Exam 1: Chapters 1-5 Flashcards

1
Q

Marketing

A

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
You see it from when you wake up to when you go to bed

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2
Q

Exchange

A

Desired outcome of marketing. People giving up something in order to receive something else that they would rather have

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3
Q

Production orientation

A

A philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace.
Does whatever he wants without consulting consumer

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4
Q

Henry Ford, Levi’s, coke, Pepsi

A

“You can have whatever you want as long as its black” -Henry ford
All examples of production orientation

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5
Q

Sales orientation

A

The belief that people will buy more goods and services if aggressive sales techniques are used and high sales result in high profits.
Birth of salesmen when people stopped buying as much

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6
Q

Milkman, encyclopedia man, tidy diaper service, etc

A

Examples of sales orientation

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7
Q

Market concept

A

The idea that social and economic justification for an organizations existence is the satisfaction of customer wants and needs while meeting organizational objectives
-focus on customer wants and needs so -companies can distinguish their products
Integrating all the organizations activities, including production to satisfy customer wants
-achieving long term goals for organization by satisfying customer wants and needs legally and responsibly

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8
Q

Market orientation

A

Philosophy that assumes that a sale does not depend on aggressive sales force but rather on a customers decision to purchase a profit; it is synonymous with the marketing concept

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9
Q

Predefined Kennedy making money back guarantee, holding companies accountable for injuries caused by its product.

A

Market orientation example

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10
Q

Coke bottles used over and over, sometimes glass would get in drink. So they switched to cans, people disposed of pop tops ok the floor and kids would get hurt. People put them in drink, swallowed them. Resulted in companies asking “what do you want? How can I make it for you?

A

Example of market orientation

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11
Q

Societal marketing orientation

A

The idea that an organization exists not only to satisfy customer wants and needs and meet organizational needs, but also to preserve or enhance individuals’ and society’s long term best interests

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12
Q

Recycling, donating money to charity, don’t use chemicals. Sustainability. Ex: if two products are identical but one company donates to charity, you’re more likely to buy from the one who donates

A

Societal marketing orientation

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13
Q

Customer value

A

The relationship between benefits and the sacrifice necessary to obtain those benefits

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14
Q

How to show customer value:

A
  • offer products that perform
  • earn trust
  • avoid unrealistic pricing
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15
Q

Value

A

Doesn’t have to be cheap. Could be quality, engineering, etc. just has to satisfy you, it is different for everyone

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16
Q

Relationship marketing

A

It will focus on improving relationships with existing/current customers.

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17
Q

RFM

A

how RECENT, how FREQUENTLY, how much MONEY do they spend.
Ex) sending out mailer saying “we noticed you bought this from us name, you’re one of our best customers, please enjoy 20% off”

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18
Q

Empowerment

A

Delegation of authority to solve customers problems quickly, usually by the first person the customer notifies regarding the problem
Ex: giving employees authority to solve problems on their own as they see fit

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19
Q

Teamwork

A

Collaborative efforts of people to accomplish common objectives

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20
Q

Customer relationship management(CRM)

A

A company wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups
-every 80% you buy goes to 20% of your shoppers

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21
Q

Market oriented firms business;

A
  • should always encourage innovation and creativity by reminding people that there are many ways to satisfy customer wants
  • stimulate awareness of changes in customer desires, make sure people are aware of demographic changes
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22
Q

On demand marketing

A

On demand marketing delivers relevant experiences throughout the consumers decision and
Buying process that are integrated across both physics and virtual environments

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23
Q

What is the firms primary goal

A

To make money

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24
Q

Why study marketing?

A

-Marketing plays an important role in society
-marketing is important to business
-marketing offers outstanding career opportunities
-marketing is everyday life.
Teacher said : it’s communication. Companies are communicating what they have, the benefit, warnings about how to use and stay safe, how a product will last, help, etc. we need it in society.

