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35 terms

MKT chapter 7

STUDY
PLAY
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