Term
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Definition
| is 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. (takes place in more than one country) |
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Term
| four most dynamic events/trends affecting global business today |
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Definition
(1) the rapid growth of the WTO and regional free trade areas such as the North America Free Trade Area and European Union
(2) the trend toward the acceptance of the free market system among developing countries in Latin America, Asia, and eastern Europe
(3) the burgeoning impact of the internet, mobile phones, and other global media on the dissolution of national borders
(4) the mandate to manage the resources and global environment properly for the generations to come |
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Term
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Definition
| can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tastes, or corporate objectives |
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Term
| controllable elements examples |
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Definition
firm characteristics
price
product
promotion
channels of distribution
research |
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Term
| domestic uncontrollables examples |
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Definition
politcal/legal forces
competitive structure
economic climate |
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Term
foreign uncontrollables examples |
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Definition
political/legal forces
cultural forces
geography and infrastructure
structure of distribution
level of technology
competitive forces
economic forces |
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Term
environmental adaptation needed
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Definition
| to adjust and adapt a marketing program to foreign markets, marketers must be able to interpret effectively the influence and impact of each of the uncontrollable environmental elements on the marketing plan for ech foreign market in which they hope to do business |
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Term
| self-reference criterion (src) |
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Definition
| is 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
| the notion that people in one's own company, culture, or country know best how to do things. |
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Term
| cross cultural analysis that isolates the src influences |
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Definition
(1) define the business problem or goal in home-country cultural traits, habits, or norms
(2) define the business problem or goal in foreign-country cultural traits, habits, or norms through consultation with natives of the target country. Make no value judgements
(3) Isolate the src influence in the problem and examine it carefully to see how it complicates the problem
(4) redefine the problem without the src influence and slove for the optimum business goal situation |
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Term
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Definition
| (1) tolerance of cultural differences and (2) knowledge of cultures, history, world market potential, and global economics, social, and political trends |
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Term
five stages of international marketing
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Definition
(1) no direct foreign marketing
(2) infrequent foreign marketing
(3) regular foreign marketing
(4) international marketing
(5) global marketing |
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Term
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Definition
General Agreement on Trariffs and Trade
determined not to repeat the economic disaster that followed WW1, world leaders create GATT, a forum for member countries to negotitate a reduction of trariffs and other barriers to trade.
GATT became part of WTO in 1995 with 117 orginal members |
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Term
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Definition
| the system of accounts that records a nation's international financial transactions |
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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 exhange, and increases or decreases in liabilities to foreign central banks |
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Term
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Definition
| nations utilize legal barriers, exchange barriers, and psychological barriers to restrain the entry of unwanted goods |
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Term
| reasons for trade restrictions |
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Definition
1) protection of an infant industry
2)protection of the home market
3) need to keep money at home
4) encouragement of capital accumulation
5) maintenance of hte standard of living and real wages
6) conservation of natural resources
7) industrialization of a low-wage nation
8) maintenance of employment and reduction of unemployement
9) national defese
10)increase of business size
11) retaliation and bargaining |
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Term
| economists agreed upon valid reason for trade restriction |
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Definition
1) infant industry
2) national defense
3) industrialization of underdeveloped countries |
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Term
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Definition
| quotas, boycotts, monetary barriers, and market barriers |
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Term
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Definition
| a tax imposed by a govt on goods entering at its borders |
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Term
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Definition
| refusal to seel to a specific country |
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Term
| blocked currency ( monetary barriers) |
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Definition
| political weapon or as a respones to difficult balance-of-payments situation. In effect, blockage cuts off all importing or all importing above a certain level. Blockage is accomplished by refusing to allow an importer to exchange its national currency for the sellers' currency |
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Term
| govt approval (monetary policy) |
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Definition
| to secure foeign exchange is often used by countries experiencing severe shortages of foreign exchange. At one time, all Latin American and East European countries have required all foreign exchange transactions to be approved by a central minister |
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Term
| Uruguay round (1986-1994) |
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Definition
1) General Agreement on Trade in Services
2) Trade related investment measures
3) trade related aspects of intellectual property rights |
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Term
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Definition
| values, rituals, symbols, beliefs, and throught processes that are leaned and shared by a group of people |
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Term
| Individualism/collectivism |
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Definition
refers to the preference of behavior that promotes one's self interest.
High-individualistic
low-collective |
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Term
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Definition
measures the tolerance of social inequality, that is, power inequality between superiors and subordinates within a social system.
high-hierarchial
low value equality |
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Term
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Definition
measures the tolerance of uncertainty and ambiguity among memers of a society.
high-highly intolerant of ambiguity
low-high tolerance of ambiguity |
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Term
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Definition
patterns of behavior and interaction that are learned and repeated
ex. marriage cermonies |
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Term
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Definition
| being attuned to the nuances of culture so that a new culture can be viewed objectively, evaluated, and appreciated |
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Term
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Definition
| is a responsible effort to learn from others' cultural ways in the quest for better solutions to a society's particular problems |
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Term
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Definition
| strategy involves marketing products similar to ones already on the market in a manner as congruent as possible with existing cultural norms, thereby min. resistance |
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Term
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Definition
| are the business customs and expectations that must be met and conformed to or avoided if relationships are to be successful |
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Term
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Definition
| relates to areas of behavior or to customs that cultural aliens may wish to conform to or participate in but that are not required |
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