Term
|
Definition
| The political environment of countries is a critical concern for the international marketer- International law recognizes the sovereign right of a nation to allow or deny foreign firms to conduct |
|
|
Term
|
Definition
| refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members |
|
|
Term
|
Definition
- Opposing political party ascends to power
- Pressure from nationalist/self-interest groups
- Weakened economic conditions
- Bias against foreign investment/conflict between governments |
|
|
Term
|
Definition
- Call to “buy our country’s products only”
- Restrictions on imports, restrictive tariffs, and other barriers to trade |
|
|
Term
|
Definition
| the most severe political risk, is the seizing of a company’s assets without payment |
|
|
Term
|
Definition
| is where the government seizes an investment, but some reimbursement for the assets is made; often the expropriated investment is nationalized to become a government run entity |
|
|
Term
|
Definition
| occurs when the government mandates local ownership and greater national involvement in a foreign company’s management |
|
|
Term
| Economic/Political Risks (6) |
|
Definition
- Exchange Controls
- Local Content Laws
- Import Restrictions
- Tax Controls
- Price Controls
- Labor Problems |
|
|
Term
|
Definition
| This happens when there is a shortage of foreign exchange in the country and the government restricts the spending in foreign currency. This may result in the imposition of differential exchange rates for different products entering the country |
|
|
Term
|
Definition
| All countries and regions may have local content laws, for example NAFTA has a 62.5% local content requirement for cars originating from the NAFTA region, the EU has a 45% local content requirement so that it forces companies to use local components. |
|
|
Term
|
Definition
| Taxes that are imposed on foreign companies but not on domestic companies and caused their products to be more expensive in the country because it is passed on to the consumer. |
|
|
Term
|
Definition
| Countries can impose price controls on foreign companies selling essential products such as food or gasoline, especially during inflationary periods. |
|
|
Term
|
Definition
| Unionism and labor laws are different in different countries and there are especially strict rules for laying off employees by foreign companies. China’s new labor laws have been revamped and require foreign companies to provide a lot more benefits as well as lifelong employment after a certain number of years of service. |
|
|
Term
| Methods for Reducing economic/political risks (5) |
|
Definition
- Joint Venues
- Expanding investment base
- Political Bargaining
- Political Payoffs |
|
|
Term
|
Definition
- Common
- Civil Code
- Islam |
|
|
Term
| 3 Jurisdiction situations |
|
Definition
- Between governments
- Between a company and government
- Between two companies |
|
|
Term
| How is jurisdiction determined (3) |
|
Definition
- the basis of jurisdictional contracts
- the basis of where a contract was entered into
- where the provisions of the contract were performed |
|
|
Term
|
Definition
Conciliation (mediation)
Arbitration
Litigation |
|
|
Term
|
Definition
| (mediation) nonbinding agreement between parties to resolve the disputes by asking a third party to mediate differences |
|
|
Term
|
Definition
| determine referee that makes a judgment both parties agree to honor (enforceable under law) |
|
|
Term
|
Definition
| Filing lawsuit to settle commercial disputes (AVOID) |
|
|
Term
| Intellectual Property Rights (2) |
|
Definition
Common-law: property is est. BY PRIOR USE
Code-law: ownership est. by REGISTRATION |
|
|
Term
|
Definition
- When doing business in more than one country, a firm must comply with different marketing laws
- All countries have laws regulating marketing activities in promotion, product development, labeling, pricing, and distribution channels |
|
|
Term
|
Definition
- Focus on environmentally friendly products and on product packaging its effect on solid waste management
- A green dot identifies manufacturers that have agree to ensure a regular collection of used packaging material directly from the consumers home or from designated local collection points |
|
|
Term
|
Definition
| - Foreign Corrupt Practices Act: Makes it illegal for companies to pay bribes to foreign officials, candidates, or political parties |
|
|
Term
|
Definition
- DEFINE THE RESEARCH PROBLEM and establish research obj.
- Determine the SOURCE OF INFORMATION to fulfill the research obj.
