Chapter 4: Developing a Global Vision Flashcards
Define Outsourcing
Sending jobs (work) abroad.
Define In Shoring
Returning production jobs to Canada
What are some benefits of having Globalization in Developing Countries
It allows access to foreign capital, access to export markets, access t advanced technology, and to breaking monopoly of inefficient labour
Define a Multinational Organization
Moving resources, goods, services, and skills across national boundaries without regard to the country in which they are headquartered
What is Global Marketing Standardization
The ability to use standard marketing internationally; it’s the ability for a company to use the same marketing strategy from one country to the next, and across various cultures.
Define Variation
Different products or different markets
Define Standardization
Products being sold in the same way all over the world
Define Combination
Product modification to meet the needs of the country they are in
Define Multi-Domestic
When there are spare subsidiaries in other countries
Define Culture as (external environment)
Common sets of values that are shared and establish what is socially acceptable
- Language, etc.
Define Economic and Technological as (external environment)
One measure of the ability of citizens to buy goods and services
Define a Global Economy
Forecasting global demand and economic growth requires an understanding of what is happening economically around the globe
Define Political Structure and Actions
Less regulation fosters the strongest economies
Define a Tariff
A tax levied on the goods entering a country
Define a Quota
A limit on the amount of a specific product that can enter a country. Companies request quotas as a means of protection from foreign competitors
Define a Boycott
The exclusion of all products from certain countries or companies. Governments use boycotts to exclude products from countries which they have political disputes
Define Exchange Control
A law compelling a company earning foreign exchange from its exports to sell it to a control agency. A company wanting to buy goods abroad must first obtain foreign currency exchange from the control agency
Define Market Grouping (AKA Common Trade)
Occurs when several countries agree to work together to form a common trade area that enhances trade opportunities
Define a Trade Agreement
An agreement to stimulate international trade (i.e. NAFTA)
What is NAFTA
An agreement between Canada, the US, and Mexico (free trade zone) – no tariffs on goods and services
What is the EU
A free trade zone encompassing 28 European Countries
What is the WTO
A trade organization that replaced the old Generation Agreement on Tariffs and Trade (GATT)
Natural Resources
There is a shortage of natural resources (much more evident today)
Define Promotion Adaption Strategies
Maintain the same products but alter messaging based on the way the product is used, how the culture internalizes messages, language barriers, and other cultural differences
Define Place Options Strategies
Channel members vary globally, shopping behaviour varies globally, and innovation is often the key to success
Define Pricing Options Strategies
Selling price, cost production, customers willing to spend, customers able to spend, costs, tariffs, taxes, insure (be careful not to generalize based on the economy)
What are some other Pricing Considerations
Exchange Rates (appreciation, depreciation, floating exchange rates, Dumping (a form of price discrimination, creates serious problems in trade), Counter trade (fast growing way to conduct global business – all or part of the payment is in the form of other products or services)
Define Exchange Rates
The Canadian Dollar relative to the US Dollar and the impact on Canadian Manufacturing
Define the Impact of the Internet
Has made “going global” easy. Opening an e-commerce site on the Internet creates a global business, still being restrained by cultural issues, old rules, and regulations
Define the Impact of Social Media and Marketing
The rapid penetration of the Internet, social media usage, and social media usage via mobile devices has created a huge communication opportunity for reaching global segments (groups). It not only allows global marketers to build their brands but to also understand the customers they are reaching in that particular global segment to ensure that messaging is culturally relevant
