21 terms

Global Analysis

Marketing Essentials Chapter 4
International Trade
Exchange of goods and services among nations
Goods and services purchased from other countries
Goods and services sold to other countries
Balance of Trade
The difference in value between exports and imports of a nation
Free Trade
Commercial exchange between nations that is conducted on free market principles, without restrictive regulations
A tax on imports, sometimes called a duty
Limits either the quantity or the monetary value of a product that may be imported
Total ban on a specific good coming into and leaving a country
Government's establishment of economic policies that systematically restrict imports in order to protect domestic industries
World Trade Organization (WTO)
Coalition of nations that makes rules governing international trade
North American Free Trade Agreement (NAFTA)
International trade agreement among the US, Canada, and Mexico
European Union (EU)
Europe's trading bloc
Involves letting another company (licensee) use a trademark, patent, special formula, company name, or some other intellectual property for a fee or royalty
Contract Manufacturing
Involves hiring a foreign manufacturer to make your products, according to your specification
Joint Venture
Business enterprise that companies set up together
Foreign Direct Investment (FDI)
Establishment of a business in a foreign country
Large corporations that have operations in several countries
Midsize or smaller companies that have operations in foreign countries
Selling the same product and using the same promotion methods in all countries
A company's use of an existing product and/or promotion to which changes are made to better suit the characteristics of a country or region
Involves creating specially designed products or promotions for certain countries or regions