- Consider the COSTS AND BENEFITS OF THE RESEARCH effort
- GATHER THE RELEVANT DATA from secondary/primary sources
- ANALYZE, INTERPRET, AND SUMMARIZE RESULTS
- Effectively COMMUNICATE THE RESULTS to decision makers |
|
|
Term
|
Definition
| International research is important, define the problem fully and establish research objectives |
|
|
Term
|
Definition
| Data collected directly/first hand |
|
|
Term
|
Definition
| Information gained from a different source; used to gain initial insight (Problems include availability, comparability, reliability, and validation) |
|
|
Term
|
Definition
| Questions transferred from English to local language back to English |
|
|
Term
|
Definition
| More than two translators are used for the back translation the results are compared, differences discussed, and the most appropriate translation is selected |
|
|
Term
|
Definition
| Describing an object that is different from another object, but can perform the same functions |
|
|
Term
|
Definition
| Similarity of linguistic terms and meanings across cultures |
|
|
Term
|
Definition
| Builds on the prior forms of equivalence and is attained when a construct is measured on the same metric |
|
|
Term
|
Definition
- T-test
- Chi-Square
- ANOVA
- Regression |
|
|
Term
| Stages of Economic Development (3) |
|
Definition
|
|
Term
| More Developed Countries (MDC) |
|
Definition
| ndustrialized countries with high per capita incomes, such as Canada, England, France, Germany, Japan, and the United States. |
|
|
Term
| Less Developed Counties (LDC) |
|
Definition
| Industrially developing countries just entering world trade, many of which are in Asia and Latin America, with relatively low per capita incomes. |
|
|
Term
| Least Developed Countries (LLD) |
|
Definition
| ndustrially underdeveloped, agrarian, subsistence societies with rural populations, extremely low per capita income levels, and little world trade involvement. Such LLDCs are found in Central Africa and parts of Asia. Violence and the potential for violence are often associated with LLDCs. |
|
|
Term
| Growth Factors for NIC's (7) |
|
Definition
1) Political stability in policies affecting their development
2) Economic and legal reforms
3) Entrepreneurship
4) Planning
5) Outward orientation
6) Factors of production
7) Privatization of state-owned enterprise |
|
|
Term
| Infrastructure Impacts... |
|
Definition
- represents capital improvements that serve the activities of many industries
- Roads, seaports, communication networks, financial networks, and energy supplies
- Crucial component of the uncontrolled elements facing marketers |
|
|
Term
| Level of Market Development.. |
|
Definition
Agriculture→ Manufacturing → Marketing
- The more developed an economy, the more sophisticated marketing efforts become
- As countries develop, the distribution channel systems develop
- Product development, advertising, and communication structures of developing countries are simultaneously at different stages |
|
|
Term
|
Definition
- The traditional rural/agriculture sector
- The modern urban/high-income sector
- The large transitional sector usually represented by low-income urban slums |
|
|
Term
| Big Emerging Markets (BEM's) (7) |
|
Definition
- They are all geographically large.
- Have significant populations.
- Represent sizable markets for a wide range of products.
- Have strong rates of growth or the potential for significant growth.
- Have undertaken significant programs of economic reform.
- Are of major political importance within their regions.
- Are “regional economic drivers.”
- Will engender further expansion in neighboring markets as they grow. |
|
|
Term
|
Definition
| - Expectations for a better life adjust to higher standards- market behavior changes - incomes rise, new demand - develop marketing strategies that are tailored to the level of economic development |
|
|
Term
|
Definition
- Regional Cooperation Group
- Free Trade Agreement
- Customs Union
- Common Markets/Economic Unions
- Political Unions |
|
|
Term
|
Definition
- The EMU, a provision of the Maastricht Treaty, established the parameters of the creation of a common currency for the EU, the euro
- Established a timetable for its implementation
- In 2002, a central bank was established, conversion rates were fixed, circulation of euro banknotes and coins was completed
- The 12 member states employed the euro beginning in January 1, 2001, some did not join voluntarily |
|
|
Term
|
Definition
- In August 2005, President George Bush signed into law a comprehensive free trade agreement among Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the
United States
- The agreement includes a wide array of tariff reductions aimed at increasing trade and employment among the seven signatories |
|
|
Term
|
Definition
- The second largest common marketing agreement in the Americas (after NAFTA)
- The Treaty of Asunción, which provided the legal basis for Mercosur, was signed in 1991 and formally inaugurated in 1995.
