Term
| Globalization of McDonalds |
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Definition
-Corporate policy to adapt to cultural expectations of local customers- different menus
-Branding-Signage/ Language/ Ronald McDonald
-Globalization Icon: Freidman's Theory
--> No country that has a McDonalds has ever been invaded by another country
-Upper economic status countries have McDonalds |
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Term
| Big Mac Index and Burgernomics |
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Definition
-Burgernomics is based on the theory of purchasing power parity (PPP)- a dollar should buy the same amount in all countries
-Exchange rates between 2 countries should equalize prices of an identical good
-In each country
-This "identical good" is a McDonald's Big Mac , produced about 120 countries
-"The Big Mac Index" is the exchange rate that would mean Big Macs cost the same everywhere. |
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Term
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Definition
-The creation of a global economy
-The creation of a global culture
-The concentration of power in a smaller number of hands and/or nations?
-The erasure of the border that divides us |
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Term
| The Fear of Trade and Globalization |
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Definition
-Millions fo Americans have lost jobs
-Millions fear losing jobs
-Threat of outsourcing if workers do not accept pay cuts
-Vulnerbility to operations moving offshore |
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Term
| Benefits of Globalization |
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Definition
-Expands economic freedom
-Spurs competition
-Raises productivity and living standards
-Offers access to foreign capital, global export markets, and advanced technology
-Promotes higher labor and environmental stadards
-Acts as a check on government power |
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Term
| Rewards of Global Marketing |
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Definition
-Having global vision means...
-Recognizing and reacting to international marketing oppportunities
-Using effective global marketing strategies
-Being aware of threats from foreign competitors |
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Term
| Importance of Global Marketing to the US |
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Definition
-US exports a fifth of industrial production
-One of every ten jobs in the US us supported by exports
-US businesses export over $800 billion in goods
-Exports account for 25% of US economic growth
-US is worlds leading exporter of farm products |
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Term
| Organizations involved in World Trade |
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Definition
-GATT (General agreement on tariffs and trade)
-IMF (International Monetary Fund)
-WTO (World Trade Organization)
-World Bank group |
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Term
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Definition
GATT- purpose is to lower trade barriers, such as high tariffs on imported goods
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Term
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Definition
| WTO- An establish institution in Geneva Switzerland. Represents the only international organization that deal with the global rules of trade among nations. Its main function is to ensure that trade flows as smoothly, predicatibly, and freely as possible. |
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Term
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Definition
| Primary objective is to promote international monetary cooperation and facilitate the expansion and growth of international trade |
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Term
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Definition
| Dedicated to fighting poverty and improving the living standards of poeple in the developing world.It is a development bank that provides loans, policy advice, technical assistance, and knowledge-sharing services to the low- and middle-income countries in an attemt to reduce poverty |
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Term
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Definition
We examine four sets of criteria necessary to assess a country's market
-Economic analysis using metrics
-Analyzing Infrastructure and Technological Capabilities
-Analyzing government actions
-Analyzing sociocultural factors |
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Term
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Definition
General Economic Environment: Gross domestic product, gross national income, purchasing power(how far your dollar will go), Human development index(quality of life)
-Evaluating Market size and population growth rate
-Evaluating real income:firms make adjustments to an existing product to meet the unique needs of a particular country market. |
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Term
| Analyzing infrastucture and technological capabilities |
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Definition
Defined as the basic facilities, services, and installations needed for a community or society to function
Transportation (to transport goods throughout various markets and to consumers)
Communication systems(must be sufficiently developed to allow customers to find info about the products and services available in the marketplace)
Distribution channel (must exist to deliver products in a timely manner and at a reasonable cost)
Commerce (commercial infrastructure consists of the legal, banking, and regulatory systems, allows markets to function) |
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Term
| Analyzing government actions |
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Definition
Tariffs (tax, artificially raises prices, lowers demand)
Quotas (maximum quantity of product that may be brought into a country during a specified time period, reduces availability of imported goods)
-Both benefit domestically made products because they reduce foreign competition.
Boycott
Exchange control
Trade agreement |
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Term
| Analyzing sociocultural factors |
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Definition
Power distance- distribution of power, and how people are OK with distribution, High-1 person has power, Low- more democratic
Uncertainty- ability to deal with ambiguity, unknown
Individualism- Individuals vs. collectivist
Masculinity-Value placed on gender roles
Time orientation- long term vs. short term oriented |
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Term
| Choosing a global marketing strategy: Target market (STP) |
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Definition
-cultural nuances
-subcultures
-view of product+ consumer role
-different positioning
-adaption
-single positioning strategy |
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Term
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Definition
Global product or service strategies
-sell the same product or service in both the home country market and host country
-Sell a product or service similar to that sold in the home country but include minor adaptations
-Sell totally new products or service |
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Term
| Choosing a global entry strategy |
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Definition
-EXPORTING:producing goods in one country and selling them in another
-FRANCHISING:
-STRATEGIC ALLIANCE: collaborative relationships between independent firms
-JOINT VENTURE: 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
-DIRECT INVESTMENT: requires a firm to maintain 100% of ownership of its plants, operation facilities, and offices in a foreign country |
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