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24 Cards in this Set
- Front
- Back
4 trends that have affected world trade and global marketing
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1. Gradual decline of economic protectionism by individual countries
2. formal economic intergration and free trade among nations 3. global competition among global companies for global customers 4. development of networked global marketspace |
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Global Competition
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When firms originate, produce, and market their products and services worldwide
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international firms
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firms market their existing products and services in other countries the same way they do in their home country
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Multinational firms
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views the world as consisting of unique parts and markets to each part differently
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Transnational firms
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views the world as one market and emphasizes universal consumer needs and wants more than differences among cultures
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Global marketing strategy
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standardizing marketing activities when there are cultural similarities and adapting them when cultures differ
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brand marketed under the same name in multiple countries
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global brand
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global consumers
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consumers groups living around the world who have similar needs or seek similar benefits from products or services
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Global marketspace
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enables the exchange of goods from companies anywhere to customers anywhere at any time at a lower cost
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Cross-cultural analysis
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the study of similarities and differences among consumers in two or more nations or societies
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customs
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norms and expectations about the way people do things in a specific country
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cultural symbols
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things that represent ideas and concepts in a specific culture
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Back translation
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re-translating a word or phrase back into the original language using a different interpreter to catch errors
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Global scan should include
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-assessment of the economic infrastructure
-measurement of consumer income -recognition of a country's currency exchange rates |
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Currency exchange rate
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price of one country's currency expressed in terms of another country's currency
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Economic infrastructure
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country's communications, transportations, financial and distribution systems is a critical consideration in determining whether to try to market to a country's consumers and organizations
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How does political stability affect trade?
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trade depends on political stability. Political stability is affected by government's orientation toward foreign companies and trade with other countries
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Exporting
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producing goods in one country and then selling them in another country
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Indirect exporting
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firm sells its domestically produced goods in a foreign country through an intermediary
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Direct Exporting
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firm sells its domestically produced goods in a foreign country without intermediaries
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Licensing definition and advantages and disadvantages
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A company offers the right to a trade mark, patent, trade secret in return for a royalty or fee.
-ADV: granting a license is low risk -DISADV: licensor forgoes control of tis products, reduces profit gained by it |
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Franchising
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variation of licensing
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Joint Venture Definition and advantages and disadvantages
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when a foreign company and a local firm invest together to create a local business, sharing ownership, control and profits
-ADV: combine financial, physical, and managerial resources DISADV: disagreements might occurr |
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Direct investment definition and advantages and disadvantages
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When a domestic firm actually invests in and owns a foreign subsidiary or division
ADV: cost savings, fewer local restrictions DISADV: possible nationalization of assets |