Global Marketing

Question 1

World trade:

Answer 1

flow of good and services among different countries

Question 2

Countertrade:

Answer 2

when goods are paid for with items other than cash (bartering) ~25% of world trade

Question 3

Assessing Country Markets

Answer 3

Economic analysis
Infrastructure and technology
Sociocultural analysis
Government actions

Question 4

economic analysis

Answer 4

market size and population growth, GDP, economic development, real income

Question 5

infrastructure and technology

Answer 5

transportation, channels, communication, commerce

deciding whether or not to invest in infrastructure

Question 6

sociocultural analysis

Answer 6

demographics, values, norms, and customs, ethnocentrism, basic human rights

power distance, uncertainty avoidance, individualism, masculinity, time orientation

Question 7

government actions

Answer 7

tariff, quota, exchange control, trade agreement

Question 8

Road blocks at the borders:

Answer 8

Protectionism
Exchange control-currency, rates
Economic communities help to promote trade—North American Free Trade Agreement, NAFTA, MERCOSUR, CAFTA, APEC, EU, etc.

Question 9

Protectionism

Answer 9

quotas, embargoes, and tariffs
Initiatives in international regulation to help trade

General Agreement on Tariffs and Trade (GATT), World Trade Organization (WTO)

Question 10

Foreign expansion concerns

Answer 10

Do I go or not go? Which market do I enter? Level of commitment and how to adjust marketing mix accordingly

Question 11

Increased control and financial risk as you go through:

Answer 11

Exporting
Franchising
Strategic alliance
Joint venture
Direct investment

Question 12

exporting

Answer 12

least amount of risk, but least controlled

selling goods to middleman in that country

Question 13

franchising

Answer 13

a little more control, like fast food chains abroad, more investment in their success

Question 14

strategic alliance

Answer 14

forming temporary partnerships to collaborate, but not investing in each other to form a new company

Question 15

joint venture

Answer 15

lots of control but greater risk

Question 16

direct investment

Answer 16

setting up shop in the new country, most financially risky

Question 17

Culture:

Answer 17

set of values shared by citizens that determine what is socially acceptable

language, religion, superstitions, etiquette, customs, traditions, notion of time

Question 18

Truthfulness in business dealings ____ by country

Answer 18

varies

Question 19

Bribery:

Answer 19

when someone voluntarily offers payment to get an illegal advantages

Question 20

Tweaking and adapting the marketing mix for business abroad

Answer 20

Standardization
Localization
Glocalization

Question 21

Standardization:

Answer 21

when you offer the same products in all markets

Question 22

Localization:

Answer 22

create a new product and marketing mix for local marketability

Question 23

Glocalization:

Answer 23

take an existing product and change the way it looks to appeal to local market

Question 24

Reverse innovation:

Answer 24

when you innovate specifically for a new market and bring it back for domestic use

Question 25

Same Product, Same Message

Answer 25

One product with same message

Question 26

Same Product, Change Message

Answer 26

Message Adaptation

Question 27

Change Product, Same Message

Answer 27

Product Adaptation

Question 28

Change Product, Change Message

Answer 28

Product Invention

Question 29

Products are often more ____ to produce in foreign markets

Answer 29

expensive

Question 30

Free trade zones

Answer 30

areas of a country where the government allows trade without taxes or tariffs on imports.

Question 31

Gray market goods

Answer 31

goods that are obtained through legal means, yet the methods are not conventional or desired by the manufacturers/ government.

So, in order to avoid a tariff, a person can have their friend bring them an iPhone from the US.

Question 32

Pricing worldwide is much more ____ due to the internet

Answer 32

transparent

Question 33

Getting the product to remote locations is often _____

Answer 33

difficult

Question 34

extortion

Answer 34

when someone in authority extracts payment under duress

Question 35

dumping

Answer 35

Getting rid of a lot of product by lowering price, sometimes to below cost. This is sometimes done when a product becomes obsolete. The problem is that it throws off the market.