Chapter 6 (her pwrpoint) Flashcards
The processes by which goods, services, capital, people, information, and ideas flow across national borders is known as
Globalization
Which country has the largest amount of money in terms of exports but the second largest imports?
China
Which country has the largest amount of money in terms of imports but the second largest exports?
United States
What are the 4 developments that influence global marketing?
1) Economic protectionism by countries
2) Economic integration among countries
3) Global competition for global customers
4) Networked global marketplace
5) Growing economic espionage
Shielding industry within country from foreign competition through use of tariff or quota is known as
Protectionism
The tax on goods entering country to raise prices on imports is known as
Tariff
The restriction on amount of product allowed to be imported/exported is known as
Quota
When countries use protectionism through tariffs this will increase
prices or limit supply in order to decrease world trade?
Increase prices
When countries use protectionism through quotas this will increase
prices or limit supply in order to decrease world trade?
Limit supply
When transnational groups form to promote free trade and enhance economies. This is known as
Economic Integration
Which transnational group consists of 27 countries with eliminated barriers to trade
European Union
slide 10
when firms originate, produce, and market their products and services worldwide this is known as
Global Competition
What are the three types of firms?
International
Multinational
Transnational
Which type of firm engages and trade and marketing in different countries as an extension of the marketing strategy from its home country?
International Firm
Which type of firms offers the same product and market the same way in other countries with typically very little investment outside of home borders
International Firm
Which type of firm views world as consisting of unique markets, each very different from one another?
Multinational Firm
What type of marketing strategy has many different product variations, broad names, and advertising programs as countries in which the firm does business?
Multidomestic marketing strategy
Which type of firm views the world as one market and emphasizes cultural similarities across markets rather than differences?
Transnational Firm
Which marketing strategy standardizes marketing activities when there are cultural similarities and adapting them when cultures differ
Global Marketing Strategy
T/F- With a networked global marketplace, it is easier for companies to exchange products, services, information between buyer and seller ANYWHERE, ANY TIME and at LOWER COST
True
The clandestine collection of
trade secrets or proprietary information about competitors is known as
Espinoage
T/F- Espionage costs US firms $600+billion/year
True
T/F- 23 nations routinely target US firms every year for espionage
True
What act makes firm theft a federal crime?
Economic Espionage Act 1996
Which country is the most corrupt in the world?
New Zealand as of 2020
Denmark as of 2023
When looking at general economic environments, market sizes, population growth, and real income this assesses which part of the global markets?
Economic Analysis using metrics
When looking at transportation means, channels, communication, and commerce this assesses which part of the global markets?
Infrastructure and technology
When looking at power distance, uncertainty avoidance, individualism, masculinity, and time orientation this assesses which part of the global markets?
Sociocultural analysis
When looking into tariffs, quotas, exchange controls, and trade agreements this assesses which part of the global markets?
Government Actions
What does the economic environment entail?
Gross Domestic Product
Gross National Income
Purchasing Power Parity
Human Development Index
slide 23 graph
T/F- When evaluating real income you must consider average per capita or household income and how income us distributed to determine purchasing power
True
T/F- As proportion of middle-income households increases, the greater nation’s purchasing power tends to be
True
basic facilities, services,
and installations needed for a community or society to function is known as
Infrastructure
What are the 4 key elements of infrastructure?
Transportation
Distribution Channels
Communications
Commerce
Which type of analysis studies similarities and differences among consumers in two or more nations/societies?
Cross Cultural Analysis
T/F- The cross cultural analysis is necessary for marketers to conduct if they want to be successful
True
Which analysis includes analysis of values, customs, symbols, languages and other?
Cross Cultural Analysis
The preferable modes of conduct that persist over time are known as
Values
What is considered normal in a country is known as
Customs
Things that represent ideas and concepts in a specific culture that can evoke deep feelings is known as
Cultural Symbiosis
How many languages are there in the world?
100
How many languages do experts estimate are spoken?
3,000
the belief that one culture is superior to another is known as
Cultural Ethnocentricity
the belief it is wrong to purchase foreign-made
products can be described as
Consumer Ethnocentrism
What sociocultural factors make up Hofstede’s cultural dimensions?
Power Distance
Uncertainty avoidance
Individualism
Masculinity
Time Orientation
Indulgence
Which sociocultural factors focuses on how personal needs and goals are prioritized vs. the needs and goals of the group/clan /organization
Individualistic Collectivistic Factors
Which sociocultural factors focuses on how masculine societies have different rules for men and women, less so in feminine cultures
Masculine/ Feminine factors
Which sociocultural factors focuses on how comfortable are people with changing the way they work to live (low UA) or prefer the known systems (high UA)
Uncertainty Avoidance Factor
Which sociocultural factors focuses on the degree people are comfortable with influencing upwards.
Accept of inequality in distribution on power in society
Power Distance
Which sociocultural factors focuses on the long term perspective, planning for future, perseverance values vs. short time past and present oriented?
Time Perspective Factor
Which sociocultural factors focuses on allowing gratification of basic drives related to enjoying life and having fun vs. regulating it through strict social norms
Indulgence/ Restraint Factors
What are the 4 types of entry for the Global Entry strategy?
Exporting
Licensing
Joint Venture
Direct Investment
What type of global entry strategy produces products
in one country and
sells them in another country
Exporting
What type of global entry strategy offers right to a trademark, patent, trade secret or other valued item for a royalty fee?
Licensing
What type of global entry strategy is a foreign company and local firm invest together with
shared ownership/control /profit
Joint Venture
What type of global entry strategy has firms invests in and owns foreign subsidiary/division
Direct Investment
What type of global entry strategy has low risk, low financial commitment, low marketing control, and low profit potential?
Exporting
What type of global entry strategy has low/mid risk, low/mid financial commitment, low/mid marketing control, and low/mid profit potential?
Licensing
What type of global entry strategy has Mid/high risk, Mid/high financial commitment, Mid/high marketing control, and mid/high profit potential?
Joint Venture
What type of global entry strategy has high risk, high financial commitment, high marketing control, and high profit potential?
Direct Investment
Which type of products can be chosen for a global marketing mix?
Product Extension
Product Adaptation
Product Invention
Which product consists of selling the same product or service in both the home country market and host country?
Product Extension
Which product consists of selling a product or service similar to that sold in home country but include minor adaptations
Product Adaptation
Which product consists of selling totally new products or services?
Product Invention
What prices are apart of the global marketing mix?
Tariffs
Quotas
Anti-dumping laws
Currency exchange policies
Competitive factors
What are some of the places a global marketing mix uses?
Global distribution networks form complex value chains
Consumers shop at small, family owned stores
Suppliers must be creative in delivering to these outlets
How do companies make global communication strategies?
They evaluate literacy levels and how they vary by country
Firms choose whether to adapt to language differences
Cultural and religious differences also matter
Try to develop brand names that have no preexisting meaning in local language
What kind of brand has the same product formulation, delivers the same benefits to consumers, and uses consistent advertising across multiple countries and cultures?
Global Brand
