Marketing

Global Perspective

GLOBAL COMMERCE CAUSES PEACE

Global commerce thrives during peacetime. The economic

boom in North America during the late 1990s was in large

part due to the end of the Cold War and the opening of the

formerly communist countries to the world trading system.

However, we should also understand the important role

that trade and international marketing play in producing

peace.

Boeing Company, America’s largest exporter, is perhaps

the most prominent example. Although many would argue

that Boeing’s military sales (aircraft and missiles) do not

exactly promote peace, over most of the company’s history,

that business has constituted only about 20 percent of the

company’s commercial activity. Up until 2002, of Boeing’s

some $60 billion in annual revenues, about 65 percent came

from sales of commercial jets around the world and another

15 percent from space and communications technologies.

Unfortunately, these historical numbers are being skewed

by U.S. military spending and the damage done to tourism

by terrorism. 1 Even so, the company still counts customers

in more than 90 countries, and its 158,000 employees

work in 70 countries. The new 787 Dreamliner includes

parts from around the world, including Australia, France,

India, Italy, Japan, Russia, and Sweden. 2 Its more than

12,000 commercial jets in service worldwide carry about

one billion travelers per year. Its NASA Services division

is the lead contractor in the construction and operation of

the 16-country International Space Station, fi rst manned

by an American and two Russians in the fall of 2000. The

Space and Intelligence Systems Division also produces

and launches communications satellites affecting people in

every country.

All the activity associated with the development, production,

and marketing of commercial aircraft and space

vehicles requires millions of people from around the world

to work together. Moreover, no company does more 3 to

enable people from all countries to meet face-to-face for

both recreation and commerce. All this interaction yields

not just the mutual gain associated with business relationships

but also personal relationships and mutual understanding.

The latter are the foundation of global peace and

prosperity.

Another class of companies that promotes global dialogue

and therefore peace is the mobile phone industry.

During 2007 the number of mobile phone subscribers exceeded

3.0 billion, and this number is expected to grow

beyond 4.5 billion by 2012. Nokia (Finland), the market

leader, is well ahead of the American manufacturers Motorola

and Apple, Samsung (S. Korea), LG (S. Korea), and

Sony Ericsson (Japan/Sweden).

Individuals and small companies also make a

difference—perhaps a subtler one than large multinational

companies, but one just as important in the aggregate.

Our favorite example is Daniel Lubetzky’s company,

PeaceWorks. Mr. Lubetzky used a fellowship at Stanford

Law School to study how to foster joint ventures between

Arabs and Israelis. Then, following his own advice, he created

a company that combined basil pesto from Israel with

other raw materials and glass jars supplied by an Arab partner

to produce the fi rst product in a line he called Moshe &

Ali’s Gourmet Foods. The company now sells four different

product lines in 5,000 stores in the United States and

has its headquarters on Park Avenue in New York, as well

as business

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