Chapter 19 Vocab

Question 1

global firm

Answer 1

a firm that operates in more than one country to gain R&D, production, marketing and financial advantages in its costs and reputation that are not available to purely domestic competitors

Question 2

6 major decisions in international marketing

Answer 2

looking at the global marketing environment
decide whether to go global
decide which markets to enter
decide how to enter market
decide on global marketing program
decide on global marketing organization

Question 3

economic community

Answer 3

a group of nations organized to work toward common goals in the regulation of international trade

Question 4

4 types of industrial structures

Answer 4

subsistence economies
raw material exporting economies
emerging economies
industrial economies

Question 5

exporting

Answer 5

entering foreign markets by selling goods produced in the company’s home country, often with little modification

Question 6

joint venturing

Answer 6

entering foreign markets by joining with foreign companies to produce or market a product or service

Question 7

licensing

Answer 7

entering foreign markets through developing an agreement with a licensee in the foreign market

Question 8

contract manufacturing

Answer 8

a joint venture in which a company contracts with manufacturers in a foreign market to produce its product or provide its service

Question 9

management contracting

Answer 9

a joint venture in which the domestic firm supplies the management know how to a foreign company that supplies the capital; the domestic firm exports management services rather than products

Question 10

joint ownership

Answer 10

a cooperative venture in which a company creates a local business with investors in a foreign market who share ownership and control

Question 11

direct investment

Answer 11

entering a foreign market by developing foreign based assembly or manufacturing facilities

Question 12

standardized global marketing

Answer 12

an international marketing strategy that basically uses the same marketing strategy and mix in all of the company’s international markets

Question 13

adapted global marketing

Answer 13

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

Question 14

straight product extension

Answer 14

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

Question 15

product adaptation

Answer 15

adapting a product to meet local conditions or wants in foreign markets

Question 16

product invention

Answer 16

creating new products or services for foreign markets

Question 17

communication adaptation

Answer 17

a global communication strategy of fully adapting advertising messages to local markets

Question 18

whole channel view

Answer 18

designing international channels that take into account the entire global supply chain and marketing channel, forging an effective global value delivery network

Question 19

global value delivery network

Answer 19

international seller —> channel between nations —> channel within nations —> final user/buyer

Question 20

3 major forms of international marketing organization

Answer 20

export department
international division
global organization