Ch 1 Flashcards
What are some of the trade preference programs that the U.S. government uses to assist countries?
(unsure)
Generalized Systems of Preference (GSP)
- renews/ decade
Caribbean Basin Economic Recovery Act
- updated version of GSP
-17 countries
-no expiration authorized until Sep 30,2030
Andean Trade Promotion + Drug Eradication Act
What is “Most-Favored Nation (MFN)” treatment in international trade?
Obtaining the lowest tariffs
What are some of the reactive reasons that drive companies to market their products internationally?
Reactive:
- Responding to unsolicited offers from abroad
- Loss of domestic competitiveness
- Defensive purposes (foreign competition)
What are the uncontrollable environments in international marketing? How do they differ from domestic marketing?
International mkt:
- Political/ legal forces
- Cultural forces
- Geography + infrastructure
- Structure of distribution
- Level of technology
- Competitive forces
- Economic forces
Domestic mkt: same except for
- Economic climate
- Competition
Differ:
In the environment (consider domestic AND environmental forces in each one of their foreign markets)
What is the self-reference criterion (SRC)?
An unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions.
What is Ethnocentrism?
The notion that one’s own culture or company knows best how to do things
What are the 5 stages of international marketing involvement and what do companies do at each stage?
- No direct foreign mkt
- Infrequent foreign mkt
3.Regular foreign mkt - Multidomestic
- Global
What are the 3 different strategic orientations in international marketing and the firm classifications they represent?
1.Domestic mkt extension–> ethnocentric
2. Multidomestic mkt–> polycentric
3. Global mkt–> regiocentric or geocentric
What is the Value Chain and how do global companies optimize it?
Series of operations that a company does to deliver value to its customers
- Optimize value of chain: global mkt
- Assign each element of value chain to the subsidiary that does it best
What are some of the proactive reasons that drive companies to market their products internationally?
- Expanded mkt potential + growth
- Geographic diversification to spread risk
- Economies of scale + optimal productivity
- Product at end of its life cycle
- Overseas markets as source of new products, ways of doing business
What is domestic mkt extension orientation?
More important
int. is an extension of this
USES EXPORTING
Firm classification: ethnocentric
What is ethnocentric classification?
Home country is superior, management sees SIMILARITIES in foreign countries to domestic mkt
What is multidomestic- International mkt orientation?
Each foreign country is DIFFERENT
requires separate mkt strategies
SETS UP FOREIGN SUBSIDARIES (BRANCHES)
firm classification: polycentric
What is polycentric classification?
Mkt strategy MUST be adapted to local country mkts
What is global mkt orientation?
ENTIRE world is a potential mkt
many similarities + differences
Firm classification: regiocentric or geocentric
