question

licensing

answer

"a contractual means by which a company grants patent rights, trademark rights and the rights to use technology to another company, often in a foreign market; a favoured strategy of small and medium sized companies seeking a foothold in a foreign market without making large capital outlays."

question

cultural imperative

answer

a business cstom (as in a foreign country) that must be reocgnized and accomdoated

question

cultural electives

answer

a business custom (as in a foreign country) to which adaption is helpful but not necessary

question

tarrif

answer

a fee or tax that countries impose on imported goods often to protect a country's markets from intrusion from foreign countries

question

franchising

answer

"a form of licensing in which a company provides a standard package of products, systems and mangement services to a franchisee which in foreign markets may have local knowledge. Permits flexibility when dealin with local market conditions whichl providing the parent company with a degree of controll."

question

strategy of planned change

answer

a marketing strategy in which a company deliberately sets out to change those aspects of a foreign culture resistant to predetermind marketing goals

question

strategy of unplanned chance

answer

a marketing strategy in which a company introduces a product into a market without plan to influence the way the market's culture responds to or resists the companys marketing message

question

strategy of cultural congruence

answer

a marketing strategy in which products are marketed in a way similar to the marketing of products already in the market in a manner as congruent as possible with exisiting cultural norms.

question

global marketing orientation

answer

"a means of operating by which a company acts as if all the companys markets in a company's scope of operations are approchable as a single global market, with the company standardising the marketing mix where culturally feasible and cost effectie. "

question

joint venture

answer

a partnership of two or more participating companies that join forces to create a separate legal entitty

question

global market concept

answer

"a perspective encompassing the entire set of country markets, whether the home market and one other country or the home market and 100 other countries and viewing them as a unit identifying groups of prospective buyers with similar needs as a global market segment and developing a market plan that strives for standardisation wherever it is effective in cost and cultural terms. "

question

product component model

answer

"a tool for characterising how a product may be adapted to a new market by seperating the products many dimensions into three components; support services, packaging and core components. "

question

factual knowledge

answer

"a type of knowledge or understanding of a foreign culture that encompasses different meanings of colour, different tastes and other traits of a culture that a market can study, anticipate and absorb"

question

strategic planning

answer

"a type of planning conducted at the highest level of management, dealing with products, capital and research and the long- and short-term goals of a company."

question

Single european act

answer

agreement designed to finally remove all barriers to trade and make the european community a singl internal market. Established the single market and the european political cooperation. Aim was to achieve an internal market

question

common market

answer

"agreement elminates all tariffs and other restrictions on internal ade, adopts a set of common external tarrifs and removes all restrictions on the free flow of capital and labour among member nations - common market place for goods / services. "

question

economic development

answer

"although economic development is closely associated with economic grouowth it may not necessarily be the same. While growth in real GDP is critical, this may not necessary be a sufficient criteria for development. One can identify development as a qualitative measure of progress in an economy. it is a transition from an agricultural base with capital investments in large industries. there is generally an adoption and innovation in technology and higher living standards can be observed. "

question

interpretive knowledge

answer

an ability to understand and to appreciate fully the nuances of different cultural traits and patterns.

question

free trade area

answer

"an area with no restrictions, barries to trade such as quotes and tarrifs - encouragges specilisation in member countries, lower costs, together with competition markets tend to increase."

question

cultural sensitivity

answer

"an awareness of the nuances of culture so that a culture can be viewed objectively, evaluated and appreciated; a important part of foreign marketing. "

question

dumping

answer

"an export practice, generally prohibited by laws and subject to penalties and fines, defined by some as the selling of products in a foreign markets below the cost of production and byothers as the selling of products at below the price of the same goods in the home market."

question

innovation

answer

"an idea percieved as new by a group of people, when applied to a product, an innovation may be something completely new or something that is percieved as new in a given country or culture"

question

expert opinion

answer

an open taken from someone who is believed to be skilled or highly trained and informed in a specialist field.

question

self-reference criterion

answer

"an unconscious reference to one's own cultural values, experience and knowledge as a basis for a decision."

question

asean +3

answer

"ASEAN countries + Japan, China and Korea - forum to enhance integreation between ASEAN and East Asian nations. "

question

APEC

answer

Asia-Pacific Economic cooperation - an annually meeting forum focused on regional economic development

question

AFTA

answer

"Asian free trade allience - south east asia - malaysia, singapore, thailand, phillippines, indonesia and so forth - relax trade barriers for direct benefit"

question

proxy variable

answer

"At times when information on a specific issue is unavailable or cannot be directly measured, a surrogate or proxy variable, which has an anticipated same effect, may be used. Management needs to use creative inferences to arrive at useful knowledge."

