Final Exam Flashcards
Trade barriers V.E.R (Volontary Export Restraints)
Imposed by the EXPORTING country
Requires the foreign company that enters the foreign market to assume 100% of cost and enjoy all the profits
direct investment
counter purchase ( parallele, offset trade ) payment is received by the firm agree to purchase goods from the domestic market
counter trade
The government takes ownership of the industry ( Venezuela)
nationalization
Islamic law (charia( , focuses on social justice and its against gambling, and speculation
international legal system
Global strategy that emplys standardization to achieve scale and scope economies
aggregation
requires a local marketer to be locally responsive which is the opposite of the standardizer require
local market competition
concerns new product or new consumptions patterns
Product innovation : Discontinuous innovation
Discontinuous innovation
2 keys of negotiator characteristic Product innovation
Intercultural skills includes
Empathy to others lack of understanding
Differences between selling domestically and selling in a foreign market
cultural differences
In collectivistic cultures trust is developed through social contacts
seller cultural awareness
Created a common monetary and fiscal policy (goal and achievement of the treaty )
1992 European union
What contribute to the success of regional economic integration
Economic objectives and sociocultural similarity are absolutely necessary
two of the benefits of the economic integration are
more efficient use of the factor of production and stronger presence in the international affairs
International trade (3 reasons)
- stage of the economic development
- availability of natural resources
- unique skills or capabilities
The sender encodes the message and the receiver decodes the messages
When encoding the foreign consumers motivation, attitude and interest should be considered
encoding vs. decoding communications
The buying motives of the market and the company objectives ( if those are relatively similar to each other may standardize advertising communications)
What is the requirement for standardizing and advertising strategy
In advertising is advisable because the foreign market culture is unique (Depends on the foreign market uniqueness or differences)
customization
one challenge of cultural communications
The message has been received but not understood because of cultural differences
before entering negotiations
Need to assess cross cultural similarity or disparity
Two international sales management challenges
Composition of the sales force and cultural skills
difficult to motivate for 2 reasons
foreign market philosophy and different cultures
. Some of the negotiation sales tactics include
Maximize questions and minimize commitment.
