Global Marketing Chapters 1-4 (Gillespie 3rd edition) – Flashcards
Unlock all answers in this set
Unlock answersquestion
Why Go International?
answer
1. Expand Sales Profit 2. Acquire Resources 3. Minimize Risk 4. Gain Geopolitical Influence 5. React to Inquires from Abroad 6. Respond to Domestic Competitive Shock 7. Follow Major Customers Abroad 8. Leverage economies scale and scope
question
Global Firm
answer
Company that Gains advantages in its cost and reputation not available domestically
question
Standardization
answer
Similar Tastes Strong Country of Origin Image Reduce Cost
question
Adaptation
answer
Variations in consumer needs and conditions of use variation in consumer income cultural differences different technical style regulations
question
Development of Global Marketing
answer
Domestic Marketing Export Marketing International Marketing (local investments, modification of 4 P's) Multinational Marketing (multidomestic) Pan-Regional Marketing (NAFTA, EU)
question
Skills needed
answer
Adaptable Overcome obstacles Teamwork negotiation work with different personalities
question
Environmental Factors
answer
1. Social 2. Economic 3. Technology 4. Competition 5. Regulatory 6. Political 7. Natural
question
Gross National Income (GNI)
answer
The market value of final goods and services newly produced by domestically owned factors of production
question
Gross Domestic Product (GDP)
answer
Values of production that takes place within a nations border, without regard to whether the production is done by domestic or foreign factors of production
question
Basic Theories of World Trade
answer
1. Absolute Advantage -Trade is based on each country selling what it is best at producing 2. Comparative Advantage -Trade can occur between two countries even if one of the countries has no absolute advantage 3. Competitive Advantage -Land/Natural resources, labor, technology, capital make world power
question
Balance of Payment (BOP)
answer
Record of International Transactions -Imports, Exports, and capital in one year - Current Account Goods & services sold and purchased (BOT)
question
Exchange Rate
answer
Measures the value of one currency in terms of another currency
question
How Do Governments change value of the dollar/Exchange rate?
answer
-Increase or remove dollars from the market in the federal reserve -sell bonds, build things, issue products
question
Agencies Promoting Economic and Monetary Stability
answer
IMF -International Monetary Fund, Control Currency World Bank -Gives Loans WTO -World Trade Organization, Facilitate Trade
question
Which organization helps with currency issues?
answer
IMF
question
Non-Tariff Barriers
answer
Licensing Safety Standard Weight Limit
question
Identification of Cultures
answer
-points of reference: national, geographic, language, region, race, attire, food, laws, customs, values
question
Marketing and Islam
answer
forbids interest encourages modest dress requires food to be halal (no alcohol or pork)
question
High Trust vs. Low Trust
answer
High Trust- easily trust others Low Trust-gives jobs to relatives because there is low trust among others
question
Attitudes Toward Time
answer
Monochronic- one task at a time Polychronic
question
Temporal Orientation
answer
Value of past, present, or future past-Europe and Middle East present-Mexico future-USA
question
Company Attitude to Culture
answer
-ethnocentric: belief your country is superior -polycentric: emphasis on individual country cultures -Geocentric: Mixture
question
Context of Language
answer
low-context: communication is clear high-context: meanings are more implicit, interpreted
question
Showing emotion
answer
affective culture- show emotions neutral cultures- no emotion
question
How to select a country to invest in
answer
1. Policy Uncertainty 2. Macro Stability 3. Tax Rates 4. Regulation and Tax Administration 5. Finance, Skills, Crime
question
Host Country
answer
a country that contains an operational unit (marketing, sales, manufacturing, R&D) of an international company
question
Motivations of Politicains
answer
1. Self Preservation 2. Security 3. Prosperity 4. Prestige 5. Idology 6. Cultural Identity
question
Host Country Pressure Groups
answer
-labor unions -political parties -environmental groups -local business community
question
Host Country Actions
answer
-Government Subsidies -Ownership Restrictions -Operating Conditions (work permits, local content requirement, political motives, lack of security)
question
Takeovers
answer
1. Expropriation-Formal seizure of operation (with or without compensation) 2. Confiscation- expropriation with no compensation 3. Domestication/Nationalization- local run, owners retain title but not involved in operation. Compensated
question
International Legal Tradition
answer
1. Common Law- English Law 2. Civil (or code) law- written law in the past 3. Islamic law- Islamic common law 4. Socialist Law- Marxist Ideology
question
Regulatory Forces
answer
1. Product Liability 2. Bankruptcy 3. Regulation cyberspace 4. Patents 5. Trademarks
question
Legal Issues
answer
1. Worker Relations (health and safety) 2. employment practices 3. Antitrust prohibitions 4. Contractual relationships 5. Environmental Practices 6. Patents, trademarks, intellectual Property 7. Taxes/regulations 8. Advertising regulations
question
Managing Regulatory Change
answer
Alter-bargain to get govt. to change regulations Avoid-move to bypass the impact of the regulation Accede-Comply Ally- Avoid some risks by seeking strategic alliances
question
Risk Reduction Strategies
answer
Sharing Risks (Joint ventures, alliances, licensing, franchising) Miniminzing Assets at Risk Insuring Againsts Risks (Govt., Private firms)
