Mkt Exam2

Front 1

Reverse Auction

Back 1

an online auction in which a buyer communicate a need for a product or service and potential suppliers are invited to bid in competition with each other. GE initiated.

Front 2

Reverse auction is usually followed by;

Back 2

-post-auction negotiation
-many hidden costs

Front 3

The best strategy for reverse auction is

Back 3

good relationship with suppliers
(70% of suppliers retaliate on low bids)

Front 4

Dynamics of World Trade is explained by the followings;

Back 4

1. the dollar value of world trade has more than doubled in the past decade
2. Manufactured goods and commodities account for 75% and service industries represent the other 25% of the world trade.
3. US account for more than 90% of world trade

Front 5

4 trades that have significantly affected world trade;

Back 5

1. gradual decline economic protectionism by individual countries
2. formal economic integration and free trade among nations
3. global competition among global companies for global consumers.
4. development of networked global marketspace

Front 6

Protectionism

Back 6

the practice of shielding one or more industries within a country's economy from foreign competition, usually through the use of tariffs and quotas.

Front 7

Economic arguments of protectionism

Back 7

- it limits the outsourcing of the jobs
- protect the nation's political security
- discourages economic dependency on other countries
- encourages the development of domestic industries

Front 8

Tariffs

Back 8

a tax on goods or services entering a country. Because tariffs raise the price of imported goods, they give a price advantage to domestic goods competing in the same market.

Front 9

Quota

Back 9

a restriction placed on the amount of a product allowed to enter or leave a country. Import quotas seek to guarantee domestic industries access to a certain percentage of their domestic market.

Front 10

Quota is

Back 10

a hidden cost for consumers

Front 11

WTO

Back 11

- formed in 1995 to address a broad array of world trade issue
- 149 member countries
- sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue biding decisions

Front 12

Rise of economic integration is seen in the trend that;

Back 12

A number of countries with similar economic goals have formed Transnational trade groups or signed trade agreements to promote free trade among member nations and enhance their individual economies.

Front 13

Major examples of economic integration are;

Back 13

European Union (EU)
North American Free Trade Agreement (NAFTA)
Asian Free Trade Agreements

Front 14

EU

Back 14

- consists of 25 countries
- eliminated most barriers across their borders among the members
- has more than 500 million consumers with a combined GDP larger than the U.S.
-

Front 15

Euro

Back 15

the common currency that 12 of the EU countries have adopted.

Front 16

Pan-European marketing strategies are possible due to:

Back 16

1. greater uniformity of product and packaging standards
2. fewer regulatoty restrictions on transportation, advertising and promotion impose by countries.
3. removing of most tariffs that affect pricing practices

Front 17

NAFTA

Back 17

- lifted many trade barriers between Canada, Mexico, and the US to create marketplace with more than 435 million consumers
- has simulated trade among member nations as well as cross-border retailing, manufacturing, and investment.

Front 18

Asian Free Trade Agreement

Back 18

Effort to liberalize trade in East Asia are growing with some reductions in tariffs, but these trade agreements are less formal than the EU and NAFTA

Front 19

The emergence of borderless economic world has lead marketers to;

Back 19

global competition among global companies for global consumers