Marketing (Grewal.Levy) Chapter 8

direct investment
when a firm maintains 100 percent ownership of its plants, operating facilities, and offices in a foreign country, often through the formation of wholly owned subsidiaries
duty
same as tariff. tax levied on a good imported into a country
exchange control
the regulation of a country’s currency exchange rate
exchange rate
the measure of how much one currency is worth in relation to another
exporting
producing goods in one country and selling them in another
franchisee
operator of a franchise
franchising
a contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor
franchisor
owner of a franchise
globalization
the process by which goods, services, capital, people, information, and ideas flow across national borders
glocalization
the process of firms standardizing their products globally, but using different promotional campaigns to sell them
gross domestic product
the market value of the goods and services produced by a country in a year; the most widely used standardized measure of output
gross national income
consists of GDP plus the net income earned from investments abroad (minus any payments made to nonresidential who contributed to the domestic economy)
infrastructure
basic facilities, services, and installations needed for a community or society to function, such as transportation and communication systems, water and power lines, and public institutions like schools, post offices, and prisons
joint venture
formed when a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared
purchasing power parity
a theory that states that if the exchange rates of two countries are in equilibrium, a product purchased in one will cost the same in the other, expressed in the same currency
quota
designates the maximum quantity of a product that may be brought into a country during a specific time period
reverse innovation
when companies initially develop products for niche or underdeveloped markets, and then expands them into their original home markets
strategic alliance
a collaborative relationship between independent firms, though the partnering firms do not create an equity partnership; that is, they do not invest in one another
tariff
a tax received on a good imported into a country
trade agreements
intergovernmental agreements designed to manage and promote trade activities for specific regions
trade deficit
results when a country imports more goods than it exports
trade surplus
occurs when a country has a higher level of exports than imports
trading bloc
consists of those countries that have signed a particular trade agreement
components of a country market assessment
-economic analysis using metrics
-infrastructure and technology
-government actions
-socioculture analysis
Economic analysis using metrics
-general economic environment
-market size and population growth
-real income
infrastructure and technology
-transportation
-channels
-communication
-commerce
government actions
-tariff
-quota
-exchange control
-trade agreement
socioculture analysis
-power distance
-uncertainty avoidance
-individualism
-masculinity
-time orientation