Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

International Marketing > Exam 2 > Flashcards

Exam 2 Flashcards

1
Q

The importance of the sovereign nation concept

A

A state sets requirements for citizenship, defines geographical boundaries’, and controls trade to the state’s laws even when beyond national borders.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Forms of governments and stability of government policies

A

Political Parties
Nationalism – intense feeling of national pride and unity
Trade Disputes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Types of political risks in global business

A 
o Confiscation 
o Expropriation
o Domestication
o Violence, Terrorism, and War
o Cyber terrorism and Cybercrime
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Economic risks of conducting business in foreign markets

A 
o Exchange Controls
o Local-Content Laws
o Import Restrictions 
o Tax Controls
o Price Controls
o Labor Problems
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

How can a firm lessen political vulnerability

A 
o Joint Ventures
o Expanding Investment Base
o Licensing
o Planned Domestication
o Political bargaining (lobbying)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

How and why governments encourage foreign direct investment (FDI)

A

Most important reason to encourage foreign investment is to accelerate the development of an economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Sovereignty

A

the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

confiscation

A

seizing of a company’s assets without payment.

• Example: Fidel Castro becoming leader of Cuba

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Expropriation

A

where the gov seizes an investment but makes some reimbursement for the assets.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

domestication

A

occurs when a host counties gradually cause the transfer of foreign investments to national control and ownership through a series of government decrees that mandate local ownership and greater national involvement in a companies management.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

exchange controls

A

stem from shortages of foreign exchange held by a country

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

local-content laws

A

Countries often require a portion of any product sold within the country to have local content to contain locally made parts
• Ex: NAFTA requires 62% local content for all cars coming from member countries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

import restrictions

A

Selective restrictions on the import of consumer products, raw materials, machines, and spare parts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

tax controls

A

Taxes must be classified as a political risk when used as a means of controlling foreign investments. In such bases, they are raised without warning and in violation of formal agreements.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

price controls

A
  • Controls applied during inflationary periods can be used to control the cost of living
  • May be used to force foreign companies to sell equity to local interests
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

labor problems

A

in many countries, labor unions have strong government support which may be used to obtain concessions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Cybercrime

A

Hard to determine if cyber-attacks are launched by rogue states, terrorists, hackers, or pranksters

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

stability of government policies

A

Ideal political climate for multinational firms:
• Stable
• Friendly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Joint Ventures

A

Typically less susceptible to political harassment, joint ventures can be with locals or other third-country multinational companies.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Different types of legal systems

A 
o common law
o civil or code law
o islamic law
o communicable legal system
o marxist social tenants
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

International dispute resolution

A

Two options: conciliation or arbitration

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Protection of intellectual property rights

A

o Counterfeiting and Piracy
o Prior Use
o Registration
o International Conventions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Cyberlaw and related issues

A

o Cybersquatters
o Taxes
o Jurisdiction of Disputes and Validity of Contracts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Examples marketing laws in a foreign country that a U.S. firm needs to obey

A

o Greece, Norway, Denmark, Austria, and Sweden have banned TV advertising to kids
o In Austria, premium offers, free gifts, and coupons are banned

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Common law

A

the basis for common law is tradition, past practices, and legal precedents set by the courts through interpretations of the statues, legal legislation, and past rulings.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

code law

A

Based on the Uniform Commercial Code. Thought to be all-inclusive.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Islamic law

A

interpretation of the Koran. It encompasses religious duties and obligations, as well as the secular aspect of law regulating human acts.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Marxist-socialists tenets

A

Everyone is equal-subordinate to prevailing economic conditions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Conciliation

A

Also knows as mediation is a nonbinding agreement between parties to resolve disputes by asking a third party to mediate differences

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Arbitration

A

Parties involved select a disinterested and informed party or parties as referees to determine the merits of the case and make a judgment.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

litigation

A

going to court

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

prior use

A

Ownership of intellectual property rights usually goes to whoever can establish first use

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

cybersquatters

A

If a cybersquatter has registered a generic domain name that a company wants, the only recourse is the buy it.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

European integration process

A

European Union is the benchmark
Strategies:
- Multinational groups spell opportunity to access to enlarged markets with reduced country-by-country tariff barriers and restrictions
- Regulation has been intensified via multinational market groups

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Marketing mix implications of market integration such as the EU

A
  • Single formulas for sales across Europe at one price
  • The euro makes shopping easier both in person and Online: Competition fairer and tougher
  • Companies reducing the number of brands they produce to focus on advertising and promotion efforts
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

What are the problems that the EU is facing?

A

o Improving the Union’s economic performance
o Deciding how to limit the political aspects of union
o Deciding about further enlargement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

What are some of the provisions of NAFTA?

