Global Marketing and Cultural Adaptation Lecture Review

Vocabulary-style flashcards covering key terms from global marketing, economic integration, trade barriers, international organizations, and cultural adaptation.

Global Marketing

Focusing a company’s resources and competencies on global market opportunities and threats.

Economic Globalization

The integration of national economies into the international economy through trade, direct foreign investment, and global flows of capital, labor, technology, and factors like immigration and inflation.

Globalization

The interdependence of economies all around the world, creating a trickle effect everywhere.

Gross Domestic Product (GDP)

The total market value of all final goods and services produced within a country’s borders per year; the U.S. accounts for $28\%$ of this global figure.

Environmental Adaptation

A conscious effort to anticipate and adjust to uncontrollable factors in the global marketing environment, involving significant cultural adjustments.

Self-Reference Criterion (SRC)

An unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decision-making.

Ethnocentrism

The notion that people in one’s own company, culture, or country know best how to do things.

Polycentric orientation

A management orientation where each country is treated uniquely (multinational), leading to a decentralized approach and localized marketing strategies.

Regiocentric orientation

A management orientation that bases operational strategies on the geographic region (climate, culture, logistics) rather than individual countries.

Geocentric orientation

A management orientation that favors neither the home nor foreign countries, integrating the best elements from every country across borders.

General Agreement on Tariffs and Trade (GATT)

An agreement replaced by the WTO that used consultation to revolve trade problems but lacked enforcement power; trade was conducted through custom tariffs rather than import quotas.

World Trade Organization (WTO)

A forum for trade-related negotiations among $166$ members that acts as a mediator through the DSB and possesses enforcement power to impose sanctions.

G-7 (Group of Seven)

A group of industrialized countries with a rotating presidency that meets regularly to discuss issues like biotechnology, disarmament, and global trade.

Free trade area

An agreement between two or more countries to reduce or eliminate customs duties and nontariff trade barriers.

Customs union

An integration level that eliminates internal tariffs and adds a common external tariff (CET) on products imported from countries outside the union.

Common market

A level of integration that shares features of a customs union and allows for the free movement of resources, such as labor, between member countries.

Monetary union

An integration level that adds a shared currency and a unified, parastatal central bank to the features of a common market.

Political union

The highest level of integration involving common governing bodies, legislative bodies, and enforcement powers, such as the European Union.

Protectionism

Economic policy of restricting trade through quotas, tariffs, and other measures to favor domestic supply sources.

Tariffs

Taxes imposed on goods entering a country to generate revenue, penalize unaligned countries, or discourage specific imports.

Infant industry argument

The argument for protectionism that allows low-income countries to protect new industries from international competitors.

Local Content Laws

A requirement that a percentage of imported products be locally produced to favor local contribution and labor.

Boycotts

Action by a group calling for a ban on all goods associated with a particular company or country.

Sanctions

Trade restrictions applied by one country against another as a penalty for noncompliance.

Embargos

The most severe form of trade restriction, prohibiting all business deals with a target country and affecting third parties.

World Bank

A specialized agency of the United Nations that sponsors economic development by providing long-term loans for initiatives like health and infrastructure.

IMF (International Monetary Fund)

A specialized agency known as a 'lender of last resort' that focuses on short-term macro-economic projects and mediates between debtors and creditors.

Austerity measure

A policy often required by the IMF where a loan-recipient country must freeze or reduce funding on internal programs.

Manifest Destiny

Historical belief that U.S. expansion into the Americas is both justified and inevitable.

Monroe Doctrine

The political stance that any external intervention in South American politics is a hostile act against the United States.

Roosevelt Corollary

An extension of the Monroe Doctrine stating the U.S. would 'police' Latin America to prevent European colonization.

Culture

The values, beliefs, traditions, and norms that are learned, shared, and transmitted across generations.

Subcultures

Smaller groups with shared norms who identify with specific hobbies or behaviors, such as sneakerheads, gamers, or cosplay communities.

Acculturation

The process by which individuals learn the beliefs and behaviors endorsed by a culture, such as an international student learning local slang.

Assimilation

The full adoption and maintenance of a new culture while resisting one's old culture if it contrasts.

Values

Core concepts of what is right vs. wrong; they are the most stable cultural elements and resistant to change.

Beliefs

Ideas accepted as true, such as materialism, often based on culture or experience.

Attitudes

Malleable dispositions, feelings, or evaluations toward specific people and ideas; they are the least stable cultural element.

Nationalization

A process where the government takes control of some or all of an industry.

Privatization

The return of state-owned enterprises to private ownership and control.

Extortion

Payments extracted under duress by someone in authority from a person seeking a lawfully entitled act.

Lubrication

A relatively small gift or sum of cash given to a low-ranking official to speed up a lawful task.

Subornation

Paying large, unaccounted sums of money to entice an official to commit an illegal act.

Expropriation

Governmental action to dispossess a foreign company or investor with some form of compensation, though often less than the actual worth.

Domestication

A process where a host country gradually gains control of investment through government decrees that mandate local ownership.

Confiscation

Seizure of assets by a government where no compensation is provided at all.