Chapter 15 Flashcards
Global firm
A firm that, by operating in more than one country, gains R&D, production, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors
Economic community
A group of nations organized to work toward common goals in the regulation of international trade
Ex EU
Economic environments
Subsistence economies: farming
Raw material exporting : natural resources
Emerging economies: India China
Industrial economies: major exporters of industrial goods
Exporting
Entering outside markets by selling goods produced in the company’s home country often with little modification
Joint venturing
Entering foreign markets by partnering with foreign companies to produce, market, sell, or market a product or service
Licensing, contract manufacturing, management contracting, joint ownership.
Licensing
Entering foreign markets through developing an agreement with a licensee in the foreign market who uses the logo slogan and other things to establish the brand in their country
Mizkan in Japan produces Sunkist lemon juice
Contract manufacturing
A joint venture in which a company contracts with manufacturers in a foreign market to produce its product or provide its services.
Cons loss of control or potentially profits
Pros start faster less risk
Management contracting
domestic company brings the management to a foreign company that supplies the capital. Special b/c it exports management not products
Joint ownership
A cooperative venture in which company creates a local businesses with investors in a foreign market who share ownership and control
Direct investment
Entering a foreign market by developing foreign based assembly or manufacturing facilities
Standardized global marketing
An international marketing strategy that basically uses the same marketing strategy and mix in all of the companies international markets
Adapted global marketing
An international marketing approach that adjusts the marketing strategy and mix elements to each international target market, which creates more costs but hopefully produces a larger market share and return
Straight product extension
Marketing a product in a foreign market without making any changes to it
Product adaptation
Adapting a product to meet local conditions or wants in foreign markets
Mango and orange Oreos in Indonesia
Product invention
Creating new products or services for a foreign market
