International Marketing and Trade Concepts

These flashcards cover essential vocabulary and definitions related to international marketing and trade concepts from the lecture notes.

International Marketing

The performance of business activities designed to plan, price, promote, and direct the flow of a company’s goods and services to consumers in more than one nation for profit.

Domestic Marketing

Marketing that occurs within a single national market.

Global Perspective

Shifting from a localized mindset to an understanding of international markets.

PESTEL Framework

A tool used to analyze the Political, Economic, Social, Technological, Environmental, and Legal factors influencing the international marketing environment.

Cultural Forces

Influences that encompass beliefs, values, and practices of a society that affect marketing strategies.

Political Stability

The degree to which a government system is stable and free from turmoil, important for international business operations.

Exchange Rates

The value of one currency for the purpose of conversion to another.

Market Saturation

A situation where a market is no longer generating new demand for a company's products or services.

Economies of Scale

Cost advantages that companies experience when production becomes efficient.

Risk Diversification

Investing in a variety of assets to reduce exposure to any single asset or risk.

Absolute Advantage

When a country can produce a good more efficiently than another country.

Comparative Advantage

An economic principle referring to the ability of a country to produce goods at a lower opportunity cost.

Heckscher-Ohlin Model

A theory that countries export products that utilize their abundant factors of production.

Balance of Payments (BOP)

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

Protectionism

Government policies that restrict international trade to help domestic industries.

Trade Barriers

Laws or regulations that countries use to control the amount of trade across their borders.

Tariff

A tax imposed on imported goods.

Quota

A limit on the amount of a particular good that can be imported or exported during a given time.

Embargo

A ban on trade with a particular country.

Free Trade Area (FTA)

A region where a group of countries has agreed to reduce or eliminate trade barriers among themselves.

Customs Union

A type of trade bloc that includes a free trade area and a common external tariff.

Common Market

A type of economic integration that allows for the free movement of goods, services, capital, and labor between member nations.

Economic Union

A type of trade bloc that combines a common market with a unified economic policy.

WTO (World Trade Organization)

An international body that regulates and facilitates international trade.

International Monetary Fund (IMF)

An organization aimed at promoting global financial stability and growth.

Exporting

Selling goods produced in one country to customers in another country.

Indirect Exporting

Selling to foreign markets through independent intermediaries.

Licensing

Granting permission to a foreign firm to produce or sell your product in return for royalties.

Franchising

A specialized form of licensing in which a franchisor provides a business blueprint to a franchisee.

Foreign Direct Investment (FDI)

Investment made by a company or individual in one country in business interests in another country.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for a specific task.

Export Merchandiser

The key intermediary that negotiates and handles logistics between manufacturers and foreign buyers.

Incoterms

International Commercial Terms that define the responsibilities of buyers and sellers in international transactions.

Cost, Insurance, and Freight (CIF)

An Incoterm indicating that the seller pays for the cost and freight necessary to bring goods to a port.

Free On Board (FOB)

An Incoterm that indicates responsibility for goods passes from seller to buyer when the goods are loaded onto the shipping vessel.

Delivered Duty Paid (DDP)

An Incoterm where the seller assumes all risks and costs associated with delivering the goods.

Market Research

The systematic gathering of information about consumers, competitors, and market conditions.

Product Adaptation

Modifying a product to meet the needs and preferences of local markets.

Packaging Standards

Regulations governing the design and labeling of product packaging for international trade.

Export Management Company (EMC)

A specialized intermediary that helps manufacturers sell their goods abroad.

Market Readiness

The preparedness of a product for sale in a foreign market based on local regulations and preferences.

Sustainability in Trade

Practices that ensure trade activities do not compromise the ability of future generations to meet their needs.

Trade Creation

The economic process that occurs when a trading bloc leads to increased trade among member countries.

Trade Diversion

A situation that occurs when a trading bloc causes trade to shift from a more efficient non-member to a less efficient member.

Negotiation Process

The method by which a firm negotiates terms of trade with foreign partners.

Global Know-How

Knowledge and understanding of international markets and how to operate in them.

Special and Differential Treatment (S&D)

Provisions allowing developing countries more flexibility in implementing trade agreements.