Term
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Definition
| activities that facilitate exchange between buyers and sellers |
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Term
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Definition
1. Understand the market—Analysis of Market Exchange of Goods and Services by People & Institutions
2. Identify the market—Segmentation and Targeting
3. Decompose the offering components with respect to the market—Strategic framework
a. Product
b. Price
c. Promotion
d. Place (distribution)
4. Focus the offering for the market—Custer orientation |
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Term
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Definition
Focusing on changing the face of U.S. business
• Increasing globalization of markets
• Changing competitive structures
• Many U.S. companies now foreign controlled
• U.S. markets seeking foreign markets to increase profit
• Changing demand structures
• Domestic market segmentation |
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Term
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Definition
| the point at which a market is no longer generating new demand for a firm’s products due to competition, decreased need, obsolescence, or some other factor |
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Term
| Stages of international marketing |
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Definition
No direct foreign marketing
Infrequent foreign marketing
Regular foreign marketing
International marketing
Global Marketing |
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Term
| No direct foreign marketing |
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Definition
| this stage, a company does not send its products overseas directly, but its products may become available in other countries through intermediaries or middlemen such as trading companies. Occasional internet sales because of a request from an overseas customer may also fall into this category |
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Term
| Infrequent Foreign marketing |
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Definition
| temporary surpluses in inventory may cause companies to sell their excess product in overseas markets. Note that in the first two stages of International Marketing Involvement, the strategies are reactive rather than proactive |
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Term
| Regular foreign marketing |
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Definition
| in this stage a firm has committed permanent resources towards international marketing and engages in it regularly on a proactive basis. The firm may use intermediaries to engage in international marketing |
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Term
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Definition
| in this stage has planned production and marketing to many countries around the world with specific targets for each overseas country market. It involves not only marketing but also production of goods in overseas markets |
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Term
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Definition
| firm starts viewing the world, including their home market as one market. The major change is the orientation towards world markets and the activities directed at supporting this view |
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Term
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Definition
• Taking an environmental/cultural approach
• Relating the foreign environment to marketing
• Illustrating how culture influences marketing
• Understanding that the cultural environment can change dramatically from country to country |
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Term
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Definition
| refers to the notion that one’s own culture or company know best how to do things |
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Term
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Definition
• Market Saturation
o “A new Starbucks opens in restroom of existing Starbucks”
• Younger generation “turned off”?
• Lack Attention to Service & Employee Satisfaction |
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Term
| Levitt vs. Douglas & wind Contrast |
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Definition
• Technology drivers
o The driving force of today’s society
• Adaptation v. standardization
• Homogenization of preference |
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Term
| International Marketing Definition |
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Definition
| the performance of business activities designed to plan, price, promote and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit |
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Term
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Definition
can be altered in the long run, usually, in the short run to adjust to changing market conditions, consumer tastes, or corporate objectives (inner circle)
• Firm Characteristics
• Product
• Price
• Place
• Promotion
• Research |
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Term
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Definition
uncontrollable elements within a market that a marketer must evaluate and adapt to
• Domestic Environment
• Foreign Environment |
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Term
| Domestic Environment Uncontrollable |
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Definition
represented by the second circle
• Political forces
• Legal forces
• Economic forces
• Competition |
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Term
| Foreign Environment Uncontrollable |
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Definition
represented by the outer circle
• Political forces
• Legal forces
• Economic forces
• Competition |
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Term
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Definition
| an unconscious reference to one’s own cultural values, experiences and knowledge as a basis for decisions |
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Term
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Definition
| also involves knowledge of world market potentials and global, economic, social and political trends |
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Term
| Multinational Corporations (MNC) Concept |
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Definition
1. International Economic Competition Begins (Japan, Germany, USA)
2. Newly Industrialized Countries (NIC) Emerge (S. Korea, Taiwan, Singapore, Hong Kong)
3. More Emerging Markets Enter the Marketplace (China, India, Indonesia, Thailand, Malaysia, Brazil, Mexico, Vietnam)
4. BRIC’s Emerge – the 4 potential growth markets (Brazil, Russia, India, China)
5. World’s largest corporations (MNC’s) start migration. |
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Term
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Definition
| North American Free Trade Agreement |
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Term
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Definition
| goal of WBG is to reduce poverty and improvement of living standards by promoting sustainable growth and investment in people |
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Term
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Definition
• Lending money to countries to finance development projects in education, health and infrastructure;
• Providing assistance for projects to the poorest developing countries;
• Lending directly to private sector in developing countries with long-term loans, equity investments and other financial assistance;
• Provide investors with investment guarantees against “noncommercial risk,” so developing countries will attract FDI; and
• Provide conciliation and arbitration of disputes between governments and foreign investors |
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Term
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Definition
Blocked Currency
Differential Exchange rate
Government approval |
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Term
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Definition
| Blockage is accomplished by refusing to allow importers to exchange its national currency for the sellers’ currency. |
