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20 Cards in this Set

  • Front
  • Back
Global Commerce Causes
Peace


aircraft
mobile phone
Four most dynamic trends affecting global business today
1. Rapid growth of World Trade organization and regional free trade areas (NAFTA)

2. Acceptance of the free market system among developing countries: Latin America, Asia, and Eastern Europe

3. Global Media: internet, phones

4. the mandate to manage the resources and global environment properly for the generations to come.
Foreign investment in the USA
16.3 trillion (book) 9.6 (slides)


2.6 trillion more than US overseas
Environmental Adaptation
be able to interpret effectively the influence and impact of the culture in which you hope to do business
Foreign Environment

(uncontrollable) 7
political/legal forces
economic forces
competitive forces
level of technology
structure of distribution
geography and infrastructure
cultural forces
Domestic Environment

(uncontrollable) 3
political/legal forces
economic climate
competitive structure
Persons self-reference criterion (SRC)
unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions.
The key to successful international marketing
adaptation to the environmental differences from one market to another
dangers of the SRC
failing to recognize the need to take action

discounting cultural differences

reacting in offensive ways
the most effective way to control the influence of ethnocentrism and the SRC is to
recognize their effects on our behavior
globally aware
tolerance of cultural differences
knowledge of cultures, history, world market potential, and global economic, social, and political trends
5 stages of international marketing involvement
no direct foreign marketing
infrequent foreign marketing
regular foreign marketing
international marketing
global marketing
no foreign marketing
online sales
distributors sales

not actively trying to get foreign customers
infrequent foreign marketing
surpluses brought to foreign markets with no intention of long term markets
regular foreign marketing
permanent productive capacity devoted to the production of goods to be marketed in foreign markets.

critical to existence
international marketing
fully committed to and involved in international marketing activities

production of goods outside the home market

company becomes an international or multinational marketing firm
global marketing
treat the world as one market

usually when more than half of sales are abroad
strategic orientation 3
domestic market extension orientation
multi-domestic market orientation
global market orientation
domestic market extension orientation
domestic business is priority

minimal efforts to adapt the marketing mix to foreign markets

ethnocentric
multidomestic market orientation
country-by-country basis

separate marketing strategies for each country

advertising is localized