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ROMA > MKT 330- Exam 1 > Flashcards

MKT 330- Exam 1 Flashcards

1
Q

the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value [for profit] in more than one nation

A

international marketing

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2
Q

The ratio between what customers get and what they give

__ = benefits / costs = functional + emotional benefits / monetary, time, energy, and psychic costs

A

Value

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3
Q

___ is a fundamentally a barrier
greater ___ –> more challenging international marketing

A

distance

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4
Q

Dimensions of Distance (CAGE) consists of what

A
  • cultural distance
  • administrative (institutional) distance
  • geographic distance
  • economic distance
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5
Q

language, religion, social norms, consumer preferences

What CAGE?

A

cultural distance

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6
Q
  • legal political, economic, monetary
  • e.g. colony, tariff barriers, corruption, social strife

what CAGE?

A

administrative (institutional) distance

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7
Q
  • spatial separation, transport/ communication networks
    -value-to-weight ratio

What CAGE?

A

geographic distance

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8
Q
  • differences to wealth, income, living standards

What CAGE?

A

economic distance

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9
Q
  1. Culture - Often diverse and multicultural
  2. Markets - Widespread and sometimes fragmented
  3. Data - Difficult to obtain and often expensive
  4. Politics - Regimes vary in stability, political risk
  5. Governments - Influence regulating imports and business ventures
  6. Economics - Varying levels of development
  7. Finance - Differing finance systems and regulations
A

7 differences between international vs. domestic marketing

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10
Q
  • inability to find right market niches
  • unwilling to adapt and update products to local needs
  • products not perceived as sufficiently unique
A

differences between international and domestic marketing: failure arises from

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11
Q

PESTLE analysis stands for ___

A

P- Political
E- Economic
S- social/cultural
T- Technological
L- Legal
E- Environmental/ sustainability

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12
Q

factors influencing international markets

A

PESTLE analysis

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13
Q
  1. falling global tariff rates; high tariffs mean the consumer pays the burden
  2. globalization of production (FDI) and consumption; FDI: foreign direct investment
  3. financial deregulation makes doing business easier
  4. growth of regional free trade areas: EU, NAFTA, ASEAN
  5. technology
A

5 Factors that led to the growth of international trade

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14
Q
  1. US w/ Canada and Mexico
  2. EU w/ Switzerland and the UK
  3. China w/ Japan, Hong Kong, and South Korea
A

3 main international trade flows

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15
Q

You do everything yourself; not beneficial

A

Autarky

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16
Q

A country has ____ in the production of a product when it is more efficient than any other country in producing it

A

Smith’s Theory of Absolute Advantage

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17
Q

Countries should specialize in the production of those goods they produce most efficiently and buy goods that they produce less efficiently from other countries

A

Ricardo’s Theory of Comparative Advantage

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18
Q

Porter’s diamond (Describes a nation’s competitive advantage at an international level)

A

Sustained investment/expertise in key areas/demand conditions/supporting industries

  • explains the factors that can drive competitive advantage for one national market or economy over another
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19
Q

Heckscher-Ohlin Theory: Lower labor and proximity to raw materials

Countries in which capital is relatively plentiful and labour relatively scarce will tend to export capital-intensive products and import labour-intensive products, while countries in which labour is relatively plentiful and capital relatively scarce will tend to export labour-intensive products and import capital-intensive products

A

Resource endowments

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20
Q

Subsidies to help native industries

A

Infant Industry Theory

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21
Q

Economies of Scale

A

New Trade Theory

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22
Q
  • tariffs
  • quantitative restrictions
  • restrictive practices
A

Barriers to international trade

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23
Q

taxes levied on imports that effectively raise the cost of imported products relative to domestic products

Why? Protects local companies and employment against imported competition

Result: Consumer bears burden

A

tariffs

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24
Q

levied as a fixed charge for each unit of a good imported

A

specific tariffs

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25
Q

levied as a proportion of the value of the imported good

A

Ad valorem tariffs

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26
Q

Market entry strategy when tariffs are present

A

Market entry strategy: produce your product in the country that you sell it in the avoid tariffs

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27
Q

Government payments to domestic producers

Encourages over-production, inefficiency, and reduce trade

A

subsidies

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28
Q

why have subsidies

A

Compete against low-cost foreign imports and gain export markets

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29
Q

result of subsidies

A

Result: Taxpayers bear the cost of subsidies

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30
Q

restrict the quantity of some goods that may be imported into a country
- limits consumer choice

A

import quotas

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31
Q

A hybrid of a quota and a tariff where a lower tariff is applied to imports within the quota than to those over the quota

A

tariff rate quota

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32
Q

demand that some specific fraction of a good be produced domestically
- Why? benefit domestic producers
- Result: consumers face higher prices

A

local content requirements

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33
Q

bureaucratic rules designed to make it difficult for imports to enter a country

1) customers entry procedures
2) product safety standards
3) can hurt consumers by limiting choices

result: can hurt consumers by limiting choice

A

administrative policies

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34
Q

agreements between countries in a geographic region to reduce tariff and non-tariff barriers to the free flow of goods, services, and factors of production between each other

A

trade agreements

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35
Q

Unconscious reference to one’s cultural values, experiences, symbols, behavior, and knowledge during the decision-making process

A

Self-reference criterion (SRC)
(global awareness)

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36
Q

Often leads to vanity, beliefs of one’s own group’s superiority, and contempt of outsiders - do not do international marketing if this is you!

