Marketing Ch. 7 Vocab

Front 1

Back translation
pg. 174

Back 1

its where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors
-experienced global markets use this

Front 2

Balance of trade
pg. 161

Back 2

the difference between the monetary value of a nations exports and imports.

Front 3

Bottom of the pyramid
pg. 175

Back 3

largest, but poorest, socioeconomic group of people in the world.

Front 4

Consumer ethnocentrism
pg. 175

Back 4

is the tendency to believe that it is inappropriate, indeed immoral, to purchase foreign-made products.

Front 5

Countertrade
pg. 160

Back 5

the practice of using barter rather than money for making global sales.
-15-20% or world trade involves countertrade

Front 6

Cross-cultural analysis
pg. 171

Back 6

involves the study of similarities and differences among consumers in two or more nations or societies.
-A thorough cross-cultural analysis involves an understanding of and an appreciation for values, customs, symbols, and language of other societies.

Front 7

Cultural symbols
pg. 173

Back 7

are things that represent ideas and concepts.

Front 8

Currency exchange rate
pg. 178

Back 8

is the price of one country's currency expressed in terms of another country's currency, such as the U.S. dollar expressed in Japanese, yen, euros, or Swiss francs.

Front 9

Customs
pg. 172

Back 9

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

Front 10

Direct investment
pg. 183

Back 10

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

Front 11

Dumping
pg. 186

Back 11

is when a firm sells a product in a foreign country below its domestic price or below its actual cost.
-ex: selling superbowl champion t-shirts with the losing team on them overseas

Front 12

Economic Espionage Act (1996)
pg. 163

Back 12

makes the theft of trade secrets by foreign entities a federal crime in the United States.

Front 13

Exporting
pg. 180

Back 13

is producing goods in one country and selling them in another country.

Front 14

Foreign Corrupt Practices Act (1977)
pg. 172

Back 14

a law amended by the International Anti-Dumping and Fair Competition Act (1998), that 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 15

Global brand
pg. 169

Back 15

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

Front 16

Global competition
pg. 167

Back 16

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

Front 17

Global consumers
pg. 169

Back 17

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 and services.

Front 18

Global marketing strategy
pg. 169

Back 18

the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.

Front 19

Gray market
pg. 186

Back 19

is a situation where products are sold through unauthorized channels of distribution.
-also called parallel importing

Front 20

Gross domestic product (GDP)
pg. 160

Back 20

the monetary value of all goods and services produced in a country during one year.
-U.S. is the perennial leader

Front 21

Joint venture
pg. 182

Back 21

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

Front 22

Microfinance
pg. 177

Back 22

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

Front 23

Multidomestic marketing strategy
pg. 168

Back 23

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

Front 24

Protectionism
pg. 164

Back 24

the practice of shielding one or more industries within a country's economy from foreign competition through the use of tariffs or quotas.

Front 25

Quota
pg. 165

Back 25

a restriction placed on the amount of a product allowed to enter or leave a country.

Front 26

Semiotics
pg. 173

Back 26

a field of study that examines the correspondence between symbols and their role in the assignment of meaning for people

Front 27

Strategic alliances
pg. 168

Back 27

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

Front 28

Tariffs
pg. 164

Back 28

government tax on goods or services entering a country, primarily serve to raise prices on imports

Front 29

Values
pg. 171

Back 29

represent personally or socially preferable modes of conduct or states of existence that tend to persist over time.
ex: McDonalds doesn't sell beef hamburgers in India because the cow is sacred

Front 30

World trade organization (WTO)
pg. 165

Back 30

A permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions