MKTG Exam 2 (CH 5 - Ch 9)

Question 1

Marketing that targets markets throughout the world

Answer 1

Global Marketing

Question 2

Means recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets

Answer 2

Global Vision

Question 3

When a country can produce a product or service at a lower cost than any other country or when it is the only country that can provide the product or service

Answer 3

Absolute Advantage

Question 4

which says that each country should specialize in the products and services that it can produce most readily and cheaply and trade those products and services for goods and services that foreign countries can produce most readily and cheaply.

Answer 4

principle of comparative advantage

Question 5

is the policy of permitting individuals and businesses in a country to buy and sell in other countries without restrictions.

Answer 5

Free trade

Question 6

in which a nation protects its home industries from foreign competition by establishing artificial barriers such as tariffs and quotas.
The opposite of free trade

Answer 6

protectionism

Question 7

the total market value of all final goods and services produced in a country for a given time period

Answer 7

gross domestic product (GDP)

Question 8

sending U.S. jobs abroad

Answer 8

Outsourcing

Question 9

returning production jobs to the United States

Answer 9

Inshoring or Reshoring

Question 10

A company that is heavily engaged in international trade, beyond exporting and importing

Answer 10

Multinational Corporation

Question 11

using more capital than labor in the production process

Answer 11

Capital Intensive

Question 12

production of uniform products that can be sold the same way all over the world

Answer 12

global marketing standardization

Question 13

when multinational firms enable individual subsidiaries to compete independently in domestic markets

Answer 13

multidomestic strategy

Question 14

External Environment Faced by Global Marketers:

Answer 14

1. Culture
2. Economic Factors
3. Global Economy
4. Political Structure & Actions
5. Demographic makeup
6. Natural Resources

Question 15

the difference between the value of a country’s exports and the value of its imports over a given period

Answer 15

Balance of Trade

Question 16

the difference between a country’s total payments to other countries and its total receipts from other countries

Answer 16

Balance of Payments

Question 17

a tax levied on the goods entering a country. Because a tariff is a tax, it will either reduce the profits of the firms paying the tariff or raise prices to buyers, or both. Normally, a tariff raises prices of the imported goods and makes it easier for domestic firms to compete.

Answer 17

Tariff

Question 18

a limit on the amount of a specific product that can enter a country.

Answer 18

Quota

Question 19

the exclusion of all products from certain countries or companies.

Answer 19

Boycott

Question 20

a law compelling a company earning foreign exchange (money) from its exports to sell it to a control agency, usually a central bank.

Answer 20

Exchange control

Question 21

occurs when several countries agree to work together to form a common trade area that enhances trade opportunities.

Answer 21

Market grouping (also known as a common trade alliance)

Question 22

an agreement to stimulate international trade.

Answer 22

Trade agreement:

Question 23

Global Marketing Strategies:

Answer 23

1. Exporting - is selling domestically produced products to buyers in other countries.
2. Licensing and Franchising - is the legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge.
3. Contract Manufacturing - private-label manufacturing by a foreign company
4. Joint Venture - when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity
5. Direct Investment - occurs when a business in one country invests in a business interest in another country.

Question 24

Global 4P Strategies:

Answer 24

1. Product Decision - is whether to alter the product or the promotion for the global marketplace.
   One product, one message / Product Invention / Product Adaptation
2. Promotion Adaptation - is to maintain the same basic product but alter the promotional strategy.
3. Place (distribution) - Solving promotional and product problems does not guarantee global marketing success. The product must still get adequate distribution.
4. Pricing - Pricing presents some unique problems in the global sphere.
   Exchange Rates / Dumping / Countertrade