Chapter 1 Flashcards
List the 5 most important trends affecting global business
1) Rapid growth of the WTO and regional free trade areas
2) Acceptance of the free market system
3) Growing middle class in developing countries
4) Impact of the internet, mobile phones, and other global media on the dissolution of national borders
5) Mandate to properly manage the resources and global environment
- Many formally U.S. companies are now foreign owned
- Many foreign companies manufacture in U.S.
- Huge portion of the products sold in U.S. are foreign made
This lead to increased competition for U.S. companies
Non-U.S. companies entering the U.S.
An example of this is: Western Central Transportation controls U.K. Rail freight business and Queen’s private train
U.S. companies in other countries
Being international is not a luxury ___________________
It’s a necessity
__________________ outperforms domestic companies
U.S. multinational companies
What is: the performance of business activities designed to plan, price, promote, and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit?
International Marketing
What two things differentiates marketing and international marketing?
1) In more than one nation
2) The uncontrollable environment
List the seven components of the international marketing task under the foreign environment portion:
1) Political/legal forces
2) Cultural forces
3) Geography and infrastructure
4) Structure of distribution
5) Level of technology
6) Competitive forces
7) economic forces
List the three components of the international marketing task under the domestic environment portion:
1) Political/legal forces
2) Economic climate
3) Competitive structure
List the six components of the international marketing task under the controllable portion:
1) Firm characteristics
2) Price
3) Product
4) Promotion
5) Channels of distribution
6) Research
Tell whether each portion of the international marketing task is controllable or uncontrollable:
1) Foreign environment
2) Domestic environment
3) Environmental
1) Uncontrollable
2) Uncontrollable
3) Uncontrollable elements
What is: an unconscious reference to ones own cultural values, experiences, and knowledge as a basis for decisions?
What is an example?
Self-Reference Criterion (SCR)
Personal space
*Aware of only 1/10 of our cultural conditioning
What is: the notion that people in ones own company, culture, or country knows best how to do things?
Where does this most often occur?
Ethnocentrism
When managers from affluent countries work with managers from less affluent countries
What is a risk of SRC?
SRC influences the evaluation of the appropriateness of a domestically designed marketing mix for a foreign market
- To recognize the effects on our behavior
- To recognize that there may be more similarities than differences between countries
- To conduct cross-cultural analysis
These are all ways to do what?
Control the influence of SRC and ethnocentrism when adapting to foreign markets
_______ involves:
- Tolerance of cultural differences
- knowledge of cultures, history, world market potential, and global economic, social, and political trends
Global Awareness
List the three steps in developing a firm’s global awareness:
1) Management selection
2) Develop relationships in foreign countries
3) Culturally diverse senior executive staff or board of directors
List the 5 stages of international marketing involvement and tell whether they are reactive or proactive:
1) No direct foreign marketing (reactive)
2) Infrequent foreign marketing (reactive)
3) Regular foreign marketing (proactive)
4) International marketing (proactive)
5) Global marketing (proactive)
Describe “No Direct Foreign Marketing”
- Products indirectly reach foreign markets
* Foreign orders stimulate a company’s interest to seek additional international sales
Describe “Infrequent Foreign Marketing”
- Caused by temporary surpluses
* Firm has little or no intention of maintaining continuous market representation
Describe “Regular Foreign Marketing”
- Dedicated production capacity for foreign markets
- Products are adapted for foreign markets
- Firms depend on profits from foreign markets
Describe “International Marketing”
- Fully committed and involved in foreign markets
* Production takes place on foreign soil earning firms the MNC (MultiNational Corporation) title
Describe “Global Marketing”
- Firm sees the world as one market
- Market segmentation
- not defined by borders
- defined by income levels, usage patterns, or other factors that span the globe
- More than half of its revenues come from abroad
- “Global companies” and “global marketing”
- Most effective orientation
