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37 Cards in this Set
- Front
- Back
protectionism |
the practice of shielding one or more industries within a country's economy from foreign competition through the use of tariffs and quotas
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tariff
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a government tax on goods or services entering a country, primarily serving to raise prices on imports
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quota
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a restriction placed on the amount of a product allowed to enter or leave a country
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World Trade Organization
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insitution that sets rules governing trade between its members through a panel of trade experts
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global competition
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exists when firms originate, produce, and market their products and services worldwide
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multidomestic marketing strategy
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a multination firm's strategy of offering as many different product variations, brand names, and advertising programs as countries in which it does business
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global marrketing strategy
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the practice of standardizing market activities when there are cultural similarities and adapting them when cultures differ
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global brand
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a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs
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global consumers
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consumer groups living around the world who have similar needs or seek similar benefits from products or services
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cross-cultural analysis
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the study of similarities and differences among consumers in two or more nations or societies
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values
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a society's personally or socially preferable odes of conduct or states of existence that tend to persist over time
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customs
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norms and expectations about the way people do things in a specific country
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Foreign Corrupt Practices Act (1977)
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A law that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business
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cultural symbols
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things that represent ideas or concepts in a specific culture
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back translation
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retranslating a word or phrase back into the original language using a different interpreter to catch errors
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microfinance
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the practice of offering small, collateral-free loans to individuals who otherwise would not have access to the capitla necessary to begin small businesses or other income-generating activities
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currency exchange rates
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the price of one country's currency expressed in terms of another country's currency
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exporting
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producing goods in one country and selling them in another country
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joint venture
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when a foreign company and a local firm invest together to create a local business, sharing ownership, control, and the profits of the new company
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4 trends affecting world trade and global marketing
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1. Decline of economic protectionism by individual countries, 2. Rise of economic integration and free trade among nations, 3. Global competition among global companies for global consumers, 4. Emergence of a networked global marketspace
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european union
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consists of member countries that have eliminated most barriers to the free flow of goods, services, capital and labor across their borders
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north american free trade agreement (NAFTA)
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lifted many barriers between Canada, Mexico and the US creating a marketplace with more than 450 million consumers
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3 types of companies in the global marketplace
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1. international firms, 2. multinational firms, 3. transnational firms
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international firm
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engages in trade and marketing in different countries as an extension of the marketing strategy in its home country
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multinational firm
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views the world as consisting of unique parts and markets to each part differently. Use a multidomestic marketing strategy
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transnational firm
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views the world as one market and emphasizes cultural similiarities across countries or universal consumer needs and wants more than their differences
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licensing
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under licensing a company offers the right to a trademark, patent, trade secret, or other similarly valued item of intellectual property in return for a royalty or a fee
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indirect exporting
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when a firm sells its domestically produced goods in a foreign country through an intermediary. Least amount of commitment and risk, probably return least profit
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direct exporting
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when a firm sells its domestically produced goods in a foreign country without intermediaries
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franchising
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variation of licensing, fasted growing market-entry strategies
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direct investment
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entails a domestic firm actually investing in and owning a foreign subsidiary or division.
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product & promotion strategies
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product extension strategy, product adaptation strategy, product invention strategy, communication adaptation strategy, dual adaptation strategy
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product extension strategy
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selling virtually the same produt in other countries. Works best when the consumer target market for the product is alike across counties and cultures. (Same Product / Same Promotion)
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production adaptation strategy
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changing a product in some way to make it more appropriate for a country's climate or consumer preferences. (Adapt Product / Same Promotion)
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product invention strategy
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invent totally new products designed to satisfy common needs across countries
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communication adaptation strategy
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same product sold in many countries, but advertised differently
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dual adaptation strategy
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modify both product and promotional messages |