Films can be seen as cultural products. To understand international trade of these cultural products it is necessary to reveal how industries and markets operate and evolve, furthermore analyzing the influence of industry structure, government policies and global economic conditions. International trade allows expanding markets to become certainly larger than the domestic one, as a result the consumer has the possibility to choose within a greater variety of goods and to take advantage from lower prices.
Films are part of each culture. But still, films are products, first of all produced and sold in intention to make profits.
What are films? Why do we speak from US Cultural imperialism? What can be regarded as cultural diversity? Which debates and agreements should be focused on when analyzing international trade of films? And finally, why do the U.S. dominate that industry? Which economic factors play a major role in this case? How sustainable is the U.S.?
That sounds interesting? These and more questions will be answered within that economic essay.
Structure
I. What are films? An introduction
II. Why does the US dominate trade? Principles
i. Definitions
ii. Debates and trade agreements
iii. Facts and figures
iv. Economic analyze
v. Different approaches
vi. Finance and Talent
III. How sustainable is the US? Perspectives
Research Goal and Thematic Focus
This paper examines the dynamics of international trade within the film industry, specifically focusing on the dominance of the United States versus the preservation of cultural diversity. It analyzes the economic, structural, and political factors that provide the US with a significant competitive advantage in the global market.
- Economic characteristics of film as a cultural product
- Market dominance of Hollywood and the US film industry
- Impact of trade agreements and government policies on cultural industries
- The role of economies of scale and industrial agglomeration
- Comparison of US and non-US film financing and production models
Excerpt from the Book
I. What are films? An introduction
Films can be seen as cultural products. To understand international trade of these cultural products it is necessary to reveal how industries and markets operate and evolve, furthermore analyzing the influence of industry structure, government policies and global economic conditions. International trade allows expanding markets to become certainly larger than the domestic one, as a result the consumer has the possibility to choose within a greater variety of goods and to take advantage from lower prices. Films take part of each culture. Films are products, produced and sold in intention to make profits.
First of all a regard goes to these products with their three particular characteristics. They are “Joint-consumption goods” meaning that an additional viewer has no effect on costs; to produce an extra copy is very low cost-relative to the production costs. The production costs of the first copy or the original is analogous to the Research & Development costs representing the biggest investment volume while the costs per unit respectively the replication of the film are comparatively low. The products can not be affected. While watching a film the consumer does not have the possibility of modification. This is in contrast to other products which alter within consumption e.g. an apple. These ones can be called private goods whereas films are considered as public goods, joint-consumption goods.
Chapter Summary
I. What are films? An introduction: This chapter introduces film as a cultural and economic product, highlighting key characteristics such as joint-consumption, cultural discount, and external benefits.
II. Why does the US dominate trade? Principles: This section analyzes the factors behind US market dominance, including definitions of cultural imperialism, the impact of trade agreements, and economic advantages such as economies of scale and industrial agglomeration in Hollywood.
III. How sustainable is the US? Perspectives: This chapter discusses the long-term outlook for US market dominance, considering potential shifts due to the growth of other regional markets like China and India.
Keywords
International trade, Cultural diversity, US cultural imperialism, Film industry, Joint-consumption goods, Cultural discount, External benefits, Market dominance, Hollywood, Economies of scale, Dumping strategy, External economies of scale, Agglomeration, Film piracy, Globalization
Frequently Asked Questions
What is the core subject of this paper?
The paper examines the international trade dynamics in the film industry and the tension between US cultural dominance and the maintenance of cultural diversity worldwide.
What are the central thematic areas?
The work focuses on the economic properties of film, the competitive strategies of the US film industry, trade policy, and the structural differences between US and international film markets.
What is the primary objective of this study?
The objective is to explain why the US holds a dominant position in the global film trade and to investigate the underlying economic principles that sustain this advantage.
Which scientific methodology is used?
The author applies microeconomic theories and international trade frameworks to analyze industry structures, market entry barriers, and the impacts of government policy on audiovisual trade.
What is covered in the main body?
The main body covers the definition of cultural products, the influence of US market size, Hollywood's competitive structure, trade agreements like GATT/GATS, and a comparison of production and financing models between the US and Europe.
What are the key terms characterizing this work?
Key terms include Joint-consumption goods, Cultural discount, External benefits, US cultural imperialism, Economies of scale, and Industrial agglomeration.
How does the "cultural discount" impact film trade?
Cultural discount refers to the difficulty consumers in foreign markets have in identifying with the specific cultural values, language, and humor of a film from another country, which complicates international distribution.
What role does the "Hollywood system" play in market dominance?
The Hollywood system utilizes vertical integration, a star system, and significant investment in production to create globally competitive films, benefiting from economies of scale and specialized local infrastructure.
Are there potential threats to the US film industry's dominance?
The author suggests that the growth of other regional markets and the rise of local production capacities in countries like China and India could pose challenges to the current US hegemony in the future.
- Quote paper
- Bachelor of Arts in International Management (B.A.) Stephanie Rohac (Author), 2006, Cultural diversity versus US cultural imperialism: The film industry, Munich, GRIN Verlag, https://www.grin.com/document/67801
