MKT 11 Chapter 8 Global Marketing

Direct investment
requires a firm to maintain 100 percent ownership of its plants, operation facilities, and offices in a foreign country, often through the formation of wholly owned subsidiaries.
Duty
A tariff also called a duty is a tax levied on a good imported into a country.
Exchange control 238
refers to the regulation of a country’s currency exchange
Exchange rate 238
the measure of how much one currency is worth in relation to another.
Exporting 247
means producing goods in one country and selling them in another.
Franchisee 247
another individual
Franchising 247
is a contractual agreement between a firm, the franchisor and another firm
Franchisor 247
see above
Globalization 232
is the process by which goods, services, capital, people, information, and ideas flow across national borders.
Glocalization 252
some firms also standardize their products globally but use different promotional campaigns to sell them.
Gross domestic product (GDP) 234
the most widely used of these metrics is defined as the market value of goods and services produced by a country in a year.
Gross national income (GNI) 234
consists of GDP plus the net income earned from investments abroad.
Infrastructure 237
is defined as the basic facilities, services, and installations needed for a community or society to function, such as transportation and communications system.
Joint venture 248
is formed when a firm entering a market pools its resources with those of a local firm.
Purchasing power parity (PPP) 234
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, if expressed in the same currency.
Quota
A quota designates the maximum quantity of a product that may be brought into a country during a specified time period.
Reverse innovation 252
companies initially develop products for niche or underdeveloped markets, and then expand them into their original or home markets.
Strategic alliance 248
refers to collaborative relationships between independent firms, though the partnering firms don’t create an equity partnerships that is they don’t invest in one another.
Trade agreements
which a particular country is a signatory
Trade deficit 233
which means that the country imports more goods than it exports.
Trade surplus 234
higher level of exports than imports, because it signals a greater opportunity to export products to more markets.
Trading bloc
which it belongs