A 
o Market Access
o Nontariff barriers
o Rules of Origin
o Customs administration
o Investment
o Services
o Intellectual property
o Government procurements
o standards
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

free trade area

A

(FTA) A type of regional cooperation that involves an agreement between two or more countries to reduce or eliminate customs duties and nontariff trade among partner countries while members maintain individual tariff schedules for external countries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

customs union

A

A stage in economic cooperation that benefits from a FTA’s reduced or eliminated internal tariffs and adds a common external tariff on products imported from countries outside the union

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

common market

A

an agreement that eliminates all tariffs and other restrictions on internal trade, adopts a set of common external tariffs, and removes all restrictions on the free flow of capital and labor among member nations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

political union

A

A fully integrated form of regional co-operation that involves a complete political and economic integration, either voluntary or enforced

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

European Coal and Steel Community

A
  • Established 1952
  • common market in coal, steel, & iron
  • Members: Germany, Italy, France, the Netherlands, Belgium, and Luxembourg
43
Q

European Common Market

A
  • Established with the Treaty of Rome 1957
  • same 6 countries as coal people
  • established a customs union first
44
Q

Rome Treaty

A

Established the European Common Market

45
Q

European Union (EU)

A
  • Council of Ministers (decision making body)
  • the European Parliament (amends and adopts legislation. Extensive powers in budget issues)
  • the Court of Justice (basically the European Supreme Court)
46
Q

Single European Act

A
  • remove all nontarrif barriers
  • remove all physical barriers
  • technical barriers
  • fiscal barriers- harmonization of taxes
  • government procurement
  • GOAL: unified single market by 1992
47
Q

U.S. – Canada FTA

A

AKA CFTA. United States and Canada Free Trade Area.

48
Q

NAFTA

A
  • North American Free Trade Agreement (1994)
  • single market of 360 million people, $6 trillion GNP
  • 2008 all tariff barriers were officially dropped
  • this was to: generate income and employment gains..& enhance global competitiveness of NAFTA firms
49
Q

Mercosur

A
  • Argentina
  • Brazil
  • Chile
  • Bolivia
  • Paraguay
  • Uruguay
50
Q

ASEAN

A
  • Association of South-East Asian Nations
  • Brunei
  • Indonesia
  • Laos
  • Malaysia
  • Myanmar
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
51
Q

Define the country-of-origin effect and give examples

A
  • Influences that the country of manufacture or assemblage have effect on a consumers positive or negative perception of a product.
  • English tea, French perfume, Chinese silk, Italian leather, Jamaican rum
52
Q

What are the three major components of a product? Discuss their importance to product adaptation.

A

o Core Benefits (platform, design features)
o Actual Product (trademark, brand name)
o Augmented Product (support service)

53
Q

Discuss the factors that might speed up the adoption process.

A
  1. relative advantage
  2. compatibility
  3. complexity
  4. divisibility
  5. communicability
  6. homophilious groups
  7. pace of innovation
  8. norms/social values
  9. infrastructure
54
Q

Discuss the diffusion process.

A
  1. Firm’s marketing program induces innovators & early adopters to buy & try
  2. Customers tell other potential customers = free word-of-mouth
  3. Word gets to majority
55
Q

What are the unique characteristics of services?

A

o Intangible
o Inseparable in that its creation cannot be separated from its consumption
o Hererogeneous in that it is individually produced and unique
o Perishable in that once created it cannot be stored but must be consumed simultaneously

56
Q

Provide a list of service industries that the United States has a comparative advantage.

A 
o Tourism
o Telecommunications
o Transport
o Entertainment
o Financial Services
o Information
o Education
o Health Care
57
Q

Quality

A

The essential character of something, such as a good or service; defined in two dimensions: market-perceived quality and performance quality.

58
Q

market perceived quality

A

Consumer perception of a product’s quality often has more to do with this than performance quality

59
Q

green marketing

A

consideration and concern for the environmental consequences of product formulation, marketing, manufacturing, and packaging

60
Q

innovation

A
  • An idea perceived as new by a group of people
  • When applied to a product, an innovation may be something completely new or something that is perceived as new in a given country or culture
61
Q

Diffusion

A

The adoption or spread of products across markets by increasing numbers of consumers

62
Q

product component model

A

A tool for characterizing how a product may be adapted to a new market by separating the product’s many dimensions into three components: support services, packaging, and core component

63
Q

global brand

A

The worldwide use of a name, term, sign, symbol, design, or a combo to identify goods or services of a seller and to differentiate them from those of competitors

64
Q

domestic market extension

A

Whatever we are selling at home

65
Q

multidomestic market orientation

A
  • Companies have a strong sense that foreign country markets are vastly different
  • Market success requires an almost independent program for each country
66
Q

global market orientation

A

firms that choose to protect or enhance the natural environment as they go about their business activities

