Developing A Global Vision Flashcards
Recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets
Global vision
Marketing that targets markets throughout the world
Global marketing
Job outsourcing
Sending us jobs abroad
A company that is heavily engaged in international trade, beyond exporting and importing
Multinational corporation
Using more capital than labor in the production process
Capital intensive
Production of uniform products that can be sold the same way all over the world
Global marketing standardization
The largest Latin American trade agreement; includes Argentina, Bolivia, chile, Colombia, Ecuador, Paraguay, Peru, and Uruguay
Mercosur
A tax levied on the goods entering a country
Tariff
A limit on the amount of a specific product that can enter a country
Quota
The exclusion of all products from certain countries or companies
Boycott
A law compelling a company earning foreign exchange from its exports to sell it to a control agency, usually a central bank.
Exchange control
Occurs when several countries agree to work together to form a common trade area that enhances trade opportunities
Market grouping
Or
Common alliance
An agreement to stimulate international trade
Trade agreement
An agreement to dramatically lower trade barriers worldwide; created the World Trade Organization
Uruguay Round
Trade organization that replaced the old General Agreement on Tariffs and Trade (GATT)
World Trade Organization (WTO)
A trade agreement that contained loopholes enabling countries to avoid trade-barrier reduction agreements
General Agreement on Tariffs and Trade (GATT)
an agreement between Canada, the United States, and Mexico that created the worlds largest free trade zone
North American Free Trade Agreement (NAFTA)
A trade agreement, instituted in 2005, that includes Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and the United States
Central American Free Trade Agreement
CAFTA
A free trade zone encompassing 27 European countries
European Union (EU)
An international bank that offers low-interest loans, advice, and information to developing nations
World Bank
An international organization that acts as a lender of last resort, providing loans to troubled nations, and also works to promote trade through financial cooperation
International Monetary Fund (IMF)
A forum for international economic development that promoted discussion between industrial and emerging-market countries on key issues related to global economic stability
Group of Twenty (G-20)
Selling domestically produced products to buyers in other countries
Exporting
An intermediary in the global market who assumed all ownership risks and sells globally for it own account
Buyer for export
Export broker
An intermediary who plays the traditional brokers role by bringing buyer and seller together
An intermediary who acts like a manufacturers agent for the exporter; they live in the foreign market
Export agent
The legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge
Licensing
Private-label manufacturing by a foreign company
Contract manufacturing
When a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity
Joint venture
Active ownership of a foreign company or of overseas manufacturing or marketing facilities
Direct foreign investment
To succeed, firms seeking to enter into foreign trade must still adhere to the principles of
The marketing mix
Either creating a new product for a market or drastically changing an existing product
Product invention
To slightly alter a basic product to meet local conditions
Product adaptation
Maintain the same basic product but alter the promotion strategy
Promotion adaptions
A system in which prices of different currencies move up and down based on the demand for and the supply of each currency
Floating exchange rates
The sale of an exported product at a price lower than that charged for same or a like product in the “home” market of the exporter
Dumping
A form of trade in which all or part of the payment for goods or services is in the form of other goods or services
Countertrade
