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42 Cards in this Set

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GLOBAL FIRM
A FIRM THAT, BY OPERATING IN MORE THAN 1 COUNTRY, GAINS PRODUCTION, R&D, MARKETING, AND FINANCIAL ADVANTAGES IN ITS COST & REPUTATION THAT ARE NOT AVAILABLE TO PURELY DOMESTIC COMPETITORS.
TARIFF
A TAX LEVIED BY A GOVERNMENT AGAINST CERTAIN IMPORTED PRODUCTS.
QUOTA
A LIMIT ON THE AMOUNT OF GOODS THAT AN IMPORTING COUNTRY WILL ACCEPT IN CERTAIN PRODUCT CATEGORIES.
EMBARGO
A BAN ON THE IMPORT OF A CERTAIN PRODUCT.
EXCHANGE CONTROLS
GOVERNMENT LIMITS ON THE AMOUNT OF FOREIGN EXCHANGE WITH OTHER COUNTRIES & ON THE EXCHANGE RATE AGAINST OTHER CURRENCIES.
NONTARIFF TRADE BARRIERS
NONMONETARY BARRIERS TO FOREIGN PRODUCTS, SUCH AS BIASES AGAINST A FOREIGN COMPANY'S BIDS OR PRODUCT STANDARDS THAT GO AGAINST A FOREIGN COMPANY'S PRODUCT FEATURES.
ECONOMIC COMMUNITY
A GROUP OF NATIONS ORGANIZED TO WORK TOWARD COMMON GOALS IN THE REGULATION OF INTERNATIONAL TRADE.
COUNTERTRADE
INTERNATIONAL TRADE INVOLVING THE DIRECT OR INDIRECT EXCHANGE OF GOODS FOR OTHER GOODS INSTEAD OF CASH.
EXPORTING
ENTERING A FOREIGN MARKET BY SENDING PRODUCTS & SELLING THEM
INDIRECT EXPORTING
SELLING PRODUCTS THROUGH INTERNATIONAL MARKETING INTERMEDIARIES
DIRECT EXPORTING
SELLING PRODUCTS THROUGH THE COMPANY'S OWN DEPARTMENT, BRANCH, OR SALES REPRESENTATIVES OR AGENTS
JOINT VENTURING
ENTERING FOREIGN MARKETS BY JOINING WITH FOREIGN COMPANIES TO PRODUCE OR MARKET A PRODUCT OR SERVICE.
LICENSING
A METHOD OF ENTERING A FOREIGN MARKET IN WHICH THE COMPANY ENTERS INTO AN AGREEMENT WITH A LICENSEE IN THE FOREIGN MARKET, OFFERING THE RIGHT TO USE A ITEM OF VALUE FOR A FEE OR ROYALTY.
MAJOR PROBLEMS CONFRONTED BY COMPANIES THAT GO GLOBAL
1.HIGH DEBT, INFLATION, & UNEMPLOYMENT RESULTS IN UNSTABLE GOVERNMENTS & CURRENCIES (LIMITS TRADE & EXPOSES FIRMS TO MANY RISKS)
2.GOVERNMENTS ARE PLACING MORE REGULATIONS ON FOREIGN FIRMS
3.FOREIGN GOVERNMENTS IMPOSE HIGH TARIFFS OR TRADE BARRIERS IN ORDER TO PROTECT THEIR OWN INDUSTRIES
4.CORRUPTION IS AN INCREASING PROBLEM (BRIBES)
GLOBAL INDUSTRY
ONE IN WHICH THE COMPETITIVE POSITIONS OF FIRMS IN GIVEN LOCAL OR NATIONAL MARKETS ARE AFFECTED BY THEIR GLOBAL POSITIONS.
6 MAJOR DECISIONS IN INTERNATIONAL MARKETING
1.LOOKING AT THE GLOBAL MARKETING ENVIRONMENT
2.DECIDING WHETHER TO GO INTERNATIONAL
3.DECIDING WHICH MARKETS TO ENTER
4.DECIDING HOW TO ENTER THE MARKET
5.DECIDING ON THE GLOBAL MARKETING PROGRAM
6.DECIDING ON THE GLOBAL MARKETING ORGANIZATION
GENERAL AGREEMENT ON TARIFFS & TRADE (GATT)
DESIGNED TO PROMOTE WORLD TRADE BY REDUCING TARIFFS & OTHER INTERNATIONAL TRADE BARRIERS.
2 ECONOMIC FACTORS THAT REFLECT A COUNTRY'S ATTRACTIVENESS AS A MARKET
1.INDUSTRIAL STRUCTURE
2.INCOME DISTRIBUTION
4 TYPES OF INDUSTRIAL STRUCTURES
1.SUBSISTENCE ECONOMIES
2.RAW MATERIAL EXPORTING ECONOMIES
3.INDUSTRIALIZING ECONOMIES
4.INDUSTRIAL ECONOMIES
4 POLITICAL-LEGAL FACTORS TO CONSIDER IN DECIDING WHETHER TO DO BUSINESS IN A GIVEN COUNTRY
1.ATTITUDES TOWARD INTERNATIONAL BUYING
2.GOVERNMENT BUREAUCRACY
3.POLITICAL STABILITY
4.MONETARY REGULATIONS
GOVERNMENT BUREAUCRACY
THE EXTENT TO WHICH THE HOST GOVERNMENT RUNS AN EFFICIENT SYSTEM FOR HELPING FOREIGN COMPANIES.
