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42 Cards in this Set

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countertrade
using barter for global sales (15-20% worldtrade)
russian, eastern european and asian countries
trade feedback effect
increased demand for exports of other nations energizes their economic activity, resulting in higher national income, which stimulates their demand for imports
GDP
monetary value of all g/s produced in a country during 1yr
balance of trade
diff btwn monetary value of a nation's exports and imports
e>i surplus
e<i deficit
factor conditions
nation's ability to turn its natural resources, education, and infrastructure into a competitive advantage
demand conditions
# and sophistication of domestic consumers for an industry's product
related and supporting industries
clusters of world class suppliers that accelerate innovation
company strategy, structure, and rivalry
conditions governing the way a nation's businesses are org and managed, and intensity of domestic competition
Economic Espionage Act of 1996
makes the theft of trade secrets by foreign entities a federal crime in the US
4 World Trends in teh last decade:
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
protectionism
shielding one or more industries w/in a country's economy from foreign competition through the use of tariffs/quotas
tariffs
govt tax on g/s entering a country; raise prices on imports
quota
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
World Trade Organization
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
global competition
exists when firms originate, produce, and market their products and services worldwide
i.e auto, pharma, apparel, electronics, aerospace, and telecomm
strategic alliances
agreements among two or more independent firms to cooperate for the purpose of achieving common goals such as a competitive advantage/consumer value creation
multidomestic marketing strategy
have as many diff product variations, brand names, and ad programs as countries in which they do business
global marketing strategy
standardizing marketing activities when there are cultural similariteis and adapting them when cultures differ; realize economies of scale from thier production and marketing activities
global brank
brand marketed under the same name in multiple countries w/similar and centrally coordinated marketing programs
global consumers
consumer groups living in many countries/regions of the world who have similar needs/seek similar features and benefits from products/services
cross-cultural analysis
study of sim/diff among consumers in two or more nations/societies
values
personally/socially pref modes of conducts/states that tend to persist over time
customs
what is considered nomral and expected about the way pple do things in a specific country
Foreign Corrupt Practices Act (1977) as amended by the International Anti-dumping and Fair Competition Act (1998)
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
cultural symbols
represent ideas and concepts
semiotics
examines the correspondence btwn symbols and their role in the assignment of meaning for pple
back translation
translated word/phrase is retranslated into the orig lang by a diff interpreter to catch errors
consumer ethnocentrism
tendency to believe that it is inappropriate, indeed immoral to purchase foreign-made goods
scan of a global marketplace should include:
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
developed countries
mixed economies
developping countries
process of moving from agricultural to industrial economy
1. those who have made the move
2. those who are locked
currency exchange rate
price of one country's currency expressed in terms of another country's currency
4 means of market entry:
exporting
licensing
joint venture
direct investment
exporting
producing goods in one country and selling them in another
indirect: sell through an intermediary
direct: w/o intermediary
3 variations of licensing:
contract manufacturing
contract assembly
franchising
joint venture
when a foreign company and local firm invest together to create a local business
direct investment
domestic firm invests in and owns a foreign subsidary/division
product extension
same product in other countries
-target market is similar across cultures and countries
product adaptation
change product in some way to make it more appropriate for a country's climate/consumer pref
product invention
invent new products designed to satisfy common needs across countries
dumping
when a firm sells a product in a foreign country below its domestic price/actual cost
gray market or parrallel importing
products are sold through unauthorized channels of distribution