Global Marketing

Question 1

Agent/ distributor

Answer 1

An individual or firm serving as the foreign representative of U.S. suppliers, locating buyers for them in the foreign market

Question 2

B2B

Answer 2

Acronym for business to business. Commerce in goods, services, or information that takes place between business enterprises

Question 3

CCC Mark

Answer 3

Acronym for China Compulsory Certification mark. A symbol printed on a product or product or product label by its manufacturer or importer declaring compliance with the requirements of various Chinese government laws for manufactured products related to human life and health, animals, plants, environmental protection and national security

Question 4

CE Mark

Answer 4

A mandatory conformity mark on many products placed on a single market in the European Economic Area (EEA). The CE marking certifies that a product has met EU consumer safety, health or environmental requirements. CE stands for Conformite Europeenne, “European conformity “ in French

Question 5

Distribution license

Answer 5

A license given to an export to replace numerous individual validated licenses when there is continuous shipping of authorized products

Question 6

Distributor

Answer 6

A foreign agent who sells directly in the foreign market for a U.S. suppliers and maintains an inventory of the supplier’s products

Question 7

Export Management Company (EMC)

Answer 7

A firm that acts as a complete export arm for a company’s exporting needs. Usually an EMC will pay all expenses and receive compensation in the form of a discount off the U.S. price of the product. An organization which, for a commission, acts as a purchasing agent for either a buyer or seller.

Question 8

Export Trading Company (ETC)

Answer 8

A business that acts as a complete export service house and, in addition, takes title to a company’s exported goods.

Question 9

Gold Key

Answer 9

An international trade administration, U.S. Department of Commerce service that provides customized information for U.S. firms visiting a country — market orientation briefing, market research, introductions to potential business partners, and interpreter for meeting, assistance in developing a market strategy, and help is putting together a follow-up plan.

Question 10

Indirect exporting

Answer 10

Sale by the exporter to the buyer through an intermediary in the domestic market

Question 11

Landed cost

Answer 11

The total cost of shipment delivered to a named location. Specifically, the cost of goods plus the cost of transportation.

Question 12

NAFTA (North American Free Trade Agreement)

Answer 12

The largest free trade agreement in the world, 340 million people and 6 million dollars in GDP, encompassing the U.S., Canada, and Mexico. Passed in Congress in 1993, and began implementation in January 1994. NAFTA’s goal is to lower trade barriers among the three countries over the next 15 years to zero in most categories of goods and services

Question 13

Piggyback

Answer 13

An arrangement whereby one company — sometimes a smaller one — uses the already established distribution channels of another country, which is effective when the two companies wish to sell complementary products

Question 14

Primary Research

Answer 14

Market research that directly engages with the target customer segments or cohorts in order to collect needed data for analysis. One form of primary research is focus groups.

Question 15

Pull strategy

Answer 15

A production and distribution strategy based on specific customer demand. In a pure pull strategy only goods and services actually offered by customers are produced and shopped; there is no inventory of completed products. The term is used in many other fields to describe decision making by demand of the marketplace rather than by a central authority

Question 16

Push strategy

Answer 16

A production and distribution strategy based upon forecasts rather than on specific customer demand. The term is used in many other fields to describe centralized decision-making authority without immediate input of data from the marketplace.

Question 17

Secondary research

Answer 17

Collection of data for analysis based on the research of others I.e. where information about a cohort or market trend is derived from second-hand sources such as third-party research or magazine articles.

Question 18

Standard Industrial Classification (SIC)

Answer 18

A standard numerical code system used by the U.S. government to classify goods and services

Question 19

Standard International Trade Classification

Answer 19

A standard numerical code system developed by the UN and used in International Trade to classify commodities, primarily designed for statistical and economic purposes

Question 20

Trade mission

Answer 20

Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas

Question 21

Trade show

Answer 21

A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting

Question 22

Vertical setting

Answer 22

A manufacturer or wholesaler marketing policy of soliciting only one segment of the trade

Question 23

Horizontal selling

Answer 23

Marketing policy encompassing multiple or varied industries

Question 24

Gray market

Answer 24

The trade of a commodity through distribution channels which while legal, are unofficial, unauthorized, or unindented. By the original manufacturer.

