Chapter 8 Flashcards
(23 cards)
Developing and performing marketing activities across national boundaries
International marketing
The market value of a nation’s total output of goods and services for a given period; an overall measure of economic standing
Gross domestic product (GDP)
A duty levied by a nation on goods bought outside its borders and brought into the country
Import tariff
A limit on the amount of goods an importing country will accept for certain product categories in a specific period of time
Quota
A government’s suspension of trade in a particular product or with a given country
Embargo
Government restrictions on the amount of a particular currency that can be bought or sold
Exchange controls
The difference in value between a nation’s exports and its imports
Balance of trade
The concept that morality varies from one culture to another and that business practices are therefore differently defined as right or wrong by particular cultures
Cultural relativism
An entity that promotes free trade among member nations by eliminating trade barriers and educating individuals, companies, and governments about trade rules around the world
World Trade Organization (WTO)
An agreement among nations to reduce worldwide tariffs and increase international trade
General Agreement on Tariffs and Trade (GATT)
Selling products at unfairly low prices
dumping
The purchase of products from a foreign source
importing
The sale of products to foreign markets
exporting
A company that links buyers and sellers in different countries
Trading company
An alternative to direct investment that requires a licensee to pay commissions or royalties on sales or supplies used in manufacturing
Licensing
The practice of hiring a foreign firm to produce a designated volume of the domestics firm’s product or a component of it to specification; the final product carries the domestic firm’s name
Contract manufacturing
The practice of contracting noncore operations with an organization that specializes in that operation
Outsourcing
the practice of moving a business process that was done domestically at the local factory to a foreign country, regardless of whether the production accomplished in the foreign country is performed by the local company (e.g. in a wholly owned subsidiary) or a third party (e.g. subcontractors)
offshoring
The practice of contracting with an organization to perform some or all business functions in a country other than the country in which the product or service will be sold
Offshore outsourcing
A partnership between a domestic firm and a foreign firm or government
Joint venture
A partnership that is formed to create a competitive advantage on a worldwide basis
Strategic alliance
A situation in which a company owns subsidiaries or other facilities overseas
Direct ownership
A firm that has operations or subsidiaries in many countries
Multinational enterprise
