International Marketing Practice Flashcards

Vocabulary flashcards designed to help students review international marketing concepts, orientations, economic/legal systems, risks, and market entry strategies.

International Marketing

The planning and conducting of marketing activities across national borders, identifying international customers, and building relationships.

The EPRG Model

A strategic model in international marketing consisting of four management orientations: Ethnocentric, Polycentric, Regiocentric, and Geocentric.

Ethnocentric Orientation

An international management orientation where the firm largely ignores differences in the global environment and assumes home practices will work everywhere.

Polycentric Orientation

An international management orientation where the firm responds strongly to local conditions by customizing strategies for each country.

Regiocentric Orientation

An international management orientation where the firm creates regional strategies instead of country-by-country ones.

Geocentric Orientation

An international management orientation that designs a global brand identity and core product, but allows local teams to adjust flavors or promotions based on data.

Traditional Economy

An economic system where customs, culture, family roles, and long-established community practices dictate production and exchange (often through barter).

Big Emerging Markets (BEMs)

Markets that are growing at a faster rate than the world average market growth, offering wonderful opportunities for profitability (Brazil, Russia, India, China, South Africa).

Free Trade Area

A level of regional economic integration where member countries remove tariffs and quotas among themselves, but each keeps its own external tariffs toward non-members.

Common Law

A legal system based on past court decisions (precedents) and customs, used in the USA, UK, Canada, Australia, etc.

Code (Civil) Law

A legal system based on comprehensive written codes where judges mainly apply the code rather than set binding precedents.

Theocratic (Islamic/Sharia) Law

A legal system based on religious precepts (Qur'an and Islamic teachings) governing what is allowed (halal) and forbidden (haram).

Confiscation

A political risk where the host government seizes foreign property without payment, ending operations instantly and causing a total financial loss.

Primary Research

Original research that you conduct yourself firsthand to gather data for your business expansion.

Piggybacking

A market entry strategy where a company uses another company's existing overseas distribution channels to sell its product alongside theirs, sharing profits and reducing risk.

Turnkey Project

A project delivery method where a firm designs, constructs, and equips a complete facility for a client abroad, then hands over a fully operational plant.

Product (4Ps)

What to sell to meet global customer needs.

Price (4Ps)

Pricing strategies reflecting market conditions and purchasing power.

Place (4Ps)

Distribution channels and market entry methods.

Promotion (4Ps)

Advertising, branding, and messaging.

Command Economy

An economic system controlled by central government.

Market Economy

An economic system driven by supply, demand, consumers, and private businesses.

Mixed Economy

An economic system that is a blend of private business and government regulation.

Customs Union

A level of regional economic integration featuring free trade plus a common external tariff for non-members.

Common Market

A level of regional economic integration featuring a customs union plus free mobility of people, capital, and resources.

Economic Union

A level of regional economic integration with high integration, shared currency, and coordinated economic/social policies.

Expropriation

A government seizure of foreign property with partial compensation.

Domestication

A political risk involving forcing transfer of ownership and management to locals.

Transfer Risks

Laws blocking the movement of money/profits out of the country.