IBT - FINALS

Globalization

The increasing connectedness and interdependence of world cultures and economies, facilitating the flow of goods, services, capital, and ideas across borders.

International Business and Trade (IBT)

The process by which businesses and organizations develop international influence or start operating on an international scale due to globalization.

Glocalization

A two-level system combining globalization and localization, adapting global products or ideas to fit local preferences while maintaining a broader global identity.

Hybridization

The blending of global and local elements to create novel combinations, fostering cultural diversity and mutual understanding between diverse cultural groups.

Licensing

A contractual arrangement where a company grants permission to another company in a foreign market to use its intellectual property in exchange for royalties or fees.

Franchising

A form of licensing involving a legal and commercial relationship between the owner of a brand and an individual or entity authorized to operate a business using the franchisor's brand name and support systems.

Exporting

The sale of goods or services produced in one country to customers located in another country, allowing companies to expand their customer base and market reach beyond domestic boundaries.

Joint Venture

A partnership between two or more companies that agree to collaborate and pool their resources to undertake a specific business project or venture in a foreign market.

Merger and Acquisition (M&A)

Corporate transactions where one company combines with another company (merger) or one company acquires another company (acquisition) to expand its business operations into a foreign market.

Foreign Direct Investment

Involves an investor or a company buying significant, lasting interest in a company in another country, offering the highest degree of control and investment among entry methods.

Wholly Owned Subsidiary

Method of entry where a new legal entity is established in a foreign market, fully owned and controlled by the parent company.

Piggybacking

Cost-effective strategy leveraging existing partnerships or distribution channels to enter a foreign market without direct presence, suitable for companies facing financial challenges.

Online Selling

Involves selling goods or services through online platforms to customers in foreign markets, leveraging internet technology for wider reach and low cost.

International Marketing

Application of marketing principles across national borders, focusing on satisfying diverse needs and wants of global consumers through the 7Ps of marketing.

Segmentation, Targeting, and Positioning (STP)

Essential concepts in international marketing strategy to understand customers, tailor offerings, and communicate effectively in the market.

Product Differentiation Strategy

Aims to build stronger brands by creating unique product features that differentiate them from competitors, impacting consumer perception.

Distribution Channel

Interdependent organizations facilitating the movement of commodities from producers to consumers, including wholesalers, retailers, agents, and distributors.

Promotion

Marketing communication process to communicate with consumers, build awareness, and persuade them to buy through advertising, sales promotions, and personal selling.

People

Employees and consumers interacting with the company, crucial for providing excellent customer service and positive experiences to build loyalty and trust.

Technological Advancements in International Marketing

Technological advancements, like the internet and e-commerce platforms, have transformed international marketing by enabling streamlined operations, improved supply chain management, and customized marketing efforts.

Efficient Transportation in International Trade

Advancements in transportation technologies, such as containerization and air freight, play a crucial role in facilitating international trade by reducing shipping times and costs, enhancing supply chain efficiency, and meeting customer demand in distant markets.

Transition to Market Economy

The shift from centrally planned to market-oriented economies in many countries has created new opportunities for international marketing by encouraging entrepreneurship, competition, and foreign investment, leading to more favorable business environments for global expansion.

Converging Consumer Needs in Globalization

Globalization has led to a convergence of consumer needs and preferences across countries, presenting opportunities for companies to develop standardized marketing strategies and products adaptable to multiple markets, reducing the need for extensive localization efforts.

PESTLE Analysis in International Marketing

PESTLE Analysis is a strategic framework essential for companies engaging in international marketing to assess and understand external factors like political, economic, sociocultural, technological, legal, and environmental influences on their business operations in target markets.

Business Ethics in International Business

Business ethics encompass the moral rules and principles governing how businesses operate, make decisions, and treat people, with international business ethics guiding ethical decision-making for companies operating across borders to establish expected behavior for both businesses and employees.