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42 Cards in this Set
- Front
- Back
countertrade
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using barter for global sales (15-20% worldtrade)
russian, eastern european and asian countries |
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trade feedback effect
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increased demand for exports of other nations energizes their economic activity, resulting in higher national income, which stimulates their demand for imports
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GDP
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monetary value of all g/s produced in a country during 1yr
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balance of trade
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diff btwn monetary value of a nation's exports and imports
e>i surplus e<i deficit |
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factor conditions
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nation's ability to turn its natural resources, education, and infrastructure into a competitive advantage
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demand conditions
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# and sophistication of domestic consumers for an industry's product
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related and supporting industries
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clusters of world class suppliers that accelerate innovation
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company strategy, structure, and rivalry
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conditions governing the way a nation's businesses are org and managed, and intensity of domestic competition
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Economic Espionage Act of 1996
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makes the theft of trade secrets by foreign entities a federal crime in the US
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4 World Trends in teh last decade:
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1. gradual decline of economic protectionism by individual countries
2. formal economic integration and free trade among nations 3. global competition among global companies for global customers 4. development of networked global marketplace |
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protectionism
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shielding one or more industries w/in a country's economy from foreign competition through the use of tariffs/quotas
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tariffs
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govt tax on g/s entering a country; raise prices on imports
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quota
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restriction placed on the amount of a product allowed to enter/leave a country; can be mandated or voluntary; legislated or negotiated by certain govts
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World Trade Organization
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147 member countries; >90% world trade
sets rules governing trade btwn its members through panels of trade experts who decide on trade disputes btwn members and issue binding decisions |
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global competition
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exists when firms originate, produce, and market their products and services worldwide
i.e auto, pharma, apparel, electronics, aerospace, and telecomm |
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strategic alliances
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agreements among two or more independent firms to cooperate for the purpose of achieving common goals such as a competitive advantage/consumer value creation
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multidomestic marketing strategy
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have as many diff product variations, brand names, and ad programs as countries in which they do business
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global marketing strategy
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standardizing marketing activities when there are cultural similariteis and adapting them when cultures differ; realize economies of scale from thier production and marketing activities
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global brank
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brand marketed under the same name in multiple countries w/similar and centrally coordinated marketing programs
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global consumers
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consumer groups living in many countries/regions of the world who have similar needs/seek similar features and benefits from products/services
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cross-cultural analysis
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study of sim/diff among consumers in two or more nations/societies
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values
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personally/socially pref modes of conducts/states that tend to persist over time
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customs
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what is considered nomral and expected about the way pple do things in a specific country
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Foreign Corrupt Practices Act (1977) as amended by the International Anti-dumping and Fair Competition Act (1998)
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make it a crime for US corp to bribe an official of a foreign govt or political party to obtain or retain business in a foreign country
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cultural symbols
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represent ideas and concepts
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semiotics
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examines the correspondence btwn symbols and their role in the assignment of meaning for pple
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back translation
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translated word/phrase is retranslated into the orig lang by a diff interpreter to catch errors
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consumer ethnocentrism
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tendency to believe that it is inappropriate, indeed immoral to purchase foreign-made goods
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scan of a global marketplace should include:
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1.comparative analysis of econ. develop in diff countries
2. assess of econ. infrastructure 3. measure of consumer income 4. recog of a coutnry's currency exchange rates |
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developed countries
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mixed economies
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developping countries
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process of moving from agricultural to industrial economy
1. those who have made the move 2. those who are locked |
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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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4 means of market entry:
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exporting
licensing joint venture direct investment |
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exporting
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producing goods in one country and selling them in another
indirect: sell through an intermediary direct: w/o intermediary |
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3 variations of licensing:
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contract manufacturing
contract assembly franchising |
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joint venture
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when a foreign company and local firm invest together to create a local business
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direct investment
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domestic firm invests in and owns a foreign subsidary/division
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product extension
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same product in other countries
-target market is similar across cultures and countries |
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product adaptation
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change product in some way to make it more appropriate for a country's climate/consumer pref
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product invention
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invent new products designed to satisfy common needs across countries
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dumping
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when a firm sells a product in a foreign country below its domestic price/actual cost
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gray market or parrallel importing
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products are sold through unauthorized channels of distribution
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