International Marketing Pearson My Lab Test Ch. 1-4 – Flashcards
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In the past one hundred years, the most fundamental change in the world economy is ________.
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the emergence of global markets
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Economic growth is measured by gross domestic product (GDP) and reflects a nation's ________.
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productivity
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In ________, the state has the broad powers to decide what goods and services are produced and in what quantities. This system is not based on consumer demand.
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centrally planned socialism
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Which of the following explains why Sweden's economic system is considered a hybrid of capitalism and centrally planned socialism?
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Sweden operates a so-called "welfare state."
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The World Bank has developed a classification system that uses ________ as a base.
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per capita gross national income
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Which of the following World Bank classifications includes countries that are developing or industrializing?
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Upper-middle-income countries
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The record of all economic transactions between the residents of a country and the rest of the world is called ________.
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Balance of Payments
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A ________ results when the outflow of money to pay for imports exceeds the inflow of money from the sale of exports.
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trade deficit
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In 2012, which of the following countries was the world's leading exporter?
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China
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The United States is a major trader in ________, the fastest growing segment of world trade.
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services
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Currency devaluation impacts buyer behavior because ________.
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devalued currency can lead decreased consumer buying power
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___________reflects the impact of currency on a company's financial performance.
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economic exposure
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Which of the following organizations was the predecessor to the WTO?
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The General Agreement on Tariffs and Trade (GATT)
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Which of the following is the division of the World Trade Organization responsible for mediating complaints concerning unfair trade barriers?
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Dispute Settlement Body
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The ultimate goal of ________ is to have zero duties on goods that cross the borders between free trade partners.
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a free trade agreement
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Which of the following best describes an economic union?
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An agreement that seeks to coordinate economic and social policies to facilitate the free flow of capital, labor, and goods and services from country to country.
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The ________ is the trade agreement among the United States, Canada, and Mexico.
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North American Free Trade Agreement (NAFTA)
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What is the key difference between NAFTA and an economic union?
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The economic union provides free flow of labor between countries.
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In Latin America, the Common Market of the South (Mercosur) actually operates as a(n) ________.
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customs union
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Which of the following Mercosur members has a gross domestic product (GDP) greater than the combined GDP of the other eight members?
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Brazil
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Which of the following was the most significant challenge to a fully integrated ASEAN economic community?
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Lack of consensus among all ASEAN member nations
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Which of the following is a forum that brings together political leaders with mutual interest in the Asian market?
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The Asia-Pacific Economic Cooperation (APEC)
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Which of the following measures human well-being in a country?
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Gross National Happiness (GNH)
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Which of the following helps describe the European Union (EU)? ________.
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The 28 nation members of the EU constitute the world's largest economy.
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Which of the following is the key regional organization in the Middle East?
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The Gulf Cooperation Council (GCC)
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A key to conducting business in the Middle East is ________.
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connection
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Which of the following best describes the purpose of the African Growth and Opportunities Act (AGOA) signed into law in 2000?
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To encourage African nations to make progress toward economic liberalization
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Which of the following members of the South African Development Community (SADC) represents about seventy-five percent of the income in the region?
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South Africa
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________ can be defined as "ways of living, built up by a group of human beings that are transmitted from one generation to another."
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culture
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Material and non-material elements of culture are ________.
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interrelated and interactive
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In a high-context cultural orientation, which of the following is of low importance?
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legal documents
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Which of the following is most common in a low-context culture?
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Explicit legal documentation
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Which of the following of Hofstede's dimensions of culture can be applied to acquiring money and goods, but also valuing relationships and concern for others?
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Achievement/nurturing
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According to Hofstede, a culture where people are open to new ideas and are willing to take risks is considered ________.
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low uncertainty avoidance
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Which of the following best defines the self-reference criterion?
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The unconscious tendency for perceptual blockage and distortion.
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Which of the following steps of the framework designed to reduce the distortion from self-reference criterion (SRC) is most critical?
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Isolate the SRC influence and examine it carefully to see how it complicates the problem.
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________ is the first stage of Rogers' diffusion theory of an adoption process.
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Awareness
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Of the five adopter categories, which of the following would be the first to adopt a new idea or a new product?
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Innovators
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________ reflects the extent to which products must be adapted to the culture-specific needs of different national markets.
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environmental sensitivity
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Which of the following categories of products is considered one with high environmental sensitivity?
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Food
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Which of the following is true about Starbucks' growth strategy?
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It uses all four of the growth strategies.
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Which of the following defines diversification growth strategy?
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New products for new markets
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Which of the following is most important for a company in order to achieve competitive advantage in the global marketplace?
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Focus
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Which of the following best defines competitive advantage?
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Creating more perceived value for customers than the competitors do
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A single-country marketing strategy addresses which of the following pairs of fundamental issues?
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Choosing a target market and developing a marketing mix
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In addition to developing a marketing strategy, a global marketing strategy (GMS) requires managers to recognize the necessary extent to which ________ is needed.
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adaptation
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Fortune magazine's Global 500 rankings are based on which of the following?
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revenues
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Most of the companies in the Global 500 rankings ________.
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are key players in the global marketplace
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Managers who assume that products and strategies that succeed in the home country will succeed anywhere reflect a(n) ________ orientation.
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ethnocentric
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Which of the following best describes the geocentric management orientation?
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It views the entire world as one potential market and strives to develop integrated global strategies.
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Which of the following best states the purpose of the World Trade Organization (WTO)?
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To promote and protect free trade
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Which of the following is a barrier to trade based on hostility towards globalization?
