MGKT Chapter 5 Global something...

• Recognizing and reacting to international marketing opportunities
• Using effective global marketing strategies
• Being aware of threats from foreign competitors

• Expands economic freedom
• Spurs competition
• Raises productivity and living standards
• Offers access to foreign capital, global export markets, and advanced technology
• Promotes higher labor and environmental standards
• Acts as a check on government power

• Companies operate in one country and sell into others
• Set up foreign subsidiaries to handle sales
• Operate an entire line of business in another country
• Virtual operation

Production of uniform products that can be sold the same way all over the world.

• Culture
• Natural Resources
• Economic and Technological Development
• Political Structure
• Demographic Makeup

The common set of values shared by its citizens that determine what is socially acceptable.

Complex, sophisticated industries

Basic industries

A tax levied on goods entering a country

Limit on the amount of a product entering a country

Exclusion of products from a country

Foreign exchange must be sold to a control agency

Common trade alliance

An agreement to stimulate international trade

• Began in 2001
• Highly contentious from the beginning
• Failed in summer, 2008
• First multilateral free trade act failure since WWI
• Cost of Failure: $100 billion annually

• CAFTA
• NAFTA
• European Union

• Population density
• Urban or rural
• Personal income
• Age

• Earn additional profits
• Leverage a unique product or technological advantage
• Possess exclusive market information
• Saturated domestic markets
• Excess capacity
• Utilize “economies of scale

Sell domestically produced products to buyers in other countries

Legal process allowing use of manufacturing/patents /knowledge

Private-label manufacturing by a foreign country

Domestic firm buys/joins a foreign company to create new entity

Active ownership of a foreign company/manufacturing facility

Assumes all ownership risks and sells globally for its own account.

Plays the traditional broker’s role by bringing buyer and seller together.

Acts like a manufacturer’s agent for the exporter in the foreign market.

The price of one’s currency in terms of another country’s currency.

• Trying to increase an overseas market share
• Temporarily distributing products to overseas markets to offset slack demand at home
• Lowering unit costs by exploiting large-scale production
• Attempting to maintain stable prices during periods of exchange rate fluctuations

A form of trade in which all or part of the payment for goods or services is in the form of other goods or services.

• Opening an e-commerce site puts a company in the international marketplace
• Internet Economy remains hindered by brick and mortar rules, regulations, and habits