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Term
| Differential Exchange Rates |
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Definition
| It encourages the importation of goods the government deems desirable and discourages importation of goods the government does not want by adjusting the exchange rate. The exchange rate for importation of a desirable product is favorable and vice-versa |
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Term
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Definition
| In countries where there is a severe shortage of foreign exchange, an exchange permit to import foreign goods is required from the government |
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Term
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Definition
| withdraw from commercial or social relations with (a country, organization, or person) as a punishment or protest |
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Term
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Definition
| a specific unit or dollar limit applied to a particular type of good |
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Term
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Definition
| association of five major emerging national economies: Brazil, Russia, India, China and South Africa |
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Term
| Trade-Related Investment Measures (TRIM) |
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Definition
| rules that apply to the domestic regulations a country applies to foreign investors, often as part of an industrial policy; rules that restrict preference of domestic firms and thereby enable international firms to operate more easily within foreign markets |
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Term
| Trade-Related Aspects of Intellectual Property Rights (TRIP) |
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Definition
| establishes substantially higher standards of protection for a full range of intellectual property rights (patents, copyrights, trademarks, trade secrets, industrial designs, and semiconductor chip mask works) than are embodied in current international agreements, and it provides for the effective enforcement of those standards both internally and at the border. |
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Term
| World Trade Organizations (WTO) |
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Definition
created as an institution not an agreement
1. Sets many rules governing trade between its member countries
2. Provides a panel of experts to hear and rule on trade disputes between members, and, unlike GATT, issues binding decisions |
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Term
| General Agreement on Tariffs and Trade (GATT) |
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Definition
1. Created as an agency to serve as watchdog over world trade and provide process to reduce tariffs
2. Provided a mechanism to resolve trade disputes bilaterally
3. Now replaced by the World Trade Organization (WTO) |
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Term
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Definition
Current account
Capital account
Reserve account |
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Term
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Definition
| a record of all merchandise exports, imports, and services plus unilateral transfers of funds |
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Term
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Definition
| a record of direct investment, portfolio investment, and short-term capital movements to and from countries |
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Term
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Definition
| a record of exports and imports of gold, increases or decreases in foreign exchange, and increases or decreases in liabilities to foreign central banks |
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Term
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Definition
| Government actions and policies that restrict or restrain international trade, often done with the intent of protecting local businesses and jobs from foreign competition. Typical methods of protectionism are import tariffs, quotas, subsidies or tax cuts to local businesses and direct state intervention |
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Term
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Definition
| a tax imposed by a government on goods entering at its borders; they can be a percentage tax or a per unit tax |
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Term
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Definition
1. Specific Limitations on trade
2. Customs and Administrative entry proc
3. Standards
4. Government part. in trade
5. Charges on Imports
6. Other |
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Term
| Specific Limitations to trade |
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Definition
a. Quotas
b. Import licensing requirements
c. Proportion restrictions of foreign to domestic goods (local content requirements)
d. Minimum import price limits
e. Embargoes |
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Term
| Customs and Administrative Entry Procedures |
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Definition
a. Valuation systems
b. Antidumping practices
c. Tariff classifications
d. Documentation requirements
e. Fees |
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Term
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Definition
a. Standard disparities
b. Intergovernmental acceptances of testing methods and standards
c. Packaging, labeling, and marking |
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Term
| Government Participation in trade |
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Definition
a. Government procurement policies
b. Export subsidies
c. Countervailing duties
d. Domestic assistance programs |
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Term
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Definition
a. Prior import deposit subsidies
b. Administrative fees
c. Special supplementary duties
d. Import credit discriminations
e. Variable levies
f. Border taxes |
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Term
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Definition
a. Voluntary export restraints
b. Orderly marketing agreements |
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Term
| Voluntary Export Restaints (VER) |
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Definition
| A trade restriction on the quantity of a good that an exporting country is allowed to export to another country |
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Term
| International Monetary Fund (IMF) |
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Definition
• Created to assist nations in becoming and remaining economically viable
• Assists countries that seek capital for economic development and restructuring
• Loans come with stipulations that borrowing countries slash spending and impose controls to curb inflation
• Helps maintain stability in the world financial markets |
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Term
| Special Drawing Rights (SDR) |
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Definition
| supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF). Not a currency, SDRs instead represent a claim to currency held by IMF member countries for which they may be exchanged |
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Term
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Definition
| one of the uncontrollable elements that international marketers have to deal with. Geography has three major components, Climate and Topography, Economic Growth and Development and Natural Resources |
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Term
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Definition
| massive civil war in southern China from 1850 to 1864, against the ruling Manchu-led Qing Dynasty; it was a millenarian movement led by Hong Xiuquan, who announced that he had received visions in which he learned that he was the younger brother of Jesus. At least 20 million people died, mainly civilians, in one of the deadliest military conflicts in history |
