MKT Ch. 5
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MKT Ch. 5
Having a global vision means what 3 things? (RUB)
1. Recognizing/reacting to opportunities
2. Using effective strategies
3. Being aware of threats from foreign competitors
4 negatives of trade and globalization. (MMTV)
1. Millions have lost jobs
2. Millions fear losing jobs
3. Threat of outsourcing
4. Vulnerability to operations moving offshore
6 benefits of globalization. (ECPAHC)
1. Economic freedom
4. Access to foreign capital, global exports, and technology
5. Higher standards
6. Check on gov. power
More than 38 million Americans jobs depend on...
... is the sector that exports the most.
7 top service exports. (ABEEIIT)
3. Energy services
4. Express delivery
1 in every 3 acres on American farms is planted for...
Companies depend on imports for... and...
raw materials, competitively priced inputs.
Imports bring... and... for American families on a budget.
lower prices, more choices.
Imports give us... to products that would not otherwise be available.
4 strategies of global business development (CSVO)
1. Companies operate in one country and sell in others
2. Set up foreign subsidiaries to handle sales
3. Virtual operation
4. Operate an entire line of business in another country
Production of uniform products that can be sold the same way all over the world.
Global marketing standardization
Subsidiaries of multinational firms are allowed to compete independently in domestic markets.
5 parts of the external environment facing global markets. (ECPND)
1. Economic development
3. Political structure
4. Natural resources
5. Demographic makeup
The common set of values shared by its citizens that determine what is socially acceptable.
3 factors to keep in mind when dealing with different cultures. (LCV)
3. Values/expectations of sales presentations
Understanding and forecasting growth and demand globally requires...
understanding countries around the world.
3 facts on India and China. (HLHE)
1. Highest growth rates
2. Largest populations
3. Highest-level income disparities
4. Exploded in spending power
A tax levied on goods entering a country.
Limit on the amount of a product entering a country.
Exclusion of products froma country.
Foreign exchange must be sold to a control agency.
Common trade alliance.
An agreement to stimulate international trade.
3 marketing considerations for demographic makeup. (PUA)
1. Population density
2. Urban or rural
Shortages in natural resources create... (ISIES)
1. International dependencies
2. Shifts of wealth
3. Inflation and recession
4. Export opportunities
5. Stimulus for military intervention
6 reasons to go global. (AUESEE)
1. Additional profits
2. Unique product/technological advantage
3. Exclusive market information
4. Saturated domestic markets
5. Excess capacity
6. Economies of scale
Sell domestically produced products to buyers in other countries.
Legal process allowing use of manufacturing/patents/knowledge.
Private-label manufacturing by a foreign country.
Domestic firm buys/joins a foreigncompany to create new entity.
Active ownership of a foreign company/manufacturing facility.
Assumes all ownership risks and sells globally for its own account.
Buyer for export
Plays the traditional broker’s role by bringing buyer and seller together.
Acts like a manufacturer’s agent for the exporter in the foreign market.
3 export intermediaries. (BEE)
1. Buyer for export
2. Export broker
3. Export agent
The first step in creating a marketing mix is developing a thorough understanding of the...
global target market.
The sale of an exported product at a price lower than that charged for the same or a like product in the “home” market of the exporter.
A form of trade in which all or part of the payment for goods or services is in the form of other goods or services.
3 reasons global marketers use social media. (ITF)
1. It's popular
2. To understand customers
3. For global brand building
Opening an e-commerce site puts a company in the...
The Internet-based economy remains hindered by... (BRH)
1. Brick and mortar rules
Dumping may occur as a result of exporter business strategies that include... (IDLM)
1. Increasing overseas market share
2. Distributing products to overseas markets
3. Lowering unit costs
4. Maintaining stable prices during fluctuations
Reflects he price of one’s currency in terms of another country’s currency.
Comprises a system in which prices of different currencies move up and down based on the demand for and the supply of each currency.
Floating exchange rates