Ch 7: Global Marketing

Countertrade

the practice of using barter rather than money for making global sales

balance of trade

the difference between the monetary value of a nation's exports and imports

Protectionism

the practice of shielding one or more industries within a country's economy from foreign competition through the use of tariffs or quotas

Tariffs

government taxes on products or services entering a country that primarily serve to raise prices on imports

Quota

a restriction placed on the amount of a product allowed to enter or leave a country

World Trade Organization (WTO)

a permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions

global marketing strategy

A strategy used by transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.

multidomestic marketing strategy

a strategy used by multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business

global brand

a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs

global consumers

consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services

cross-cultural analysis

the study of similarities and differences among consumers in two or more nations or societies

Globalization

the focus on creating economic, cultural, political, and technological interdependence among individual national institutions and economies

cultural symbols

things that represent ideas and concepts

customs

what is considered normal and expected about the way people do things in a specific country

Foreign Corrupt Practices Act (1977)

A law, amended by the International Anti-Dumping and Fair Competition Act (1998), that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country.

back translation

The practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors.

consumer ethnocentrism

the tendency to believe that it is inappropriate, indeed immoral, to purchase foreign-made products

currency exchange rate

the price of one country's currency expressed in terms of another country's currency

exporting

a global market-entry strategy in which a company produces products in one country and sells them in another country

joint venture

A global market-entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company.

barter

the practice of exchanging products and services for other products and services rather than for money