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Term
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Definition
| emphasizes the basic virtue of loyalty “of friend to friend, of wife to husband, of child to parent, of brother to brother, but, above all, of subject to lord,” that is, to country. |
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Term
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Definition
meant that Americans were a chosen people ordained by God to create a model society; more specifically, it referred to the territorial expansion of the United States from the Atlantic to the Pacific *justified U.S. expansion*
• Annexation of Texas, Oregon, New Mexico, and California
• U.S. involvement in Cuba, Alaska, Hawaii, and the Philippines |
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Term
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Definition
| a cornerstone of early U.S. foreign policy, was enunciated by President James Monroe in a public statement proclaiming three basic dicta: no further European colonization in the New World, abstention of the United States from European political affairs, and nonintervention by European governments in the governments of the Western Hemisphere |
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Term
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Definition
• No further European colonization in the New World
• Abstention of the U.S. from European political affairs
• Nonintervention of European governments in the governments of the Western Hemisphere |
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Term
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Definition
— Theodore Roosevelt applied the Monroe Doctrine with an extension In 1881, its principles were evoked in discussing the development of a canal across the Isthmus of Panama
• Whatever is good for the U.S. is justifiable |
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Term
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Definition
| a joint approach among those (e.g., governments, businesses, environmentalists, and others) who seek economic growth with “wise resource management, equitable distribution of benefits and reduction of negative eff ects on people and the environment from the process of economic growth |
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Term
| Hofstede's Classification |
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Definition
| • defines culture as “software of the mind” he said it was “the collective programming of the mind which distinguishes the members of one group or category from those of another” |
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Term
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Definition
| to define a family group consisting of a pair of adults and their children |
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Term
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Definition
| a family that extends beyond the immediate family, consisting of grandparents, aunts, uncles, and cousins all living nearby or in the same household |
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Term
| Decentralized Decision Making |
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Definition
| any process where the decision making authority is distributed throughout a larger group. It also connotes a higher authority given to lower level functionaries, executives, and workers |
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Term
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Definition
| a situation faced when individuals collectively make a choice from the alternatives before them |
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Definition
| the sum of the “values, rituals, symbols, beliefs, and thought processes that are learned, shared by a group of people, and transmitted from generation to generation” |
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Term
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Definition
| family, religion, school, the media, government , and corporations all aff ect the ways in which people relate to one another, organize their activities to live in harmony with one another, teach acceptable behavior to succeeding generations, and govern themselves |
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Term
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Definition
| the importance of things and ideas |
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Term
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Definition
| patterns of behavior and interaction that are learned and repeated |
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Term
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Definition
| measure of difference between languages; an important factor in determining the amount of trade between nations |
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Term
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Definition
| philosophically, the creation and appreciation of beauty; collectively, the arts, including folklore, music, drama, and dance |
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Definition
| awareness of the nuances of culture so that a culture can be viewed objectively, evaluated, and appreciated; an important part of foreign marketing |
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Definition
| phenomenon by which societies learn from other cultures’ ways and borrow ideas to solve problems or improve conditions |
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Term
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Definition
| marketing strategy in which products are marketed in a way similar to the marketing of products already in the market in a manner as congruent as possible with existing cultural norms |
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Term
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Definition
| marketing strategy in which a company deliberately sets out to change those aspects of a foreign culture resistant to predetermined marketing goals |
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Term
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Definition
| a business custom (as in a foreign country) that must be recognized and accommodated |
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Term
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Definition
| a business custom (as in a foreign country) to which adaptation is helpful but not necessary |
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Definition
| a business custom (as in a foreign country) in which an outsider must not participate |
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Term
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Definition
| monochromatic time; describing a view of time, typical of most North Americans, Swiss, Germans, and Scandinavians, as something that is linear and can be saved, wasted, spent, and lost; m-time cultures tend to concentrate on one thing at a time and value promptness |
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Term
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Definition
| polychromatic time; a view of time, as held in “high context” cultures, in which the completion of a human transaction is more important than holding to schedules; p-time is characterized by the simultaneous occurrence of many things |
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Term
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Definition
| use of funds, usually illegally, to influence decisions made by public employees and government officials. Such payments oft en range into the millions of dollars in international commerce |
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Term
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Definition
| use of funds to expedite actions of public employees and government officials; the payments made to minor officials may or may not be illegal and are usually of inconsequential amounts |
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Term
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Definition
| giving of large sums of money—frequently not fully accounted for—designed to entice an official to commit an illegal act on behalf of the one offering the money |
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