International Marketing-quiz 5

A variation of a language spoken in a limited area or a subgroup of speakers.

Dialect

The principles governing the spatial allocation of resources and the resulting consequences within an economic setting.

Economic geography

Describes a society where messages are in the context of communication, e.g. a contract is a matter of trust.

High context culture

A form of political risk where a government requires that property be sold to local individuals or organizations.

Domestication

An form of political risk where a government takes property and provides inadequate compensation.

Expropriation

Application of domestic laws outside of the home country

Extraterritoriality

A series of multilateral trade agreements intended to lower international trade barriers. The GATT treaties have been incorporated into the WTO.

General Agreement on Tariffs and Trade (GATT)

Individual tendency to value individualism

Idiocentrism

Cultures in which people are expected to develop and display their own personalities and to choose their own affiliations.

Individualistic Culture

The right of an authority to apply the law in a given territory.

Jurisdiction

Describes a society where messages are explicit, e.g. a written contract is important.

Low context culture

Also known as the Treaty on European Union, signed in 1992. The treaty changed the name of the European Community (EC) to the European Union (EU) and included the creation of a monetary union among some of the EU member countries with a European Central bank, political and military integration, common foreign policy, and common citizenship among many member countries.

Maastricht Treaty

A form of political risk where a government takes property and provides adequate compensation.

Nationalization

A US agency that assists US companies protect their investment against risk in a particular country besides providing other services.

Overseas Private Investment Corporation (OPIC)

A government corporation (formed in 1961) which assists U.S. private investments in less developed nations by providing direct loans and loan guarantees, insuring against a broad range of political risks, and providing a variety of investor services.

Overseas Private Investment Corporation (OPIC)

The total amount of money earned per person in a defined area in a year.

Per capita income

Risks associated with uncertainty about government policies and actions that can influence the success of a business venture.

Political risk

Hofstede's cultural dimension of the degree to which members of institutions or organizations accept and expect power to be distributed equally.

Power distance

An established procedure for some rite.

Ritual

Areas which have attitudinal influence on markets including the legal environment, action groups, and values.

Social forces

A type of government that has total control over all aspects of its citizen's lives.

Totalitarianism

The handing down of statements, beliefs, legends, customs, and rituals from generation to generation.

Tradition

The observed degree of clarity, openness, measurability, and verifiability in a law, regulation, agreement, or trade practice.

Transparency

Hofstede's cultural dimension of the degree to which members of a society attempt to cope with anxiety by minimizing uncertainty. In cultures with high uncertainty avoidance, people prefer explicit rules (e.g. about religion and food) and formally structured activities.

Uncertainty Avoidance

A promise of performance that is either expressed (written) or implied by a sponsor (manufacturer or other entity such as the trademark holder) that may include a promise that a product will be repaired, replaced, or the purchase price refunded if it is found to be defective within a specified period.

Warranty

An international organization for the protection of intellectual property. WIPO administers 23 international treaties and is one of 16 specialized agencies of the United Nations. 183 nations are part of the WIPO and its headquarters is in Geneva, Switzerland.

World Intellectual Property Organization (WIPO)

Iindividual tendency to value collectivism

Allocentrism

A state of lawlessness and disorder (usually resulting from a failure of government)

Anarchy

The buying or selling of products or currency that violate government restrictions.

Black Market

The crime of giving or taking money or some other valuable item in order to influence a public official / employee in the performance of their duties. It includes payments intended to help get government contracts including cash, payoffs, kickbacks ...

Bribery

Cultures in which people are defined and act mostly as a member of a long-term group, such as the family, a religious group, an age cohort, a town, or a profession, among others.

Collectivistic Culture

An extreme form of political risk where a government takes property without providing compensation.

Confiscation

Illegal acts including, but not limited to, extortion, contract and other favors, skimming, fraud, embezzlement, smuggling, money laundering, and bribery.

Corruption

Collective mental paradigms that a society imparts to individuals in the form of behavior patterns, shared values, norms and institutions.

Culture

An established way of doing something which has been reinforced by tradition.

Custom