Term
| What countries are classified as developed countries? |
|
Definition
•OECD (Organization for Economic Cooperation and Development) countries.
Include U.S., Canada, Mexico, most of Europe, Japan, Australia, New Zealand, Singapore, Turkey, etc. |
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Term
| What does OECD stand for? |
|
Definition
| Organization for economic cooperation and development |
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Term
| Who are some of the upper middle/middle income countries? |
|
Definition
| Korea, Taiwan, Malaysia, Mexico, South Africa, Brazil, Israel, Chile, several Eastern/Southern European countries, Mexico, Turkey, Russia, etc. |
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Term
| Who are the major oil exporters? |
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Definition
| 11 OPEC members like Saudi Arabia, Kuwait, Iran, Iraq, Indonesia, Nigeria, Venezuela, etc. Plus non-members like Mexico, Russia, U.K., and Norway. |
|
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Term
| Who are the developing countries? |
|
Definition
| Most Asian and African countries (A majority of the world’s countries belong here). |
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Term
| Who are the rapidly developing large countries? Hint* BRICs |
|
Definition
| Brazil, Russia, India and China |
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Term
| Who are some of the poor countries? |
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Definition
| Countries stagnant at very low levels of development, e.g., Burma, Bangladesh, Afghanistan, Haiti, Nepal, most sub-Saharan African countries |
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Term
|
Definition
|
|
Term
Who are apart of the CEA?
China Economic Area |
|
Definition
|
|
Term
Who are apart of ASEAN?
Association of Southeast Asian Nations |
|
Definition
| Indonesia, Brunei, Malaysia, Thailand, the Philippines, and Vietnam |
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Term
| In the next 10-20 years BEMs will ________ in global business |
|
Definition
| provide major/dominant opportunities |
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Term
| Some of the world's largest countries |
|
Definition
World 6.72 billion people
1.China 1.3billion
2.India 1.1b
3.U.S. 305million
4.Indonesia 232m
5.Brazil 188m
6.Pakistan 164m
7.Bangladesh 159m
8.Nigeria 148m
9.Russia 142m
10.Japan 128 |
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Term
| What is International Marketing? |
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Definition
| Activity, institutions, and processes across national borders that create, communicate, deliver, and exchange offerings that have value for stakeholders and society |
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Term
| What are some of the Global Marketing Imparatives? |
|
Definition
- Saturation for domestic markets
- Global competition
- Need for global cooperation
- The internet
- Expanding market opportunites
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Term
| Some advantages of International Trade for Consumers |
|
Definition
More quantity
–Better quality
–Greater variety within product categories
–More customized products/Services
–Lower prices
–Choice of products not available without international trade |
|
|
Term
| What are some of the advantages for international trade for firms? |
|
Definition
- More trade
- Access to bigger markets, forgein resources, talent, new managment knowledge, new technologies
- Experience with selling to diverse markets
- Chance to deal with different forms of government
- Chance to work in competitive environments
- Enhanced ability to compete in home market
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Term
| What are some arguements against free trade? |
|
Definition
•Infant industry argument
•Strategic industry argument
•Protection of world species (CITES: Convention on International Trade in Endangered Species)
•Protection of local species, crops, etc.
•Domestic environment & culture protection
• Domestic politics, jobs etc.
•Health & safety of domestic residents |
|
|
Term
| What is the infant industry argument? |
|
Definition
- When a nonindustrialized industry develops, it has specific disadvantages
- They can't trade or be competitive in a world market
- The government takes "control" of it until it can get on their own feet
- The government then imposes tariffs
- They lack economies of scale
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Term
| What is the strategic industry argument? |
|
Definition
| The view that an industry serves a special 'strategic' purpose in an economy and needs to be protected by a tariff to prevent it from disappearing |
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Term
| What are the 5 stages of global marketing? |
|
Definition
- domestic marketing
- export marketing
- international marketing
- multinational marketing
- global marketing
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Term
|
Definition
| markets in many countries; polycentric orientation |
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Term
|
Definition
| many markets; consolidation on a regional basis |
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Term
|
Definition
| global perspective; global products with local variations - Standardized efforts, Coordination across markets, Global integration |
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Term
| The level of global investment leads to...... |
|
Definition
–buildup of international debt by governments.
