| A | B |
|---|
| global marketing | marketing that targets markets throughout the world |
| global vision | recognizing & reacting to international marketing opportunities |
| GDP | gross domestic product |
| gross domestic product | total market value of all final goods & services produced in a country for a given time period |
| job outsourcing | sending US jobs abroad |
| multinational corporation | company heavily engaged in international trade beyond exporting & importing |
| capital intensive | using mor ecapital than labor in the production process |
| global marketing standardization | production of uniform products that can be sold the same way all over the world |
| multidomestic strategy | when multinational firms enable individual subsidiaries to compete endependently in domestic markets |
| Mercosur | largest Latin American trade agreement |
| countries included in Mercosur | Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay & Venezuela |
| Uruguay Round | agreement to dramatically lower trade barriers worldwide created the World Trade Organization |
| World Trade Organization | trade organzistion that replaced the old General Agreement on Tariffs and Trade (GATT) |
| WTO | World Trade Organization |
| GATT | General Agreement on Tariffs and Trade |
| General Agreement on Tariffs and Trade | trade agreement that contained loopholes enabling countries to avoid trade-barrier reduction agreements |
| NAFTA | North American Free Trade Agreement |
| North American Free Trade Agreement | agreement between Canada, US & Mexico that created the world's then-largest free trade zone |
| countries involvevd in NAFTA | Canada, US & Mexico |
| CAFTA | Central America Free Trade Agreement |
| countries involved in CAFTA | Costa Rica, Dominical Republic, El Salvador, Guatemala, Honduras, Nicarague & the US |
| Central America Free Trade Agreement | trade agreement instituted in 2005 that includes central American countries & the US |
| European Union | free trade zone encompassing twenty-seven European countries |
| EU | European Union |
| World Bank | an international bank that offeres low-interest LOANS, adevice & info to DEVELOPING nations |
| International Monetary Fund | international organziation that acts as a lender of last resort, providing loans to TROUBLED nations, also works to promote trade |
| IMF | International Monetary Fund |
| Group of Twenty | forum for international economic deveolopment that promotes discussion between industrial & emerging-market countries on key issues related to global economic stability |
| G-20 | Group of Twenty |
| exporting | selling domestically produced products to buyers in other countries |
| buyer for export | intermediary in global market who assumes all ownership risks & sells globally for its own account |
| export BROKER | intermediary who plays traditional broker's role by bringing buyer and seller together |
| export AGENT | intermediary who acts like a manufacturer's agent for the exporter |
| licensing | legal process licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets or other proprietary knowledge |
| contract manufacturing | private label manufaturing by a foreign country |
| joint venture | domestic firm buys part of a foreign company or joints with a foreign company to create a new entity |
| direct foreign investment | active ownership of a foreign companyh or of oversease manufacgturing or marketing facilities |
| floating exchange rates | system in which prices of different currencies move up and down based on the demand for supply of each currency |
| dumping | sale of an exported product at a price LOWER than that charged for the same product in the home market of the exporter |
| countertrade | form of trade in which all or part of the payment for goods or services is in the form of other goods or services |
| blog | publicly accessible web page that functions as an interactive jouornal where readers can post comments on the author's entitites |
| benefits of globalization | reduction of poverty & increased standards of living |
| lowest risk when entering global marketplace | exporting |
| highest risk when entering global marketplace | direct investment |
| 5 risk levels for entering global marketplace | exporting, licensing & franchising, contract manufacturing, joint venture, direct investment |
| 4 p's | product, promotion, place, price |