question

parallel translation

answer

"back translations may not always ensure an accurate translation because of the usuage of idioms in languges. Parrallel translation is used to overcome this problem. More than two translators are used for the back translation : the results are compared, differences discussion and the most appropriate translation selected."

question

nationalism

answer

"best described as an intense feeling of national pride and unity, an awakening of a nation's people to pride in their country. This pride can take an anti-foreign business bias, where minor harassment and controls of foreign investment are supported if not applauded."

question

BEMs

answer

BIG EMERGING MARKETS - core group of populous nations that will account for much of the growth in the world trade amon developing and newly industrialised nations - imports to these countries will be 50 % of the industralised worlds. These account for half the worlds population and 25% of its GDP.

question

BOPMs

answer

"Bottom of the Pyramid - largest, poorest socio economic group - consists of the 4 billion people who survive on less than 2$ a day. Ignored by most nternational markets and the lack of appropriateness of products and services as they're developed for larger richer groups."

question

trading company

answer

business entitites that accumulate transport and distribute goods from many companies

question

analogy

answer

"can be found by various ways - similarity, correlation, parellelism or comparability"

question

primary data

answer

"collection of data by the researcher themselves. Some ways include - intervies, diaries, case studies - ETC."

question

mercosur

answer

"Common Market of the South - argentina, brazil, paraguay, uruguay, common market and a customs union amongst countries using economic cooperation"

question

multi-domestic market orientation

answer

"Companies that have a strong sense and appreciation for the differences existing between various country markets, and believe independent marketing programs are required for success in individual markets, follow the multi- domestic market orientation. The company subsidiaries operate independently in establishing marketing objectives and plan of actions. Products are specifically designed for, or adapted to, each market with no coordination with other subsidiaries. Firms with this marketing approach can be characterised as being polycentric."

question

international comparative research

answer

"Comparative research, simply put, is the act of comparing two or more things with a view to discovering something about one or all of the things being compared. A major problem in comparative research is that the data sets in different countries may not use the same categories, or define categories differently (for example by using different definitions of poverty)."

question

treaty of amsterdam

answer

concluded in 1997 - addressed some issues left undone in maaastricht treaty - purpose to revise treaties so that eu can encounter changes taking place in europe .

question

NICs

answer

"countries that are experiencing rapid economic expansion and industrialisation and do not exactly fit as LDCs or MDCs are more typically referred to as a newly industrialised countries. These countries have shown rapid industrialisation of targeted industries and have per capita incomes that exceed other developing countries. they have moved away from restritive trade practices and instirtuted significant free market reforms; as a result they attract both trade and foreign direct ivnestment. chile, brazil, mexcio, south korea, singapore and taiwan are some of the countries that fit this"

question

emerging markets

answer

"countries that have progressed on economic reforms to uplift poverty, poor infrastructure and overpopulation."

question

infrastructure

answer

"countries where capital is heavily invested in telecommunications, transportation, electricity, water, gas and energy, waste removal and processing facilities. "

question

derived demand

answer

"demand that is dependent on another source, it can be fundamental to the success of efforts to sell capital equipment and big-ticket industrial services."

question

EMU

answer

European Monetary Union - goal to establish a singule european currency called the euro .

question

domestic uncontrollable

answer

"factors in a company's home country over which the company has littleor no control or influence. They include political and legal forces, the economic climate, level of technology, competitive forces and economic forces. "

question

foreign uncontrollables

answer

"factors in a foreign market over which a business operating in its home country has little or no control or influence. They include political or legal forces, economic climate, georgraphy and infrastructure, structure of distributio and level of technology."

question

uncontrollable elements

answer

"factors in the business environment over which the international market has no control or influence, may include competition, legal restraints, government controls, weather, consumer preferences and behaviour and political event"

question

GATT

answer

General agreement on tariffs and trade - an agreement between US and 22 other countries (including Aus) - provides a process to reduce tarrifs and creats an agency to patrol world trade.

question

middlemen

answer

generic term for people who are intermediaries in the marketing channel

question

expropriation

answer

"government seizes an investment but some reimbursement for the assets is made. Often the expropriated investment is nationalised , that is, it becomes a government - run entitty"

question

decentring

answer

hybrid of back translation. Successive process of translation and retranslation of a questionare by a different translator each time.