–Affect on the international value of currencies.
–Provision of foreign capital for firms.
–Influx of major foreign direct-investment activities |
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Term
|
Definition
| global reorientation of corporate processes, which opens up entirely new horizons |
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Term
|
Definition
| the ability of a firm, country or region to produce a particular good or service at a lower opportunity cost than another party, i.e. produce it most efficiently given all the other products that could be produced |
|
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Term
|
Definition
| refers to the ability of a party to produce a particular good at a lower absolute cost than another |
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Term
| Comparative advantage explains.... |
|
Definition
| how trade can create value for both parties even when one can produce all goods with fewer resources than the other |
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Term
| trade can create value for both parties even when one can produce all goods with fewer resources than the other. The net benefits of such an outcome are called |
|
Definition
|
|
Term
gains from trade is the main concept of
|
|
Definition
| the pure theory of international trade |
|
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Term
| Sources of Comparative Advantage (Resource Endowment). |
|
Definition
(A) Natural Resources (climate, size, location, topography, flora & Fauna, minerals, etc.).
(B)Man-made Resources (technology, infrastructure, Education & Training, etc.)
(C)Human Resources (number, age distribution, health, size, etc.)
(D)Managerial Know-how
(E)Traditions |
|
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Term
|
Definition
| (1930) raised import duties on 20,000 products to reduce the volume of imports into the United States to help restore domestic employment → in raising of duties and imposition of imports barriers by other nations → worldwide depression and the collapse of the world financial system |
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|
Term
| Western world led by the United States |
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Definition
| : Pax Americana fostered international trade as a key to worldwide prosperity. Emphasis on market economies and balanced consumer/industrial goods sectors |
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Term
|
Definition
| (General Agreement on Tariffs and Trade): A set of rules for non discrimination, transparent procedures and settlement of disputes in international trade. Adopted by 23 countries in1947 |
|
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Term
|
Definition
| provide an international forum to encourage free trade among member states |
|
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Term
| GATT's name was changed to what? |
|
Definition
| World Trade Organization (WTO) on January 1, 1995 (by Uruguay Round) |
|
|
Term
| WTO currently has________ member countries |
|
Definition
|
|
Term
|
Definition
| Adjusting and adapting to a specific culture other than one’s own |
|
|
Term
| What are some of the functions of the WTO? |
|
Definition
• Administer WTO trade agreements
• Forum for trade negotiations
• Handle trade disputes (empowered to enforce rulings)
• Monitor national trade policies (countries found in violation of WTO rules are expected to change policies or else face sanctions)
•Also responsible for General Agreement on Trade in Services (GATS), Trade related aspects of intellectual property rights (TRIPS), and Trade related investment measures (TRIMS).
•Its 9th round of negotiations (Doha Round) was launched in 2001 in Doha,
Qatar. It facilitated the way for China and Taiwan to get full membership in the WTO.
•As of now, the Doha Round is completely stalled because of unresolved subsidy issues |
|
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Term
|
Definition
Internatinal Monetary Fund
–Established in 1944.
–Designed to provide stability for the international monetary framework.
–Provided for fixed exchange rates between countries. |
|
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Term
| What are the 5 major components of the world banking group? |
|
Definition
- International Bank for Reconstruction and Development (IBRD)
- International Development Association (IDA)
- International Finance Corporation (IFC)
- Multilateral Investment Guarantee Agency (MIGA)
- International Center for Settlement of Investment Disputes (ICSID) |
|
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Term
| What are some of the current areas of focus for the world bank? |
|
Definition
-Sustainable growth and development.
-Clean technologies.
- Agricultural assistance for combating inflation in food.
- Liberalization of world trade.
- Greater participation of rising economic powers and developing nations in the bank’s governance.
-Reconstruction of war-torn countries.
-Assists fledging economies to participate in modern economic trade.
-Resolving debt problems of developing nations. |
|
|
Term
| What are some of the factors behind the decline in U.S. international competitiveness? |
|
Definition
–Attitude of the US policy makers - Ignoring domestic firms in an attempt to boost the development of foreign economies (OK during Marshall Plan but disastrous when facing strong foreign competitors)
–Perception amongst US manufacturers about international marketing being risky and complicated.
