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31 Cards in this Set
- Front
- Back
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A ____ ___ is one that, by operating in more than one country, gains marketing, production, R and D, and financial advantages that are not available to purely domestic competitors.
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Global firm
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Companies looking abroad must start by understanding the international ____ ___. When selling to another country, a firm may face restrictions on trade between nations. Foreign governments may charge ____, taxes on certain imported products designed to raise revenue or to protect domestic firms.
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trade system, tarrifs
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The company may face ____ ____ ___, such as biases against its bids, restrictive product standards, or excessive regulations
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nontarriff trade barriers
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What are the two forces that help trade between nations?
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GATT and regional free trade agreements
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_______ is a 61 year old treaty designed to promote world trade by reducing tariffs and other international trade barriers.
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GATT
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A group of nations organized to work toward common goals in the regulation of international trade. An example would be the European Union
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economic community
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established a free trade zone among the United States, Mexico and Canada
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NAFTA
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What are the two economic factors that reflect the country's attractiveness as a market?
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country's industrial structure and its income distribution
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What are the four types of industrial structures?
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subsistence economies, raw material exporting economies, industrializing economies, industrial economies
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When looking at the global marketing environment one must look at the international trade system, economic environment, political-legal environment, and ____ environment
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cultural
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International trade involving the direct or indirect exchange of goods for other goods instead of cash.
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countertrade
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where the seller sells a plant, equipment, or technology to another country and agrees to take payment in the resulting products
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compensation or buybacl
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where the eller receives full payment in cash but agrees to spend some of the money in the other country.
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counterpurchase
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What are some reasons companies don't globalize?
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have to deal with unstable currencies, face political and legal uncertainties, redesign their products to suit different customer expectations. Economy might be stagnant.
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T/F. Because of the difficulties of entering international markets, most companies do not act until some situation or event thrusts them into the global arena.
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TRUE
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The simplest way to enter a foreign market is through ____. The company may passively___ its surpluses from time to time, or it may make an active commitment to expand ____ to a particular market.
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exports
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joining with foreign companies to produce or market products or services.
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joint venturing
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a simple way for a manufacturer to enter international marketing. The company enters into an agreement with a licensee in the foreign market.
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licensing
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the company ___ with manufactures in the foreign market to produce its product or provide its service.
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contract manufacturing
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domestic firm supplies management know-how to a foreign company that supplies the capital. The domestic firm exports management services rather than products.
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management contracting
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ventures consist of one company joining forces with foreign investors to create a local business A company may buy an interest in a local firm or the two parties may form a new business venture.
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joint ownership
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What are the drawbacks of joint venture?
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partners may disagree over investment, marketing, or other policies.
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development of foreign based assembly or manufacturing facilities. The firm may have lower costs in the form of cheaper labor or raw materials, foreign government investment incentives, and freight savings
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direct investment
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An international marketing strategy for using basically the same marketing strategy and mix in all the company's international markets
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standardized global marketing
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An international marketing strategy for adjusting the marketing strategy and mix elements to each international target market, bearing more costs but hoping for a larger market share and return.
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adapted global marketing
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marketing a product in a foreign market without any change
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straight product extension
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adapting a product to meet local conditions or wants in a foreign market
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product adaptation
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creating new products or services for foreign markets
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product invention
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a global communication strategy of fully adapting advertising messages to local markets
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communication adaptation
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occurs when a company either charges less than its costs or less than it charges in its home market
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dumping
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desigining international channels that take into account the entire global supply chain and marketing channel, forging an effective global value delivery network. It recognizes to compete well internationally, the company must effectively design and manage an entire global value delivery network.
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whole channel view
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