quotaslimitations on the amount of specific products that may be imported from certain countries during a given time periodexchange controlrefers to the regulation of a country's currency exchange rate; how much a country is worth to another countrytrade agreementintergovernmental agreement designed to manage and promote trade activities for specific regionssociocultural factorsunderstanding another culture is crucial to the success of a global marketing; exists on two levels visible artifacts and underlying valuesvisible artifactsbehavior, dress, symbols, physical settings, ceremoniesunderlying valuesthought processes, beliefs, and assumptionsGeert Hofstede's Cultural Dimensionsan effective understanding of the subtle elements of a culture; (power distance, uncertainty avoidance, individualism, masculinity, time orientation, indulgence)Power distancewillingness to accept social inequality as naturalUncertainty avoidancethe extent to which the society relies on orderliness, consistency, structure, and formalized procedures to address situations that arise in daily lifeindividualismperceived obligation to and dependence on groupsMasculinitydominant values are male-orientedtime orientationshort vs long term; a country tends to have long term orientation values long term commitments and is willing to accept a longer-time horizonindulgencethe extent to which society allows for the gratification of fun and enjoyment needs or else suppresses and regulates such pursuitsexportingproducing goods in one country and selling them in anotherFranchisingagreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor.strategic alliancea collaborative relationship between independent firms, though the partnering firms do not create an equity partnership; that is, they do not invest in one anotherjoint ventureformed when a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shareddirect investmentrequires a firm to maintain 100% ownership of its plants, operation facilities, and offices in a foreign country, often through the formation of wholly owned subsidiariesglobal marketing mix1. Same product in every country
2. Make minor modification in certain countries
3. New product in different countriesglobal distribution strategiesGlobal distribution networks form complex value chains ; ind developing countries consumers may shop at small, family-owned storesglobal communication strategiesLiteracy levels vary by country
Firms choose whether to adapt to language differences
Cultural and religious differences also matter
