MKT 11 Chapter 8 Global Marketing – Flashcards
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Direct investment
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requires a firm to maintain 100 percent ownership of its plants, operation facilities, and offices in a foreign country, often through the formation of wholly owned subsidiaries.
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Duty
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A tariff also called a duty is a tax levied on a good imported into a country.
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Exchange control 238
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refers to the regulation of a country's currency exchange
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Exchange rate 238
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the measure of how much one currency is worth in relation to another.
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Exporting 247
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means producing goods in one country and selling them in another.
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Franchisee 247
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another individual
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Franchising 247
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is a contractual agreement between a firm, the franchisor and another firm
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Franchisor 247
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see above
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Globalization 232
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is the process by which goods, services, capital, people, information, and ideas flow across national borders.
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Glocalization 252
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some firms also standardize their products globally but use different promotional campaigns to sell them.
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Gross domestic product (GDP) 234
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the most widely used of these metrics is defined as the market value of goods and services produced by a country in a year.
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Gross national income (GNI) 234
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consists of GDP plus the net income earned from investments abroad.
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Infrastructure 237
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is defined as the basic facilities, services, and installations needed for a community or society to function, such as transportation and communications system.
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Joint venture 248
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is formed when a firm entering a market pools its resources with those of a local firm.
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Purchasing power parity (PPP) 234
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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, if expressed in the same currency.
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Quota
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A quota designates the maximum quantity of a product that may be brought into a country during a specified time period.
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Reverse innovation 252
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companies initially develop products for niche or underdeveloped markets, and then expand them into their original or home markets.
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Strategic alliance 248
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refers to collaborative relationships between independent firms, though the partnering firms don't create an equity partnerships that is they don't invest in one another.
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Trade agreements
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which a particular country is a signatory
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Trade deficit 233
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which means that the country imports more goods than it exports.
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Trade surplus 234
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higher level of exports than imports, because it signals a greater opportunity to export products to more markets.
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Trading bloc
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which it belongs
