MARK 3000E ch 8

globalization

the process of goods, services, money, people, and ideas moving between countries ; it creates a world that’s more connected and interdependent

sociocultural analysis

looking at cultural values, behaviors, and social norms in different countries

economic analysis

study of things like GDP, income levels, how much people can buy, and a country’s trade balance (surplus or deficit)

infrastructure + technology

the systems needed to support business ; roads, communication networks, power, and tech tools

gov’t actions

things gov’t does that affect trade, like tariffs, quotas, and trade deals

GDP (gross domestic product)

the total value of everything made in a country, including services + products

trade surplus

when country exports more than it imports (good for economy)

trade deficit

when country imports more than it exports (foreign competition is strong)

exchange rate

how much one currency is worth compared to another ; affects pricing + buying power

infrastructure

the basic systems like roads, water, and electricity that support businesses

cultural nuances

small but important cultural differences that companies must respect when expanding globally

global STP (segmentation, targeting, positioning)

trickier b/c of language differences, varying customer behaviors, and cultural values

exporting

selling products made in your country to other countries ; low-risk way to enter a new market but offers limited return

franchising

allowing a foreign company to use your brand + business model in exchange for payment (like mcdonald’s or holiday inn)

strategic alliances

business partnerships w/o shared ownership or control ; you work together but keep separate ownership

joint ventures

when two companies share ownership, profits, and control in a new business

direct investment

when a company owns 100% of its operations in another country ; high risk, high return

same product

selling the same product in different markets without changes ; simple but not always effective

minor adaptations

making small adjustments to packaging, language, or marketing to suit local needs

totally new product

creating a new product for a specific market (like detergent made for areas with water scarcity)

brand consistency

keeping your product and messaging the same across different markets to build a strong, recognizable brand

global pricing strategy

prices are affected by things like tariffs, local laws, culture, and the economy ; prices can vary depending on how a product is positioned and the cost of distribution

global value chains

the networks that bring a product from creation to sale, including importers, wholesalers, transporters, and customers ; can make a product more expensive