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Marketing 396 > Chapter 16 > Flashcards

Chapter 16 Flashcards

1
Q

Why is corruption an increasing problem?

A

Official in several countries often award business not to the best bidder but to the highest briber

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2
Q

What is it important for Canadian companies to understand the international trade system?

A

When selling to another country, a firm may face restrictions between nations

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3
Q

What are quotas?

A

Limits on the amount of foreign imports they will accept in certain product categories

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4
Q

What is the purpose of a quota?

A

To conserve on foreign exchange and protect local industry and employment

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5
Q

What are exchange controls?

A

Limit the amount of foreign exchange and exchange rate against other currencies

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6
Q

What are examples of non tariff trade barriers?

A

Biases against a companies bids, restrictive product standards, or excessive host-country regulations or enforcement

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7
Q

What is the General Agreement on Tariffs and Trade (GATT)?

A

Established in 1947 and designed to promote world trade by reducing tariffs and other international trade barriers

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8
Q

What is the World Trade Organization?

A

WTO replaced GATT in 1995 and imposes international trade sanctions and mediates global trade disputes

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9
Q

What are free trade zones and economic communities?

A

Groups of nations organized to work toward common goals in regulation of international trade

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10
Q

What is the European Union (EU)?

A

Formed in 1957 and set out to create a single European market by reducing barriers to free flows of products, services, finances, and labour among member countries and developing policies on trade with non-member nations

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11
Q

What is the North American Free Trade Agreement (NAFTA)?

A

Established a free trade zone among Canada, US, and Mexico. And it has eliminated trade barriers and investment among these three countries.

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12
Q

What are the two economic factors that reflect a country’s attractiveness as a market?

A
  1. Its industrial structure

2. Its income distribution

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13
Q

What does a country’s industrial structure mean?

A

It shapes its products and service needs, income levels, and employment levels

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14
Q

What are the four types of industrial structure?

A
  1. Subsistence economies
    - A vast majority of people engage in simple agriculture
  2. Raw material exporting economies
    - Rich in one or more natural resources but poor in other ways
  3. Emerging economies
    - Fast growth in manufacturing results in rapid overall economic growth
  4. Industrial economies
    - Major exporters of manufactured goods, services, and investment funds
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15
Q

What is income distribution?

A

Industrialized nations may have low, medium, and high-income households. Companies in a wide range of industries are increasingly targeting even low and middle income consumers in emerging economies

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16
Q

What should companies consider when deciding to do business in another country?

A

A country’s attitudes toward international buying, government bureaucracy, political stability, & monetary regulations

17
Q

Why should a company consider a country’s monetary regulations?

A

Sellers want to take profits in a currency of value to them

18
Q

True or false: most international trade involves cash transactions

A

TRUE. Many nations have to little hard currency to pay for purchases from other countries

19
Q

Why do some marketers worry about the impact of marketing strategies on global cultures?

A

Social critics claim that large American multinationals, such as McDonald’s aren’t just globalizing brands; they are Americanizing the world’s cultures

20
Q

Why is exporting the simplest way to enter a foreign market?

A

A company may passively export surpluses from time to time, or may make an active commitment to expand exports to a particular market

21
Q

What is indirect exporting?

A

Companies work through independent marketing intermediaries. Involves less investment because a firm does not require an overseas marketing organization or network

22
Q

What is joint venturing?

A

Joining with foreign companies to produce or market products or services. A company joins with a host country partner to sell or market abroad

23
Q

What are the four types of joint ventures?

A
  1. Licensing
    - Simple way for a manufacturer to enter international marketing. A company enters into agreement with a licensee in a foreign market
  2. Contract manufacturing
    - A company makes agreements with manufacturers in a foreign market to produce its product or provide service
  3. Management contracting
    - A domestic firm exports management service rather than products
  4. Joint ownership
    - Consists of one company joining forces with foreign investors to create local business in which they share possession and control
24
Q

What is direct investment?

A

The development of foreign-based assembly or manufacturing facilities

25
Q

What is the main disadvantage of direct investment?

A

A firm faces many risks, such as restricted or devalued currencies, falling markets, or government changes

26
Q

What is standardized global marketing?

A

Using the same marketing strategy approaches and marketing mix world-wide

27
Q

What is adapted global marketing?

A

A producer adjusts a marketing strategy and mix elements to each target market, resulting in more costs but hopefully producing a larger market share and return

28
Q

What is straight product extension?

A

Marketing a product in a foreign market without making any changes to the product

29
Q

What is product adaptation?

A

Involves changing a product to meet local requirements, conditions, or wants

30
Q

What is product invention?

A

Consists of creating something new to meet the needs of consumers in a given country

31
Q

What is communication adaption?

A

Companies fully adapting their advertising messages to local markets

32
Q

How do companies overcome price escalation when selling to less-affluent consumers in developing countries?

A

Many companies make simpler or smaller versions of their products that can be sold at lower prices

33
Q

What are the two major links between a seller and final buyer?

A
  1. Channels between nations
    - Moves company products from points of production to borders of countries within which they are sold
  2. Channels within nations
    - Moves products from their market entry points to final consumers
34
Q

How do companies manage international marketing activities?

A
  1. Most companies first organize an export department
  2. Then they create an international division
  3. And they finally become a global organization

Marketing 396 (9 decks)

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