Question

Discuss the challenges of marketing internationally. How does United States Mexico Canada Agreement (USMCA) affect marketing opportunities for US Products in North America?United States Mexico Canada Agreement?

Answer 1

Slow growth in the emerging economies is the primary problem facing us. It is a fact that the growth rate has slowed down in emerging economies. An international marketer, however, must note that these markets remain significant markets despite the sluggish growth rate and that all marketers will need to continue targeting these markets.
Declining growth rates in developing markets are the second major problem facing the planet. A marketer has to note that emerging markets will continue to expand at a faster pace than developed markets, considering the slowdown in growth rates of many emerging markets. This is due to their huge population and growing income levels, which in these markets offer a boost to demand. Therefore, all multinational marketing companies must look beyond the established markets and concentrate their resources on all developing markets as well.

Demographics are the third key element to consider. The demographic of developed western markets is aged, while there is a younger generation of developing economies. Therefore, emerging markets will remain relevant and multinational marketing organisations will need to continue to concentrate their efforts on emerging markets.
The fourth significant reason is that competitiveness and creativity have improved. More and more businesses from developing economies will be confronted by corporations in the developed world. Organizations that rely on ingenuity to minimise costs or maximise the potential value to their clients will prosper.

Substantive negotiations on new rules of origin and procedures, including product-specific rules for motor cars, light trucks and auto parts, were completed by the United States , Mexico and Canada. This update to the rules of origin would include better prospects in the United States and North America for the procurement of goods and materials. The United States, Mexico and Canada have committed to stricter rules of origin that outweigh those of both NAFTA 1.0 and the Trans-Pacific Partnership (TPP), including those for vehicles and car components and other manufacturing products such as plastics, steel-intensive pro-products.

By developing protocols that streamline certification and inspection of rules of origin and encourage strict compliance, this deal exceeds NAFTA 1.0 and the TPP. This requires new provisions for coordination and compliance that aim to deter service avoidance before it occurs.The new regulations would help ensure that favourable tariff incentives are only given to manufacturers using adequate and substantive North American parts and materials.