A firm that, by operating in more than one country, gains R&D, production, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors.
A group of nations organized to work toward common goals in the regulation of international trade.
International trade involving the direct or indirect exchange of goods for other goods instead of cash.
Entering a foreign market by selling goods produced in the company's home country, often with little modification.
Entering foreign markets by joining with foreign companies to produce or market a product or service.
A method of entering a foreign market in which the company enters into an agreement with a licensee in the foreign market, offering the right to use a manufacturing process, trademark, patent, trade secret, or other item of value for a fee or royalty.
A joint venture in which a company contracts with manufacturers in a foreign market to produce the product or provide its service.
A joint venture in which the domestic firm supplies the management knowhow to a foreign company that supplies the capital; the domestic firm exports management services rather than products.
A joint venture in which a company joins investors in a foreign market to create a local business in which the company shares joint ownership and control.
Entering a foreign market by developing foreign-based assembly or manufacturing facilities.
Standardized global marketing
An international marketing strategy for using basically the same marketing strategy and mix in all the company's international markets.
Adapted global marketing
An international marketing strategy for adjusting the marketing strategy and mix elements to each international target market, bearing more costs but hoping for a larger market share and return.
Straight product extension
Marketing a product in a foreign market without any change.
Adapting a product to meet local conditions or wants in foreign markets.
Creating new product or services for foreign markets.
A global communication strategy of fully adapting advertising messages to local markets.
Designing international channels that take into account the entire global supply chain and marketing channel, forging and effective global value delivery network.
trade restrictions / protectionism
quota / subsidies; embargo
GATT created WTO (general agreement on tariffs and trade);
Economic communities (EU and NAFTA)
opens small business to global markets;
Economic environment (how much discretionary income);
Cultural environment (adapt to locality)
International operations alternatives
easiest, but least profitable; least risky
Joint ownership (split risk & return)
buy/lease local resources; most risky, most reward possibility
Standardized versus adapted
standardized = 4Ps the same, levi ads, no words;
adapted: locality, Yoplait;
Mix: McDonalds (some items standard, others are local)
Marketing Mix (the target market and the 4 P's)
Product; Promotion; Price; Place (Distribution);
Environment: demographics, psychographics (hard to get), target market (may be different), product (type & name), Promotion (rules different), Price (transportation raises costs), Place (large markets, Carrfour)