Global marketing
Marketing that targets markets throughout the world (5-1)
Global vision
Recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets (5-1)
Gross domestic product (GDP)
The total market value of all final goods and services produced in a country for a given period of time (5-1_
Outsourcing
Sending U.S. jobs abroad (5-1)
Inshoring
Returning production jobs to the US (5-1)
Multinational corporation
A company that is heavily engaged in international trade, beyond exporting and importing (5-2)
Capital intensive
Using more capital than labor in the production process (5-2)
Global marketing standardization
Production of uniform products that can be sold the same way all over the world (5-2)
Multidomestic strategy
When multinational firms enable individual subsidiaries to compete independently in domestic markets (5-2)
Mercosur
The largest Latin American trade agreement (includes Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, and Venezuela (5-3)
Uruguay Round
A trade agreement to dramatically lower trade barriers worldwide
Created the WTO
(5-3)
World Trade Organization (WTO)
A trade organization that replaced the old General Agreement on Tariffs and Trade (5-3)
General Agreement on Tariffs and Trade (GATT)
A trade agreement that contained loopholes enabling countries to avoid trade-barrier reduction agreements (5-3)
North American Free Trade Agreement (NAFTA)
An agreement between Canada, the United States, and Mexico that created the world's then-largest free trade zone (5-3)
Dominican Republic-Central America Free Trade Agreement (CAFTA-DR)
A trade agreement instituted in 2005 that includes Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States (5-3)
European Union (EU)
A free trade zone encompassing twenty-eight European countries (5-3)
World Bank
An international bank that offers low-interest loans, advice, and information to developing nations (5-3)
International Monetary Fund (IMF)
An international organization that acts as a lender of last resort, providing loans to troubled nations, and also works to promote trade through financial cooperation (5-3)
Group of Twenty (G-20)
A forum for international economic development that promotes discussion between industrial and emerging-market countries on key issues related to global economic stability (5-3)
Exporting
Selling domestically produced products to buyers in other countries (5-4)
Buyer for export
An intermediary in the global market that assumes all ownership risks as sells globally for its own account (5-4)
Export broker
An intermediary who plays the traditional broker's role by bringing buyer and seller together (5-4)
Export agent
An intermediary who acts like a manufacturer's agent for the exporter; the export agnate lives in the foreign market (5-4)
Licensing
The legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge (5-4)
Contract manufacturing
Private label manufacturing by a foreign company (5-4)
Joint venture
When a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity (5-4)
Direct foreign investment
Active ownership of a foreign company or of overseas manufacturing or marketing facilities (5-4)
Exchange rate
The price of one country's currency in terms of another country's currency (5-5)
Floating exchange rates
A system in which prices of different currencies move up and down based on the demand for and the supply of each currency (5-5)
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 of the exporter (5-5)
Countertrade
A form of trade in which all or part of the payment for goods or services in the form of other goods or services (5-5)
5-1: Discuss the importance of global marketing.
Businesspeople who adopt a global vision are better able to identify global marketing opportunities, understand the nature of global networks, create effective global marketing strategies, and compete against foreign competition in domestic markets. Large
5-2: Discuss the impact of multinational firms on the world.
Multinational corporations are international traders that regularly operate across national borders.
Because of their vast size and financial, technological, and material resources, multinational corporations have great influence on the world economy.
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5-3: Describe the external environment facing global marketers.
Global marketers face the same environmental factors as they do domestically: culture, economic and technological development, the global economy, political structure and actions, demography, and natural resources.
Cultural considerations include societal
5-4: Identify the various ways of entering the global marketplace.
Firms use the following strategies to enter global markets, in descending order of risk and profit: direct investment, joint venture, contract manufacturing, licensing and franchising, and exporting.
5-5: List the basic elements involved in developing a global marketing mix.
A firm's major consideration is how much it will adjust the four Ps�product, promotion, place (distribution), and price�within each country. One strategy is to use one product and one promotion message worldwide. A second strategy is to create new product
5-6: Discover how the Internet is affecting global marketing.
Simply opening an e-commerce site can open the door for international sales. International carriers, such as UPS, can help solve logistics problems. Language translation software can help an e-commerce business become multilingual. Yet cultural difference