Test 1

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.

WTO

An organization that oversees and promotes open trade agreements.

Uncontrollable uncertainty

Created by uncontrollable elements in business environments.

Domestic environment uncontrollable

Home-country elements that can directly affect the success of a foreign venture, such as political and legal forces, economic climate, and competition.

Foreign environment uncontrollable

Business conditions in foreign countries, which can vary greatly in political stability, class structure, and economic climate.

Duties of international marketers

Interpret the influence of each uncontrollable element on markets, adjust marketing efforts to different cultures, and be aware of their own cultural biases.

Self-Reference Criterion (SRC)

An unconscious reference to one's own cultural values and experiences that can lead to biased decisions.

Ethnocentrism

The belief that one's own country or culture is superior to others.

Global awareness

Knowledge of world market potentials and global economic, social, and political trends.

Balance-of-payments statement

A record of all financial transactions with other countries.

GATT

A forum for countries to negotiate a reduction of tariffs and trade barriers.

Current account

A record of all merchandise exports, imports, services, and unilateral transfers of funds.

Capital account

A record of direct investments, portfolio investments, and short-term capital moves to and from countries.

Reserves account

A record of exports and imports of gold, foreign exchange changes, and liabilities to foreign central banks.

Tariff

A tax imposed by a government on goods entering its borders.

Quota

A specific limit on the quantity or dollar value of a certain type of good that can be imported or exported.

Voluntary export restraints (VERs)

Agreements between importing and exporting countries to restrict export volumes.

Boycott

An absolute restriction against the purchase and importation of certain goods from other countries.

Embargo

A refusal to sell to a specific country, which can include restrictions on travel.

Omnibus Trade and Competitiveness Act of 1988

Legislation addressing trade fairness and U.S. competitiveness.

General Agreement on Trade in Services (GATS)

The first multilateral agreement covering trade and investment in services.

Trade-Related Investment Measures (TRIMs)

Principle that investment restrictions can be major trade barriers, included under GATT.

Trade-Related Aspects of Intellectual Property Rights (TRIPs)

Agreement setting higher standards for intellectual property rights protection.

Special drawing rights (SDRs)

An international reserve asset created by the IMF, representing an average base of value from major currencies.

Culture

The sum of values, rituals, symbols, beliefs, and thought processes learned and shared by a group.

Hofstede’s four dimensions

Individualism, Power Distance, Uncertainty Avoidance, Masculinity/Femininity; used to analyze cultural differences.

Manifest Destiny

The 19th-century doctrine that the U.S. was destined to expand across North America.

Monroe Doctrine

A U.S. policy opposing European colonialism in the Americas.

Expropriation

The seizure of an investment by the government, typically with some reimbursement.

Sustainable development

An approach to economic growth that considers wise resource management and equitable distribution.

Cultural sensitivity

Awareness of cultural nuances to view culture objectively and appreciate differences.