Bmgt350 Ch7

Front 1

countertrade

Back 1

using barter for global sales (15-20% worldtrade)
russian, eastern european and asian countries

Front 2

trade feedback effect

Back 2

increased demand for exports of other nations energizes their economic activity, resulting in higher national income, which stimulates their demand for imports

Front 3

GDP

Back 3

monetary value of all g/s produced in a country during 1yr

Front 4

balance of trade

Back 4

diff btwn monetary value of a nation's exports and imports
e>i surplus
e<i deficit

Front 5

factor conditions

Back 5

nation's ability to turn its natural resources, education, and infrastructure into a competitive advantage

Front 6

demand conditions

Back 6

# and sophistication of domestic consumers for an industry's product

Front 7

related and supporting industries

Back 7

clusters of world class suppliers that accelerate innovation

Front 8

company strategy, structure, and rivalry

Back 8

conditions governing the way a nation's businesses are org and managed, and intensity of domestic competition

Front 9

Economic Espionage Act of 1996

Back 9

makes the theft of trade secrets by foreign entities a federal crime in the US

Front 10

4 World Trends in teh last decade:

Back 10

1. gradual decline of economic protectionism by individual countries
2. formal economic integration and free trade among nations
3. global competition among global companies for global customers
4. development of networked global marketplace

Front 11

protectionism

Back 11

shielding one or more industries w/in a country's economy from foreign competition through the use of tariffs/quotas

Front 12

tariffs

Back 12

govt tax on g/s entering a country; raise prices on imports

Front 13

quota

Back 13

restriction placed on the amount of a product allowed to enter/leave a country; can be mandated or voluntary; legislated or negotiated by certain govts

Front 14

World Trade Organization

Back 14

147 member countries; >90% world trade
sets rules governing trade btwn its members through panels of trade experts who decide on trade disputes btwn members and issue binding decisions

Front 15

global competition

Back 15

exists when firms originate, produce, and market their products and services worldwide
i.e auto, pharma, apparel, electronics, aerospace, and telecomm

Front 16

strategic alliances

Back 16

agreements among two or more independent firms to cooperate for the purpose of achieving common goals such as a competitive advantage/consumer value creation

Front 17

multidomestic marketing strategy

Back 17

have as many diff product variations, brand names, and ad programs as countries in which they do business

Front 18

global marketing strategy

Back 18

standardizing marketing activities when there are cultural similariteis and adapting them when cultures differ; realize economies of scale from thier production and marketing activities

Front 19

global brank

Back 19

brand marketed under the same name in multiple countries w/similar and centrally coordinated marketing programs

Front 20

global consumers

Back 20

consumer groups living in many countries/regions of the world who have similar needs/seek similar features and benefits from products/services

Front 21

cross-cultural analysis

Back 21

study of sim/diff among consumers in two or more nations/societies

Front 22

values

Back 22

personally/socially pref modes of conducts/states that tend to persist over time

Front 23

customs

Back 23

what is considered nomral and expected about the way pple do things in a specific country

Front 24

Foreign Corrupt Practices Act (1977) as amended by the International Anti-dumping and Fair Competition Act (1998)

Back 24

make it a crime for US corp to bribe an official of a foreign govt or political party to obtain or retain business in a foreign country

Front 25

cultural symbols

Back 25

represent ideas and concepts

Front 26

semiotics

Back 26

examines the correspondence btwn symbols and their role in the assignment of meaning for pple

Front 27

back translation

Back 27

translated word/phrase is retranslated into the orig lang by a diff interpreter to catch errors

Front 28

consumer ethnocentrism

Back 28

tendency to believe that it is inappropriate, indeed immoral to purchase foreign-made goods

Front 29

scan of a global marketplace should include:

Back 29

1.comparative analysis of econ. develop in diff countries
2. assess of econ. infrastructure
3. measure of consumer income
4. recog of a coutnry's currency exchange rates

Front 30

developed countries

Back 30

mixed economies

Front 31

developping countries

Back 31

process of moving from agricultural to industrial economy
1. those who have made the move
2. those who are locked

Front 32

currency exchange rate

Back 32

price of one country's currency expressed in terms of another country's currency

Front 33

4 means of market entry:

Back 33

exporting
licensing
joint venture
direct investment

Front 34

exporting

Back 34

producing goods in one country and selling them in another
indirect: sell through an intermediary
direct: w/o intermediary

Front 35

3 variations of licensing:

Back 35

contract manufacturing
contract assembly
franchising

Front 36

joint venture

Back 36

when a foreign company and local firm invest together to create a local business

Front 37

direct investment

Back 37

domestic firm invests in and owns a foreign subsidary/division

Front 38

product extension

Back 38

same product in other countries
-target market is similar across cultures and countries

Front 39

product adaptation

Back 39

change product in some way to make it more appropriate for a country's climate/consumer pref

Front 40

product invention

Back 40

invent new products designed to satisfy common needs across countries

Front 41

dumping

Back 41

when a firm sells a product in a foreign country below its domestic price/actual cost

Front 42

gray market or parrallel importing

Back 42

products are sold through unauthorized channels of distribution