Marketing (12th edition Kerin, Hartley, Rudelius) Ch. 7

Back translation
The practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors
Balance of trade
The difference between the monetary value of a nation’s exports and imports
Bottom of the pyramid
The largest but poorest socioeconomic group of people in the world
Consumer ethnocentrism
The tendency to believe that it is inappropriate, indeed immoral, to purchase foreign-made products
Countertrade
The practice of using barter rather than money for global sales
Cross-cultural analysis
The study of similarities and differences among consumers in two or more nations or societies
Cultural symbols
Things that represent ideas and concepts
Currency exchange rate
The price of one country’s currency expressed in terms of another country’s currency
Customs
What is considered normal and expected about the way people do things in a specific country
Direct investment
A global market-entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division
Dumping
Occurs when a firm sells a product in a foreign country below its domestic price or below its actual cost
Economic Espionage Act (1996)
A law that makes the theft of trade secrets by foreign entities a federal crime in the United States
Exporting
A global market-entry strategy in which a company produces products in one country and sells them in another country (can be done directly or indirectly)
Foreign Corrupt Practices Act (1977)
A law, amended by the International Anti-Dumping and Fair Competition Act (1998), that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country
Global brand
A brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs
Global competition
Exists when firms originate, produce, and market their products and services worldwide
Global consumers
Consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services
Global marketing strategy
A strategy used by transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ
Gray market
A situation where products are sold through unauthorized channels of distribution (also called parallel importing)
Gross domestic product (GDP)
The monetary value of all products and services produced in a country during one year
Joint venture
A global market-entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company
Microfinance
The practice of offering small, collateral-free loans to individuals who otherwise would not have access to the capital necessary to begin small businesses or other income-generating activities
Multidomestic marketing strategy
A strategy used by multi-national firms that have as many different product variations, brand names, and advertising programs as countries in which they do business
Protectionism
The practice of shielding one or more industries within a country’s economy form foreign competition through the use of tariffs or quotas
Quota
A restriction placed on the amount of a product allowed to enter or leave a country
Semiotics
A field of study that examines the correspondence between symbols and their role in the assignment of meaning for people
Strategic alliances
Agreements among two or more independent firms to cooperate for the purpose of achieving common goals such as a competitive advantage or customer value creation
Tariffs
Government taxes on products or services entering a country that primarily serve to raise prices on imports
Values
A society’s personally or socially preferable modes of conduct or states of existence that tend to persist over time
World Trade Organization (WTO)
A permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions