GLOBAL MARKETING Flashcards
Marketing domestically
produced goods and services in foreign
countries
EXPORTING
Purchasing foreign goods and
services
IMPORTING
is an important economic
factor to consider when planning to enter a
foreign market
INFRASTRUCTURE
Price of one nation’s currency
in terms of another country’s currency
EXCHANGE RATE
Tax levied against imported goods
TARIFF
Designed to raise funds for
the importing government
REVENUE TARIFFS
Designed to raise the retail
price of an imported product to match or
exceed that of a similar domestic product
PROTECTED TARIFFS
Limit the number of units of products in certain categories that can cross a
country’s border for resale
IMPORT QUOTAS
Complete ban on the import of specified products
EMBARGO
Government financial support of a
private industry
SUBSIDIES
Method used to regulate
international trade among importing
organizations by controlling access to foreign
currencies
EXCHANGE CONTROL
Controversial practice of selling a product in a foreign market at a price lower than what it receives in the producer’s domestic
market
DUMPING
which participating
nations agree to free trade among themselves, abolishing tariffs and trade
restrictions
FREE TRADE AREA
establishes a free-trade area and uniform tariffs for nonmember nations
CUSTOM UNION
extends a customs union
by seeking to reconcile all government regulations affecting trade
COMMON MARKET
(GATT)
General Agreement on Tariffs and Trade
(NAFTA)
North American Free Trade Agreement
(WTO)
World Trade Organization
(CAFTA-DR)
Central American Free Trade Agreement–DR
(EU)
European Union
Strategies for Entering Foreign
Markets
Three basic choices
- Importing and exporting
- Contractual agreements such as franchising,
licensing, and subcontracting - International direct investment
Contractual arrangement in which a
wholesaler or retailer agrees to meet the
operating requirements of a manufacturer
or other franchiser
FRANCHISING
Agreement that grants foreign marketers
the right to distribute a firm’s merchandise
or to use its trademark, patent, or process in
a specified geographic area
FOREIGN LICENSING
Contractual agreements that assign the
production of goods or services to local or
smaller firms
SUBCONTRACTING
Significant
operations and marketing activities outside
its home country
Multinational corporation
Standardized
marketing mix with minimal modifications
that a firm uses in all of its domestic and
foreign markets
Global marketing strategy
Application of market segmentation to
foreign markets by tailoring the firm’s
marketing mix to match specific target
markets in each nation
Multidomestic marketing strategy
Form of exporting whereby goods and
services are bartered rather than sold for
cash
Countertrade
