Chapter 7 Flashcards
Counter Trade
The practice of using barter rather than money for making global sales
Gross Domestic Product (GPD)
The monetary value of all products and services produced in a country during one year
Balance Trade
The difference between the monetary value of a nations exports and imports
Globalization
The focus of creating economic, cultural, political, and technological independence among individual national institutions and economics
Protectionism
Practice of shielding one or more industries within a country’s economy from foreign competition using tariffs of quotas
Tariffs
Government taxes on products or services entering a country that primarily serve to raise prices on imports
Holister Moved Toward What Kind of Clothing
Comfortable Clothing
Quota
Restriction placed on the amount of product allowed to enter or leave a country
World Trade Organization (WTO)
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
Global Competition
Exists when firms originated, produced, and market their products and services worldwide
Strategic Alliances
Agreements among two or more independent firms to cooperate for the purpose of achieving common goals such as competitive advantage or customer value creation
Leading Countries in Global Merchandise Trade
U.S. China and Germany
Multidomestic Marketing Strategy
Multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business
Global Marketing Strategy
Transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.
Global Brand
Marketed under the same name in multiple countries with similar centrally coordinated marketing programs
Global Consumers
Consumer groups living in many different countries or regions of the world who have similar needs or seek similar features and benefits from products and services
Cross- Cultural Analysis
Involves the study of similarities and differences among consumers in two or more nations or societies
Values
Society personally or socially preferable modes of conducts or states of existence that tend to persist over time
Customs
What is Considered normal and expected about the way people do things in a specific way
Foreign Corrupt Practices Act (1977)
A law amended by the international Anti-Dumping and fair competing Act (1988) that makes it a crime for U.S. corporations to bribe an official of foreign government to obtain or retain business in a foreign country
Cultural Symbols
Things that represent concepts and ideas
Back Translation
Practice where a translated word or phrase is retranslated into the original language by different interpreters to catch errors
Consumer Ethnocentrism
Tendency to believe that is is inappropriate, indeed immoral , to purchase foreign made products
Currency Exchange Rate
Price in one’s country’s currency expressed in terms of another country’s currency
Exporting
Global market-entry strategy in which a company produces products in one country and sells them in another
Joint Venture
Global market entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control and profits of the new company
Direct Investment
Global Market entry strategy that entails a domestic firm investing in and owning a foreign subsidiary or division
Dumping
Occurs when a firm sells a product in a foreign country below its domestic price
Gray Market (Parallel Importing)
Situation where products are sold through unauthorized channels or distributions
How Much Does the US Spend in a Year to Prevent Economic Espionage
U.S Firms Spend 600 billion/year
How Much Does the US Spend in a Year to Prevent Economic Espionage
U.S Firms Spend 600 billion/year
Licensing
Offers right to trademark, patent, trade secret or intellectual property in exchange for royalty fee
Product Extension
Same product sold in different countries
Product Adaptation
Change product for different country
Product Invention
New Product Different Country
Communication Adaptation
Same Product Different advertising
Dual Adaptation
Modified both products and promotion messages