A

Ethnocentrism
(global awareness)

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37
Q

Eliminates all barriers to the trade of goods and services among member countries

A

free trade area
(1st level)

38
Q

examples of free trade area

A

Ex 1 - NAFTA: US, Canada, Mexico; superseded by USMAC

Ex 2 - CPTPP: Free trade agreement between 11 Asia-Pacific regions from Japan to Mexico

39
Q

Eliminates trade barriers between member countries and adopts a common external trade policy

A

Customs union

(2nd level)

40
Q

example of a Customs Union

A

Mercosur: Brazil, Argentina, Paraguay, Uruguay; May be diverting trade due to external tariffsStalled progress on reducing trade barriers

41
Q

Eliminates trade barriers between member countries and adopts a common external trade policy and the freedom of movement of goods, services, capital and labor

A

common market

3rd level

42
Q

Composed of a common market with a customs union and common policies across the region

A

economic union

4th level

43
Q

example of an Economic Union

A

European Union

44
Q

An economic union adopts a unifying currency and monetary policy

5th level

A

economic and monetary union

45
Q

example of an Economic and Monetary Union

A

Eurozone

46
Q

A central political apparatus that coordinates the economic, social, and foreign policy of member states

A

political union

*There is no international example of this

6th level

47
Q

Free trade area

US, Canada, Mexico; superseded by USMAC

  • No tariffs on 99% of goodsNo barriers on cross-border services
  • Each country applies its own environmental standards
  • Removed most foreign direct investment (FDI) restrictions
A

North American Free Trade Agreement (NAFTA)

48
Q

46 Member States

European Union: 27 Member States; level 4: economic union

Eurozone: 20 Member States; level 5: economic and monetary union

A

Council of Europe

49
Q

27 Member States; abolished boarder controls

23/27 EU states participate

A

Schengen Area

50
Q

The sum of the values, norms, customs, symbols, beliefs, and through processes that are… learned, shared by a group of people, and transmitted from generation to generation

A

culture

51
Q

A thing such as a sign or mark, a person, or an event, used to represent something else, often something immaterial

A

symbols
(element of culture)

52
Q

Abstract ideas about what a group believes to be good, right, and desirable

A

values
(element of culture)

53
Q

Social rules and guidelines that prescribe appropriate behavior in particular situations

A

norms
(element of culture)

54
Q

______: The routine conventions of everyday life

______: Norms that are central to the function of society; serious standards of behavior: sex, family, religion

A

Folkways; Mores

55
Q

A prescribed or established rite, ceremony, proceeding, or service, especially one characteristic of a particular religion

A

customs/rituals
(element of culture)

56
Q

Assumptions, opinions, and convictions that are held to be true, by an individual or a group, regarding concepts, events, people, and things

A

beliefs
(element of culture)

57
Q

A system of shared beliefs and rituals that are concerned with the realm of the sacred; four most prevalent religions: Christianity, Islam, Hinduism, Buddhism

A

Religion

58
Q

Differences in thinking and reasoning

A

thought processes
(element of culture)

59
Q

Relationships depend on trust, build up slowly, and are stable. One distinguishes between people inside and people outside one’s circle

A

High Context: association
(Hall’s Scale of Context, Communication, and Cultures)

60
Q
  • High use of nonverbal elements
  • verbal message is implicit; context
  • verbal message is indirect
A

High context: interaction
(Hall’s Scale of Context, Communication, and Cultures)

61
Q
  • avoid conflict
  • disagreement is personalized
A

high context: communication
(Hall’s Scale of Context, Communication, and Cultures)

62
Q
  • relationships begin and end quickly
  • Things get done by following procedures and paying attention to the goal
  • One’s identity is rooted in oneself and one’s accomplishments
  • individualistic
A

low context: association
(Hall’s Scale of Context, Communication, and Cultures)

63
Q
  • low use of nonverbal elements
  • verbal message is explicit and direct
A

low context: interaction
(Hall’s Scale of Context, Communication, and Cultures)

64
Q
  • Seen as a way of exchanging information, ideas, and opinions.
  • Disagreement is depersonalized
A

low context: communication
(Hall’s Scale of Context, Communication, and Cultures)

