Midterm Ch. 5

Question 1

Global Marketing

Answer 1

Marketing that targets markets throughout the world.

Question 2

Global Vision

Answer 2

Recognizing and reacting 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 final goods and services produced in a country for a given time period.

Question 4

Outsourcing

Answer 4

Sending U.S. jobs abroad.

Question 5

Inshoring

Answer 5

Returning production jobs to the United States.

Question 6

Multinational Corporation

Answer 6

A company that is heavily engaged in international trade, beyond exporting and importing,

Question 7

Global marketing standardization

Answer 7

Producing uniform products so they can be sold all over the world.

Question 8

Multidomestic strategy

Answer 8

Subsidiaries of multinational firms are allowed to compete independently in domestic markets.

Question 9

Mercosur

Answer 9

The largest Latin American trade agreement, the members include Argentina, Brazil, Paraguay, Uruguay. And they also have international members.

Question 10

Uruguay Round

Answer 10

A trade agreement to dramatically lower trade barriers.

Question 11

World Trade Organization (WTO)

Answer 11

A trade organization that replaced the old General Agreement on Tariffs and Trade.

Question 12

General Agreement on Tariffs and Trade (GATT)

Answer 12

legal agreement minimizing barriers to international trade by eliminating or reducing quotas, tariffs, and subsidies while preserving significant regulations.

Question 13

North American Free-Trade Agreement (NAFTA)

Answer 13

Immediately lifted tariffs on the majority of goods produced by the signatory nations.

Question 14

Dominican Republic-Central America Free Trade Agreement (CAFTA-DR)

Answer 14

A trade agreement instituted in 2005 including Costa Rica, the Dominican Republic, El Salvador, and etc.

Question 15

European Union (EU)

Answer 15

A free trade zone encompassing 28 European countries.

Question 16

World Bank

Answer 16

An international bank which offers low interest loans, advice, and information to developing nations.

Question 17

Internation Monetary Fund (IMF)

Answer 17

An international organization that acts as a lender of last resort, providing loans to troubled nations.

Question 18

Group of Twenty (G-20)

Answer 18

A forum of international economic development that promotes discussion between industrial and emerging markets countries on key issues related to global economic stability.

Question 19

Exporting

Answer 19

Selling domestically produced products to buyers in other countries.

Question 20

Buyer for export

Answer 20

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

Question 21

Export Broker

Answer 21

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

Question 22

Export Agent

Answer 22

An intermediary who acts like a manufacturer’s agent for the exporter; the export agent lives in the foreign market.

Question 23

Licensing

Answer 23

The legal process where a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge.

Question 24

Contract Manufacturing

Answer 24

Private-label manufacturing by a foreign company.

Question 25

Joint Venture

Answer 25

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

Question 26

Direct foreign investement

Answer 26

Means when a company controls a company in another country but there entity is in another country.

Question 27

Echange rate

Answer 27

The difference in value of the currency between different countries.

Question 28

Floating exchange rates

Answer 28

A system in which prices of different currencies move up and down based on the demand for and the supply of each currency.

Question 29

Dumping

Answer 29

When you sell a product for less than what it is worth in its current market.

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 or services.

Question 31

Tariff

Answer 31

A tax or duty to be paid on a particular class of imports or exports.

Question 32

Quota

Answer 32

A fixed share of something that a person or group is entitled to receive or is bound to contribute.

Question 33

Boycott

Answer 33

Withdraw from commercial or social relations with (a country, organization, or person) as a punishment or protest.

Question 34

Exchange Control

Answer 34

A governmental restriction on the movement of currency between countries.

Question 35

Market Grouping

Answer 35

The process of dividing prospective consumers into different groups depending on factors.

Question 36

Trade Agreement

Answer 36

A wide-ranging taxes, tariff and trade treaty that often includes investment guarantees.

Question 37

Countries in the Mercosur trade Agreement

Answer 37

Argentina, Brazil, Paraguay, Uruguay, and Venezuela.

Question 38

Countries in the North American free trade agreement

Answer 38

Canada, Mexico, and the United States.