Midterm Ch. 5 Flashcards
Global Marketing
Marketing that targets markets throughout the world.
Global Vision
Recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets.
Gross Domestic Product (GDP)
The total market value of all final goods and services produced in a country for a given time period.
Outsourcing
Sending U.S. jobs abroad.
Inshoring
Returning production jobs to the United States.
Multinational Corporation
A company that is heavily engaged in international trade, beyond exporting and importing,
Global marketing standardization
Producing uniform products so they can be sold all over the world.
Multidomestic strategy
Subsidiaries of multinational firms are allowed to compete independently in domestic markets.
Mercosur
The largest Latin American trade agreement, the members include Argentina, Brazil, Paraguay, Uruguay. And they also have international members.
Uruguay Round
A trade agreement to dramatically lower trade barriers.
World Trade Organization (WTO)
A trade organization that replaced the old General Agreement on Tariffs and Trade.
General Agreement on Tariffs and Trade (GATT)
legal agreement minimizing barriers to international trade by eliminating or reducing quotas, tariffs, and subsidies while preserving significant regulations.
North American Free-Trade Agreement (NAFTA)
Immediately lifted tariffs on the majority of goods produced by the signatory nations.
Dominican Republic-Central America Free Trade Agreement (CAFTA-DR)
A trade agreement instituted in 2005 including Costa Rica, the Dominican Republic, El Salvador, and etc.
European Union (EU)
A free trade zone encompassing 28 European countries.
World Bank
An international bank which offers low interest loans, advice, and information to developing nations.
Internation Monetary Fund (IMF)
An international organization that acts as a lender of last resort, providing loans to troubled nations.
Group of Twenty (G-20)
A forum of international economic development that promotes discussion between industrial and emerging markets countries on key issues related to global economic stability.
Exporting
Selling domestically produced products to buyers in other countries.
Buyer for export
An intermediary in the global market that assumes all ownership risk and sells globally for its own account.
Export Broker
A intermediary who plays the traditional broker’s role by bringing the buyer and seller together.
Export Agent
An intermediary who acts like a manufacturer’s agent for the exporter; the export agent lives in the foreign market.
Licensing
The legal process where a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge.
Contract Manufacturing
Private-label manufacturing by a foreign company.
Joint Venture
When a domestic firm buys a part of a foreign company or joins with a foreign company to create a new entity.
Direct foreign investement
Means when a company controls a company in another country but there entity is in another country.
Echange rate
The difference in value of the currency between different countries.
Floating exchange rates
A system in which prices of different currencies move up and down based on the demand for and the supply of each currency.
Dumping
When you sell a product for less than what it is worth in its current market.
Countertrade
A form of trade in which all or part of the payment for goods or services is in the form of other goods or services.
Tariff
A tax or duty to be paid on a particular class of imports or exports.
Quota
A fixed share of something that a person or group is entitled to receive or is bound to contribute.
Boycott
Withdraw from commercial or social relations with (a country, organization, or person) as a punishment or protest.
Exchange Control
A governmental restriction on the movement of currency between countries.
Market Grouping
The process of dividing prospective consumers into different groups depending on factors.
Trade Agreement
A wide-ranging taxes, tariff and trade treaty that often includes investment guarantees.
Countries in the Mercosur trade Agreement
Argentina, Brazil, Paraguay, Uruguay, and Venezuela.
Countries in the North American free trade agreement
Canada, Mexico, and the United States.
