marketing chapter 19

exchange controls

limit the amount of foreign exchange and protect local industry and employment

quotas

limits on the amount of foreign imports that they will accept in certain product categories

income distribution

second econ factor, incomes of households

raw material exporting economies

these economies are rich in one or more natural resource but poor in other ways

economic community

(free trade zones) a group of nations organized to work toward common goals in the regulation of international trade

joint ownership

a cooperative venture in which a company creates a local business with investors in a foreign market, who share ownership and control

global firm

a firm that, by operating in more than one country, gains R&D, production, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors

communication adaption

a global communication strategy of fully adapting advertising messages to local markets

contract manufacturing

a joint venture in which a company contracts with manufactures in a foreign market to produce its products or provide its service

management contracting

a joint venture in which the domestic firm supplies the management know-how to a foreign company that supplies the capital; the domestic firm exports management services rather than products

product adaption

adapting a product to meet local conditions or wants in a foreign market

European Union

an economic community formed to create a single european market by reducing barriers to the free flow of products, etc.

adapted global marketing

an international marketing approach that adjusts the marketing strategy and mix elements to each international target market which creates more costs but hopefully produces a larger market share and return

standardized global marketing

an international marketing strategy that basically uses the same marketing strategy and mix in all of the company's international markets

product invention

creating new products or services for foreign markets

marketing objectives and policies

deciding what volume of foreign sales a company wants, it also must choose how many countries it wants to market to, and what types of countries to enter

whole-channel view

designing international channels that take into account the entire global supply chain and marketing channel forging an effective global value delivery network

direct investment

entering a foreign market by developing foreign based assembly or manufacturing facilities

joint venturing

entering foreign markets by joining with foreign companies to produce or market a product or service

exporting

entering foreign markets by selling goods produced in the company's home country often with little modification

licensing

entering foreign markets through developing an agreement with a licensee in a foreign market

North American Free Trade Agreement

established a free trade zone in the US, Mexico, and Canada

non tariff trade barriers

for example: biases against its bids, restrictive product standards, or excessive host-country regulations or enforcement

emerging economies

in these economies, fast growth in manufacturing results in rapid overall economic growth

subsistence economies

in these economies, people engage in simple agriculture

straight product extension

marketing a product in foreign market without making any changes to the product

industrial economies

these economies are major exporters of manufactured goods, services, and investment funds

tariff

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

industrial structure

the countries ___ shapes its product and service needs, income levels, and employment levels