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25
Q

Strategic planning

A

The managerial process of creating and maintaining a fit between the organizations objectives and resources and the evolving market opportunities

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26
Q

Examples of strategic planning:

A

-Computer manufacturer won’t suddenly start producing bowling balls. Pick your core competency and focus on that.
-coke owned paramount studies and had no idea how to run it
-you should look
For something compatible with what you do,
Ex: Tuna industry invented cat food. They took something they already did and made a new market
Ex: kraft uses same ingredients for mayo and salad dressing

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27
Q

Strategic business units (SBUs)

A

A subgroup of a single business or collection of related businesses within larger organization.

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28
Q

Example of SBUs

A

General Electric makes: airplane parts, light bulbs, appliances, etc. they have different divisions

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29
Q

Characteristics of SBUs

A

-specific target market
-control over resources
-it’s own competitors
-single business or collection of related businesses
Ex) coke makes Dasani water, other soft drinks, Minute Maid, etc.
-plans independent of other SBUs in total organization

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30
Q

Ansoffs strategic opportunity matrix

A

4 options

1) market penetration
2) market development
3) product development
4) diversification

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31
Q

Market penetration

A

Saturate existing market wherever you are. A firm using market penetration will try to increase market share among existing customers
You will logically expand until you fill maker

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32
Q

Chris’s burgers. Best step is to open up another Chris’s burgers.

A

Example of market penetration

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33
Q

Market development

A

Attracting new customers to existing products. Develop a new market

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34
Q

You expanded as much into California as you could, you should leave the area. Ex) in n out expanding to Texas

A

Example of market development

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35
Q

Product development

A

Entails creation of more products for present markets

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36
Q

Develop new products.
Starbucks having Christmas drinks, McDonald’s changing their menu and introducing healthier profits and getting rid of cheaper/unhealthier products

A

Example of product development

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37
Q

Diversification

A

Strategy of increasing sales by introducing new products into new markets

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38
Q

Doing something they don’t normally do

Starbucks selling mugs and CDs, in n out having t shirts

A

Example of diversification

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39
Q

Boston consulting group model portfolio matrix

A

Portfolio matrix: a tool for allocating resources among products or strategic business unit on the basis of relative market share and growth rate

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40
Q

Four categories of portfolio matrix

A

Stars
Cash cows
Problem children/question mark
Dogs

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41
Q

Star

A

Fast growing market leader, ex: iPad is apples current star., handheld computers, tablets

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42
Q

Cash cow

A

SBU that generates more cash than it needs to maintain it’s market share. In low growth market but has dominant market share
Ex: Heinz: ketchup and weight watchers frozen dinners
Ex: laptops

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43
Q

Problem child/question mark

A

Shows rapid growth but poor profit margins. Low market share in high growth industry. Require a lot of cash.
Ex: palm device/blackberry smartphones

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44
Q

Dogs

A

A dog has low growth potential and small market shares most dogs eventually leave the marketplace.
Ex: mainframe computers

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45
Q

Marketing plan

A

A written document that acts as a guidebook of marketing activities for the marketing manager

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46
Q

Elements of a marketing plan

A
  • Business mission statement
  • SWOT analysis
  • Objectives
  • marketing strategy
  • implementation, evaluation, control
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47
Q

Mission statement

A

-foundation of Amy marketing plan, answers “what business are we in”
Is usually generic
-coca cola: to put a can of coke within arms reach of every citizen on the planet -

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48
Q

SWOT analysis

A

Strengths, Weaknesses, Opportunities, Threats

Strengths and Weaknesses- internal
Opportunities and Threats- external

Should do every 6-12 months

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49
Q

Competitive advantage

A

Set of unique festers of company and its products that are perceived by target market as significant and superior to those of the competition

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50
Q

Cost competitive advantage

A

Being the low cost competitor in an industry while maintaining satisfactory profit margins

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51
Q

Cost competitive advantage ways:

A
  • experience curve
  • efficient labor
  • no frills goods and service
  • government subsidies
  • product design
  • reengineering
  • production innovation
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52
Q

Experience curve

A

Curve that show costs declining at a predictable rate as experience with product increases
Over years you get better at what you do, everyone well trained, used to their job, saves you money due to less injuries/shutdowns

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53
Q

Efficient labor

A

Labor costs can be important component of total costs in low-skill, labor intensive industries such as product assembly and apparel manufacturing

