1. Humor
    It is on eof the most difficult cultural issues
  2. Elevator Speech
    A short description of what you do, or the point you want to make, presented in the time it takes an elevator to go from the top floor to the first floor or vice versa. (30-60 sec)
  3. Primary obstacle to success in international marketing
    Self Reference criterion (SRC)+ Ethnocentrism
  4. Global awareness
    Frame of reference embracing cultural difference and knowledge of cultures, history, world market potential, and global economic, social and political trends.
  5. What is different about competing globally?
    • *Customer wants and demands may be different
    • *Local culture and customs guaranteed to be different
  6. BoP (balance of payment)
    Set of accounts that record a country's international transactions, and which always balance out with no surplus or deficit shown on the overall basis.
  7. Globalization
    The worldwide movement toward economic, financial, trade, and communications integration.
  8. Protectionism
    Governmental policy aimed at shielding a fragile economy, or a weak or critical sector, from cheaper or better imports through imposition of high duty rates (tariff barriers), quotas, and/or inordinately stringent or time consuming inspection or quality regulations (non-tariff barriers).
  9. Trade Barriers
    Government imposed restriction on the free international exchange of goods or services.
  10. Tariff
    Government tax on goods entering at borders.
  11. Omnibus Trade and Competitiveness Act
    Designed to help US businesses be more competitive in world markets and address perceived injustices in trade practices.
  12. GATT(General Agreement on Tariffs and Trade)
    UN agency for promotion of free trade between signatory countries (called contracting parties).
  13. Key organization
    • -WTO
    • -World Bank
    • -IMF
  14. WTO (World Trade Organization)
    • -Only Global international organization dealing with rules of trade between nations.
    • -Goals to help producers of goods and services, exporters and importers conduct business
    • -Established 1995, 153 Member countries
    • -HQ Geneva, Switzerland
    • -Currency Swiss francs
  15. World Bank
    • -Vital source of financial and technical assistance to developing countries around world.
    • -Mission to fight poverty; help people help themselves and environment by providing resources, sharing knowledge, building capacity and forging partnership in public and private sectors.
    • -Established 1944, 187 member countries
    • -HQ Washington DC
  16. IMF(International Monetary Fund)
    • -Oversees international monetary system by following macroeconomic policies of member countries
    • -Goal to stabilize international exchange rates and facilitate development by encouraging members to eleminate restictions that hinder trade.
    • -Offers highly leveraged loans, mainly to poorer countries.
    • -Established 1944, 187 member countries
    • -HQ Washington, DC
    • -Currency SDR(Special Drawing Rights)="paper gold" $1=SDR 0.656
  17. Reasons for Protest against Global Institutions
    • *Globalization
    • -Enviromental concerns
    • -worker exploitation and domestic job losses
    • -cultural extinction
    • -higher oil prices
    • -dimishined sovereignty of nations
  18. Top 3 US trading partnersq
    • 1-Canada
    • 2-China
    • 3-Mexico
  19. History of International Trade
    • -Competing aproaches to economic development (Socialist Marxist vs Democratic Capitalist)
    • -Rapid growth of war-torn economies and previously underdeveloped countries
    • -Large-scale economic cooperation and asssitance
    • -Rising standards of living
  20. Trade Barries
    • -Tariffs
    • -Quotas
    • -Volulntary Export Restraints
    • -Boycotts and Embargoes
    • -Monetary barriers
    • -Standards
    • -Anti-dumping penalties
  21. Monetary Barriers
    • -Blocked currency
    • -Differential Exchange
    • -Goverment approval
  22. Protectionism-Governmental Procurement Policies
    • -Outsourcing and subcontracting have assumed international dimensions. International procurement organization (IPOs) opening in developing countries like India, China, Mexico, Brazil.
    • -35 US States ban outsourcing of goverment contracts
    • -World's Total market for outsourcing business growing at 9%
  23. Protectionism-Goverment Standards
    Google threatened to quit China because of strict censorhip of its search engine. China is just "protecting" their country.
  24. Non-task sounding
    part of negotiation process in which conversation topics do not include business; typically a preliminary phase of negotiations.
  25. Western decision making approach
  26. Eastern approach
  27. Cultural Orientation
    model for understanding & predicting results of intercultural encounters, i.e. how people in different cultures will speak, act, negotiate & make decisions
  28. Cultural Imperatives
    Essential friendship or trusting relationship must be established before business can begin
  29. Cultural Electives
    Behaviors that can be conformed to, but are not absolutely required. e.g. gifts
  30. Cultural Exclusives
    Foreigner must NEVER participate in these customs. customs only for locals, aliens barred, apologize if err, never joke about or criticize
  31. integral partners
    • Crucial reality of international business both host & home governments
  32. NGOs (Non-Governmental Organizations)
    Involved inrelieving human misery Plaguing parts of the world. UNICEF
  33. Common Law
    interpretation through past decisions of higher courts
  34. Code Law
    • legal system is generally divided into 3 separate codes:
    • 1.Commercial
    • 2.Civil
    • 3.Criminal
  35. Islamic Law
    • Basis for Islamic law is interpretation of Qur’an
    • Among unique aspects of Islamic law is prohibition against payment of interest
  36. Conciliation
    mediation = non-binding agreement to resolve dispute
  37. Arbitration
    parties agree to honor judgment made by mutually selected referee
  38. Litigation
    lawsuits in public courts
  39. PATENT
    a right granted to the inventor of a product or process that excludes others from making, using, or selling that invention.
    words or symbols that distinguish a product and its manufacturer. Trademark protection lasts indefinitely, provided the word or symbol continues to be distinctive.
    give creators of original works . freedom to publish or dispose of them as they like.
  42. Intellectual Property(IP)v
    refers to creations of the mind: inventions, literary and artistic works, and symbols, names, images, and designs used in commerce
  43. Antitrust Legislation
    • laws dealing with competition in business
  44. Foreign Corrupt Practices Act
    illegal for companies to pay bribes to foreign officials, candidates, or political parties
  45. National security laws
    controlled products
  46. Antitrust laws
    • protect consumers
    • protect exports & investments against private restrictions
Card Set