Chapter 19.1 - Marketing

It is the simplest means involving the least change in the company's product lines, organization, investments, or mission.

Exporting

__________________________ operates in more than one country

A global firm

____________________________ gains marketing, production, R&D, and financial advantages not available to purely domestic competitors

A global firm

____________________________ minimizes the importance of national boundaries and develops global brands.

A global firm

_____________________________ sees the world as one market

A global firm

In 2005 the __________________________________ established a free trade zone between the United States and Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua.

Central American Free Trade Agreement (CAFTA-DR)

-Impact of culture on marketing strategy -Impact of marketing strategy on culture

Cultural Environment

Sellers may eventually move into ___________________________ , whereby they handle their own exports.

Direct exporting

Certain countries have formed free trade zones or ____________________________.

Economic communities

-Industrial structure -Income distribution

Economic factors reflect a country's attractiveness as a market.

In __________________________________, fast growth in manufacturing results in rapid overall economic growth.

Emerging (industrializing) economies

______________________________ are a limit on the amount of foreign exchange and the exchange rate against other currencies.

Exchange controls

-Indirect -Direct

Exporting

The simplest way to enter a foreign market is through _____________________________.

Exporting

__________________________ is when the company produces its goods in the home country and sells them in a foreign market.

Exporting

Certain countries have formed ___________________ zones or economic communities.

Free trade

_______________________________: -A 61-year-old treaty -Designed to promote world trade -Reduces tariffs and other international trade barrier

General Agreement on Tariffs and Trade (GATT)

________________________________ established in 1947 and modified in 1994, was designed to promote world trade by reducing tariffs and other international trade barriers.

General Agreement on Tariffs and Trade (GATT)

________________________________: Low-income households Middle-income households High-income households

Income Distribution

Companies typically start with __________________________________ , working through independent international marketing intermediaries.

Indirect exporting

________________________________ involves less investment and risk because the firm does not require an overseas marketing organization or network.

Indirect exporting

_________________________________: -Subsistence economies -Raw material exporting economies -Emerging economies (industrializing economies) -Industrial economies

Industrial Structure

___________________________ are major exporters of manufactured goods, services, and investment funds.

Industrial economies

The country's _______________________________ shapes its product and service needs, income levels, and employment levels.

Industrial structure

-Licensing -Contract manufacturing -Management contracting -Joint ownership

Joint venturing

_____________________________ is when a firm joins with foreign companies to produce or market products or services.

Joint venturing

__________________________________ differs from exporting in that the company joins with a host country partner to sell or market abroad.

Joint venturing

________________________________ are biases against bids or restrictive product standards that go against American product features.

Nontariff trade barriers

In 1994, the __________________________________ established a free trade zone among the United States, Mexico, and Canada.

North American Free Trade Agreement (NAFTA)

-Country's attitude toward international buying -Government bureaucracy

Political-Legal Environment

-Political stability -Monetary regulations

Political-Legal Environment

______________________________ are limits on the amount of foreign imports a country will accept in certain product categories to conserve on foreign exchange and protect domestic industry and employment.

Quotas

_______________________________________: -Market size -Market growth -Cost of doing business -Competitive advantage -Risk level

Rank potential global markets based on

_______________________________ are rich in one or more natural resources but poor in other ways.

Raw material exporting economies

____________________________________ are where the vast majority of people engage in simple agriculture.

Subsistence economies

Foreign governments may charge ____________________ and set quotas.

Tariffs

____________________________ are taxes on certain imported products designed to raise revenue or to protect domestic firms.

Tariffs

Other free trade areas have formed in Latin America and South America. For example, the ________________________________________, modeled after the EU, was formed in 2004 and formalized by a constitutional treaty in 2008.

Union of South American Nations (UNASUR)

_________________________________: -Enforces GATT rules -Mediates disputes -Imposes trade sanctions

World Trade Organization