Globalisation and international marketing Flashcards

1
Q

Globalisation

A

the growing trend towards worldwide markets in products, capital and labour, unrestricted by barriers

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2
Q

multinational companies

A

businesses that have operations in more than one country

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3
Q

free international trade

A

international trade that is allowed to take place without restrictions such as ‘protectionist’ tariffs and quotas.

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4
Q

tariff

A

tax imposed on an imported product

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5
Q

quota

A

a physical limit placed on the quantity of imports of certain products.

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6
Q

international marketing

A

selling products in markets other than the original domestic market

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7
Q

Why sell products in other countries

A
  1. Saturated home markets - market stops growing and competition is severe.
  2. Profits - rapid sales growth and low costs of operation and create high profitability. + low labour, property costs, low tax levels.
  3. Spreading risks - sales and profits of a business are much less dependent on economic and legal constraints in the home country
  4. Poor trading condition in the home country - fell due to banking crisis
  5. Legal differences creating opportunities abroad - fewer restricted countries
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8
Q

Benefits and strategic opportunities of globalisation

A
  1. Greater opportunity for selling goods. Opening up new markets, not saturation, give chance of higher sales, economies of scale and improved profitability.
  2. Increaed competition gives firms that i
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