International Marketing Concepts

Flashcards encompassing key vocabulary and definitions related to international marketing concepts.

International Marketing

The performance of business activities designed to plan, price, promote, and direct the flow of a company's goods and services to consumers or users in more than one nation for a profit.

Self-Reference Criterion (SRC)

Unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions.

Ethnocentrism

Belief in the superiority of one's nation or ethnic group.

Balance of Payments

The difference between the flow of money into and out of a country.

Tariff

A tax on imported goods.

Quota

A limit placed on the quantities of a product that can be imported.

Boycott

Refusing to buy products from a particular country.

Embargo

A prohibition on trade with a specific country.

GATT

A worldwide trade agreement that reduced and eliminated tariffs, limited government subsidies, and established protections for intellectual property.

Social Responsibility

The obligation of a business to contribute to society.

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Culture

Beliefs, customs, and traditions of a specific group of people.

Social Institutions

The roles and status positions found within a society influenced by school, family, media, religion.

Cultural Values

Fundamental differences in cultural values that underlie cultural diversity among countries.

Individualism

A societal perspective where each member is primarily concerned with their own interests and those of their immediate family.

Power Distance

The extent to which less powerful members of a society accept unequal distribution of power.

Uncertainty Avoidance

The extent to which members of a society are uncomfortable with unclear, ambiguous, or unstructured situations.

Masculinity/Femininity

Describes societal expectations around assertiveness and nurturing roles for men and women respectively.

Rituals

Patterns of behavior and interaction that are learned and repeated.

Beliefs

Convictions that mainly stem from religious training and vary by culture.

Cultural Sensitivity

Awareness and respect for cultural differences.

Cultural Borrowing

Adapting customs from one culture for use in another.

Cultural Congruence

Involves marketing products similar to existing products in a manner consistent with cultural norms.

Cultural Imperatives

Business customs and expectations that must be met and conformed to.

Cultural Electives

Behaviors or customs that others can conform to or participate in but are not required.

Cultural Exclusives

Customs or behaviors that foreigners should not engage in.

High Context Communication

Communication that relies heavily on nonverbal and contextual cues.

Low Context Communication

Communication that is explicit and relies on verbal expression.

M-Time

Monochronic time orientation, focusing on one task at a time.

P-Time

Polychronic time orientation, emphasizing multi-tasking and flexibility.

Extortion

Obtaining money through threats.

Lubrication

Involves giving a small sum of cash, a gift, or a service to a low-ranking official where not prohibited by law.

Relationship-Oriented Culture

A culture that prioritizes building relationships at work over results.

Information-Oriented Relationship

A relationship focused on the exchange and management of information.

Nationalism

Pride in one's country.

Targeted Animosity

Animosity directed toward a particular country.

Confiscation

The most severe political risk where property is taken without reimbursement.

Expropriation

Taking possession of property but offering compensation.

Domestication

Leasing arrangements where the property is transferred at the end of a period.

Local-Content Laws

Regulations requiring that a portion of any product sold within the country contain local materials.

Political Sanctions

Restrictions imposed by one country on another to influence its behavior.

Joint Ventures

When two or more companies join forces to share resources, risks, and profits.

Franchising

A form of licensing where a franchisee is authorized to conduct business under the franchisor's name.

Common Law

A legal system based on court precedents.

Civil/Code Law

A legal system based on written codes.

Conciliation

A method of resolving disputes through a third-party mediator.

Arbitration

A method where an independent third party makes a binding decision to resolve a dispute.

Litigation

The process of taking legal action.

Intellectual Property

Legal rights that protect creations of the mind.

Economic Development

Progress in the economic well-being and quality of life for a community.

LLDCs

Low-lying economic development countries.

LDCs

Least Developed Countries.

MDCs

More Developed Countries.

NICs

Newly Industrialized Countries.

BEMs

Big Emerging Markets.

Regional Cooperation Groups

Groups formed by countries in a geographical area to promote trade and economic cooperation.

Free Trade Area

A region where a group of countries has agreed to reduce or eliminate trade barriers.

Custom Union

A type of trade bloc that implements a common external tariff.

Common Market

A group of countries that allows free movement of goods, services, capital, and labor.

Political Union

A type of political organization where countries come together under a common political framework.

Collectivist Cultures

Cultures where all of society's members are integrated into cohesive in-groups.