chapter 5 Flashcards
blog
a publicly accessible Web page that functions as an interactive journal, where readers can post comments on the author’s entries
buyer for export
an intermediary in the global market that assumes all ownership risks and sells globally for its own account
capital intensive
using more capital than labor in the production process
contract manufacturing
private label manufacturing by a foreign company
countertrade
a form of trade in which all or part of the payment for goods or services is in the form of other goods or services
direct foreign investment
active ownership of a foreign company or of overseas manufacturing or marketing facilities
Dominican Republic-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
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
European Union
a free trade zone encompassing twenty-eight European countries
exchange rate
the price of one country’s currency in terms of another country’s currency
export agent
an intermediary who acts like a manufacturer’s agent for the exporter; the export agent lives in the foreign market
export broker
an intermediary who plays the traditional broker’s role by bringing buyer and seller together
exporting
selling domestically produced products to buyers in other countries
floating exchange rates
a system in which prices of different currencies move up and down based on the demand for and the supply of each currency
general agreement on Tariffs and Trades [GATT]
a trade agreement that contained loopholes enabling countries to avoid trade-barrier reduction agreements
global marketing
marketing that targets markets throughout the world
global marketing standardization
production of uniform products that can be sold the same way all over the world
global vision
recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets
gross domestic product [GDP]
the total market value of all final goods and services produced in a country for a given time period
Group of Twenty [G-20]
a forum for international economic development that promotes discussion between industrial and emerging-market countries on key issues related to global economic stability
international monetary fund [IMF]
an international organization that acts as a lender of last resort, providing loans to troubled nations, and also works to promote trade through financial cooperation
job outsourcing
sending U.S. jobs abroad
joint venture
when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity
licensing
the legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge
