Chapter Four

Question 1

Global marketing

Answer 1

marketing that targets markets throughout the world

Question 2

Global Division

Answer 2

a recognition of and reaction to international marketing opportunities using effective global marketing strategies and being aware of threats from foreign competitors in all markets

Question 3

Gross Domestic Product

Answer 3

the total market value of all goods and services produced in a country for a given period

Question 4

Outsourcing

Answer 4

the practice of using an outside supplier, generally where the productions costs are lower, to complete the work

Question 5

Inshoring

Answer 5

returning jobs to canada

Question 6

multinational corporations

Answer 6

companies that are heavily engaged in international trade, beyond export and import

Question 7

capital intensive

Answer 7

using more capital than labour in the production process

Question 8

global marketing standardization

Answer 8

production of uniform products that can be sold the same way all over the world

Question 9

Gross National Income per capita

Answer 9

one measure of the ability of a country’s citizens to buy various goods and services

Question 10

World trade organization

Answer 10

a trade organization that replaced the old general agreement on tariffs and trade

Question 11

exporting

Answer 11

selling domestically produced products to buyers in another country

Question 12

Joint venture

Answer 12

a domestic firms purchase of a part of a foreign company or a domestic firm joining with a foreign company to create a new entity

Question 13

Direct foreign investment

Answer 13

active ownership of a foreign company or of overseas manufacturing or marketing facilities

Question 14

Floating exchange rates

Answer 14

prices of different currencies move up and down based on the demand for and the supply of each currency