- The treaty calls for a common market that would eventually allow for the free movement of goods, capital, labor, and services among the member countries, with a uniform external tariff
- Because Mercosur members were concerned about sacrificing sovereign control over taxes and other policy matters, the agreement envisioned no central institutions similar to those of the European Union institutions. |
|
|
Term
|
Definition
- Latin American Integration Association (LAIA)
- Caribbean Community and Common Market (CARICOM) |
|
|
Term
|
Definition
Association of Southeast Asian Nations
- A multinational regional trade group including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam |
|
|
Term
|
Definition
the Asian-Pacific Economic Cooperation;
- A forum that meets annually to discuss regional economic development |
|
|
Term
| Keillor - Segment differences |
|
Definition
- Segmenting markets—how we might look at influencers in markets
- Mexican and American adolescents when purchasing goods
- Mexico = collectivist
- U.S. = individualistic
- Mexico uses more sources in decision making: parents are major source, advertisements w/ parent figures and importance is places of brand preferences, salespeople, use of siblings as influencers was high in both cultures, friends and peers only influence in low-involvement products |
|
|
Term
| Competition across markets |
|
Definition
| - Confronted with increasing global competition for expanding markets, multinational companies are changing their marketing strategies and altering their organizational structures. Their goals are to enhance their competitiveness and to ensure proper positioning in order to capitalize on opportunities in the global marketplace |
|
|
Term
|
Definition
| question whether the global homogenization of consumers tastes allowed global standardization of the marketing mix. Standardizing a product for the entire market and not country specific |
|
|
Term
|
Definition
| localizing and adjusting the product to fit the local market |
|
|
Term
| Planning Process (4 Phases) |
|
Definition
- Phase 1: Preliminary analysis and screening
- Phase 2: Defining market segments
- Phase 3: Developing the marketing plan
- Phase 4: Implementation and control |
|
|
Term
| Alternative Market entry strategy (4) |
|
Definition
- Exporting
- Contractual Agreement
- Strategic Alliance
- Direct foreign investment |
|
|
Term
|
Definition
- Direct exporting - the company sells to a customer in another country
- Indirect exporting - the company sells to a buyer in the home country who in turn exports the product |
|
|
Term
| Contractual Agreement (2) |
|
Definition
long-term, non-equity associations between a domestic company and foreign company
- Contractual agreements generally involve the transfer of technology, processes, trademarks, or human skills.
(Licensing/Franchising) |
|
|
Term
|
Definition
Strategic International Alliance (SIA) is a business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective
- International Join Ventures (IJV’s)
- Consortia |
|
|
Term
| Direct Foreign investment |
|
Definition
- Companies may manufacture locally
- Firms may either invest in or buy local companies
- Establish new operations facilities (termed Greenfield operations |
|
|
Term
|
Definition
| - Developing unique product differences with the intent to influence demand |
|
|
Term
|
Definition
| o Do a better job of serving buyers in target market niche than rivals; choose a market niche where buyers have distinctive preferences, special requirements, or unique needs; develop a unique ability to serve needs of target market segment |
|
|
Term
|
Definition
- Industry competitors
- Potential Entrants
- Bargaining power of supplier
- Bargaining power of Buyer
- Threats of substitute products or services |
|
|
Term
|
Definition
- Suffer from ecological, economical, and political constraints that prevent the firm from using this individual pricing method, which could lead to customized packages for vacationers
- Problems---not a great sales increase, natural disasters, contracts to gain government funding (Mexico), France conducting nuclear tests in South Pacific along with riots in airports, lower revenues and less money to maintain |
|
|
Term
|
Definition
| - Competition among industries has moved quicker---speed in which business happens, speed you are able to serve customers |
|
|
Term
|
Definition
| - Process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one---creative destruction occurs when something new kills an old thing |
