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28 Cards in this Set
- Front
- Back
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Things to consider when selecting a target mkt
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Size. MKT growth. Desire of competitors to maintain share. Need to maintain close customer contact. Customer unrest with current situation.
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Advertising Standardization
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minimizes cost
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Advetrtising Localization
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more effective, but more expensive
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prototype ads
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only change language of commercial
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Pattern Ads
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Focus on similarities between 2 areas where same ad will be used. make slight modifications.
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Sociocultural restraints to standardization
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packaging color. language. religion. attitude/taste.
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Congruent Innovations
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no lifestyle change-new toothpaste flavor
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COntinuus Innovation
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Minor use change. toothpaste pump rather than tube
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Dynamically continuous innovation
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more change-electric toothbrush vs. old
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Discontinuous Innovation
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Changes course of life-cars first built.
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License to Export
General or VALIDATED |
requires more paperwork due to sensitivity of product/location.
arms/weapons anwhere Iran Irag, all dangerous countries |
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buyer bears all risks and costs of shipping
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FOB factory
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seller bears all risks and costs until product is on boat
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Free Alongside Ship
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seller quotes price that includes all costs up to a named part in country of destination
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CIF (cost, insurance, french)
preferred by foreign buyers. easier to figure costs |
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same as CIF except buyer pays insurance
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CFR (Cost, Freight)
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seller quotes price that includes all cost of getting product to the border
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FOB At A Named Border
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Being paid in anything other than currency
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counter trade
used if country has a lack of currency or large debt |
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Firm doesn't directly export, but sells to company that exports
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indirect exporting
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works in one country and lives in another
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expatriot
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firm in one country choses a foreigner to go to a third country
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third party national
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trying to protect against losses due to currency rate
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hedging
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MNC contracts with a bank to buy a fixed amount of one currency for a fixed of another currency at an agreed upon future date (30, 60, 90, 180 days)
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forward hedge
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traded by brokers ($100,000 min). future contracts come in fixed amounts with standardized delivry dates
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future hedge
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pay a fee to be able to buy currency at a set price in the future. but you don't have to buy at that price)
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currency options
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don't change currency, just use it internally within the company
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Inta-MNC Hedge
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accept open positions in 2 or more currencies to balance each other. like diversifying stock profile
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Exposure Netting
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If foreign currency seems to be in downward trend, pay as soon as possible
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LEAD
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if foreign currency is going upward, wait to pay
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LAG
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