MKTG Ch 8

Multidomestic marketing strategy

Application of market segmentation to foreign markets by tailoring the firm's marketing mix to match specific target markets in each nation

Embargo

Complete ban on the import of specified products

Dumping

Controversial practice of selling a product in a foreign market at a price lower than what it receives in the producer's domestic market

What allows every marketer to be an international marketer?

Globalization and the Internet

Subsidies

Government financial support of a private industry

Import quotas

Limit the number of units of products in certain categories that can cross a country's border for resale

Exporting

Marketing domestically produced goods and services in foreign countries

Exchange control

Method used to regulate international trade among importing organizations by controlling access to foreign currencies

Importing

Purchasing foreign goods and services

What industry has the largest contribution to the United States' gross domestic product?

Services & Retailing

Revenue tariffs

designed to raise funds for the importing government

Protective tariffs

designed to raise the retail price of an imported product to match or exceed that of a similar domestic product

Foreign Corrupt Practices Act

makes it illegal to bribe a foreign official in an attempt to solicit new or repeat sales abroad

Per capita income or average income

measures the average income earned per person in a given area

What is the North American Free Trade Agreement (NAFTA)?

-Accord removing trade barriers among Canada, Mexico, and the US -Particularly important to the US marketers because Canada and Mexico are two of its largest trading partners

What is global marketing?

-demand for foreign products is increasing in fast growing economics; Globalization and the internet allow every marketer to be an international marketer -Language plays an important role -must stay abreast of laws and trade regulations in each country in which they compete

Global trade accounts for what percent of the U.S. gross domestic product?

20%

Are the labor conditions in a county part of its political environment?

The political environment involves labor conditions in different countries

Global marketing strategy

standardized marketing mix with minimal modifications that a firm uses in all of its domestic and foreign markets

Tariff

tax levied against imported goods

What is a related party trade?

trade by U.S. companies with their subsidiaries overseas as well as trade by U.S. subsidiaries of foreign-owned firms with their parent companies