Term
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Definition
| refers to the processes by which goods, services, capital, people, information, and ideas flow across international markets and finally global markets |
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Term
| economic analysis of a country suggests that... |
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Definition
| the greater the wealth of the people in a country, the better the opportunity a firm will have in that country |
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Term
| Economic Analysis looks at what 3 major economic factors? |
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Definition
| the general economic environment; the market size and population growth rate; and real income |
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Term
| evaluating the general economic environment |
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Definition
| usage of metrics such as GDP;gross domestic product, GNI; gross national income, and HDI; human development index |
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Term
| Gross Domestic Product (GDP) |
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Definition
| the market value of the goods and services produced by a country in a year |
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Term
| Gross National Income (GNI) |
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Definition
| consists of GDP and net income earned from investments abroad (US firms that invest or maintain operations abroad count their income from those operations in GNI, not GDP) |
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Term
| Human Development Index (HDI) |
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Definition
| a composite metric of three indicators of the quality of life in different countries; life expectancy at birth, educational attainment, and average incomes are sufficient to meet basic needs |
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Term
| Evaluating Market Size and Population Growth |
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Definition
| Populations are subject to change and vary throughout the world through periods of time, creating a larger market to cater too |
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Term
| infrastructure and technological capabilities |
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Definition
| the basic facilities, services, and installations needed for a community or society to function, such as transportation and communication systems, water and power lines, and public institutions |
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Term
| What are the 4 biggest infrastructure concerns of a country? |
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Definition
| transportation, distribution channels, communications, and commerce |
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Term
| How does the government influence the actions of marketers? |
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Definition
| often use laws that either promote the growth of the global market or inhibit the growth/close off from the global market (tariffs, quotas, boycotts, exchange controls, and trade agreements) |
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Term
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Definition
| (AKA a duty) is a tax levied on a good imported into a country. Often used to make imported good more expensive therefore less competitive with domestic products |
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Term
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Definition
| designates the maximum quantity of a product that may be brought into a country during a specified time period |
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Term
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Definition
| shared meanings, beliefs, morals, values, and customs of a group of people |
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Term
| visible artifacts in cultures |
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Definition
| behavior, dress, symbols, physical settings, ceremonies |
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Term
| underlying values in cultures |
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Definition
| thought processes, beliefs, and assumptions |
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Term
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Definition
| perceived obligation to and dependence on groups (US HIGH, China LOW) |
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Term
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Definition
| willingness to accept social inequalities as natural (US has a LOW, China has HIGH) |
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Term
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Definition
| the extent to which the society relies on orderliness, consistency, structure, and formalized procedures to address situations that arise in daily life |
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Term
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Definition
| short-versus long-term orientation. (Ex. long-term orientation countries tend to value long-term commitments an is willing to accept a longer time horizon for possibly a new product introduction |
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Term
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Definition
| the extent to which dominant values are male oriented. (LOW masculinity=men and women are treated equally, HIGH=men dominate positions in power) |
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Term
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Definition
| producing goods in one country and selling them in another (LEAST RISK) |
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Term
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Definition
| a contractual agreement between a firm (the franchiser) and another firm or individual (the franchisee) |
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Term
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Definition
| collaborative relationships between independent firms, though the partnering firms do not create an equity partnership; that is they do not invest in one another |
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Term
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Definition
| forms when a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared |
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Term
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Definition
| requires a firm to maintain 100% ownership of its plants, operation facilities, and offices in a foreign country, often through the formation of wholly owned subsidiaries (HIGHEST RISK) |
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Term
| Target Market: Global STP |
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Definition
| HARDER TO CONDUCT STP GLOBALLY: Choosing a market segment (such as attempting to understand other cultures), then targeting specific subcultures within each country, lastly positioning such product often in different markets to appeal to specific consumers |
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Term
| Global Product or Service Strategies (3) |
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Definition
| Sell the same product or service in both home market and host country; sell product or service similar to that sold in the home country but with minor adaptions; sell totally new products or services (STRATEGY CHOSEN DEPENDS ON THE NEEDS OF THE TARGET MARKET) |
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