EXAM ONE Flashcards
Index of Economic Freedom
- Trade Freedom
- Business Freedom
- Labor Freedom
- Property Rights
- Investment Freedom
- Size of Government
- Freedom from Corruption
Import Restrictions
- Tariffs
- Custom Barriers
- Local Content Restrictions
- Countertrade
- Certifications
- Service and Investment Restrictions
- Quantitative Restrictions (Quotas, Tariff Rate Quotas)
Reasons for Import Restrictions
To protect local industry
To conserve foreign exchange
Raise Revenues
- Very competitive environment
- Offering just functionality is not enough
Industrialized Nations
- Fast rate of industrial growth
- Growing literacy and advanced eduacation
- Lower wage costs compared to industrialized countries
Upper Middle Income Countries
- Earlier stages of industrialization
- Generally competitive in labor intensive industries
Lower Middle Income Countries
- High % of population centered on agriculture
- High birth rates
- Low literacy rates
- Subpar infrastructure
Developing Countries
Knowing about a countries’ religion, culture, values, beliefs
Understanding the culture itself
Intellectual Capital
Having the interest in knowing customs and culture
Feeling comfortable when uncomfortable
Psychological Capital
Being effective in working with others who are different from you
Understanding non-verbal expressions
Social Capital
Things that fail companies overseas
Not Specifying Countries
Not paying enough attention to internal data
Not adapting their sales and marketing channels
Not adapting the product offering
Not letting local teams lead the way
Not thinking through the global logistics
Promotion
Product standards
Labeling
Pricing
Channels of distribution
Laws That Affect Marketing Activities
Countries reduce or eliminate trade barriers on most goods and services
Ex. NAFTA or USMCA
Free Trade Idea
Same as Free Trade Idea, but countries also adopt common external tariffs on products imported from outside the area
Ex. EU and Turkey
Customs Union
Eliminates all barriers and tariffs to trade, people can move from country to country for work
Ex. EU, Central America, CARICOM
Common Market
