Global Marketing Terms

Global firm
A firm that operates in more than one country which gains marketing production, R & D, & financial advantages that aren’t available to purely domestic competitors.
Tariff
Takes on certain imported products designed to raise revenue or protect domestic firms.
Quota
Limits on the amount of foreign imports that they will accept in certain product catergories.
GATT
A 62 year-old treaty designed to promote worl trade by reducing tariffs & other international trade barriers.
European Union
Set out to create a single European market by reducing barriers to the free flow of products, services, finances & labor among member countries & developing policies on trade w/non-member nations.
NAFTA
North American Free Trade Agreement, established a free trade zone amoung US, Mexico & Canada. It created a single market of 452 million people who produced & consumed 17 trillion dollar goods & services annually.
Subsistence economy
The vast majority of people engage in simple agriculture. They consume most of their output & barter the rest for simpe goods & services.
Countertrade
International trade by exchange of goods rather that by currency purchase.
Exporting
Sending goods & services to another country for sale.
Indirect exporting
working through independent international marketing intermediaries.
Direct exporting
Sellers handling their own exports.
Licensing
A method of entering a foreign market in which the company enters into an agreement w/a license in the foreign market.
Joint ownership
Consist of one company joining forces w/foreign investors to create a local business in which they share joint ownership & control.
Direct investment
Entering a foreign market by developing foreign based assembly or manufacturing facilities.
Straight product extension
Marketing a product in a foreign market without any change.
Product adaptation
Changing a product to meet local conditions or wants.
Product invention
Creating soething new to meet the needs of consumers in a given country.
Dumping
Occurs when a company either charges less than it’s costs or less than it charges in it’s home market.