–Lack of global interest (Technological arrogance, NIH syndrome, etc).
–Unfamiliarity with international market conditions.
Complicated trade regulations |
|
|
Term
•Restrictions on investment may |
|
Definition
–Permit more domestic control over industries.
–Deny access to foreign capital and often innovation.
–Tightening up credit markets → higher interest rates, and a decrease in willingness to adapt to changing world market conditions |
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|
Term
| Mainly ad hoc political reactions (over time) → (change to) |
|
Definition
| protectionism (protectionism OK as a bargaining tool but not when passed into laws). |
|
|
Term
| Import-related policy responses with the voluntary import restrictions |
|
Definition
| aid domestic industries to reorganize, restructure, and recapture their trade prominence of years past |
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Term
|
Definition
| are limitations on the quantity of goods exported to a specific country or countries by a government |
|
|
Term
| Import-related policy responses with the Export restrictions |
|
Definition
| to keep scarce or critical resources from overseer competitors or to encourage inward FDI, e.g. rare earths in China |
|
|
Term
| Import-related Policy Responses to Non-tariff barriers |
|
Definition
| Providing preferential treatment to domestic bidders, using national standards, placing emphasis on design rather than performance, and preventing the market entry of foreign products |
|
|
Term
|
Definition
| Absorbing one’s own culture |
|
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Term
|
Definition
| Manifestations of the total way of life that are common to all cultures (elements such as body adornments, courtship, etiquette, family, gestures, humor, mealtimes, music, personal names, status differentiation, trade etc.) |
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Term
| What are some of the elements of a culture? |
|
Definition
•Language
•Religion
•Values & Attitudes
•Manners & Customs
•Aesthetics
•Education
•Social Institutions
•Material Elements
•Etc. |
|
|
Term
|
Definition
| Lays stress on frugality and accumulation of wealth from hard work; consists of two significant groups Catholicism and Protestantism |
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Term
|
Definition
| Plays a pervasive role in the life of its followers; it supports entrepreneurship and discourages exploitation |
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Term
|
Definition
| Family is an important element in Hindu society; the extended family structure has an impact on the purchasing power and consumption of Hindu families |
|
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Term
|
Definition
| Views life as an existence of suffering; emphasizes on spiritual achievement rather than worldly goods |
|
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Term
|
Definition
| Characterized by a code of conduct; stresses on loyalty and relationships |
|
|
Term
|
Definition
| Nature-centric, polytheistic religion of Japan (tradition & family, love of nature, cleanliness) |
|
|
Term
|
Definition
| shared beliefs or group norms that have been internalized by individuals |
|
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Term
|
Definition
| evaluations of alternatives based on values (attitudes towards change is positive in industrialized countries, but change is viewed with suspicion in tradition bound societies). |
|
|
Term
|
Definition
a culture’s concept of good taste,
as expressed in the arts and in the particular
symbolism of colors, form, music, etc |
|
|
Term
Color is often used as a mechanism for.......... |
|
Definition
brand
identification, feature reinforcement, and
differentiation |
|
|
Term
|
Definition
| determines the way people relate to one another including the roles of managers and subordinates |
|
|
Term
|
Definition
| Provide the values and attitudes that become influential in shaping behavior; can be primary or secondary. |
|
|
Term
|
Definition
| Differences in the division of a particular population into classes (higher strata control most of the buying power and decision-making positions). |
|
|
Term
| Material culture results from technology and is manifested in the availability and adequacy of these what infrastructures? |
|
Definition
- economic
- social
- financial
- technological
|
|
|
Term
| Hofstede’s dimensions of culture |
|
Definition
–Individualism
–Power distance
–Uncertainty avoidance
–Masculinity/Famininity
–Long-term versus short-term orientation |
|
|
Term
|
Definition
| The unconscious reference to one’s own cultural values |
|
|
Term
| Influence of one’s own cultural values can be reduced by |
|
Definition
–Define the problem in terms of domestic and foreign cultural traits, habits, or norms.
–Pinpoint the complicating influence of the self-reference criterion.
