International Marketing

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Gross Domestic Product (GDP)

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The total value of goods produced, and services provided, in a country during one year

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International Trade/Globalization

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Involves the exchange of goods and services between nations

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Imports

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Goods and services purchased from other countries (When the US buys goods from another country)

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Exports

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Goods and services sold to other countries (When the US sells goods to another country)

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Exchange Rate

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The measure of how much one currency is worth in relation to another

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Tariff (aka Duty)

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A tax on imports

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Quota

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Limits the quantity or monetary value of a product that may be imported.

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Embargo

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Total ban on specific goods coming into and leaving a country

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Customs Broker

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Specialists licensed by U.S. Treasury Department to provide legal information regarding importation laws, procedures, and tariffs.

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Absolute Advantage

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Occurs when a country has special natural resources or talents that allow it to produce an item at the lowest cost possible

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Comparative Advantage

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The value that a nation gains by selling the goods that it produces most efficiently

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Balance of Trade

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The difference in value between exports and imports of a nation

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Positive Balance of Trade (Trade Surplus)

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This occurs when a nation EXPORTS more than it imports

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Negative Balance of Trade (Trade Deficit)

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This occurs when a nation IMPORTS more than it exports

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Multinationals

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Large corporations that have operations in several countries

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Direct Investment

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When a film maintains 100% ownership of its plants, operation facilities and offices in a foreign country

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Joint Venture

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A partnership which allows companies to participate in a country's economy with a partner

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Outsourcing

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Contracting another entity to do work that would otherwise be done by a company's own employees

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Domestic Marketing

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Focusing marketing efforts on the home country's customers

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International Marketing

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Focusing marketing operations on more than one country

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Standardization

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Marketing strategy where a company offers the SAME product, using the SAME promotions, to all countries

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Product Adaptation

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Marketing strategy where a company modifies a product depending on the country

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Promotion Adaptation

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Marketing strategy where a company modifies their promotional plan depending on the country

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Dumping

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The practice of selling a good in a foreign market at a price that is lower than its domestic price or below its cost

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Human Development Index (HDI)

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A composite measure of three indicators of the quality of life in different countries (life expectancy, education, average income)

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Standard of Living

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A measure of quality based on the amount of goods and services individuals can buy

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Infastructure

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The basic facilities, services and installations needed for a community of society to function (transportation, communication system, utilities, schools, etc.)

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The World Trade Organization (WTO)

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A global coalition of governments that makes rules governing international trade

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The North American Free Trade Agreement (NAFTA)

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An international trade agreement amount the United States, Canada, and Mexico.

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The European Union (EU)

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The term for Europe's trading bloc. It was created to encourage economic integration as a singe market

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Value Chain Concept

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Suggests that a firm's activities in transforming raw materials and other inputs to final gods can be viewed as a collection of sequential tasks each adding value to the product