|
|
Term
|
Definition
| - A reciprocal relation between interdependent entities (objects or individuals or groups |
|
|
Term
|
Definition
| - Is where one group pays a relatively high price and thus enables another group to pay a relatively low price |
|
|
Term
|
Definition
Strength (In)
Weakness (In)
Opportunity (Ex)
Threat (External) |
|
|
Term
| Market Disruption (what does marketing do) |
|
Definition
• Innovation
• Quality
• Firm specific competencies
• Monopoly and oligopoly
• Niche Markets
• Cost and Price Advantages
• Differentiation |
|
|
Term
Comparative advantage theory
(Hunt/Morgan Article) |
|
Definition
• Absolute Advantage
• Comparative Advantage
• Commodity Terms of Trade
• Factor Endowment Theory |
|
|
Term
| Covert sustainable competitive advantage |
|
Definition
| long run, achieve comparable advantage to last a long time, a lot of products today don’t have the ability to sustain advantage b/c of copying; companies focusing on marketing other than differentiation of product qualities |
|
|
Term
|
Definition
| granting patent rights, trademark rights, and the rights to use technological |
|
|
Term
|
Definition
| a standard package of products, systems, and management services, market knowledge, capital, and personal involvement in management |
|
|
Term
| Latin American Integration Association (LAIA) |
|
Definition
- The long-term goal of the LAIA is a gradual and progressive establishment of a Latin American common market
- There was is the differential treatment of member countries according to their level of economic development
- The provision that permits members to establish bilateral trade agreements among member countries |
|
|
Term
| Caribbean Community and Common Market (CARICOM) |
|
Definition
- It has worked toward a single-market economy and in 2000 established the CSME (CARICOM Single Market and Economy) with the goal of a common currency for all members.
- The introduction of a common external tariff structure was a major step toward that goal. |
|
|
Term
| Regional Cooperation Groups |
|
Definition
- The most basic economic integration and cooperation is the regional cooperation for development (RCD)
- Governments agree to participate jointly to develop basic industries beneficial to each economy
- Each country makes an advance commitment to:
- Participate in the financing of a new joint venture
- To purchase a specified share of the output of the venture |
|
|
Term
|
Definition
- requires more cooperation and integration than the RCD
- It is an agreement between two or more countries to reduce or eliminate customs duties and nontariff trade barriers among partner countries
- Members maintain individual tariff schedules for external countries.
- An FTA provides its members with a mass market without barriers to impede the flow of goods and services |
|
|
Term
|
Definition
- A customs union represents the next stage in economic cooperation
- It enjoys the free trade area’s reduced or eliminated internal tariffs and adds a common external tariff on products imported from countries outside the union.
- The European Union was a customs union before becoming a common market
- Customs unions exist between France and Monaco, Italy and San Marino, and Switzerland and Liechtenstein, to name some examples. |
|
|
Term
| Common Markets Economic Unions |
|
Definition
- eliminates all tariffs and other restrictions on internal trade
- Adopts a set of common external tariffs, and removes all restrictions on the free flow of capital and labor among member nations
- It is a unified economy and lacks only political unity to become a political union
- The EU evolved from the development of a common market, the European Economic Community (EEC) |
|
|
Term
|
Definition
is the most fully integrated form of regional cooperation
- It involves complete political and economic integration, either voluntary or enforced
- The most notable enforced political union was the Council for Mutual Economic Assistance (COMECON), a centrally controlled group of countries organized by the Soviet Union
- Two new political unions came into existence in the 1990s:
- The Commonwealth of Independent States (CIS), made up of the republics of the former Soviet Union, and The European Union (EU) |
|
|
Term
| Growth Factors for NIC's (7) |
|
Definition
1) Political stability in policies affecting their development
2) Economic and legal reforms
3) Entrepreneurship
4) Planning
5) Outward orientation
6) Factors of production
7) Privatization of state-owned enterprise |
|
|