FORMS OF COUNTERTRADE
1.BARTER
2.COMPENSATION (BUYBACK)
3.COUNTERPURCHASE
BARTER
THE DIRECT EXCHANGE OF GOODS OR SERVICES
COMPENSATION
WHERE THE SELLER SELLS A PLANT, EQUIPMENT, OR TECHNOLOGY TO ANOTHER COUNTRY & AGREES TO TAKE PAYMENT IN THE RESULTING PRODUCTS.
COUNTERPURCHASE
WHERE THE SELLER RECEIVES FULL PAYMENT IN CASH BUT AGREES TO SPEND SOME PORTION OF MONEY IN THE OTHER COUNTRY WITHIN A STATED TIME PERIOD.
CULTURAL ENVIRONMENT ASPECTS
1.FOLKWAYS
2.NORMS
3.TABOOS
FACTORS THAT MIGHT DRAW A COMPANY INTO THE INTERNATIONAL ARENA
1.THE COMPANY MIGHT WANT TO COUNTERATTACK COMPETITORS IN THEIR HOME MARKETS TO TIE UP THEIR RESOURCES
2.THE COMPANY MIGHT DISCOVER FOREIGN MARKETS THAT PRESENT HIGHER PROFIT OPPORTUNITIES THAN THE DOMESTIC MARKET
3.THE COMPANY'S DOMESTIC MARKET MIGHT BE STAGNANT OR SHRINKING, OR THE COMPANY MIGHT NEED AN ENLARGED CUSTOMER BASE IN ORDER TO ACHIEVE ECONOMIES OF SCALE
4.THE COMPANY MIGHT WANT TO REDUCE ITS DEPENDENCE ON ANY ONE MARKET SO AS TO REDUCE ITS RISK
5.THE COMPANY'S CUSTOMERS MIGHT BE EXPANDING ABROAD & REQUIRE INTERNATIONAL SERVICING
FACTORS THAT A COUNTRY'S ATTRACTIVENESS DEPENDS ON
1.PRODUCT
2.GEOGRAPHICAL FACTORS
3.INCOME & POPULATION
4.POLITICAL CLIMATE
FACTORS TO RANK POSSIBLE GLOBAL MARKETS
1.MARKET SIZE
2.MARKET GROWTH
3.COST OF DOING BUSINESS
4.COMPETITIVE ADVANTAGE
5.RISK LEVEL
MODE OF ENTRY CHOICES
1.EXPORTING
2.JOINT VENTURING
3.DIRECT INVESTMENT
INDIRECT EXPORTING
WORKING THROUGH INDEPENDENT INTERNATIONAL MARKETING INTERMEDIARIES
TYPES INTERNATIONAL MARKETING INTERMEDIARIES
1.DOMESTIC-BASED EXPORT MERCHANTS OR AGENTS
2.COOPERATIVE ORGANIZATIONS
3.EXPORT-MANAGEMENT COMPANIES
WAYS TO CONDUCT DIRECT EXPORTING
1.SET UP A DOMESTIC EXPORT DEPARTMENT
2.SET UP AN OVERSEAS SALES BRANCH
3.SEND HOME-BASED SALESPEOPLE ABROAD
4.DO ITS EXPORTING EITHER THROUGH FOREIGN-BASED DISTRIBUTORS FOREIGN-BASED AGENTS
DIRECT EXPORTING
WHERE A COMPANY HANDLES THEIR OWN EXPORTS
WORLD BRANDS
MORE OR LESS THE SAME PRODUCT SOLD THE SAME WAY TO ALL CONSUMERS WORLDWIDE.
"GLOCAL STRATEGY"
WHERE THE FIRM STANDARDIZES CERTAIN CORE MARKETING ELEMENTS & LOCALIZES OTHERS.
2 FORMS OF PRODUCT INVENTION
1.REINTRODUCE EARLIER PRODUCT FORMS THAT HAPPEN TO BE WELL ADAPTED TO THE NEEDS OF A GIVEN COUNTRY.
2.CREATE A NEW PRODUCT TO MEET A NEED IN ANOTHER COUNTRY.
WAYS TO SET INTERNATIONAL PRICES
1.SET A UNIFORM PRICE ALL AROUND THE WORLD
2.CHARGE WHAT CONSUMERS IN EACH COUNTRY WOULD BEAR
3.USE A STANDARD MARKUP OF ITS COSTS EVERYWHERE
DUMPING
OCCURS WHEN A COMPANY EITHER CHARGES LESS THAN ITS COSTS OR LESS THAN IT CHARGES IN ITS HOME MARKET.
TRADE RESTRICTIONS
1.TARIFF
2.QUOTA
3.EXCHANGE CONTROLS
4.NONTARIFF TRADE BARRIERS
3 MAJOR LINKS BETWEEN THE SELLER & THE FINAL BUYER
1.SELLERS HEADQUARTERS ORGANIZATION
2.CHANNELS BETWEEN NATIONS
3.CHANNELS WITHIN NATIONS
"FORTRESS EUROPE"
THEORY THAT EU MEMBERS MAY HEAP FAVORS ON FIRMS FROM EU COUNTRIES BUT HINDER OUTSIDERS BY IMPOSING OBSTACLES SUCH AS STIFFER IMPORT QUOTAS OR LOCAL CONTENT REQUIREMENTS.