Chapters 1,2,3

Question 1

Define Marketing?

Answer 1

Satisfy customer wants and needs w/ products and services that offer competitive value

Question 2

What are the three marketing principles?

Answer 2

Value, competitive advantage, and focus

Question 3

What is the superior value proposition?

Answer 3

Marketer offers buyer something of value

Question 4

What is the equation for value?

Answer 4

benefits/price

Question 5

What is globalization?

Answer 5

A trend toward a greater economic interdependence among national institutions (enter any market in the world)

Question 6

What does it mean to be highly global?

Answer 6

The degree of globalization= (trade/sales) > 1

Question 7

How can a country change from a single to a global marketing strategy?

Answer 7

Participate globally, adapt or standardize the 4 p’s, concentrate, coordinate, integrate

Question 8

What are the 4 management orientations?

Answer 8

Ethnocentric, polycentric, regiocentric, geocentric

Question 9

What is the orientation that thinks each country is unique and uses only the adaptation approach?

Answer 9

Polycentric

Question 10

What is the orientation that thinks home country is superior to the rest of the world and are arrogant?

Answer 10

ethnocentric

Question 11

What is the orientation that thinks the entire world in a potential market and serves world market from single country?

Answer 11

Geocentric

Question 12

What is the orientation that thinks a region is the relevant geographic unit?

Answer 12

regiocentric

Question 13

What are driving forces affecting global integration and marketing?

Answer 13

trade agreements, converging markets needs and wants, transportation and communication improvements… etc.

Question 14

What are restraining forces affecting global integration and marketing?

Answer 14

management myopia, national controls, opposition to globalization

Question 15

What are the 5 realities of the world economy?

Answer 15

1) capital movement has replaced trade, 2) production and employment un-linked, 3)world economy dominates individual, 4)demise of communism, 5)growth of e-commerce

Question 16

What are the 4 different economic systems?

Answer 16

Market capitalism, centrally planned capitalism, market socialism, centrally planned socialism

Question 17

Which market can the consumers decide the products to sell and buy?

Answer 17

Market capitalism

Question 18

Which market do state planners decide goods and services and control distribution?

Answer 18

centrally planned socialism

Question 19

Which market is China and which is Sweden?

Answer 19

China is centrally planned capitalism, Sweden is market socialism

Question 20

What is the economic freedom index?

Answer 20

Fundamental right of every human to control own land and property. how free economies are

Question 21

What are characteristics of a low income country?

Answer 21

farming is key, high birth rates, low literacy, rely on foreign aid (Sub-Saharan Africa)

Question 22

What are characteristics of a lower-middle country?

Answer 22

rapid expanding market, competitive in textiles and toys (India, Guatemala)

Question 23

what are some mistaken assumptions of less developed countries?

Answer 23

poor have no money, don’t waste money on wants, products are too cheap to make profit, cannot use technology, businesses doing business are exploiting poor

Question 24

What is the goal of the G8?

Answer 24

Goal of economic stability and prosperity

Question 25

What is the goal of the OECD?

Answer 25

promote policies that will improve economic and social well-being of people around the world (anti-bribery)

Question 26

What does The Triad consist of?

Answer 26

USA, Western Europe, Japan

Question 27

What are marketing implications of the Stages of Development?

Answer 27

guide to promote product saturation levels (% of potential buyers or households who own particular product) (20% of Indian has phones)

Question 28

What is the record of economic transactions between residents of a country and the rest of the world called?

Answer 28

Balance of payments

Question 29

What are the 2 major components of the Balance of Payments?

Answer 29

``` Current Account (trade and financial transfers) Capital Account (Investments) ```

Question 30

What is the current trend in the trade in merchandise and services?

Answer 30

Trade>production

Question 31

What is the Purchasing Power Parity?

Answer 31

relative ability of 2 countries' currencies to buy the same basket of goods for the same amount

Question 32

What causes inflation?

Answer 32

Lowering the currency exchange value

Question 33

What are the 2 kinds of external hedging?

Answer 33

``` Forward contract (same price for future delivery) currency option (buy or sell at a set price for a set time) ```

Question 34

What is the mechanism that confers special treatment on select trading partners called?

Answer 34

Preferential trade agreements

Question 35

List the 4 types of PTAs.

Answer 35

Free Trade Agreement, Customs Union, Common Market, Economic Union

Question 36

What is the difference between the 4 types of PTAs?

Answer 36

Customs Union adds common external tariffs, common markets adds on the elimination of factor movements, and the Economic unions takes the first 3 and harmonizes and unifies economic and social policies amongst members

Question 37

What is the WTO and GATT>

Answer 37

General agreement among participating countries on tariffs and trade (GATT turned into WTO because GATT could not enforce violators)