Marketing Chapter 5

Front 1

Global marketing

Back 1

Marketing that targets markets throughout the world

Front 2

Global vision

Back 2

Recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets

Front 3

Job outsourcing

Back 3

Sending U.S. jobs abroad

Front 4

Multinational corporation

Back 4

A company that is heavily engaged in international trade, beyond exporting and importing

Front 5

Capital-intensive

Back 5

Using more capital than labor in the production process

Front 6

Global marketing standardization

Back 6

Production of uniform products that can be sold the same way all over the world

Front 7

Mercosur

Back 7

The largest Latin American trade agreement; includes Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, and Uruguay

Front 8

Uruguay Round

Back 8

An agreement to dramatically lower trade barriers worldwide; created the World Trade Organization

Front 9

Word Trade Organization (WTO)

Back 9

Trade organization that replaced the old General Agreement on Tariffs and Trade (GATT)

Front 10

General Agreement on Tariffs and Trade (GATT)

Back 10

A trade agreement that contained loopholes that enables countries to avoid trade-barrier reduction agreements

Front 11

North American Free Trade Agreement (NAFTA)

Back 11

An agreement between Canada, the United States, and Mexico that created the world's largest free trade zone

Front 12

Central America Free Trade Agreement (CAFTA)

Back 12

A trade agreement, instituted in 2005, that includes Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States

Front 13

European Union (EU)

Back 13

A free trade zone encompassing 27 European countries

Front 14

World Bank

Back 14

An international bank that offers low-interest loans, advice, and information to developing nations

Front 15

International Monetary Fund (IMF)

Back 15

An international organization that acts as a lender of last resort, providing loans to troubled nations, and also works to promote trade through financial cooperation

Front 16

Exporting

Back 16

Selling domestically produced products to buyers in another country

Front 17

Buyer for export

Back 17

An intermediary in the global markets that assumes all ownership risks and sells globally for its own account

Front 18

Export broker

Back 18

An intermediary that plays the traditional broker's role by bringing buyer and seller together

Front 19

Export agent

Back 19

An intermediary that acts like a manufacturer's agent for the exporter; the export agent lives in the foreign market

Front 20

Licensing

Back 20

The legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge

Front 21

Contract manufacturing

Back 21

Private-label manufacturing by a foreign company

Front 22

Joint venture

Back 22

When a domestic firm buys part of a foreign company to create a new entity

Front 23

Direct foreign investment

Back 23

Active ownership of a foreign company or of overseas manufacturing or marketing facilities

Front 24

Floating exchange rates

Back 24

Prices of different currencies move up and down based on the demand for and the supply of each currency

Front 25

Dumping

Back 25

The sale of an exported product at a price lower than that changed for the same or a like product in the "home" market of the exporter

Front 26

Countertrade

Back 26

A form of trade in which all of part of the payment for goods or services in the form of other goods or services