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24 Cards in this Set

  • Front
  • Back
4 trends that have affected world trade and global marketing
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
Global Competition
When firms originate, produce, and market their products and services worldwide
international firms
firms market their existing products and services in other countries the same way they do in their home country
Multinational firms
views the world as consisting of unique parts and markets to each part differently
Transnational firms
views the world as one market and emphasizes universal consumer needs and wants more than differences among cultures
Global marketing strategy
standardizing marketing activities when there are cultural similarities and adapting them when cultures differ
brand marketed under the same name in multiple countries
global brand
global consumers
consumers groups living around the world who have similar needs or seek similar benefits from products or services
Global marketspace
enables the exchange of goods from companies anywhere to customers anywhere at any time at a lower cost
Cross-cultural analysis
the study of similarities and differences among consumers in two or more nations or societies
customs
norms and expectations about the way people do things in a specific country
cultural symbols
things that represent ideas and concepts in a specific culture
Back translation
re-translating a word or phrase back into the original language using a different interpreter to catch errors
Global scan should include
-assessment of the economic infrastructure
-measurement of consumer income
-recognition of a country's currency exchange rates
Currency exchange rate
price of one country's currency expressed in terms of another country's currency
Economic infrastructure
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
How does political stability affect trade?
trade depends on political stability. Political stability is affected by government's orientation toward foreign companies and trade with other countries
Exporting
producing goods in one country and then selling them in another country
Indirect exporting
firm sells its domestically produced goods in a foreign country through an intermediary
Direct Exporting
firm sells its domestically produced goods in a foreign country without intermediaries
Licensing definition and advantages and disadvantages
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
Franchising
variation of licensing
Joint Venture Definition and advantages and disadvantages
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
Direct investment definition and advantages and disadvantages
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