Redefine the problem without the self-reference criterion |
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|
Term
| The training challenges is to aim...... |
|
Definition
foster preparedness, sensitivity, patience, and
flexibility in managers and other personnel |
|
|
Term
|
Definition
| Focuses on enhancing a manager’s flexibility in situations that are quite different from those at home |
|
|
Term
|
Definition
| Exposes managers to different cultural environments for a limited amount of time |
|
|
Term
|
Definition
| Provide factual preparation for a manager to operate in, or work with people from, a particular country |
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|
Term
| Some marketing characteristics are??? |
|
Definition
population
income
consumption patterns
infrastructure |
|
|
Term
| The degree of urbanization dictates the nature of the..... |
|
Definition
| marketing task in terms of distribution, market potential, and buying habits |
|
|
Term
| Per capita GDP - often used as a primary indicator for |
|
Definition
|
|
Term
| The lack of income in a market may preclude the marketing of a standardized product but may provide an opportunity for an adjusted product |
|
Definition
| The lack of income in a market may preclude the marketing of a standardized product but may provide an opportunity for an adjusted product |
|
|
Term
| in product-specific cases income..... |
|
Definition
| may not play a major role |
|
|
Term
|
Definition
| As a family’s income increases, the percentage spent on food will decrease, the percentage spent on housing and household operations will be roughly constant, and the amount saved or spent on other purchases will increase |
|
|
Term
| Product saturation or diffusion |
|
Definition
| provides information on the percentage of households in a market that own a particular product |
|
|
Term
|
Definition
–Transportation networks by land, rail, waterway, or air are essential for distribution.
–Communication systems for marketing include telephones, computers, broadcast media, print media, internet, and wireless technology.
The more extensive the firm’s international involvement, the more it can rely on its already existing support network of banks, advertising agencies, and distributors to assess new markets |
|
|
Term
| Implications of Economic Integration for Marketing |
|
Definition
1. Increased growth for the region
2. Growth in income within the region → increased exports for
both member and nonmember countries
3. Trade creation and trade diversion
4. Opportunity for direct investments
5. Increased competition within the region
6. New standards of fair competition
7. Support for local industries
8. Greater market segmentation |
|
|
Term
|
Definition
1952: Belgium, Netherlands Luxemburg, Germany,
France & Italy
1973: Denmark, Ireland, UK
1981: Greece
1986: Portugal, Spain
1995: Austria, Finland, Sweden
2004: Cyprus, the Czech Republic, Estonia, Hungary,
Latvia, Lithuania, Malta, Poland, the Slovak
Republic and Slovenia
2007: Romania, Bulgaria (27 countries) |
|
|
Term
| Council of European Union |
|
Definition
| - Main decision-making body. One minister from each member country |
|
|
Term
| European Parliament is the |
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| Ensures that Community laws are uniformly interpreted and applied |
|
|
Term
|
Definition
| Checks EU’s receipts and expenses and manages the budget |
|
|
Term
|
Definition
| 1994. Includes two side agreements to correct perceived abuses in labor and the environment in Mexico. Introduction of maquiladoras |
|
|
Term
| Europe: EFTA (European Free Trade Association): |
|
Definition
| Iceland, Norway, Switzerland and Liechtenstein |
|
|
Term
|
Definition
- ECOWAS (Economic Community of West African States),
- SACU (South African Customs Union): Botswana, Lesotho, Namibia, South Africa, Swaziland
|
|
|
Term
|
Definition
| (Southern Common Market – founded in 1991): Argentina, Brazil, Paraguay, Uruguay + 5 Associate members, Mexico is an observer |
|
|
Term
|
Definition
| Latin American Integration Association |
|
|
Term
|
Definition
| Central American Common Market |
|
|
Term
|
Definition
|
|
Term
|
Definition
| Caribbean Community and Common Market |
|
|
Term
|
Definition
| South Asian Association for Regional Cooperation |
|
|
Term
| Strategies for Regional Markets in Europe |
|
Definition
| Fill gaps in product/market portfolios; Create alliances with strong European firms; Rationalize European organization, production, distribution; Hire senior-level European talent; Establish region-wide government relations |
|
|
Term
| Strategies for Regional Markets in emerging markets |
|
Definition
| Adjust entry strategy; Manage affordability; Invest in distribution; Build strong brands |
|
|
Term
|
Definition
| Research customers; Create buying power; Tailor local solutions; Improve access; Shape aspirations |
|
|
Term
| Consequences Of Political Actions |
|
Definition
•Indigenization/Domestication
•Nationalization (Acceptable according to international law if it satisfies public purpose & includes compensation)
•Expropriation/Confiscation (no compensation)
•Local content laws
•Local hiring laws
•Discriminatory taxes
•Discriminatory pricing of resources
•Joint-venture pressure
•Import/Export controls, embargos, sanctions, etc.