67
Q

trickle down theory of fashion diffusion

A
  • Proposes that the upper class introduces new styles
  • Style ideas are copied in cheaper versions by the middle and lower classes to mimic upper classes
  • When the upper classes see themselves copied they move on to new styles that have not been worn by lower classes
68
Q

trickle-up theory of fashion diffusion

A
  • When styles are started in a lower class, particularly from inner-city living situation and subcultures
  • Relies upon subcultural innovations
  • Gap bridgers to the mass public take the idea from the streets and convey it or to validate it for the larger public
69
Q

core component adaptation

A

adapt for local taste
• In japan: cereals have seaweed, carrot, and zucchini flavor
• Electricity requirements
• Fewer functions but more durable

70
Q

o packaging component adaptation

A
  • Labels in local/multiple language
  • Size, metric systems
  • Frankenfood labels
  • Country of origin
71
Q

support service component

A
  • Longer/shorter warranties
  • Tonnage/capacity for products
  • Signs on products in local languages
72
Q

Resolving legal disputes between Governments

A

The World Court in the Hague (Holland)

73
Q

Resolving legal disputes between companies and governments

A

Court cases should be handled in one of the countries involved

74
Q

Resolving legal disputes between companies

A

Court cases should be handled in one of the countries involved - better to specify in the contract

75
Q

Registration

A

 the first to register a trademark or other property rights is considered the rightful owner of IP rights (code law countries)

76
Q

Piracy

A

 the unauthorized use or reproduction of copyrighted or patented material

77
Q

International conventions

A
  • The Paris Convention for the Protection of Industrial Property
  • The Inter-American Convention
  • Madrid Agreement
78
Q

The Paris Convention for the Protection of Industrial Property

A

includes the U.S. and 100 other countries (one registration protects you in these countries)

79
Q

The Inter-American Convention

A

includes most of the Latin American nations and the U.S.

80
Q

The Madrid Agreement

A

Includes 26 European counties

81
Q

Commercial law within countries

A

Packaging, labeling, promotion, pricing, distribution channels

82
Q

Green marketing legislation

A

EU: packaging requirements, recycled cars

83
Q

Foreign corrupt practices act

A

makes it illegal for companies to pay bribes to foreign officials, candidates, or political parties

84
Q

Antiboycott Law

A

U.S. companies are forbidden to participate in any unauthorized foreign boycott; furthermore, they are required to report any request to cooperate with a boycott

85
Q

National security laws

A

American firms, their foreign subsidiaries, or foreign firms that are licensees of U.S. technology cannot sell products to a country in which the sale is considered by the U.S. government to affect national security

86
Q

Extraterritoriality of US laws

A

long arm of U.S. legal jurisdiction causes anxiety for foreign heads of state (troublesome when U.S. is in conflict with host countries’ economic or political goals)

87
Q

GDP

A

monetary value of all the finished goods and services produced within a country’s borders in a specific time period, though it is usually calculated on an annual basis

88
Q

GDP per capita

A

a measure of the total output of a country that takes the gross domestic product and divides it by the number of people in the country; the per capita GDP is especially useful when comparing one country to another because it shows the relative performance of the countries

89
Q

Market Access

A

eliminates all tariffs on North American industrial products traded among Canada, Mexico, and U.S.

90
Q

Rules of Origin

A

reduces tariffs only for goods made in North America/contain substantial North American content

91
Q

Individual branding strategy

A

marketing policy under which each product has its own brand, different from every other product in the same product family or from the same firm

92
Q

Advantages of Individual branding strategies

A

don’t lose customers if they switch to different brand in product family; if something goes wrong only one brand suffers

93
Q

Disadvantages of Individual branding strategies

A

costly to advertise all separately

94
Q

Family branding strategy

A

main brand under which several new products are introduced to take advantage of its credibility, identity, and name-recognition

95
Q

Advantages of family branding strategies

A

don’t lose customers if they switch to different brand in product family; if something goes wrong only one brand suffers

96
Q

Disadvantages of family branding strategies

A

if something goes wrong with one product, whole brand gets tarnished

97
Q

National (manufacturer)

A

brand marketed throughout a national market (usually owned and promoted by large manufacturers)

98
Q

Advantage of national manufacturer

A

product recognition; gives people choices; represent consistent quality; help promote sales within stores

99
Q

Disadvantage of national manufacturer

A

“auction sale” effect (buyers go to store with lowest prices for same brand); lose exclusivity

100
Q

Private branding strategy

A

brand owned not by a manufacturer or producer but by a retailer or supplier who gets its goods made by a contract manufacturer under its own label

101
Q

Advantage of private branding strategy

A

gives you control over your product; save money in production costs; no competition for brand; brand equity is yours

102
Q

Disadvantage of private branding strategy

A

takes time to develop; longer lead time from when you order to delivery

103
Q

Product adaptation

A

Changing physical or psychological aspects of a product to make it culturally appropriate
Improves quality

104
Q

Product positioning

A

market technique intended to present products in the best possible light to different target audiences

International Marketing (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions