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37 Cards in this Set

  • Front
  • Back


refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members

Sovereign State

Independent and free from all external control.

EX: Governs own territory, Selects own Social Systems, and Full legal equality with other states

Theocratic Republic

The religious leader controls government and all governmental decisions


Targets all foreign countries


Targets specific nations


the most severe political risk, is the seizing of a company's assets without payment


the government seizes an investment, but some reimbursement for the asset is made; often nationalized to become government entitiy


occurs when the government mandates local ownership and greater national involvement in a foreign company's management

Jurisdiction is determined on the basis of...

1. Jurisdictional clauses included in contracts

2. where contract was entered into, or

3. where the provisions of the contract were performed


A third party mediates differences, statements are confidential, not legally binding


Parties select a disinterested and informed party as a referee to determine the merits of the case and make a judgment both parties agree to honor


Fear of creating poor image and being treated unfairly in foreign court, cost and time, loss of confidentiality

Marketing Researchis

traditionally defined as the systematic gathering, recording, and analyzing of data to provide information useful to marketing decision making

International Marketing Complications

1. Information must be communicated across cultural boundaries

2. The environments in which the research tools are applied are often different in foreign markets

International Marketing 3 Types

1. General Information

2. Information necessary to forecast

3. Specific market information

Problems with Secondary Data

Availability, Comparability, Reliability, Validation

Availability of Data

There is a lack of language skills in the country the firm is operating in

Reliability of Data

Data could be biased, stats could be unrealistic and overly optimistic

Comparability of Data

Old and outdated or lack of historical data

Validating Secondary Data

Checking consistency of data against another form of data

Back Translation

Done in English then translated and then translated back to English

Parallel Translation

Developed in English and Other Language consecutively and revised until equivalent


Translated and retranslated each time by a different translator

Types of Biases


Courtesy Bias

Yea or Nay



More Developed Countries

Industrialized countries with high per capita incomes.

Ex: Canada, France, England

Less Developed Countries

Industrially developed, just entering world trade

Ex: Asia & Latin America

Least Developed Countries

Industrially underdeveloped, low per capita income, little world trade involvement

Ex: Asia & Central Africa

Newly Industrialized Countries

1. Countries that are experiencing rapid economic expansion

2. Instituted significant free market reforms

3. They attract both trade and foreign direct investment

Newly Industrialized Countries Economic Growth Factors

Planning, Political stability, Economic reforms, Factors of production, Entrepreneurship

The Traditional

rural/ agricultural sector

The Modern

urban/high-income sector

Transitional Sector

Large and usually represented by low-income urban slums

Traits of Big Emerging Markets

Geographically large, Large populations, sizable markets, strong growth rates or potential, economic reform

Ex: India, China, Brazil, Mexico, Poland, Turkey


Created to promote free trade and movement of goods, people, and currency. wanted to adopt a common trade policy.



Generate income and employment gains

Enhance global competitiveness of NAFTA firms

Latin American Integration Association

Latin American common market

The provision that permits members to establish bilateral trade agreements among member countries

Caribbean Community and Common Market

Goal of a common currency for all members