Marketing 1St Test Chapter 3

Front 1

world trade

Back 1

the flow of goods and services among different countries. the value of all the exports and imports of the worlds nations

Front 2

counter trade

Back 2

a type of trade in which goods are paid for with other items instead of with cash.
( barter is a common form of counter trade)

Front 3

“Go” or “no go” on going global

Back 3

Must consider domestic and global market conditions and competitive advantage when making a decision

Front 4

(GATT)

Back 4

General Agreement on Tariffs and Trade

Front 5

(WTO)

Back 5

World Trade Organization

Front 6

Gross domestic product (GDP)

Back 6

Total dollar value of goods and services a country produces within its borders in a year

Front 7

Gross national product (GNP)

Back 7

Value of all goods and services produced by a country’s citizens or organizations

Front 8

Economic infrastructure

Back 8

Quality of country’s distribution, financial, and communications systems

Front 9

Least developed country (LDC)

Back 9

Economic base is often agricultural

Front 10

Developing countries

Back 10

Offer wide range of opportunities for international marketers

Front 11

The Business Cycle

Back 11

-Prosperity
-Recession
-Recovery
-Depression
-Inflation

Front 12

Competitive intelligence

Back 12

Gathering and analyzing publicly available information about rivals to develop superior marketing strategies

Front 13

Competition in the microenvironment

Back 13

-Competition for consumer’s discretionary income
-Competition among products to satisfy the same consumer’s needs and wants
-Competition among brands offering similar goods and services on the basis of brand reputation or perceived benefits

Front 14

Competition in the macroenvironment

Back 14

-Monopoly- electric companies
-Oligopoly- small businesses coming together
-Monopolistic competition- each firms attempting to be a monopoly
-Perfect competition- Because the conditions for perfect competition are strict, there are few if any perfectly competitive markets.

Front 15

Technology

Back 15

-Provides firms with important competitive advantages
-Profoundly affects marketing activities
-Can transform industries

Front 16

Patent

Back 16

Legal document giving inventors exclusive rights to produce and sell a particular invention in that country

Front 17

Purpose of American law

Back 17

-To make sure businesses compete fairly with each other
-To make sure that businesses do not take advantage of consumers

Front 18

Bribery

Back 18

When someone voluntarily offers payment to get an illegal advantage

Front 19

Extortion

Back 19

When someone in authority extracts payment under duress

Front 20

Licensing

Back 20

may be granted by a party ("licensor") to another party ("licensee") as an element of an agreement between those parties.

Front 21

Franchising

Back 21

The franchise agreement is the cornerstone document of the franchisee--franchiser relationship. It is this document that is legally binding on both parties, laying out the rights and obligations of each

Front 22

Joint venture

Back 22

A contractual agreement between 2 or more business partners to assume a common business strategy on a project. All partners generally agree to share the profits and losses through their common shareholdings.

Front 23

Standardization

Back 23

Offer the same products in all markets

Front 24

Localization

Back 24

Offer a customized marketing mix for each country

Front 25

Straight extension strategy

Back 25

the practice of releasing an existing product without making any changes to it while releasing it to a foreign market.

Front 26

Product adaptation strategy

Back 26

businesses will make changes to their products to make them better than their initial offerings or to compete with emerging products in the industry.

Front 27

Product invention strategy

Back 27

Developing new products or modifying existing products so they appear new, and offering those products to current or new markets is the definition of product development strategy.

Front 28

Price decisions

Back 28

Products are often more expensive to produce for foreign markets

Front 29

Distribution decisions

Back 29

Getting the product to remote locations is often difficult

Front 30

discretionary income

Back 30

income left over to do whatever with after paying bills and other necessities.

Front 31

nationalization

Back 31

country takes over your business

Front 32

exportation

Back 32

the act, business, or process of exporting goods or services

Front 33

strategic agreement

Back 33

sign contract with company to help distribute product

Front 34

direct investment

Back 34

physically have presence in that country

Front 35

extortion

Back 35

when someone in authority extracts payments under duress

Front 36

sherman antitrust act

Back 36

1890, first measure passed by the U.S. Congress to prohibit trusts

Front 37

robinson patman act

Back 37

designed to prevent monopolies by catching early-stage practices leading to corporate mergers.

Front 38

child protection act

Back 38

an act to require the reporting of child abuse and neglect by certain persons; to permit the reporting of
child abuse and neglect by all persons