question

agent

answer

"in an international transaction, intermediaries who represent the principal (home manufacturer/marketer) rather than themselves; agent middlemen work on commission and arrange for sales in the foreign country but don't take title to the merchandise"

question

import jobber

answer

"in international transactions, business entities that purchase goods directly from the manufacturer and sell to wholesalers and retailers and to industrial customers"

question

home country middlemen

answer

"in international transactions, the intermediaries, located in the producer's home country, who provide marketing services from a domestic base; also known as domestic middlemen. Home-country middlemen offer advantages for companies with small international sales volume or for those inexperienced in interntional trade. "

question

merchant middleman

answer

"in international transsactions, the intermediaries, located in the foreign market, take title to the home-country manufacturer's goods and sell on their account"

question

gender bias

answer

"In some countries there is a bias against female managers, which has restricted some female employees from reaching top-level executive positions. Additionally, the bias is evident where female employees receive relatively lower remunerations compared to their male counterparts. In these cultures there is also some prejudice against foreign female executives visiting for business negotiations."

question

domestic market extension orientation

answer

"In this orientation, the company seeks extension of its domestic products into foreign markets. The international operation is secondary to and is an extension of its No substantial effort is made to adapt the marketing mix to foreign markets; the company seeks markets where demand is similar to the home market. Firms with this marketing approach can be characterised as being ethnocentric. domestic operation. "

question

multinational integration

answer

integration of countries into economic blocks - increases free trade and investment - helps establish political cooperations

question

IMF

answer

international monetary fund - global institution created to assist nations in becoming and recmaining economically viable.

question

secondary data

answer

is data that has been collected and possible processed by other researches

question

international marketing research

answer

"is similar to domestic marketing research in terms of the process, but only it is conducted internationally. It entails to identify the research proble, determining the sources of information, addressing costs and benefits, gatering data and interpreting results"

question

sovereignty

answer

is the exclusive right to have control over the governance of a contry. A sovereign is the highest orer or supreme lawmaking authority

question

marketing research

answer

"is the process of systematically gathering, recording and analysing data an dinformatin about customers, competittors and the market. It is used to make critical marketing information"

question

M-Time

answer

"monochromatic time - describing a view of time typical of most north american, swiss, german and scandanavians - as something that is linear and can be saved, wasted, spent and lost - m-time cultures tend to concentrate on one thing at a time and value promptness."

question

political union

answer

"most fully integrated form of regional cooperation. Complete political and economic integration, voluntary or enforced. "

question

customs union

answer

next stage in economic cooperation - enjoys the free trade area's reduced or eliminated internal tarrifs and adds a common external tariff on products imported from countries outside the union.

question

new industrialised countries

answer

NIC's - countries that are experiencing rapid economic expansion and insutralisation.

question

NAFTA

answer

"North American Free Trade Alliance - facilitate trade and investment amongst the three nations (canada, usa and mexica) - main objective was to eliminate terrifs and reduce non tarrif barries - establish comprehensive provisions on the conduct of business the fta area by regulation of investment, services, intellectual property and competition."

question

principle of utilitarian ethics

answer

one of three principles of ethics - tests an action by asking if it optimises the common good or benefits of all constituencies

question

principle of justice or fairness

answer

one of three principles of ethics - tests an action by asking if the action respects the canons of justice or faireness to all involved

question

aesthetics

answer

"philosophically, the creation and appreciation of beauty; collectively, the arts including folk lore music, drama and dance."

question

PSA's

answer

"political and social activists can also interrupt the normal flow of trade - psa's can range from those who seek to bring about peaceful change to those who resort to violence and terrorism to effect change when well organised, the actions of psa's can succeed."

question

P-Time

answer

polychromatic time - a view of time - in high context cultures - in which the completion of a human transaction is more important than holding to schedule. P-Time is characterised by the simultaneous occurance of many things

question

ISO 9000

answer

"Product certification required in te EU LAW for several highly regulated, high risk products such as medical devices, telecommunications terminal equipment, gas appliances and personal protective equipment - otherwise certification is voluntary - but all companies are pressured to become certified."

question

qualitative data

answer

Qualitative research aims to gain insight into the issue and to better understand the motivation of the customer.

question

quantitative data

answer

quantitative research provides for the statistical analysis of the information - provided it is collected using a probability method the results can be generalised to the total population. Data is collected using questionnaires designed and based on the objectives of the research project. Questionnaires should be constructed taking into account the capability of the respondents.

question

multicultural research

answer

"research that is unertaken on those consumers engaged of a different race, culture or class"

question

non-tarrif barriers

answer

"restrictions - other tan tarrifs - placed by countries on important products that may include quality standards, sanitary, health standards, quotes, embargoes, boycotts and anti-dumping penalties."

question

social institutions

answer

"Social institutions, including family, religion, education, the media, government and corporations, all affect which people are related to one another. "

question

SIA

answer

strategic international alliance - a business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective.

question

silent language

answer

"term used by edward t hall for the non-spoken and symbolic meanings of time, space, thins, friendships and agreements and how they vary across cultures."

