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Evaluate Which Learning Theory Either Operant Conditioning, Social Learning Theory, or the Learning Theory You Researched in Week 3) Would Be Most Appropriate for Joe to Apply in This Situation and Why.

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International Marketing Environment

Jessica Bell

International Marketing (MKT 320)

Professor Dr. Johnnie Woodard

July 20, 2011

Explain the role of government in international trade, the various levels of economic integration and the impact on international marketing.

According to the business dictionary, International trading is the exchange of goods or services along international borders that allows for greater competition and more competitive pricing. The governments’ role on international trade includes restrictions that are placed on businesses, the licensing and other permissions requirements, regulations, formalities, and taxes, all of which have a direct impact on doing business. In international business, the government effects business viability. For instance, international business transactions face more taxes than domestic businesses; they also have quantitative restrictions and licenses’. Governments also impact international businesses by establishing importing and exporting policies. There are other aspects in which governments play an important role in international business like infrastructure, law and order and minimizing risks.

Economic integration has been one of the main economic developments affecting world markets since World War II. Economic integration refers to trade unification between different states by the partial or full abolishing of customs tariffs on trade taking place with the borders of each state. The intent is to lower prices for consumers and distributors. There are five levels of economic integration, free trade area, customs union, common market, economic union and political union. Free trade area is the least restraining and liberated form of economic integration, which eliminates barriers among trading countries. Free trade is typically formed for

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