Global Business 12-16 – Flashcards
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Industry analysis includes
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Structure of the wholesales and retail distribution networks
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Trade Mission
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International trip by gov. officials for the purpose of exploring business opportunities
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Focus Group
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In-depth interview of a small group to learn the group's attitude about a company
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If the income elasticty for coffee is 0.5
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The demand for coffee will increase 0.5% for every 1% increase in income
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Visiting a potential market personality is what part of the market screening process
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Selection of the market
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Small and medium sized companies often find trade missions very appealing because
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Provided access to important business executives
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Key element of political risk of greatest concern for global countries
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unforseen political change
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Sensitivity of demand relative to changes in income is called
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income elasticity
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Countertrade that usually typifies long-term relationships between the companies involved
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Buyback
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Exports products on behalf of an indirect exporter
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export management company
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Advanced payment is used for
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Companies that are unfamiliar with one another
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The export of industrial equipment in return for products produced by that equipment
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Buyback
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Selling goods or sevices with other goods or services is
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countertrade
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Biggest advantage of an export management company
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knowledge of the target market's cultural, political, legal , and economic conditions
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Contractual Entry Mode
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Turnkey projects
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Disadvantage of strategic alliances
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creates future competitiors
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method of import/export financing
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documentary collection
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Distributors
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take ownership of the merchandise when it enters their country and accepts risks associated with generating local sales
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Exclusive channel
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distribution channel in which a manufacturer grants the right to sell its products to a limited number of resellers
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Push strategy
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promotion of industrial products because potential buyers usually need to be informed about a product's special features
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Morphemes
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all company brand names are made up of semantic elements or language building blocks
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price escalation
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higher selling price in target market than home market where the product is made
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best time to use a push strategy
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industrial goods
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Zero-level channel
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direct marketing
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product has a low-density ratio
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crude oil
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public relations
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major component of promotion mix
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channel length
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the number of intermediaries between producer and buyer
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Fixed assets
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storage facilities, retail outlets, and production equipment
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multinational strategy
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decentralization of production
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capacity planning
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produce enough output to satisfy market demand
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a market is experiencing rapid growth
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reinvest in its operations
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TQM
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increases responsibility on each individual to focus on quality
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Patient money
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foreign direct investment in factories and equipment that cannot be pulled out of market quickly
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decentralized production
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respond quickly to changing buyer preferences
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pursuing a low-cost leadership strategy most likely use for creating its product
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manufacture in large production batches
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best indivudals, regardless of ethnicity
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geocentric staffing
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alex works in america but is assigned a project in asia
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expatriate
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advantage of polycentric staffing
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elimimnates cost of relocating managers and families
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international companies tend to make high-level labor decisions at the homw office because
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it gives them greater control over the network of operation
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early return of an employee fom an international assignment
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expatriate failure
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process of forecasting a companys human resource needs and supply
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human resource planning
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process of screening and hiring the best qualified applicants
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selection
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codetermination
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allows representatives from germany to participate in high level meetings by actually voting on proposed actions
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Coefficient greater than 1
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income elastic; demand increases more relative to an increase in income
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Coefficient less than 1.0
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income inelasticity; demand increase less relative to an increase in income
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market potential indicator
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rank different locations
