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These flashcards cover key concepts, terms, and definitions relevant to the rewards of global marketing and the global business landscape.

Global marketing

Marketing that targets markets on a worldwide scale.

Global vision

Recognizing and reacting to international marketing opportunities, using effective global marketing strategies.

Absolute advantage

When a country can produce a product or service at a lower cost than any other country.

Principle of comparative advantage

Each country should specialize in the products or services that it can produce most readily and cheaply, and trade those for goods that foreign countries can produce at lower costs.

Free trade

Policy of permitting individuals and businesses in a country to buy and sell in other countries without restrictions.

Protectionism

Where a nation protects its home industries from foreign competitors by establishing artificial barriers, such as tariffs and quotas.

Gross domestic product (GDP)

The total market value of all final goods and services produced in a country for a given time period.

Outsourcing

Sending U.S. jobs abroad.

Inshoring

Returning production jobs to the United States.

Multinational corporation

A company that is heavily engaged in international trade, beyond exporting and importing.

Capital intensive

Using more capital than labor in the production process.

Global marketing standardization

Production of uniform products that can be sold the same way all over the world.

Multidomestic strategy

When multinational firms enable individual subsidiaries to compete independently in domestic markets.

Balance of trade

The difference between the value of a country's exports and imports over a given period.

Foreign direct investment (FDI)

A business investment in a foreign country, either by establishing business operations or by acquiring business assets.

Countertrade

A form of trade in which all or part of the payment for goods or services is in the form of other goods or services.

Dumping

The sale of an exported product at a price lower than that charged for the same or a like product in the home market.

World Trade Organization (WTO)

A trade organization with 164 nations that aims to foster global trade and lower barriers to trade.

United States-Mexico-Canada Agreement (USMCA)

A free trade agreement between the United States, Mexico, and Canada that replaced NAFTA.

Trade agreement

An agreement to stimulate international trade.

European Union (EU)

A free trade zone encompassing 27 European countries.

Key factors global marketers must consider in external environment

Factors affecting global marketing strategies include culture, economic development, balance of trade, global economy, political structure, tariffs, quotas, demographic makeup, and natural resources.

Culture in global marketing

A common set of values that determines what is socially acceptable within a market.

Economic development

The economic status and growth potential of a country which influences market demand and business operations.

Balance of trade

The difference in value between a country's exports and imports when assessing overall economic health.

Global economy

The interconnected economies of the world's countries, affecting exchange rates, trade balances, and economic policies.

Political structure and actions

Influence of governmental policies, stability, and regulations on business operations in foreign markets.

Tariffs and quotas

Tariffs are taxes imposed on imports, while quotas limit the amount of a product that can be imported, both affecting trade dynamics.

Demographic makeup

The statistical characteristics of a population, focusing on two primary determinants: wealth and population.

Natural resources

Resources that a country possesses, which can be traded or used for production, affecting global market competitiveness.

Methods of entering the global marketplace

Includes exporting, using buyers for export, export brokers, and export agents; varying levels of risk are associated with each method.

Exporting

Selling domestically produced goods to foreign markets.

Buyer for export

A domestic entity that purchases goods for the purpose of exporting them.

Export broker

An intermediary who facilitates the sale of goods from a seller to a buyer in another country.

Export agent

An individual or company that represents an exporter in foreign markets.

Exchange rate

The rate at which one currency can be exchanged for another, crucial for international trade.

Dumping (under pricing strategy)

Selling exported products at prices lower than their cost or domestic prices to gain market share.

Countertrade

Trading goods or services for other goods or services rather than for cash.