Marketing (Grewal.Levy) Chapter 8 – Flashcards
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when a firm maintains 100 percent ownership of its plants, operating facilities, and offices in a foreign country, often through the formation of wholly owned subsidiaries
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direct investment
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same as tariff. tax levied on a good imported into a country
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duty
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the regulation of a country's currency exchange rate
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exchange control
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the measure of how much one currency is worth in relation to another
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exchange rate
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producing goods in one country and selling them in another
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exporting
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operator of a franchise
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franchisee
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a contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor
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franchising
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owner of a franchise
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franchisor
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the process by which goods, services, capital, people, information, and ideas flow across national borders
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globalization
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the process of firms standardizing their products globally, but using different promotional campaigns to sell them
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glocalization
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the market value of the goods and services produced by a country in a year; the most widely used standardized measure of output
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gross domestic product
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consists of GDP plus the net income earned from investments abroad (minus any payments made to nonresidential who contributed to the domestic economy)
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gross national income
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basic facilities, services, and installations needed for a community or society to function, such as transportation and communication systems, water and power lines, and public institutions like schools, post offices, and prisons
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infrastructure
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formed when a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared
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joint venture
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a theory that states that if the exchange rates of two countries are in equilibrium, a product purchased in one will cost the same in the other, expressed in the same currency
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purchasing power parity
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designates the maximum quantity of a product that may be brought into a country during a specific time period
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quota
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when companies initially develop products for niche or underdeveloped markets, and then expands them into their original home markets
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reverse innovation
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a collaborative relationship between independent firms, though the partnering firms do not create an equity partnership; that is, they do not invest in one another
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strategic alliance
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a tax received on a good imported into a country
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tariff
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intergovernmental agreements designed to manage and promote trade activities for specific regions
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trade agreements
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results when a country imports more goods than it exports
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trade deficit
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occurs when a country has a higher level of exports than imports
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trade surplus
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consists of those countries that have signed a particular trade agreement
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trading bloc
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-economic analysis using metrics -infrastructure and technology -government actions -socioculture analysis
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components of a country market assessment
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-general economic environment -market size and population growth -real income
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Economic analysis using metrics
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-transportation -channels -communication -commerce
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infrastructure and technology
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-tariff -quota -exchange control -trade agreement
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government actions
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-power distance -uncertainty avoidance -individualism -masculinity -time orientation
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socioculture analysis
