MKT chapter 7

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countertrade

the practice of using barter rather than money for making global sales

trade feedback effect

this nation's greater demand for imports stimulates the exports of other countries. increased demand for exports of other for exports of other nations energizes their economic activity, resulting in higher national income, which stimulates their demand for imports. in short, imports affect exports and vice versa.

gross domestic product

the monetary value of all goods and services produced in a country during one year

balance of trade

the difference between the monetary value of a nation's exports and imports

Canada, China, Mexico, Japan

four largest importers of the U.S. goods and services

factor conditions

these reflect a nation's ability to turn its natural resources, education, and infrastructure into a competitive advantage

demand conditions

include both the number and sophistication of domestic customers for an industry's product

related and supporting industries

firms and industries seeking leadership in global markets need clusters of world-class suppliers that accelerate innovation

company strategy, structure, and rivalry

include the conditions governing the way a nation's businesses are organized and managed, along with the intensity of domestic competition

intense domestic competition

a firm that succeeds in global markets has first succeeded in this

protectionism

the practice of shielding one or more industries within a country's economy from foreign competition through the use of tariffs or quotas

tariffs

a government tax on goods or services entering a country, primarily serve to raise prices on imports

quota

a restriction placed on the amount of a product allowed to enter or leave a country

General Agreement on Tariffs and Trade (GATT)

international treaty intended to limit trade barriers and promote world trade through the reduction of tariffs, which it did

World Trade Organization (WTO)

created to address an array of world trade issues.

European union

consists of 27 member countries that have eliminated most barriers to the free flow of goods, services, capital, and labor across their borders

pan European marketing strategies

possible due to greater uniformity in product and packaging standards; fewer regulatory restrictions on transportation, advertising, and promotion imposed by countries; and removal of most tariffs that affect pricing practices

North American Free Trade Agreement

lifted many trade barriers between Canada, Mexico, and the United States and created a marketplace with more than 450 million consumers

Global competition

exists when firms originate, produce, and market their products and services worldwide

strategic alliances

agreements among two or more independent firms to cooperate for the purpose of achieving common goals

international firm

engages in trade and marketing in different countries as an extension of the marketing strategy in its home country

multinational firms

views the world as consisting of unique parts and markets to each part differently

multidomestic marketing strategy

multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business

transnational firm

views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants more that differences

global marketing strategy

transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adaption them when cultures differ

global brand

a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs

cross-cultural analysis

the study of similarities and differences among consumers in two or more nations or societies

values

a society's personally or socially preferable modes of conduct or states of existence that tend to persist over time

customs

what is considered normal and expected about the way people do things in a specific country

cultural symbols

things that represent ideas and concepts

back translation

the practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors

exporting

a global market-entry strategy in which a company produces goods in one country and sells them in another country

licensing

a company offers the right to a trademark, patent, trade secret, or other similarly valued items of intellectual property in return for a royalty or a fee

joint venture

a global market-entry strategy in which a foreign company and local firm invest together to create a local business in order to share ownership, control, and profits of the new company

direct investment

a global market-entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division

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