International Marketing Key Terms chapters 1-3

Global Marketing

The process of planning and executing marketing activities across national borders

Comparative Advantage

A country’s ability to produce a good more efficiently than another country

Absoulute Advantage

A country’s can produce more of a good using fewer resources than another country

Globalization

The process by which national economies become integrated through trade, investment, and technology

International Trade

Exchange of goods and services across national borders

Trade Deficit

Country imports more than it exports

Trade Surplus

Country exports more than it imports

Protectionism

Government actions designed to restrict imports and protect domestic industries

Gross Domestic Product (GDP)

The total value of goods and services produced within a country

Gross National Income (GNI)

Gross Domestic Product (GDP) plus income earned from abroad

Purchasing Power Parity (PPP)

A method of comparing economic productivity and standards of living based on buying power

Foreign Direct Investment (FDI)

Investment by a firm in facilities or assets located in another country

Balance of Payments

A record of all economic transactions between a country and the rest of the world

Exchange Rate

The price of one currency in terms of another

General Agreement on Tariffs and Trade (GATT)

a 1947 treaty created to promote international trade and reduce tariffs with no govermental power; replaced by the World Trade Organization (WTO)

World Trade Organization (WTO)

An international governments that enforces global trade rules and settles trade disputes

Dispute Settlement Body (DSB)

World Trade Organization (WTO) body that mediated trade disputed and authorizes sanction

Preferential Trade Agreement (PTA)

Agreement that gives members countries favorable trade treatment

Free Trade Area (FTA)

Members done have Internal tariffs

Rules of Origin

Regulation that prevent goods from being shipped through low tariff countries to avoid duties

Customs Union

Members dont have internal or external tariffs

Common Market

Members dont have internal or external tariffs and free movement of labor and capital

Economic Union

Members dont have internal or external tariffs, free movement of labor and capital, and harmonized economic policy

Common External Tariff (CET)

A shared tariff applied to non member countries

Central American Intergration System (SICA)

A regional bloc moving toward a common market in Central America

DR-CAFTA

A free trade agreement between the U.S., Central America, and the Dominican Republic

Andean Community

A customs union in South America with common extrenal tariffs

Mercosur

A South American customs union aiming to become a common market

CARICOM

A Caribbean trade bloc that operated as a customs union

ASEAN

Association of Southeast Asian Nations promoting regional economic cooperation

European Union (EU)

An economic and political union with a single market and common currency (euro)

Gulf Cooperation Council (GCC)

A Middle Easter trade bloc focused on economic integration and diversification