Protectionism
Practice of shielding one or more industries of a country's economy from foreign competition through the use of tariffs or quotas
Tariff
government tax on goods or services entering a country, primarily serving to raise prices on imports
quota
a limitation on imports or exports
World Trade Organization
institution that sets rules governing trade between its members through a panel of trade experts
global competition
occurs when firms originate, produce, and market their products and services world wide
Multinational firm
multidomestic marketing strategy- offering as many different product variations, brand names, and advertising programs as countries in which it does business
international firm
engages in trade and marketing in different countries as an extension of the marketing strategy in its home country
transnational firm
views the world as one market and emphasizes universal consumer needs and wants more than differences among cultures. has a global marketing strategy
global brand
a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs
values
socially preferable modes of conduct or states of existence that tend to persist over time
customs
norms and expectations about the way people do things in a specific country
Foreign Corrupt Practices Act
Law that makes it a crime for US corporations to bribe an official of a foreign government or political party to obtain or retain business
indirect exporting
when a firm sells its domestically produced goods in a foreign country through an intermediary
direct exporting
when a firm sells its domestically produced goods in a foreign country without intermediaries
joint venture
occurs when a foreign company and a local firm invest together to create a local business, sharing ownership, control, and profits of the new company
direct investment
occurs when a domestic firm actually invests in and owns a foreign subsidiary or division
product extension
selling virtually the same product in other countries
product adaptation
changing a product in some way to make it more appropriate for a country's climate or consumer preferences
product invention
companies invent totally new products designed to satisfy common needs across countries
dumping
when a firm sells a product in a foreign country below its domestic price or below its actual cost
gray market
situations where products are sold through unauthorized channels of distribution