Chap 7

Front 1

Counter Trade

Back 1

The practice of using barter rather than money for making global sales

Front 2

Trade feedback effect

Back 2

Increased demand for exports of other nations energizes their economic activity, resulting in higher national incomes, which stimulates their demand for imports....basically imports affect exports..

Front 3

Gross Domestic product

Back 3

Monetary value of all goods and services produced in a country during one year.

Front 4

Balance of trade

Back 4

The difference b/w monetary value of a nation's exports and imports.

Front 5

Global competition

Back 5

exists when firms originate, produce, and market their products and services worldwide.

Front 6

strategic alliances

Back 6

are agreements among 2 or more independent firms to cooperate for the purpose of achieving common goals such as a competitive advantage or customer value creation

Front 7

Three types of companies populate and compete in the global marketplace

Back 7

1. international firms
2. multinational firms
3. transnational firms

Front 8

Divisions or subsidiaries

Back 8

administrative, marketing, and manufacturing operations

Front 9

international firm

Back 9

engages in trade and marketing in different countries as an extension of the marketing strategy in its home country.

Front 10

multinational firm

Back 10

views the world as consisting of unique parks and markets to each part differently

Front 11

multidomestic marketing strategy

Back 11

multinationals use this which means that they have as many different product variations, brand names, and advertising programs as countries in which they do business

Front 12

transnational firm

Back 12

views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants more than differences

Front 13

global marketing strategy

Back 13

transnational marketers employ it- the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ

Front 14

global brand

Back 14

a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs

Front 15

global consumers

Back 15

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

Front 16

cross-cultural analysis

Back 16

which involves the study of similarities and differences among consumers in 2 or more nations or societies

Front 17

values

Back 17

a society's values represent personally or socially preferable modes of conduct or states of existence that tend to persist over time

Front 18

customs

Back 18

are what is considered normal and expected about the way people do things in a specific country

Front 19

foreign corrupt practice act as amended by the international anti dumping and fair competition act

Back 19

makes it a crime for u.s corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country.

Front 20

cultural symbols

Back 20

things that represent ideas and concepts

Front 21

semiotics

Back 21

examines the correspondence between symbols and their role in the assignment of meaning for people

Front 22

back translation

Back 22

translated word or phrase is re translated into the original language by a different interpreter to catch errors

Front 23

cultural egocentricity

Back 23

belief that aspects of ones culture are superior to anothers

Front 24

consumer ethnocentrism

Back 24

tendency to believe that it is inappropriate, indeed immoral to purchase foreign products

Front 25

A scan of the global marketplace should include:

Back 25

1. comparative analysis of the economic development in different countries
2. an assessment of the economic infrastructure in these countries
3. measurement of consumer income in different countries
4. recognition of a countrys currency exchange rate

Front 26

bottom of the pyramid

Back 26

largest but poorest socioeconomic group of people in the world

Front 27

economic infrastucture

Back 27

a countrys communications, transportation, finanical, and distribution systems- is a critical consideration in determining whether to try to market to a countrys consumers and organizations

Front 28

microfinance

Back 28

the practice of offering small, collateral free loans to individuals who otherwise would not have access to the capital necessary to being small business or other income generating activities.

Front 29

currency exchange rate

Back 29

price of one countrys currency expressed in terms of another countrys currency.

Front 30

Once a company has decided to enter the the global marketplace it must select a means of market entry. What are the four options?

Back 30

1. exporting
2. licensing
3. joint venture
4. direct investment

Front 31

exporting

Back 31

producing goods in one country and selling them in another country

Front 32

indirect exporting

Back 32

when a firm sells its domestically produced goods in a foreign country through an intermediary

Front 33

direct exporting

Back 33

when a firm sells its domestically produced goods in a foreign country without intermediaries

Front 34

two variations of licensing

Back 34

1. contract manufacturing
2. contract assembly

Front 35

contract manufacturing

Back 35

a u.s company may contract with a foreign firm to manufacture products according to stated specifications

Front 36

Contract Assembly

Back 36

the U.s company maybe contract with a foreign firm to assemble not manufacture parts and components that have been shipped to that country.

Front 37

franchising

Back 37

one of the fastest growing market entry strategies and is the 3rd variation of licensing

Front 38

joint venture

Back 38

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

Front 39

direct investment

Back 39

the biggest commitment a company can make when entering the global market. it entails a domestic firm actually investing in and owning a foreign subsidiary or division

Front 40

A product may be sold globally in one of three ways

Back 40

1. in the same form as in its home market
2. with some adaptations
3. as totally new product

Front 41

product extension

Back 41

selling virtually the same product in other countries is a product extension strategy. ex. coke

Front 42

product adaptation

Back 42

changing a product in some way to make it more appropriate for a country's climate or consumers preferences is a product adaptation strategy.

Front 43

product invention

Back 43

companies invent totally new products designed to satisfy common needs across countries

Front 44

dumping

Back 44

is when a firm sells a product in a foreign country below its domestic price or below its actually cost.

Front 45

gray market/parallel importing

Back 45

is a situation where products are sold through unauthorized channels of distribution