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Globalaphobia
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Maslow's Hierarchy of Needs
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1. self actualization 2. self esteem needs 3. belongingness and love needs 4. safety needs 5. physiological needs
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Geographically large Significant populations Sizable markets Growth Politically important in region Regional economic drivers Expansion into neighboring markets
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Big Emerging Markets
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Low population growth erodes economic growth. How countries react to: -Aging population -Shrinking talent pool
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#1: People Matter
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-Cycles of complacency and revolt fuel economic booms and busts. -How countries react to change and crisis.
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#2: Circle of Life
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-Social tension over inequality. -Which countries most or least threatened by ill-gotten wealth. -Good to create wealth but balanced.
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#3: Good Billionaires, Bad Billionaires
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-Degree to which state meddles in the economy. -Level of government spending as share of GDP - less is better. -Whether government resources go toward productive ends. -Misuse of state companies and banks to achieve political goals. -Extent to which governments allow private companies to grow.
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#4: Perils of State
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Extent to which countries make the most of their geographic location. -Opening trade with neighbors and the world. -Balance growth in major cities and provisional regions
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#5: Geographic Sweet Spot
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Manufacturing is the ticket out of poverty (over agriculture and services). -Investing rising or falling - state encourages companies to invest. -Good and bad investments - innovation and new technology good. -Developed economies shift to services catering to middle class - investment lower % of GDP. -Role of productivity.
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#6: Factories First
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Rate of inflation (high or low). -Stable low inflation leads to economic growth.
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#7: Price of Onions
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Currency valuation relative to inflation. -Real Effective Exchange Rate (REER) -The Economist "Big Mac Index" -Deutsche Bank's annual Mapping the World's Prices Report (iPhone 6 and Levi 501) -Cheap and stable currency is good. -Follow the locals to spot crisis or recovery.
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#8: Cheap is Good
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Avert it or buckle under it. -Is private debt growing faster or slower than the economy?
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#9: Kiss of Debt
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How a country is portrayed by global opinion leaders. -Media infatuation is a bad sign for the economy. -Indifference is good.
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#10: The Hype Watch
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Major international marketing theme
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Think global, act local
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Other international marketing themes
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-standardization vs. adaptation -risk vs. rewards -predictable vs. stable -control -short term vs. long term
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4 P's of Marketing
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-product -promotion -price -placement
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SIVA
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-satisfy/solve -inform -value -accessible
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FAB
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-features -advantages -benefits
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AIDA
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-attention -interest -desire -action
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4 separations of buyer behavior
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-needs -wants -demands -delights
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most critical difference between domestic and international marketing
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the environment in which marketing plans must be implemented
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the number one rule of international marketing
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find out consumers' wants and needs and fulfill them
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can understand buyer behavior through...
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market research
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SWOT
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-strengths -weaknesses -opportunities -threats
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STEEPLD
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-sociocultural -technology -environment -economy -politics -legal -demographics
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________ is never a strength or weakness for a company
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pricing
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______ helps differentiate a company from their competitors
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unique selling proposition (USP)
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two stages of AIDA
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1. share of mind (want their company to be the first you think of) 2. share of heart (how they feel about it)
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have to anticipate and predict what your company should do
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forecasting
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have to make sure you translate correctly, both the slogans and product names
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marketing blunders
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the heart and soul of any product is the ____ and _____
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functionality and attributes
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it is a bad thing to have an ________ viewpoint/mindset
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ethnocentric
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-think that your business is better than everyone else -clouds your view of the market and the world -think that since you do it one way in your country that it will work the same in other countries too
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ethnocentric
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important to have _____ and _____ in global marketing in order to admit your way of doing something is not always the best
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empathy and humility
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-dated outlook -tend to view the whole world as your playground -look at many countries
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polycentric orientation
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-each company specializes in something and they share it with each other -countries are stronger through this
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Free Trade Agreement (FTA)
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higher level of agreement
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customs union
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-countries are still independent, but said they'd be stronger together
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common market
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-free flow of goods between Canada, Mexico, and the United States
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NAFTA
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commercials need to have _______
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appeal
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things in countries that you don't want to do
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cultural electives
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things in countries that you have to do -ex. in china you have to accept the tea or else it is an insult
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cultural imperatives
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-when you have to know your place -ex. buddhist keeps walking in the temple and you need to know when to stop
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cultural exclusives
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culture based on your words
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low context culture
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culture based on how you say it
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high context culture
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-this man put number to countries and ranked them accurately based on their companies -came up with the 6 dimensions
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Gerard Hofstede
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What are Hofstede's 6 dimensions?
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1. power distance 2. individualism/collectivism 3. masculinity/femininity 4. uncertainty avoidance 5. long term orientation 6. indulgence/restraint
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benefits to customers if it exceeds the price (high/low isn't relevant)
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value
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customers that are willing and able to buy
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market
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when companies go global, they can get competitive advantage through ____ and ____
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SWOT and having leverage
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looking at segments of the world based on regions (target regions, not whole countries)
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regiocentric
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flow of information, trade agreements, and protectionism are examples of _____
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global forces
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countries evolve from rural to finding some factor of production that help them collect _________
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foreign direct investment
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selling below your manufacturing cost
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dumping
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three stages of how countries come together
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1. free trade areas 2. customs union 3. economic union
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Bolivia, Chile, Peru, Colombia, Ecuador and Suriname
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countries of Mercosur
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the process by which an individual adopts a new idea -includes the adoption process, characteristics of innovations, and adopter categories
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diffusion theory
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the mental stages through which an individual passes from the time of his or her first knowledge of an innovation to the time of product adoption or purchase
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adoption process
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a treaty among nations whose governments agreed to promote trade among members
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general agreement on tariffs and trade (GATT)
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provides a forum for trade-related negotiations among its 160 members
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world trade organization (WTO)
