Ch. 8 Global Marketing Flashcards
Trade Deficit
Country imports more than it exports
Globalization
Goods, services, capital, people, info, and ideas flow across national borders
Trade Surplus
Higher level of exports than imports
Gross Domestic Product (GDP)
Defines market value of goods and services produced by a country in a year
Gross National Product (GNP)
GDP + Net Income earned from investments abroad
Purchasing Power Parity (PPP)
Theory states if the exchange rates of two countries are in equilibrium, a product purchased in one will cost the same in the other, if expressed in same currency
Evaluating Real Income
Firms make adjustments to existing product or change price to meet unique needs of a particular country market
Infrastructure
Basic facilities, services, and installations needed for a community or society to function
EX:
Transportation and communications systems - water and power lines - public institutions, like schools, post offices, prisons
Tariffs (or duty)
Tax levied on a good imported into a country
Quota
Maximum quantity a product that may be brought into a country during specific time period
Exchange Control
Regulation of a country’s currency exchange rate
Exchange Rate
Measure how much one currency is worth in relation to another
Trade Agreements
Intergovernmental agreement to manage and promote trade activities for specific region
Trading Bloc
Countries that have signed particular trade agreement
Exporting
Producing goods in one country and selling them in another
