Global Marketing (2.1, 2.2)

Question 1

World Trade

Answer 1

Flow of goods and services around the world

Question 2

Counter Trade

Answer 2

Goods are paid for by items instead of with cash

Question 3

Issues to consider when going global

Answer 3

1) Stay or go?
2) If go, where?
3) level of commitment
4) Marketing mix strategies

Question 4

Should you stay or go considerations.

Answer 4

Domestic Demand and growth in foreign demand.

Question 5

General Agreement on Tariffs and Trade (GATT)

Answer 5

Established by the U.N. to reduce import tax levels and trade restrictions

Question 6

World Trade Organization

Answer 6

Provides Legal foundations for international trade

Question 7

3 types of Protectionism

Answer 7

Quotas, Embargo, Tariff

Question 8

Import Quotas

Answer 8

Limitations set by the country on the amount of product allowed to enter a country

Question 9

Embargo

Answer 9

An extreme quota that prohibits commerce trade with a specific country

Question 10

Tariff

Answer 10

Tax imposed on imported goods

Question 11

Environment Issues to consider when entering a foreign market. (PEST+C)

Answer 11

Political/Legal, Economic, Technological, Sociocultural, Competitive

Question 12

Economic Enviornment

Answer 12

Overall health and development as well as the current stage in the business cycle

Question 13

GDP

Answer 13

Total value of goods and services a country produces within its borders in a year

Question 14

GNP

Answer 14

Value of all goods and services produces inside or outside its borders in a year

Question 15

Forex Rate

Answer 15

The price of a nations currency in terms of another.

Question 16

Least developed

Answer 16

Agricultural, inexpensive, export of raw materials.

Question 17

Developing

Answer 17

Agricultural to industrial

Question 18

Developed

Answer 18

Industrial + services

Question 19

Bottom of Pyramid (BOP)

Answer 19

Living off less than $2 a day

Question 20

Business Cycle

Answer 20

Prosperity, Recession, Recovery, Depression

Question 21

Product competition

Answer 21

Different products but same need

Question 22

Brand competition

Answer 22

Similar products to satisfy needs and wants

Question 23

Monopoly

Answer 23

One seller controlling all of market

Question 24

Oligopoly

Answer 24

Small number of sellers control a big market

Question 25

Monopolistic Competition

Answer 25

Many firms offering slightly different products/benefits with a small share each

Question 26

Perfect competition

Answer 26

Many sellers offering the same products

Question 27

Nationalization

Answer 27

When a government seizes private assets without reimbursing foreign firm

Question 28

Expropriation

Answer 28

When a government seizes private assets but reimburses the owners

Question 29

Local content rules are a form of?

Answer 29

protectionism

Question 30

Examples of political and legal environment laws that are relevant to marketers

Answer 30

- Food and drug protection - False advertising - Honest labeling - Consumer warranty protection - Saftey standards - Enviornmental - Child advertising limits

Question 31

Collectivist Cultures

Answer 31

Cultures where people's personal goals are formed for the good of the community

Question 32

Individualist Culture

Answer 32

People's goals in line with themselves and not the greater community (USA)

Question 33

Ethnocentrism

Answer 33

The Belief that ones nation is superior

Question 34

Consumer Ethnocentrism

Answer 34

The belief that products of their own country are superior

Question 35

Exporting in a foreign market

Answer 35

Using a merchant that knows the market (Low risk)

Question 36

Contractual Agreement

Answer 36

Ask a firm to produce and market the product. (Lowers barrier to entry but risk of losing control)

Question 37

Franchising

Answer 37

Partner runs the brand at that location (Risks of inconsistent quality)

Question 38

Strategic Alliance

Answer 38

Relationship with another company(s) to sell together. (low barrier to entry)

Question 39

Direct Investment

Answer 39

Buying a company in the host country and taking over with your brand

Question 40

Standardization

Answer 40

Keeping the product the same due to universal needs

Question 41

Localization

Answer 41

Tailoring products and promotional messages to local environments

Question 42

Straight extension strategy

Answer 42

Same product in domestic and foreign (Standardization)

Question 43

Product Adaptation Strategy (Localization)

Answer 43

Similar but slightly modified for location (sugar content USA vs Asia)

Question 44

Product Invention Strategy (Localization)

Answer 44

Firm develops a new product for a foreign market

Question 45

Backward invention (Localization)

Answer 45

Made for a location that needs a less advanced product because of poor infrastructure

Question 46

Ethnocentric Pricing

Answer 46

Same price around the globe

Question 47

Polycentric Pricing

Answer 47

Local partner will set the prices based on their market understanding

Question 48

Geocentric pricing

Answer 48

Creates a global price floor

Question 49

Free Trade zones

Answer 49

Designated areas where foreign companies can store goods without paying customs or taxes

Question 50

Grey Market goods

Answer 50

Items made outside a country and then imported without consent of the trademark holder (mostly over internet) (TEMU)

Question 51

Dumping

Answer 51

Intentionally lowering prices to gain foreign market share.

Question 52

Ethical Issues for Global Business

Answer 52

Bribery and Extortion