Question

9. How does economic protectionism limit/decrease world trade/global marketing? Name AND DEFINE two factors that allow protectionism. (4 pts) 10. What is NAFTA? What countries are involved? Does it increase or decrease world trade? (5 pts.) 11. What is demographic segmentation? (2 pts.) 12. True or False. Separating the marketplace into groups of consumers is called targeting. EXPLAIN (2 pts.) 13. Market segments consist of consumers who have and respond similarly to __(2 pts.) 14.__ seeks to establish a competitive advantage for a product and communicates that advantage to the consumer (1 pt.)

Answer 1

1-	Policy of economic protectionism restricts the world trade as many of the countries use tools of economic protectionism like tariff, quotas, subsidies and currency manipulation to limit and demotivate the imports and this in turn same act is followed by the another country, this starts the trade rivarly among the countries and limit the scope of international trade and marketing. Two factors that motivate the policy of economic protectionism are (1) Unfair practices followed by the foreign companies (2) to provide protection to domestic companies from competition from foreign competitors.
2-	NAFTA is a regional economic trade bloc comprising of three countries (1) Unites states of America, Mexico and Canada. It is a trilateral trade bloc in North America. This regional trade helps in increasing business and trade activities in the member countries as this allow free movement of product and services, human resource and other resources that will lead to increase in international trade.
3-	Demographic segmentation refers to the division of market on the basis of some demographic variables like age, education, sex and life style of the population. In demographic segementation entire population is segregated into different groups or segments on the basis of any of the variable of demography.
4-	False- It is called segementation. Targeting refers to focus on a specific group under a particular segment
5-	market segment consists of consumers who have similar traits and respond similarly to marketing strategy
6-	Core competency seeks to establish a competitive advantage for a product and communicates that advantage to the consumer