CH 8 -- Global Marketing Flashcards
Exporting
Marketing domestically produced goods and services in foreign countries
Importing
Purchasing foreign goods and services
Related Party Trade
Trade by US companies with their subsidiaries overseas as well as trade by US subsidiaries of foreign-owned firms with their parent companies
ISO (Internationals Organization for Standardization Certification)
Internationally recognized standards that ensure a company’s goods, services, and operations meet established quality levels and its operations minimize harm to the environment
Tariff
Tax levied against imported goods
Revenue Tariffs
Taxes designed to raise funds for the importing government
Protective tariffs
taxes designed to raise the retails price of an imported product to match or exceed that of a similar domestic product
Import Quotas
Trade restrictions limiting the number of units of certain goods that can enter a country for resale
Subsidies
Government financial support of private industries
Exchange Control
Method used to regulate international trade among importing organizations by controlling access to foreign currencies
Dumping
Controversial practice of selling a product in a foreign market at a price lower than what it receives in the producers domestic market
Free-Trade Era
Region in which participating nations agree to the free trade of goods among themselves, abolishing tariffs and trade restrictions
Customs Union
Establishment of free-trade area plus a uniform tariff for trade with nonmember unions
Common Market
Extension of customs union by seeking to reconcile all government regulations affecting trade
General Agreement of Tariffs and Trade (GATT)
International trade accord that has helped reduce world tariffs
World Trade Organization
Organization that replaces GATT, overseeing GATT agreements, making binding decisions in mediating disputes and reducing trade barriers
North America Free Trade Agreement – NAFTA
Accord removing trade barriers among Canada, Mexico, and the United States
Free Trade Area of the Americas – FTAA
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
European Union – EU
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
Franchise
Contractual arrangement in which a wholesaler or retailer agree to meet the operating requirements of a manufacturer or other franchiser
Foreign Licensing
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
Subcontracting
Contractual agreements that assign the production of goods or services to local or smaller firms
Global Marketing Strategy
Standardized marketing mix with minimal modifications that a firm uses in all of its domestic and foreign markets
Multidomestic marketing Strategy
Application of market segmentation to foreign markets by tailoring the firms marketing mix to match specific target markets in each nation
Counter-trade
Form of exporting whereby goods and services are bartered rather than sold for cash