Question 25

Grey market

Answer 25

The trade of a commodity through distribution channels which while legal, are unofficial, unauthorized, or unindented by the original manufacturer.

Question 26

U.S. Commercial Service

Answer 26

The trade promotion arm of the international trade administration within the United States Department of Commerce. The mission of the USCS is to promote the export of goods and services from the United States

Question 27

Non-tariff barriers

Answer 27

Measures other than high import duties (tariff) employed to restrict imports

Question 28

Preference Criteria

Answer 28

Under NAFTA, these are classifies A-F, and determine how preference is justified

Question 29

UNCISG

Answer 29

United Nations Convention on Contracts for the International Sale of Goods. The UNCISG governs sale contracts, especially in providing interpretation and gap filling measures, between parties in countries that are signatories of the convention.

Question 30

PIERS

Answer 30

A private company that provides port-level import/export statisitics

Question 31

PIERS

Answer 31

A private company that provides port-level import/export statistics

Question 32

Kompass

Answer 32

A leading provider of company information from around the world

Question 33

Market segmentation

Answer 33

Market segmentation is a concept in economics and marketing. A market segment is a sub-set market made up of people or organizations sharing one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function

Question 34

Full absorption pricing

Answer 34

A cost method that charges all the production costs to the units produced.

Question 35

Variable costing

Answer 35

A product costing method where the only costs allocated to the products are those which are directly related to the production or sales of the product

Question 36

UN Comtrade

Answer 36

UN commodity trade statistics database (UN Comtrade) contains trade data (imports, exports, and re-exports) from countries world-wide

Question 37

Country Commercial Guide

Answer 37

Country commercial guides (CCGs) are prepared annually by U.S. embassies with the assistance of several U.S. government agencies. These reports present a comprehensive look at countries’ commercial environments, using economic, political and market analysis.

Question 38

Foreign Direct Investment

Answer 38

Refers to long term participation by country A into country B. It usually involves participation in management, joint venture, transfer of technology and expertise.

Question 39

Joint venture

Answer 39

A legal entity formed between two or more parties to undertake an economic activity together

Question 40

Quota

Answer 40

A type of protectionist trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time.

Question 41

Embargo

Answer 41

The partial of complete prohibition of commerce and trade with a particular country, in order to isolate it.

Question 42

Fixed costs

Answer 42

Fixed costs are defined as expenses that do not change in proportion to the activity of a business, within the relevant period.

Question 43

Variable costs

Answer 43

Expenses that change in proportion to the activity of a business

Question 44

Rules of origin

Answer 44

Used to determine the country of origin of a product for purposes of international trade. There are two common types of rules of origin depending upon application, the preferential and non-preferential rules of origin.

Question 45

Certificate of origin

Answer 45

A document used in international trade. It traditionally states from what country the shipped goods originate, by “originate” in a CO does not mean the country the goods are shipped from, but the country where their goods are actually made.

Question 46

4 P’s of marketing

Answer 46

Product, price, place, promotion — also known as the “marketing mix”

Question 47

STAT-USA

Answer 47

Federal government source for economic statistics, international market research, and trade leads.

Question 48

WEE

Answer 48

The Waste Electrical Equipment Directive (WEE Directive) is the European community directive 2002/96/EC on waste electrical and electronic equipment which, together with the RoHS Directive, became European Law in February 2003, setting collection, recycling and recovery targets for all types of electrical goods.

Question 49

RoHS

Answer 49

The directive on the restriction of the use of certain hazardous substances in electrical and electronic equipment 2002/95/EC (commonly referred to as the Restriction of Hazardous Substances Directive or RoHS) was adopted in February 2003 by the European Union.