65
Q
  • things are scheduled to be done at particular times, one thing at a time
  • predominantly low-context
  • time is prompt and exact
A

Monochronic time or M-time

66
Q
  • everything has its own time
  • time is slow and flexible
  • predominantly high-context
A

polychronic time or P-time

67
Q
  • individualism/ collectivism
  • power distance
  • uncertainty avoidance
  • masculinity vs. femininity
  • time orientation
  • gratification
A

Hofstede’s 6 dimensions culture

68
Q

affects the way people live together

A

individualism/ collectivism

69
Q

dealing with human inequality

A

power distance

70
Q

managing future uncertainty and risk

A

uncertainty avoidance

71
Q

long-term vs. short-term outlook

A

time orientation

72
Q

wants and desires

A

gratification

73
Q
  1. A payment: cash, gifts, etc.
  2. To a foreign official: elected, employee, etc.
  3. To obtain an improper advantage: obtaining information, preference, license, tax-breaks, etc.
A

Foreign corruption practices act

74
Q

types of corruption

A
  • bribery
  • extortion
  • lubrication
75
Q

voluntary offered payment by
someone seeking unlawful advantage

A

bribery

76
Q

takes place only if payments are extracted under duress by someone in authority from a person seeking only what he or she is lawfully entitled to

A

extortion

77
Q

involves a relatively small sum of cash, a gift, or a service given to a low-ranking official in a country where such offerings are not prohibited by law

A

lubrication

78
Q

Small and medium-sized enterprises

A

SME

79
Q
  1. Attractive profit/growth opportunities
  2. Ability to easily modify products for export markets
  3. Public policy programs for export promotion
  4. Foreign country regulations
  5. Possession of unique products
  6. Economies from additional orders
A

Proactive stimuli

80
Q
  1. Presence of export minded manager
  2. Opportunity to better utilize management talent and skills
  3. Management beliefs in value of exporting
A

Managerial elements

81
Q
  1. adverse domestic market conditions
  2. opportunity to reduce inventories
  3. availability of production capacity
  4. favorable currency movements
  5. opportunity to increase the number of country markets and reduce market-related risk
  6. unsolicited orders from overseas customers
A

reactive stimuli

82
Q
  1. Exporting
  2. Niche marketing
  3. Domestically delivered or developed niche services
  4. Direct marketing, including e-commerce
  5. International supply chain
A

SME international marketing strategies

83
Q

Concerned with selling abroad domestically developed and produced goods and services

  • Positive: Avoids costs of establishing local manufacturing operations; Helps the firm achieve experience curve and scale economies; Low risk
  • Negative: May be lower-cost manufacturing locations; High transport costs and tariffs; Agents in foreign country may not act in exporter’s best interest
A

SME marketing strategies: Exporting

84
Q

Concerned with marketing a differentiated product or service overseas, usually to a single segment, using the full range of market entry and marketing mix options

  • Positive: Targets a large share of a smaller market
  • Negative: Higher-than-normal risk
A

SME marketing strategies: Niche marketing

85
Q

Can be marketed or delivered internationally to potential visitors

  • Benefits obtained from the service provided must be unique and superior
  • Must outweigh the benefits to the consumer of their locally available services
A

SME marketing strategies: Domestic delivered or developed niche services

86
Q

Allows firms to market products and services globally from a domestic location

  • Positive: Creating new opportunities; Erecting barriers to entry; Making cost savings; Providing inter-firm collaboration; Company website; Fast transmission of data
  • Negative: Flooded with ‘spam’; Sales feast and famine may be a problem where production is inflexible; May require sophisticated technology to compete
A

SME marketing strategies: Direct marketing, including e-commerce

87
Q

Involves either domestic production or establishing a facility close to where the MNEs new location are established in other countries

  • Positive: Reducing capital requirements of business; Managing difficulty of developing quickly; Improving flexibility; Firms reluctant to take risks; Economies of scale of suppliers; Expertise of business support service providers
  • Negative: Loss of know-how; Costs of managing outsources supplies
A

SME marketing strategies: International supply chain

88
Q
  1. Developing a learning organization
  2. Developing effective relationships
  3. Having a clear competitive focus
A

3 Predictors for SME Success

89
Q
  1. No competitive advantage
  2. Selling into markets with little information
  3. Managers lacking cultural empathy
  4. Competing with companies that have lower labor and prices
  5. Inefficiency and lack of creativity
  6. Overdependence on one product
  7. Ease with which competitors can copy idea
  8. Failure to effectively scan the international environment
  9. Failure to respond to changing consumer needs
  10. Failure to properly allocate financial resources
  11. Failure to plan for currency fluctuation
  12. Failure to manage and resource both market and operations expansion
  13. Failure to enforce patents and trademarks
A

Reasons for SME failure

90
Q

___: The law is above everyone, no one is above the law

___: People can be above the law

A

Rule of law vs. rule of force

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