Chapter 9 Flashcards
International Marketing
Developing and performing marketing activities across national boundaries.
Gross Domestic Product (GDP)
The market value of a nation’s total outputs of goods and services for a given period; an overall measure of economic standing.
Import Tariff
A duty levied by a nation on goods bought outside its borders and brought into the country.
Quota
A limit on the amount of goods an importing country will accept for a certain product categories in a specified period of time.
Embargo
A government’s suspension of trade in a particular product of with a given country.
Exchange Controls
Government restrictions on the amount of a particular currency that can be bought or sold.
Balance of Trade
The difference in value between a nation’s exports and its imports.
Cultural Relativism
The concept that morality varies from one culture to another and that business practices are therefore differentially defined as right or wrong by particular cultures.
North American Free Trade Agreement (NAFTA)
An alliance that merges Canada, Mexico, and the United States into a single market.
European Union (EU)
An alliance that promotes trade among its member countries in Europe.
Common Market of the Southern Cone (MERCOSUR)
An alliance that promotes the free circulation of goods, services, and production factors, and has a common external tariff and commercial policy among member nations in South America.
Asia-Pacific Economic Cooperation (APEC)
An alliance that promotes open trade and economic and technical cooperation among member nations throughout the world.
World Trade Organization (WTO)
An entity that promotes free trade among member nations by eliminating trade barriers and educating individuals, companies, and governments about trade rules around the world.
General Agreement on Tariffs and Trade (GATT)
An agreement among nations to reduce worldwide tariffs and increase international trade.
Dumping
Selling products at unfairly low prices.
Importing
The purchase of products from a foreign source.
Exporting
The sale of products to foreign markets.
Trading Company
A company that links buyers and sellers in different countries.
Licensing
An alternative to direct investment that requires a licensee to pay commissions or royalties on sales or supplies used in manufacturing.
Franchising
A form of licensing in which a franchiser, in exchange for a financial commitment, grants a franchisee the right to market its product in accordance with the franchiser’s standards.
Contract Manufacturing
The practice of hiring a foreign firm to produce a designated volume of the domestic firm’s product or a component of it to specification; the final product carries the domestic firm’s name.
Outsourcing
The practice of contracting non-core operations with an organization that specializes in that operation.
Offshoring
The practice of moving a business process that was done domestically at the local factory to a foreign country, regardless of whether the production accomplished in the foreign country is performed by the local company (e.g. in a wholly owned subsidiary) or a third party (e.g. subcontractor).
Offshore Outsourcing
The practice of contracting with an organization to perform some or all business functions in a country other than the country in which the product or service will be sold.
Joint Venture
A partnership between a domestic firm and a foreign firm or government.
Strategic Alliance
A partnership that is formed to create a competitive advantage on a worldwide basis.
Direct Ownership
A situation in which a company owns subsidiaries or other facilities overseas.
Multinational Enterprise
A firm that has operations or subsidiaries in many countries.
Gloabilization
The development of marketing strategies that treat the entire world (or its major regions) as a single entity.
