Extra Exam Vocab Part 2

Front 1

Represent personally or socially preferable modes of conduct or states of existence that tend to persist over time

Back 1

Society values

Front 2

Amended the Foreign Corrupt Practices Act.

Back 2

International Anti-Dumping and Fair Competition Act (1998)

Front 3

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

Back 3

Semiotics

Front 4

Principal languages used in global diplomacy and commerce

Back 4

English, French, Spanish

Front 5

Belief that aspects of one’s culture are superior to another’s

Back 5

Cultural Ethnocentricity

Front 6

3 global market place economic considerations

Back 6

1. An assessment of the economic infrastructure in these countries

2. Measurement of consumer income in different countries

3. Recognition of a country’s currency exchange rates

Front 7

A country’s communications, transportation, financial, and distribution systems. A critical consideration in determining whether to try to market a country’s consumers and organizations

Back 7

Economic Infrastructure

Front 8

Involves not only identifying the current climate but also determining how long a favorable or unfavorable climate will last

Back 8

Assessing the political and regulatory climate for marketing in a country or region of the world

Front 9

Depends on political stability

Back 9

Trade among nations or regions

Front 10

Government’s orientation toward foreign companies and trade with other countries

Back 10

Factors that affect political stability

Front 11

Rules that govern business practices within their borders. Often serve as trade barriers

Back 11

Trade regulations

Front 12

4 general options for a market entry by a company that has decided to enter the global marketplace

Back 12

1. Exporting

2. Licensing

3. Joint Venture

4. Direct Investment

Front 13

Host countries do not like this practice because it provides less local employment than under alternative means of entry

Back 13

Exporting

Front 14

When a firm sells its domestically produced products in a foreign country through an intermediary. Has the least among of commitment and risk but will probably return least profit. Ideal for a company that has no overseas contacts but wants to market abroad

Back 14

Indirect Exporting

Front 15

When a firm sells its domestically produced products in a foreign country without intermediaries. Happens when companies believe their volume of sales will be sufficiently large and easy to obtain.

Back 15

Direct exporting

Front 16

A company offers the right to a trade mark, patent, trade secret, or other similarly valued item of intellectual property in return for a royalty or a fee. Gains information that allows it to state with a competitive advantage, and the foreign country gains employment by having the product manufactured locally

Back 16

Licensing

Front 17

Variation of licensing. One of the fastest growing market entry strategies

Back 17

Franchising

Front 18

Entails a domestic firm actually investing in and owning a foreign subsidiary or division. Biggest commitment a company can make when entering a global market

Back 18

Direct Investment

Front 19

3 ways a product may be globally

Back 19

1. In the same form as in its home market

2. With some adaptations

3. As a totally new product

Front 20

Selling virtually the same product in other countries

Back 20

Product Extension

Front 21

Changing a product in some way to make it more appropriate for consumer preferences or a country’s climate

Back 21

Product Adaptation

Front 22

Companies can invent totally new product designed to satisfy common needs across countries

Back 22

Product Invention

Front 23

When companies modifying both their products and promotion messages

Back 23

Dual adaption strategy

Front 24

When a firm sells a product in a foreign country below its domestic price or below its actual cost

Back 24

Dumping

Front 25

A situation where products are sold through unauthorized channels of distribution. When individuals buy products in lower priced country from a manufacturer’s authorized retailer, ship them to higher priced countries and sell them below the manufactures suggested retail price through unauthorized retailers. Illegal in the European Union.

Back 25

Gray market or parallel importing