the following statement: The five principles of the WTO (trade without discrimination, freer trade, predictability, fair competition, and encouraging development and economic reform) if followed, would provide developing nations a boost in their development.
The five principles of the World Trade Organization (WTO) are in place to reduce barriers and costs to worldwide trade through creating broader trade agreements to which all member nations agree to adhere (Geringer, Minor, and McNett, 2012). To trade without discrimination ensures that the member countries will treat each other with equal trade regulations which prevents larger nations from taking advantage of smaller less develop countries that lack the political might of the more developed nations.
Freer trade ensures that over time, movement toward less restricted trade can take place (Ezeani, E. 2010). This policy is designed to help nations gradually move toward more liberal trade without creating undue burdens on countries that would be adversely affected by abruptly moving toward free trade. This is a benefit to developing nations who would find it very difficult to move quickly, but it can also create pathways for developed countries who offer large subsidies to back off of their subsidizations more slowly than is reasonable or beneficial for developing agricultural nations (Geringer, et al., 2012)
Predictability is of benefit for businesses in all nations whether developed or developing (Ezeani, E. 2010). Predictability helps developed nations gain a sense of risk mitigation when engaging in international trade and helps business managers prognostic and plan more precisely. Developing nations gain the advantage of stability, even when their internal politics are not quite as stable which helps mitigate risk for their investments. The developed nations also gain from the added stability by gaining additional investment from foreign countries who feel better about trading with and investing in WTO member countries (Geringer, et al., 2012).
Promoting fair competition is a principle most beneficial to the developed nations (Ezeani, E. 2010 and Geringer, et al., 2012). Many of the developing nations do not have effective or enforceable intellectual property (IP) laws that protect the heavy investment of developed countries in this arena. By enforcing fair competition and intellectual property rights developed nations could lose revenue through making cheap copies of more expensive and protected products. This hurts the economy of developing nations, but if they engage in protected trade, they could find a way to gain licensing from the IP owners.
Encouraging development and economic reform is one principal that is an obvious benefit to developing nations (Geringer, et al., 2012). Through this policy developed nations can mentor, partner with, and invest in developing nations providing a ‘win-win’ for both developed and developing nations.
In the end I believe that developing nations do receive a boost in furthering their development by adhering to WTO principles. Some of the principles might feel slightly restrictive, but most of the above principles can help developing nations if they play their hand well.