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