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21 terms

Global Analysis

Marketing Essentials Chapter 4
STUDY
PLAY
International Trade
Exchange of goods and services among nations
Imports
Goods and services purchased from other countries
Exports
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
Tariff
A tax on imports, sometimes called a duty
Quota
Limits either the quantity or the monetary value of a product that may be imported
Embargo
Total ban on a specific good coming into and leaving a country
Protectionism
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
Licensing
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
Multinationals
Large corporations that have operations in several countries
Mini-nationals
Midsize or smaller companies that have operations in foreign countries
Globalization
Selling the same product and using the same promotion methods in all countries
Adaptation
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
Customization
Involves creating specially designed products or promotions for certain countries or regions