•Selective boycotts
•Price controls
Terrorism, etc |
|
|
Term
| Determinants for export controls |
|
Definition
- national security
- forgein policy
- short supply
- nuclear nonprofeliation
|
|
|
Term
| Problems faced while administering import controls |
|
Definition
–They exact a huge price from domestic consumers.
–The social cost of these controls may be damaging to the economy.
–They bring about downstream change in import composition.
–They often do not to work.
Supply may respond to artificial stimulation and grow far beyond demand |
|
|
Term
|
Definition
–Shortage of foreign currency.
–Difficulty dealing with exchange controls.
–Prolonged negotiations with government officials.
–Increase in tax rates or stricter applications of the host country’s tax codes.
–Government control on the prices of imported products or services.
–Other government controls (e.g., censorship) |
|
|
Term
|
Definition
| Based on tradition and depends less on written statutes and codes than on precedent and custom |
|
|
Term
|
Definition
| Based on a comprehensive set of written statutes that spell out legal rules explicitly; based on Roman law. (Islamic Law: Based on Sharia, direct impact on dietary and financial aspects) |
|
|
Term
|
Definition
–No enforceable body of international law exists;
–Treaties and agreements respected by a number of countries influence international business operations.
–Firms are restricted by both home and host country laws. |
|
|
Term
|
Definition
| the most expensive and time-consuming alternative |
|
|
Term
| Conflicts with foreign commercial and government entities may be resolved by |
|
Definition
| mediation, arbitration or litigation |
|
|
Term
| Direct effects of international terrorism |
|
Definition
| the immediate cost levied on individual firms. Physical damage to infrastructure and disruption of public services and supply of inputs, resources and services |
|
|
Term
| Indirect effects of international terrorism |
|
Definition
| decline in per capita income, purchasing activity, and stock market values. Deterioration of international relations. Onerous counter terrorism regulations |
|
|
Term
| chill effect of international terrorism |
|
Definition
| Uncertainty about the state of a nation’s economy can sharply reduce domestic business activity as well as FDI. Curtailment of travel by foreign executives, etc |
|
|
Term
| The ethical obligations faced by multinational enterprises include |
|
Definition
–Corporate governance and responsibility
–Intellectual property rights
–Bribery and corruption |
|
|
Term
| Intellectual Property Rights |
|
Definition
•Many countries propose a balance between IP protection and availability of essential information in various areas of public policy such as
–Health (access to affordable medicines)
–Biotechnology (use of genetic research tools)
–Education (access to scientific materials)
–Food & agriculture (food security & preservation of biodiversity) |
|
|
Term
| The Foreign Corrupt Practices Act (FCPA): |
|
Definition
| 1977: prohibits U.S. firms to bribe foreign officials for business purposes. Similar laws in Europe and other countries |
|
|
Term
| Functional lubrication/Enabling payments |
|
Definition
| the amount is small, it is standardized, and is passed on to others involved in the processing of documents |
|
|
Term
| International research involves |
|
Definition
–New parameters like information availability, respondent access, laws governing information gathering, survey familiarity, communication infrastructures, research suppliers, etc.
New environment: cultures, demographics, political systems, stability, different societal structures, language, etc |
|
|
Term
| Secondary Information Caveats |
|
Definition
–Consider the quality of the data source, with primary focus on the purpose and method of original data collection.
–Assess the quality of actual data in terms of accuracy, reliability, and recency.
Assess the comparability and compatibility of the data |
|
|
Term
| The international information system should have the following attributes... |
|
Definition
–Relevant
–Timely
–Flexible
–Accurate
–Exhaustive
–Convenient |
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