Ch 4

Question 1

Global Marketing

Answer 1

Marketing that targets markets throughout the world

Question 2

Global Vision

Answer 2

A recognition of and reaction to international marketing opportunities using effective global marketing strategies and being aware of threats from foreign competitors in all markets

Question 3

Gross Domestic Product (GDP)

Answer 3

The total market value of all goods and services produced in a country for a given period

Question 4

Outsourcing

Answer 4

The practice of using an outside supplier, generally where the production costs are lower, to complete the work

Question 5

Inshoring

Answer 5

Returning jobs to Canada

Question 6

Multinational Corporations

Answer 6

Using more capital than labour in the production process

Question 7

Global Marketing Standardization

Answer 7

Production of uniform products that can be sold the same way all over the world

Question 8

Gross National Income (GNI) per capita

Answer 8

One measure of the ability of a country’s citizens to buy various good and services

Question 9

Mercosur

Answer 9

The largest Latin American trade agreement, made up of Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, and Venezuela

Question 10

Uruguay Round

Answer 10

An agreement created by the World Trade Organization to dramatically lower trade barriers worldwide

Question 11

World Trade Organization (WTO)

Answer 11

A trade organization that replaced the old General Agreement on Tariffs and Trade (GATT)

Question 12

General Agreement on Tariffs and Trade (GATT)

Answer 12

A trade agreement that contained loopholes that enable counties to avoid trade-barrier reduction agreements

Question 13

North America Free Trade Agreement (NAFTA)

Answer 13

An agreement among Canada, the United States, and Mexico that created the world’s largest free trade zone at the time

Question 14

Canadian-European Union Comprehensive Economic and Trade Agreement (CETA)

Answer 14

A progressive free trade agreement, which covers almost all sectors, and aspects of Canada-EU trade in order to eliminate or reduce barriers

Question 15

European Union (EU)

Answer 15

A free trade zone encompassing 28 European counties

Question 16

World Bank

Answer 16

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

Question 17

International Monetary Fund (IMF)

Answer 17

An international organization that acts as a lender of last resort, providing loans to troubled nations, and also works to promote trade throughout financial cooperation

Question 18

Group of Twenty (G20)

Answer 18

A forum for international economic development that promotes discussion between industrial and emerging-market countries on key issues related to global economic stability

Question 19

High-net-worth individuals (HNWI)

Answer 19

Individuals who have $1 million in liquid financial assets

Question 20

Exporting

Answer 20

Selling domestically produced products to buyers in another country

Question 21

Buyer For Export

Answer 21

An intermediary in the global market that assumes all ownership risks and sells globally for its own account

Question 22

Export Broker

Answer 22

An intermediary who plays the traditional broker’s role by bringing buyer and seller together

Question 23

Export Agents

Answer 23

Intermediaries who act like manufacturers’ agents for exporters; the export agents live in a foreign market

Question 24

Licensing

Answer 24

The legal process whereby a licensor agrees to let another firm use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge

Question 25

Contract Manufacturing

Answer 25

Private-label manufacturing by a foreign company

Question 26

Joint Ventures

Answer 26

A domestic firm’s purchase of a part of foreign company or domestic firm joining with a foreign company to create a new entity

Question 27

Direct Foreign Investment

Answer 27

Active ownership of a foreign company or of overseas manufacturing or marketing facilities

Question 28

Floating Exchange Rates

Answer 28

Prices of different currencies move up and down based on the demand for and the supply of each currency

Question 29

Dumping

Answer 29

The sale of an exported product at a price lower than that charged from the same or a like product in the home market of the exporter

Question 30

Countertrade

Answer 30

A form of trade in which all or part of the payment for goods or services is in the form of other goods and services