CH 8 -- Global Marketing

Question 1

Exporting

Answer 1

Marketing domestically produced goods and services in foreign countries

Question 2

Importing

Answer 2

Purchasing foreign goods and services

Question 3

Related Party Trade

Answer 3

Trade by US companies with their subsidiaries overseas as well as trade by US subsidiaries of foreign-owned firms with their parent companies

Question 4

ISO (Internationals Organization for Standardization Certification)

Answer 4

Internationally recognized standards that ensure a company’s goods, services, and operations meet established quality levels and its operations minimize harm to the environment

Question 5

Tariff

Answer 5

Tax levied against imported goods

Question 6

Revenue Tariffs

Answer 6

Taxes designed to raise funds for the importing government

Question 7

Protective tariffs

Answer 7

taxes designed to raise the retails price of an imported product to match or exceed that of a similar domestic product

Question 8

Import Quotas

Answer 8

Trade restrictions limiting the number of units of certain goods that can enter a country for resale

Question 9

Subsidies

Answer 9

Government financial support of private industries

Question 10

Exchange Control

Answer 10

Method used to regulate international trade among importing organizations by controlling access to foreign currencies

Question 11

Dumping

Answer 11

Controversial practice of selling a product in a foreign market at a price lower than what it receives in the producers domestic market

Question 12

Free-Trade Era

Answer 12

Region in which participating nations agree to the free trade of goods among themselves, abolishing tariffs and trade restrictions

Question 13

Customs Union

Answer 13

Establishment of free-trade area plus a uniform tariff for trade with nonmember unions

Question 14

Common Market

Answer 14

Extension of customs union by seeking to reconcile all government regulations affecting trade

Question 15

General Agreement of Tariffs and Trade (GATT)

Answer 15

International trade accord that has helped reduce world tariffs

Question 16

World Trade Organization

Answer 16

Organization that replaces GATT, overseeing GATT agreements, making binding decisions in mediating disputes and reducing trade barriers

Question 17

North America Free Trade Agreement – NAFTA

Answer 17

Accord removing trade barriers among Canada, Mexico, and the United States

Question 18

Free Trade Area of the Americas – FTAA

Answer 18

Proposed free-trade area stretching the length of the entire Western Hemisphere and designed to extend free trade benefits to additional nations in North, Central and South America

Question 19

European Union – EU

Answer 19

Customs union that is moving in the direction of an economic union by adopting a common currency, removing trade restrictions, and permitting free flow of goods and workers throughout member nations

Question 20

Franchise

Answer 20

Contractual arrangement in which a wholesaler or retailer agree to meet the operating requirements of a manufacturer or other franchiser

Question 21

Foreign Licensing

Answer 21

Agreement that grants foreign marketers the right to distribute a firm’s merchandise or to use its trademark, patent, or process in a specified geographic area

Question 22

Subcontracting

Answer 22

Contractual agreements that assign the production of goods or services to local or smaller firms

Question 23

Global Marketing Strategy

Answer 23

Standardized marketing mix with minimal modifications that a firm uses in all of its domestic and foreign markets

Question 24

Multidomestic marketing Strategy

Answer 24

Application of market segmentation to foreign markets by tailoring the firms marketing mix to match specific target markets in each nation

Question 25

Counter-trade

Answer 25

Form of exporting whereby goods and services are bartered rather than sold for cash