Chapter 5 Flashcards
global vision
recognizing and reducing to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets
global marketing
marketing that targets markets throughout the world
multinational corporation
company that is heavily engaged in international trade, beyond exporting and importing
multinational corporation
a company that is heavily engaged in international trade, beyond exporting and importing
capital intensive
using more capital than labor in the production process
global marketing standardization
production of uniform products that can be sold the same way all over the world
European Union
a free trade zone encompassing 27 European countries
mercosur
the largest latin american trade agreement; includes argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, and Venezuela
Uruguay Round
an agreement to dramatically lower trade barriers worldwide; created the World Trade Organization
tariff
a tax levied on the goods entering a country
quota
a limit on the amount of a specific product that can enter country
boycott
exclusion of all products from a certain country
exchange control
a low compelling a company earning foreign exchange from its exports to sell it to ta control agency, usually a central bank
World Trade organization
a trade organization that replaced the old General Agreement on Tariffs and Trade
General Agreement on Tariffs and Trade
a trade agreement that contained loopholes that enabled countries to avoid trade barrier reduction agreements
North American Free Trade Agreement
an agreement between Canada, the United States, and Mexico that created the world’s largest free trade zone
central america free trade agreement
a trade agreement, instituted in 2005, that includes Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States
World Bank
an international bank that offers low interest loans, advice and info to developing nations
international monetary fund
an international organziation that acts as a lender of last resort, providing loans to troubled nations, and also works to promote trade through financial cooperation
exporting
selling domestically produced products to buyers in another country
buyer for export
an intermediary in the global market that assumes all ownership risks and sells globally for its own account
export broker
an intermediary who plays the traditional broker’s role by bringing buyer and seller together
export agent
an intermediary who acts like a manufacturer’s agent for the exporter. The export agent lives in the foreign market
licensing
the legal process whereby a licensor agrees to let another firm use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge
contract manufacturing
private label manufacturing by a foreign company
joint venture
when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity
direct foreign investment
active ownership of a foreign company or of overseas manufacturing or marketing facilities
floating exchange rates
prices of different currencies move up and down based on the demand for and the supply of each currency
dumping
the sale of an exported product at a price lower than that charged for the same or a like product in the “home” market of the exporter
countertrade
a form of trade in which all or part of the payment for good or services is in the farm of other goods or services
