International Business and Trade Midterm Lecture

Comprehensive vocabulary flashcards covering the key terms, frameworks, marketing mix concepts, and trade agreements from the International Business and Trade midterm lecture.

Globalization

The increasing connectedness, integration, and interdependence of world cultures, economies, politics, and environment, facilitated by advances in interconnection technology such as the internet.

Globalization 1.0

The first stage of global development coined by Thomas Friedman, lasting from 1492 to about 1800, which began with Columbus' discovery of the New World and was characterized by the amount of industrial power countries could produce and apply.

Globalization 2.0

The stage of global development running from about 1800 to 2000, largely shaped by the emerging power of huge multinational corporations.

Globalization 3.0

The contemporary stage of global development beginning around 2000, driven by advances in global electronic interconnectivity that allow individuals to communicate globally as never before.

Philippines-Japan Economic Partnership Agreement (PJEPA)

The first bilateral free trade agreement of the Philippines, covering trade in goods, trade in services, investments, movement of natural persons, intellectual property, government procurement, competition, and improvement of business environment.

Philippines-EFTA Free Trade Agreement

A free trade agreement signed in 2016 and effective in 2018 between the Philippines and European Free Trade Association members (Iceland, Liechtenstein, Norway, and Switzerland), covering trade in goods, services, investment, competition, intellectual property, government procurement, and trade and sustainable development.

Glocalization

A linguistic hybrid of globalization and localization popularized by Roland Robertson, referring to the simultaneous occurrence of universalization and particularization, or the creation of products and services for the global market by adapting them to local cultures and environments.

Three-Level System of Glocalization

A framework involving the subnational (local), national, and supranational (global) levels, wherein local entities from different countries interact transnationally, often circumventing the national level.

Opportunistic Reaction

A response to the interplay of global and local forces characterized by the creation of hybrids, wherein mixed cultures and identities arise as immigrants and elites adjust to each other in world cities.

Rebellious Reaction

A response to the interplay of global and local forces characterized by fostering a resistance identity that defends local history, traditions, and authentic cultures.

International Marketing

The application of marketing principles to satisfy the varied needs and wants of different peoples residing across national borders.

Market Segmentation

The practice of dividing an entire market into subsets based on demography, needs, priorities, common interests, and other psychographic or behavioral criteria to better understand the target audience.

Market Targeting

The process of selecting the specific target market segment or segments that a company wants to serve after market segmentation has been completed.

Market Positioning

A strategic tool used to establish the image and perception of a brand or product in the minds of the consumer.

Extended Marketing Mix (7Ps)

The comprehensive framework of marketing elements comprising product, price, place, promotion, people, process, and physical evidence.

Product

The commodity or good produced or manufactured to satisfy customer needs and wants, which can be tangible (goods) or intangible (services).

Price

The amount of money that customers pay to obtain and enjoy a product, which can be reduced through economies of scale.

Place

The element of the marketing mix concerning moving products from the producer to the intended user, encompassing the distribution channel (how) and the physical or digital location (where).

Promotion

A marketing communication process that acquaints customers with a product and publicizes its features; regarded as the most essential and expensive component of the marketing mix.

People (in Marketing)

The employees of a company who deliver services to clients, recognized in human resource management as the firm's most critical resource for delivering superior service.

Process (in Marketing)

The flow of activities or mechanism that takes place during an interaction between the customer and the business, including marketing systems and manufacturing processes.

Electronic Processes

Marketing and operational mechanisms involving barcodes, receipts, graphics, logos, and accompanying digital product or company information.

Technological Processes

The technical operations used to manufacture tangible products that customers can physically touch, feel, and own, fulfilling their needs and wants.

Direct Activities

Marketing process activities consisting of the actual distribution, sales transactions, and direct customer reactions when trying a product.

Indirect Activities

Support functions within the marketing process that occur before, during, or after a service has been rendered, and may last for a lifetime.

Physical Evidence

The physical environment experienced by the customer, including branding assets such as signage, logos, tarpaulins, web pages, packaging, uniforms, letterheads, and business cards.

Economic Integration

Agreements or treaties between countries based on free trade economic theory that aim to eliminate trade barriers and align monetary and fiscal policies to foster an interconnected economy.

PESTLE Analysis

An environmental scanning tool used by international marketers to identify relevant Political, Economic, Sociocultural, Technological, Legal, and Environmental factors in the external market.

Infrastructure

The collective physical systems and facilities necessary for a country's day-to-day operations and quality of life, including transportation, power, water, communication, health, and legal systems.

Soft Infrastructure

Institutions that maintain a healthy economy and support human capital, service-oriented toward the population, including health, education, finance, law enforcement, and government systems.

Hard Infrastructure

The physical and economic systems crucial to running a modern industrialized economy, including transport networks (roads, highways) and telecommunication lines.

Critical Infrastructure

Physical assets and systems officially designated by the government as essential to the functioning of an economy, such as public health, heating, drinking water, medicine, natural gas, and telecommunications.

Competitive Advantage

A specific set of qualities, capabilities, or barriers that gives a business leverage over its competitors in an industry.

Substitute Products

Goods or services that are sufficiently similar to an existing product to satisfy the same consumer need, often chosen for lower prices and comparable added value.

Bargaining Power of Customers

The ability of buyers to dictate terms to sellers, which rises when customer concentration is high, when buyers are well organized, or when market demand is limited.

Bargaining Power of Suppliers

The ability of producers or vendors to dictate prices and commercial terms, occurring when suppliers are concentrated, well organized, operate as monopolies, or when supply is limited.

Distribution Channels

The intermediaries and pathways that link sellers and buyers, facilitating the physical handling, transport, and legal transfer of ownership of goods and services.

Geography (in International Trade)

The study of the earth's physical features, atmosphere, population distribution, land use, resource availability, and industries, alongside the reciprocal impacts between human activity and the environment.