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54
Q

No frills goods and services

A

Lower price by removing frills and options. Ex: Southwest Airlines has low fares due to no seating arrangements or meals

55
Q

Government subsidies

A

Government provides grants and interest free kind to target industries

56
Q

Product design:

A

Cutting edge design technology can help offset high labor costs

57
Q

Reengineering

A

Entails fundamental rethinking and redesign of business processes to achieve dramatic improvements in critical measures of performance

58
Q

Production innovations

A

Production innovations such as new technology and simplified production techniques help lower average cost of production

59
Q

Product/services differentiation competitive advantage

A

Provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of competition.
Ex: Nordstrom return policy

60
Q

Niche competitive advantage

A

Advantage achieved when a firm seeks to target and effectively serve a small segment of the market
Ex: Haagan daaz took advantage of small premium ice creams and sell for price of quart/half gallon. They have 50% share in 30% niche, for overall 15% of ice cream market

61
Q

Sustainable competitive advantage

A

Cannot be copied by competition.

Ex: Netflix has steady hold over movie rental/ streaming. Even amazon prime can’t compete

62
Q

Marketing objectives

A

A statement of what is to be accomplished through marketing activities.
Creates accountability, you know who is in charge of carrying out goal and what goal is
Has to be realistic, measurable, and time specific
Ex: Chris had to meet this goal by January 1, 2017, compared to last years benchmark

63
Q

Marketing strategy

A

Activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets

64
Q

Market opportunity analysis

A

Description and estimation of size and sales potential of market segments that are of interest to firm and the assessment of key competitions in market segments.
Look at market to see if there’s a gap or hole not being exploited
Ex: 1983 motor trend, there was a joke for age 35-55 paying 30-50k for cars. 3 companies exploited gap and created new brands. Lexus Infiniti and Acura

65
Q

Marketing mix

A

Unique blend of product, place(distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with target market

66
Q

Implementation

A

Process that turns marketing plan into action assignments and ensures theses assignments are executed in way that accomplished plans objectives
-send marketing plan to sales department the first day of new year

67
Q

Evaluation

A

Gauging the extent to which the marketing objectives have been achieved during the specified time period
Evaluating where it’s working, where there is issues, etc

68
Q

Control

A

Provided mechanisms for evaluating marketing results in light of plans objectives and for correcting actions that do not help the organization reach objectives within budget guidelines
Use marketing audit

69
Q

Marketing audit

A

Throughout, systematic, periodic evaluation of objectives, strategies, structure, and performance of marketing organization

70
Q

Strategic planning

A

The managerial process of creating and maintaining a fit between organizations objectives and resources and evolving market opportunities
Effective strategic planning requires continual attention, creativity, and management commitment

71
Q

Ethics

A

Moral principles or values that generally govern the conduct of an individual or group.

72
Q

Laws

A

Often ethical rules and guidelines are codified into law.

73
Q

Formal and informal groups

A

Businesses, organizations, political affiliations, etc. all have codes of conduct. They are prescribed acceptable and desired behaviors or their members

74
Q

Self regulation

A

Voluntary acceptance of standards established by nongovernment agencies, like association of advertising agency (AAA). Other associations have regulations about child labor, environmental issues, etc

75
Q

The media

A

In an open democratic society, media plays key role in informing public about actions of others

76
Q

Active civil society

A

Informed and engaged society can help mold individual and corporate behavior

77
Q

Morals

A
Rules people develop as result of
Cultural values and norms 
Types of morals: 
-preconventional morality
-conventional morality
-postconventional morality
78
Q

Preconventional morality

A

Most basic level, childlike, calculating, self centered. Based on what will be immediately rewarded or punished. No regard toward others feelings
Ex: professors boss taking his report and getting national credit for it

79
Q

Conventional morality

A

Moved from egocentric toward expectations from society. Loyalty and obedience to organization or society. Will be concerned with legality and how others will view it
Ex: rationalizing speeding by saying you can control car still and everyone else is doing it too.

