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2010-11-29 19:03:42
Mktg Exam Ch5

Mktg Exam Ch5
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  1. What are six Legal Considerations concerning Global Trade?
    • Tariff: a tax levied on the goods entering a country
    • Quota: a limit on the amount of a specific product that can enter the country
    • Boycott: The exclusion of all products from certain countries or companies
    • Exchange Control: a law compelling a company earning foreign exchange from its exports to sell it to a control agency, usually a central bank
    • Market Grouping: several countries agree to work together to form a common trade area that enhances trade opportunity (European Union EU)
    • Trade Agreement: an agreement to stimulate international trade
  2. What is The World Bank and the IMF?
    • The World Bank offers low-interest loans to developing nations, originally with the purpose of helping the nation build infrastructure such as roads, etc. Now it is to help relieve their debt burdens-can get loan if lower trade barriers & aid private enterprise.
    • The International Monetary Fund promotes trade through financial coop and attempts to eliminate trade barriers in the process. Makes short-term loans to member nations unable to meet budgetary expenses. Last resort for troubled nations.
  3. What are six macroenvironmental forces influencing a company's breakthrough into a global market?
    • Social Factors
    • Demographic
    • Economic
    • Technological
    • Political/Legal
    • Competitive
  4. What are the five primary methods companies use to enter the global market from least risk to highest risk?
    • Exporting
    • Licensing
    • Contract Manufacturing
    • Joint Venture
    • Direct Investment