Chapter 7: Reaching Global Markets Flashcards
Trade feedback effect
A country imports affect its exports and exports affect its imports.
Countertrade
The practice of using barter rather than money for making global sales.
Gross domestic product
The monetary value of all goods and services produced in a country during one year.
Balance of trade
The difference between the monetary value of the nation’s exports and imports.
Protectionism
The practice of shielding one or more industries within a country’s economy from foreign competition through the use of tariffs or quotas.
Tariffs
Government taxes on goods or services entering the country, which primarily serves to raise prices on imports.
Quota
Restriction placed on the amount of a product allowed to enter or leave the country.
Global competition
Existing firms originally, produce, 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 a competitive advantage or customer value creation.
Multi domestic marketing strategy
Use of his many different products variations, brand names, and advertising programs as countries in which they do business.
Global marketing strategy
The practice of standardizing marketing activities when their cultural similarities and adopting them and cultures differ.
Global brand
Brand-new marketed under the same name in multiple countries are similar and centrally coordinated marketing programs.
Global consumers
Consumer groups living in many countries or regions of the world that have similar needs or seek similar features and benefits from products or services.
Cross – cultural analysis
Involves the study of similarities and differences among consumers into a more nations or societies.
Customs
Norms and expectations about the way people do things in a specific country.
Semiotics
The field of study that examines the correspondence between the symbols and their role in the assignment of meaning for people.
Back translation
Read translating word or phrase into the original language by a different interpreter to catch errors.
Micro finance
The practice of offering small, collateral free loans to individuals who otherwise would not have access to capital necessary to begin small businesses are other income generating activities.
Currency exchange rates
The price of one country’s currency expressed in terms of another country’s currency.
Exporting
Producing goods in one country and selling them in another country.
Licensing
Offering the right to trademark, patent, trade secret, or other similarly valued items of intellectual property in return for a royalty or a fee.
Joint venture
An arrangement in which a foreign company and a local firm invest together to create a local business, sharing ownership, control, and profits of the new company.
Direct investment
I domestic from actually 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 or below its actual cost.
Grey market
A situation where products are sold through an authorized channels of distribution.