80
Q

Postconventional morality

A

Represents morality of mature adult. People are less concerned about how others see them and more concerned with how they see and judge themselves. Will ask “even if it is legal and will increase profits, is it if it in the long run?”
Ex: don’t like cursing, drinking, very conservative and uptight
Ex: don’t want to sell cigarettes because they give people cancer or sell scotch that gets someone drunk and could lead to drunk driving

81
Q

Factors to ethical decision making

A
  • Extent of ethical problem within organization
  • Top management actions on ethics
  • Potential magnitude of consequences
  • Social consensus
  • Probability of harmful outcome
  • length of harmful outcome
  • Length of time between decision and the onset of consequences
  • Number of people to be affected
82
Q

Code of ethics

A

Guideline to help marketing managers and other employees make better decisions.

83
Q

It helps employees identify what their firm recognizes as acceptable business practices
Is effective internal control of behavior
Is a written code that helps employees avoid confusion when deciding what is ethical
Facilitates discussion between employees about what is right and wrong

A

Code of ethics

84
Q

Foreign Corrupt Practices Act (FCPA)

A

Law that prohibits US corporations from making illegal payments to public officials of foreign governments to obtain business rights or enhance business dealings

85
Q

Corporate Social Responsibility (CSR)

A

Business’s concern for societies welfare

Includes stakeholder theory

86
Q

Stakeholder Theory

A

Ethical theory stating hay social responsibility is paying attention to the interest of every affected stakeholder in every aspect of firms operation

87
Q

Stakeholders

A
Anyone who has any interaction or  benefits or loses because of interaction with the company 
Includes: 
-employees
-management
-customers
-local community
-suppliers
-owners
88
Q

Pyramid of corporate social responsibility

A

Model suggesting corporate social responsibility is composed of economic, legal, ethical, and philanthropic responsibilities and that the firms economic performance supports the entire structure

89
Q

Sustainability

A

Idea that socially responsible companies will outperform their peers by focusing on the worlds social problems and viewing them as opportunities to build profits and help world at the same time

90
Q

Green marketing

A

Development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment.
Ex: Ben and jerrys, toms shoes

91
Q

Cause-related marketing

A

Cooperative marketing efforts between a for profit firm and nonprofit
Ex: Toyota having special olympics

92
Q

Target market

A

Group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the need of that group, resulting in mutually satisfying exchanges

93
Q

To Understand external environment

A

You must understand current customers
Understand what drives consumer decisions
Identify most valuable customers and their needs(CRM)
Understand the competition

94
Q

Environmental management

A

When a company implements strategies that attempt to shape the external environment within which it operates

95
Q

Social change

A

Perhaps the most difficult external variable for marketing managers to forecast, influence, or integrate into marketing plans

96
Q

American values

A
  • self sufficiency: every person should stand on his own two feet
  • upward mobility: success would come to anyone who got an education, worked hard, and played by the rules
  • work ethic: hard work, dedication to family, and frugality are moral and right
  • conformity: no one should expect to be treated differently from anyone else
97
Q

Component lifestyles

A

Practice of choosing foods and services that meet ones diverse needs and interests rather than conforming to a single traditional lifestyle.
Ex: gay people, divorces, Brady bunch

98
Q

Demography

A

Study of people’s vital statistics such as age, race, ethnicity, and location
Questions such as how old are you, what gender, what city, etc.

99
Q

Psychographics

A

AIO: attitude, interests, opinions

Enough to be able to sell things to people

100
Q

Tweets

A

Ages 8-12. Population of more than 20 million.

Spend 30 billion per year

101
Q

Teens

A
25 million people
Spend 72 hours a week electronically. 
Effective marketing: 
Make modern and convenient
Engage teens through promotions and get them involved
102
Q

Millennials/Generarion Y

A

1979-1994. 67 million, surpassed baby boomers in 2010. Spend over $200 billion annually
Hit hardest by 2008 recession

103
Q

Generation X

A

1965-1978. 50 million people. “Latchkey” children. First with dual career households or divorced parents. 45% of households with children, making them primary target for
Marketers promoting family products/services

104
Q

Baby boomers

A

75 million. All time high life expectancy at 77. Control 70% of americas net worth (7trillion) and spend disproportionately more money than any other age group. Spend 1.8 trillion annually

