International Business, Trade and Their Terminologies

For decades, the use of the term “Most Favored Nation (MFN)” status has led to demonstrations and even street battles. Now, the problem has gone away, since governments have changed the terminology and only speak of “Normal Trade Relations (NTR)”, a goal that seems to be acceptable to all. Definitions which shape our understanding of core issues such as “fairness,” “market gaps,” “dumping,” and “natural,” can be changed or amended, and thus present us with new realities.

Many of today’s business executives discover that their activities are but one integral component of society. Politics, security, and religion are only some of the other dimensions that historically, and maybe again in the future, are held in possibly higher esteem than economics and business by society at large. Those who argue based on business principles alone may increasingly find themselves on the losing side.

Extent of Freedom in Changing Times

When the long-standing rivalry between socialism and market orientation was resolved, market focus and the recognition of demand and supply directly affected human rights and the extent of freedom. With all humility and gratefulness we can conclude: the markets were right. In country after country, market forces have demonstrated typically greater efficiency and effectiveness in their ability to satisfy the needs of people.

International marketers have been instrumental in stimulating these newly emerging market forces. In spite of complaints about the slowness of change, the insufficiency of wealth redistribution, and the inequities inherent in societal upheavals, a large majority of participants in market-oriented changes are now better off than they were before. Without the transition provided by international marketing, these changes would not have come about that swiftly.
This is an excerpt from Dr. Czinkota’s book Global Business: Positioning Ventures Ahead, co-authored by Dr. Ilkka Ronkainen.

Michael R Czinkota and Ilkka A Ronkainen, Global Business: Positioning Ventures Ahead (New York: Routledge, 2011), pg. 234-235.

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