Question: global marketing

Answer: marketing that targets markets throughout the world

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Question: global vision

Answer: recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets

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Question: 9.5 percent

Answer: world trade increase in 2010

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Question: GDP

Answer: the total market value of all final goods and services produced in a country for a given time period

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Question: job outsourcing

Answer: sending U.S. jobs abroad

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Question: 19 percent

Answer: amount of gdp France, Britain, and Germany all get from world trade

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Question: National Export Initiative

Answer: its goal is to double U.S. exports over the next five years and support 2 million U.S. jobs

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Question: Benefits of globalization

Answer: expands economic freedom, spurs competition, raises productivity and living standards of people in the global market place

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Question: multinational corporation

Answer: company that is heavily engaged in international trade, beyond exporting and importing

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Question: role of multinational corporations

Answer: moves resources, goods, services, and skills across national boundaries

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Question: first stage of global business

Answer: companies operate in one country and sell into others

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Question: second stage of global business

Answer: set up foreign subsidiaries to handle sales in one country

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Question: third stage of global business

Answer: operate an entire line of business in another country

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Question: fourth stage of global business

Answer: involves mostly high-tech companies

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Question: capital intensive

Answer: using more capital than labor in the production process

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Question: modern sectors

Answer: areas that emerge in nations with small proportions of the labor force with relatively high productivity and income

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Question: global marketing standardization

Answer: production of uniform products that can be sold the same way all over the world (coke and mcdonalds)

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Question: multidomestic strategy

Answer: when multinational firms enable individual subsidiaries to compete independently in domestic markets

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Question: external environment

Answer: culture, economic/technological development, political structure and actions, demographic makeup, natural resources

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Question: Luxembourg

Answer: richest company based on GNI

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Question: Paris, Tokyo, Oslo

Answer: most expensive cities in the world

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Question: largest economy in the world

Answer: the EU

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Question: 330 percent

Answer: China's increase of U.S. imports since 2000

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Question: tariff

Answer: a tax on goods entering a country. typically raises prices of the imported goods and makes it easier for domestic firms to compete

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Question: quota

Answer: a limit on the amount of a specific product that can enter a country

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Question: boycott

Answer: the exclusion of all products from certain countries or companies. often used in political disputes

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Question: exchange control

Answer: a law compelling a company earning foreign exchange to sell it to a control agency. companies wishing to buy goods abroad must obtain a foreign currency exchange

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Question: market grouping

Answer: aka common trade alliance. occurs when several countries agree to work together to form a common trade area (like the EU)

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Question: trade agreement

Answer: meant to stimulate international trade

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Question: Mercosur

Answer: the largest latin american trade agreement, includes Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, and Uruguay

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Question: Uruguay Round

Answer: dramatically lowered trade barriers worldwide

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Question: World Trade Organization

Answer: a trade organization that replaced the old GATT

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Question: General Agreement on Tariffs and Trade

Answer: agreement containing loopholes enabling countries to avoid trade-barrier reduction agreements

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Question: Doha Round

Answer: a slow developing trade agreement

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Question: NAFTA

Answer: created the world's largest free-trade zone

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Question: CAFTA

Answer: trade agreement including costa Rica, DR, El Salvador, Guatemala, Honduras, Nicaragua, and the US

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Question: EU

Answer: free trade zone of 27 European Countries

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Question: World Bank

Answer: international bank that offers low-interest loans, advice, and information to developing nations

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Question: international monetary fund

Answer: international organization that acts as a lender of last resort providing loans to troubled nations

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Question: g-20

Answer: forum for internatinoal economic development that promotes discussion between industrial and emerging market countries

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Question: demographic factors

Answer: age, location, health, education

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Question: Exporting

Answer: selling domestically produced products. LOWEST risk/return rate. US is world's largest

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Question: buyer for export

Answer: intermediary in the global market who assumes all ownership risks and sells globally for its own account

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Question: export broker

Answer: intermediary who plays the traditional role of bringing the buyer and seller together. paid on commission usually

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Question: export agents

Answer: intermediary who live in a foreign country and act like a manufacturers' domestic agent to that country

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Question: Licensing

Answer: Second lowest risk/return rate. the legal process whereby a company allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other knowledge. royalties or fees (agreed upon by both parties) are paid to the original

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Question: Contract manufacturing

Answer: Middle risk/return rate. private label manufacturing by a foreign company. the foreign company produces a certain volume of products with the domestic firm's brand name on the goods

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Question: Joint Venture

Answer: Second highest risk/return rate. when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity. can be very risky, often end in failure or takeover

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Question: Direct foreign investment

Answer: active ownership of a foreign company or of overseas manufacturing or marketing facilities. HIGHEST risk/return rate. totally on the owner

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Question: four p's of foreign market success

Answer: product, place (of distribution), promotion, and price

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Question: Product vs promotion

Answer: when going global do you alter your product or your promotion of the existing promotion.

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Question: one product, one message

Answer: same product and promotion everywhere (like global marketing standardization)

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Question: product invention

Answer: completely new product and promotion for the specific demographic

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Question: product adaption

Answer: same promotion, changing the product for the demographic

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Question: promotion adaption

Answer: same product, changing the promotion for the demographic

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Question: exchange rates

Answer: the price of one country's currency in terms of another country's

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Question: floating exchange rate

Answer: a system in which prices of different currencies move up and down based on the demand for the supply of each currency

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Question: dumping

Answer: the sale of an exported product at a price lower than that charged for the same or a like product in the "home" market

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Question: countertrade

Answer: a form of trade in which all or part of the payment for goods or services is in the form of other goods or services

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Question: elements of a multinational company

Answer: adapting to local culture, familiar logo, strategic locations, customer experience

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