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countertrade
the practice of using barter rather than money for making global sales
gross domestic product (GDP)
the monetary value of all products and services produced in a country during one year
balance of trade
the difference between the monetary value of a nation’s exports and imports
protectionism
the practice of shielding one or more industries within a country’s economy from foreign competition through the use of tariffs or quotas
tariffs
government taxes on products or services entering a country that primarily serve to raise prices on imports
quota
a restriction placed on the amount of a product allowed to enter or leave a country
global competition
exists when firms originate, produce, and market their products and services worldwide
Strategic alliance
agreements among two or more independent firms to cooperate for the purpose of achieveing common goals such as competitive advantage or customer value creation
multidomestic marketing strategy
involves multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business
global marketing strategy
involves transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ
global brand
a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs
global consumers
consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services
cross-cultural analysis
involves the study of similarities and differences among consumers in two or more nations and societies
values
a society’s personally or socially preferable modes of conduct or states of existence that tend to persist over time
customs
what is considered normal and expected about the way people do things in a specific country
Foreign corrupt practices act (1977)
a law, amended by the International Anti-Dumping and Fair Competition Act (1998), that makes it a crime for US corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country
cultural symbols
things that represent ideas and concepts
back translations
where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors
consumer ethnocentrisim
the tendency to believe that it is inappropriate, indeed immoral, to to purchase foreign-made products
currency exchange rate
the price of one’s country’s currency expresses in terms of another country’s currency
exporting
a global market-entry strategy in which a company produces products in one country and sells them in another country
joint venture
a global market-entry strategy in which a foreign company and a local firm invest together to create a local business in order to share the ownership, control, and profits of the new company
direct investment
a global market-entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary division
dumping
occurs when a firm sells a product in a foreign country below its domestic price or below its actual cost
gray market
a situation where products are sold through unauthorized channels of distribution. Also called parallel importing