105
Q

Growing ethnic markets

A
  • Hispanic: now larger than all but 13 world economies. Unified strong buying habits, culture influencing U.S. man is usually decision maker “54% of Hispanic men ages 45-64 have most influence on household purchases”
  • African American: listen to radio more, best way to market to is through radio, becoming more educated and wealthy
  • Asian Americans: by far wealthiest. Highest education level. Sometimes have 3 generations per household
106
Q

Purchasing power

A

Comparison of income vs relative cost of standard set of goods and services in different geographic areas
Ex: 60k in manhattan all goes to rent, 60k in Iowa goes a lot father, you can vacation, eat out, go to Movies

107
Q

Inflation

A

A measure of the decrease in value of money, expressed as percentage reduction in value since previous year.

108
Q

Recession

A

A period of economic activity characterized by negative growth which reduces demand for goods and services

109
Q

Basic research

A

Pure research that aims to confirm an existing theory or learn more about concept or phenomenon
To discover completely new industry/opportunity

110
Q

Applied research

A

Research that attempts to develop new or improved products

Something that exists, like taking photos or making phones

111
Q

Political and legal factors

A

Business needs government regulation to protect innovators of new technology, interest of society in general, one business from another, and consumers.

112
Q

Regulatory agencies

A

Consumer product safety commission (CPSC)
Food and drug administration(FDA)
Federal trade commission(FTC)

113
Q

Consumer Product Safety Commison

A

A federal agency established to protect health and safety of consumers in and around their home

114
Q

Food and drug administration(FDA)

A

A federal agency charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products

115
Q

Federal trade commission (FTC)

A

Federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce

116
Q

Global marketing

A

Marketing that targets markets throughout the world

117
Q

Global vision

A

Recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets

118
Q

Gross domestic product (GDP)

A

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

119
Q

Impact of trade globalization

A
  • Millions of Americans have lost jobs due to imports, production shifts abroad, or outsourced tech jobs
  • millions fear losing their jobs, especially those which operate under competitive pressure
  • employers threaten to outsource jobs if workers don’t accept pay cuts
  • service and white-collar jobs are increasingly vulnerable to operations moving offshore
120
Q

Multinational firms

A

A company that is heavily engaged in international trade, beyond exporting and importing
Moves resources, services, skills across national boundaries without regard to where headquartered

121
Q

Global marketing standardization

A

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

122
Q

Multidomestic strategy

A

When multinational firms enable individual subsidiaries to compete independently in domestic markets

123
Q

External environment faced by global marketers

A
  1. Culture: most common set of values shared by citizens that determines what is socially acceptable
    Ex) sexy perfume ads here won’t work in Middle East
  2. Economic factors
  3. Global economy
  4. Doing business in China and India
124
Q

Legal considerations for multinational

A

Tariffs-tax on goods entering country

Quota- limit on the amount of specific product that can enter country

Boycott- exclusion of all products from certain countries or companies

Exchange control- law compelling company earning foreign exchange from exports to sell it to control agency, usually central bank

Market grouping/common trade alliance-when several countries agree to work together to form common trade area that enhances trade opportunities

Trade agreement- agreement to stimulate national trade

125
Q

Uruguay round

A

Trade agreement to dramatically lower trade barriers worldwide. Created world trade organization

126
Q

World trade organization

A

Replaced general agreement on tariffs and trade (GATT)

Eliminated loopholes

127
Q

Reasons world trade has climbed so much

A

NAFTA-north American free trade agreement-an agreement between Canada, US, Mexico that created the worlds then largest free trade zone

EU- a free trade zone compassing 28 European countries

128
Q

Exporting

A

Selling domestically produced products to buyers in other countries

129
Q

Licensing

A

Legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge

130
Q

Contract manufacturing

A

Private label manufacturing by a foreign company

Ex Nike is basically marketing firm

131
Q

Contract management

A

Marriott hotels: a big portion is privately owned hotels that allow Marriott to contract manage them

132
Q

Joint venture

A

When a domestic firm buys part of a foreign company or joins with foreign company to create new entity

133
Q

Direct foreign investment

A

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