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