Chapter 2: Global Marketing Flashcards
world trade
to the flow of goods and services among different countries—the total value of all the exports and imports of the world’s nations
world trade organization
With 164 members and 23 observer states seeking membership, the WTO member nations account for around 98 percent of world trade.
“to ensure that trade flows as smoothly, predictably and freely as possible.”8
protectionism
enforce rules on foreign firms to give home companies an advantage
external envoirnment
Consists of elements outside the firm that may affect it positively or negatively.
economic environment, competitive environment, technological environment, political and legal environments, and the sociological environment
developing countries
When an economy shifts its emphasis from agriculture to industry, standards of living, education, and the use of technology rise.
bottom of the pyramid
which is the collective name for the group of more than 4 billion consumers throughout the world who live on less than $2 a day
BRICS coutries
The largest of the developing or newly industrialized countries—Brazil, Russia, India, China, and South Africa
developed country
A country boasts sophisticated marketing systems, private solid enterprise, and bountiful market potential for many goods and services. Such countries are economically advanced, and they offer a wide range of opportunities for international marketers.
business cycle
the overall pattern of changes or fluctuations of an economy. All economies go through cycles of
-prosperity (high levels of demand, employment, and income),
-recession (falling demand, employment, and income), and
-recovery (gradual improvement in production, lowering unemployment, and increasing income).
-Depression
competitive advantage
activities where firms gather and analyze publicly available information about rivals from sources like the Internet, the news media, and publicly available government documents, such as building permits and patents. Successful CI means that a firm learns about a competitor’s new products, its manufacturing processes, or the management styles of its executives.
product competition
where other organizations offer different ways to satisfy the same consumers’ needs and wants.
brand competition
where competitors offer similar goods or services, vying for consumer dollars, euros, or pounds.
monopoly
exists when one seller controls a market
-pressure to keep prices low and product quality strong
oligopoly
there are a relatively small number of sellers, each holding a substantial market share, in a market with many buyers.
-actions affect one another
monopolistic competition
many sellers compete for buyers in a market. Each firm, however, offers a slightly different product, and each has only a small share of the market.
