Chapters 1,2,3 Flashcards Preview

International Marketing > Chapters 1,2,3 > Flashcards

Flashcards in Chapters 1,2,3 Deck (37)
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1
Q

Define Marketing?

A

Satisfy customer wants and needs w/ products and services that offer competitive value

2
Q

What are the three marketing principles?

A

Value, competitive advantage, and focus

3
Q

What is the superior value proposition?

A

Marketer offers buyer something of value

4
Q

What is the equation for value?

A

benefits/price

5
Q

What is globalization?

A

A trend toward a greater economic interdependence among national institutions (enter any market in the world)

6
Q

What does it mean to be highly global?

A

The degree of globalization= (trade/sales) > 1

7
Q

How can a country change from a single to a global marketing strategy?

A

Participate globally, adapt or standardize the 4 p’s, concentrate, coordinate, integrate

8
Q

What are the 4 management orientations?

A

Ethnocentric, polycentric, regiocentric, geocentric

9
Q

What is the orientation that thinks each country is unique and uses only the adaptation approach?

A

Polycentric

10
Q

What is the orientation that thinks home country is superior to the rest of the world and are arrogant?

A

ethnocentric

11
Q

What is the orientation that thinks the entire world in a potential market and serves world market from single country?

A

Geocentric

12
Q

What is the orientation that thinks a region is the relevant geographic unit?

A

regiocentric

13
Q

What are driving forces affecting global integration and marketing?

A

trade agreements, converging markets needs and wants, transportation and communication improvements… etc.

14
Q

What are restraining forces affecting global integration and marketing?

A

management myopia, national controls, opposition to globalization

15
Q

What are the 5 realities of the world economy?

A

1) capital movement has replaced trade, 2) production and employment un-linked, 3)world economy dominates individual, 4)demise of communism, 5)growth of e-commerce

16
Q

What are the 4 different economic systems?

A

Market capitalism, centrally planned capitalism, market socialism, centrally planned socialism

17
Q

Which market can the consumers decide the products to sell and buy?

A

Market capitalism

18
Q

Which market do state planners decide goods and services and control distribution?

A

centrally planned socialism

19
Q

Which market is China and which is Sweden?

A

China is centrally planned capitalism, Sweden is market socialism

20
Q

What is the economic freedom index?

A

Fundamental right of every human to control own land and property. how free economies are

21
Q

What are characteristics of a low income country?

A

farming is key, high birth rates, low literacy, rely on foreign aid (Sub-Saharan Africa)

22
Q

What are characteristics of a lower-middle country?

A

rapid expanding market, competitive in textiles and toys (India, Guatemala)

23
Q

what are some mistaken assumptions of less developed countries?

A

poor have no money, don’t waste money on wants, products are too cheap to make profit, cannot use technology, businesses doing business are exploiting poor

24
Q

What is the goal of the G8?

A

Goal of economic stability and prosperity

25
Q

What is the goal of the OECD?

A

promote policies that will improve economic and social well-being of people around the world (anti-bribery)

26
Q

What does The Triad consist of?

A

USA, Western Europe, Japan

27
Q

What are marketing implications of the Stages of Development?

A

guide to promote product saturation levels (% of potential buyers or households who own particular product) (20% of Indian has phones)

28
Q

What is the record of economic transactions between residents of a country and the rest of the world called?

A

Balance of payments

29
Q

What are the 2 major components of the Balance of Payments?

A
Current Account (trade and financial transfers) 
Capital Account (Investments)
30
Q

What is the current trend in the trade in merchandise and services?

A

Trade>production

31
Q

What is the Purchasing Power Parity?

A

relative ability of 2 countries’ currencies to buy the same basket of goods for the same amount

32
Q

What causes inflation?

A

Lowering the currency exchange value

33
Q

What are the 2 kinds of external hedging?

A
Forward contract (same price for future delivery)
currency option (buy or sell at a set price for a set time)
34
Q

What is the mechanism that confers special treatment on select trading partners called?

A

Preferential trade agreements

35
Q

List the 4 types of PTAs.

A

Free Trade Agreement, Customs Union, Common Market, Economic Union

36
Q

What is the difference between the 4 types of PTAs?

A

Customs Union adds common external tariffs, common markets adds on the elimination of factor movements, and the Economic unions takes the first 3 and harmonizes and unifies economic and social policies amongst members

37
Q

What is the WTO and GATT>

A

General agreement among participating countries on tariffs and trade (GATT turned into WTO because GATT could not enforce violators)