question

relationship marketing

answer

"the aspect of marketing products that depends on long-term associations with customers an important factors in business to business contexts and especially important in most international markets, where culture dictates strong ties between people and companis. "

question

controllable elements

answer

"the aspects of trade over which a company has control and influence; they include marketing decisions covering product, price, promotion, distribution, research and advertising"

question

price quality relationship

answer

"the balance between a product's price and how well the product performs. Often the price-quality of a product is ideal if it meets basic expectations and no more , allowing it to be priced competitivley. "

question

scenario building

answer

the development of scenarios used to assist the experts to express their estimates.

question

balance of trade

answer

the difference in value over a period of time between a country's imports and exports

question

corporate planning

answer

the formulation of long term genalised goals for an enterprise as a whole.

question

subornation

answer

the giving of large sums of money - frequently not fully accounted for - designed to entice an official to comit an illegal act on behalf of the one offering the money.

question

culture

answer

"the human-made part of human environment - the sum total knowledge, beliefs, arts, morals, laws, customs and any other capacilities and habits acquired by humans as a member of society"

question

linguistic distance

answer

the measure of difference between langauges; an important factor in determining the amount of trade between nations.

question

dealer

answer

the middlemen selling industrial goods or durable goods directly to customers; they are the last step in the distribution channel

question

confiscation

answer

"the most severe political risk, that is, the seizing of a company's assets without payment"

question

international marketing

answer

"the performance of business activities designed to plan, price, promote and direct the flow of a company's goods and services to consumers or users in more than one nation for profit."

question

cultural borrowing

answer

the phenomenon by which societies learn from other cultures' ways and borrow ideas to solve problems or improve conditions

question

distribution process

answer

"the physical handling of goods, the passage of ownership (title) and - especially important from a marketing viewpoint - the buying and selling negotiations between the producers and middlemen and between middleman and customers. "

question

current account

answer

"the portion of a balance of payments state that shows a record of all merchandise exports imports and services, pls unilateral transfers of funds."

question

complementary marketing

answer

"the process by which companies with excess marketing capacity in different countries or with a desire for a broader product line take on additional lines for international distribution, commonly called piggybacking"

question

product diffusion

answer

the process by which innovation spreads. Succesfful product diffusion may depend on the ability to communicate relevant product information and new product attributes

question

balance of payments

answer

the system of accounts that records a nation's international financial transactions

question

cultural values

answer

"the system of beliefs and customs held by a population in a give culture. - according to geert hofstede and his culture's consequences study - indivdualised / collectivism index, power distance index, uncertainy avoidance index and the masculinity/femininity index helps us gauge these values"

question

distribution structure

answer

"the system, present in every country's market, through which goods pass from producers to user; within the structure are a variety of middleman. "

question

indirect exporting

answer

the type of exporting in which a company sells to a buyer (importer or distributor) in the home country - the buyer in turn exports the product.

question

direct exporting

answer

the type of exporting in which a company sells to a customer in another country

question

protectionism

answer

"the use by nations of lgal barriers, exchange barriers and psycholoical barriers to restrain entry of goods from other countries"

question

global brand

answer

"the worldwide use of a name, term, sign, symbol (visual or auditory) design or a combination thereof to identify goods or services of a seller and to differentiate them from those of competitors. "

question

Maastricht treaty

answer

treaty on the EU - OECD's definition is a treaty form 1993 that ratified all EU member states and implements by eans of extensive ammendment to the treaty of rome - change from European Economic Community to EU.

question

voluntary export restraint

answer

"VERs - agreements similar t oquotes, between an importing country and an exporting country for a restriction on the volume of exports "

question

underdeveloped

answer

"when compared to different economies, underdeveloped is considered a small country having high birth rates, high infant mortality, largely agricultural and small industrial sector, low per capita gdp, low levels of literacy and low life expectancy"

question

domesticiation

answer

when host countries take steps to transfer foreign investments to national control and ownership through a series of government decrees

question

back translation

answer

"when the questionnaire is translated from one language to another, and then a second party translates it bac into the original"

question

WTO

answer

world trade organisation - formed in 1994 that encompasses the GATT structure and extends to other areas not previously covered.

question

descriptive research

answer

"Descriptive research, also known as statistical research, describes data and characteristics about the population or phenomenon being studied. However, it does not answer questions about eg: how/when/why the characteristics occurred, which is done under analytic research."

question

ethnocentrism

answer

Ethnocentrism is judging another culture solely by the values and standards of one's own culture.

question

exploratory research

answer

"Exploratory research is a type of research conducted for a problem that has not been clearly defined. Exploratory research helps determine the best research design, data collection method and selection of subjects. "

International Marketing Terms – Sasky – Flashcards

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