Chapter 6 Flashcards
the practice of using barter rather than money for making global sales.
countertrade
the monetary value of all products and services produced in a country during one year
gross domestic product (GDP)
the difference between the monetary value of a nation’s exports and imports
balance of trade
The focus on creating economic, cultural, political, and technological interdependence among individual national institutions and economics.
globalization
The practice of shielding one or more industries within a country’s economy from foreign competition through the use of tariffs or quotas
protectionism
Government taxes on products or services entering a country that primarily serve to raise prices on imports.
tariffs
A restriction placed on the amount of a product allowed to enter or leave a country.
quota
A permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions.
World Trade Organization
(WTO)
A situation in which countries try to damage each other’s trade, typically by imposition of tariff and quota restrictions.
trade war
Exists when firms originate. produce, and market their products and services worldwide.
global competition
A strategy used by multinational firms that have as many different product varlations, brand names, and advertising programs as countries in which they do business.
multidomestic marketing
strategy
A strategy used by transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.
global marketing strategy
A brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs.
global brand
Consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services.
global consumers
The clandestine collection of trade secrets or proprietary
Information about a company’s competitors.
economic espionage
The study of similarities and differences among
consumers in two or more nations or societies.
cross-cultural analysis
What is considered normal and expected about the way people do things in a specific country.
customs
A law, amended by the International Anti-Dumping and Fair Competition Act
(1998), that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country.
Foreign Corrupt Practices
Act (1977)
Things that represent ideas and concepts in a specific culture.
cultural symbols
The practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors.
back translation
The tendency to believe that it is inappropriate, indeed immoral, to purchase foreign-made products.
consumer ethnocentrism
markets in other countries same as home country
international firms
markets differently to each country
multinational firms
emphasizes universal consumer needs
transactional firms
